Private & short-term · commercial bridging
Bridge between commercial transactions.
Short-term lending bridging commercial property settlements, business acquisitions, or transitions between long-term financing. Different from caveat loans in structure (often a registered first or second mortgage) and typical use case (more strategic than distressed).
What it is, when it fits
Plain English, with the trade-offs.
Commercial bridging is short-term lending between commercial transactions. Typical uses: bridging the timing mismatch between selling one commercial property and settling on another, funding a business acquisition while permanent finance is arranged, transitioning between development stages, refinancing a maturing facility while new long-term lending closes. Bridging differs from caveat lending in two ways: structure (commercial bridging is usually a registered first or second mortgage rather than a caveat-only structure) and use case (commercial bridging is typically strategic timing rather than distressed urgency). Pricing reflects short-term private lending: 8% to 15% p.a. plus establishment fees. Loan sizes $250K to $20M, terms 1 to 12 months. Exit strategies are critical: bridge lending without a credible exit is the wrong product. Lenders test the exit (refinance, sale, transition completion) at underwriting and won't proceed without confidence in it.
Hands reviewing finance documents over a paper-strewn table.
Typical scenarios
Commercial property sale-and-purchase timing mismatch
Why: Buying new premises before selling existing; settlement gap.
Outcome: $2M bridge, 6-month term, exited on existing-property settlement.
Business acquisition pre-refinance
Why: Acquisition opportunity, permanent debt 4 weeks behind acquisition timing.
Outcome: $1.5M bridge, 3-month term, refinanced at permanent debt settlement.
Transition between development stages
Why: Land banking facility maturing, development finance approval pending.
Outcome: $3M bridge, 4-month term, exited as development finance settled.
Refinancing maturing facility
Why: Existing private lender exiting, new bank loan approved with timing gap.
Outcome: $1M bridge, 2-month term, exited cleanly on bank settlement.
Lenders for this product
Who we work with.
- Liberty Commercial
- La Trobe Financial
- Assetline Capital
- Stamford Capital
- Fortis Capital
Lender accreditation varies; not every lender is available for every deal. We pick from the panel based on your specific situation.
How it works
From brief to settlement.
- 01
Exit strategy assessment
Before lender introduction we assess the exit. Bridge without a credible exit is the wrong product; we say so directly when that's the case.
- 02
Lender selection
Five to six specialist lenders cover most commercial bridging. We match deal size, security, and exit profile to the right lender.
- 03
Approval and documentation
Approvals typically return within 5 to 10 business days. Registered-mortgage settlement is slower than caveat (1 to 3 weeks total).
- 04
Settlement and exit coordination
Bridge settles, exit milestone tracked, payout coordinated at exit. Most facilities run their full term; some exit early when transitions accelerate.
Indicative pricing & terms
Ranges, not promises.
Rate range
8 to 15% p.a. plus establishment fees
Loan size
$250K to $20M
Term
1 to 12 months
Security
Registered first or second mortgage; sometimes additional collateral
Indicative only; specific pricing depends on lender, security, and your business profile.
Frequently asked
Honest answers, plain English.
Bridging vs caveat lending?
Caveat lending is typically faster (days to settle) but caveat-only security is structurally weaker. Commercial bridging is usually a registered first or second mortgage, slower to settle (1 to 3 weeks) but cheaper rate and stronger structurally.
Exit strategy requirements?
Critical. Bridge without a credible exit is the wrong product. Lenders test exit (refinance approved, sale contract exchanged, transition completion documented) at underwriting and won't proceed without it.
Asset coverage requirements?
Usually 60% to 70% LVR on residential, 60% to 65% on commercial, lower on specialised property. Conservative LVR reflects the short term and need for buffer if exit slips.
When bridging beats long-term refinance?
When timing matters more than rate. Bridging at 12% for 4 months ($40K total cost on $1M) often beats waiting 6 weeks for permanent refinance at 7% if the underlying transaction would otherwise fail.
Costs of getting it wrong?
Substantial. Bridge extensions usually trigger material extension fees and rate increases. If exit fully fails, the lender enforces, often at significant loss to the borrower. We don't recommend bridging without a robust exit.
Pre-approval vs sale-of-asset triggers?
Most bridge lenders require evidence of the exit (refinance pre-approval letter, exchanged sale contract, transition documentation) before settlement. Some accept conditional triggers but pricing reflects the higher risk.
Related products
If this isn't quite the fit.
Next step
Twenty minutes, no obligation.
Tell us the shape of the deal and the timing. We'll send a lender shortlist for commercial bridging or, if it isn't the right fit, an honest signal of what is.