Commercial Bridging Finance

Commercial Bridging Finance is a short-term loan — typically 1 to 12 months — secured against commercial or residential property, designed to bridge a timing gap between two financial events. It is widely used in Australian commercial lending when a business or investor needs to settle a purchase before completing a sale, refinance, or development approval.

Why It Matters

Timing mismatches kill deals. Commercial bridging finance exists so business owners and property investors don't lose a purchase because their bank is still processing, or because they haven't yet sold another asset. It sits in the same specialist lending category as Private Lending and Caveat Loans, and is often arranged through a broker with access to private and non-bank lenders.

How It Works

The borrower identifies a timing gap — for example, needing to settle a purchase before an existing property sale completes.
A bridging lender advances funds secured against property (the existing asset, the new asset, or both).
Interest is typically capitalised into the loan rather than paid monthly.
The loan is repaid when the exit event occurs — usually a sale, refinance, or drawdown from a longer-term facility.

Common Use Cases

Buying a new commercial property before selling an existing one
Settling a Notice to Complete deadline to avoid contract rescission
Funding a deposit or settlement while waiting on bank refinance approval
Short-term funding for auction purchases requiring fast settlement
Bridging between DA approval and construction finance drawdown

Related Switchboard Resources

For general guidance on commercial lending, visit asic.gov.au.

How long does commercial bridging finance last?

Most bridging facilities run from 1 to 12 months. Some specialist lenders offer up to 24 months depending on the exit strategy and security position.

What security is required?

Bridging loans are secured against real property — residential or commercial. LVR is typically capped at 65–75% of the property's value.

Can I get bridging finance with bad credit?

Yes — many private lenders assess bridging deals primarily on security value and exit strategy rather than credit score. A clear exit strategy is more important than a clean credit file.