Bridge Loans For Business Acquisitions
Close on time, then refinance. A well-structured acquisition bridge gives you speed to signing and clean collateral so permanent lenders say yes later. We scope the facility, build the bank file, source competitive terms, and ride the closing with you. No fantasies. Just a deal that clears credit and funds.
When a bridge loan makes sense
Clock pressure
Seller sets a hard date. HSR or regulatory approvals are pending. Your long-term lender needs more time. The bridge covers signing to takeout.
Complex capital stack
Unitranche, SBA, or bank club is in progress. Use a short tenor facility to close and avoid retrade risk while diligence finishes.
Seller dynamics
Earnouts, holdbacks, or partial seller paper need a senior solution on day one. A bridge aligns incentives and keeps you in control.
What we arrange
Holdco senior bridge
Secured on target shares with downstream guarantees where permitted. Clean takeout path to term debt.
Acquisition ABL + term bridge
ABL on working capital and a short tenor term piece on fixed assets or cash flow. Works for asset-heavy targets.
Mezzanine bridge
Second-lien or unsecured with PIK features and warrants if needed. Sized to fill equity gaps without killing covenants.
Seller note bridge
Refinances or backstops vendor paper at close so you keep the deal clean and avoid seller consent on future changes.
Typical terms snapshot
Tenor and sizing
3 to 18 months. Size to purchase price, fees, and near-term capex. Delayed draw available on some files.
Advance rates
40 to 70 percent of enterprise value depending on cash flow, asset base, and takeout certainty. Higher with real collateral support.
Pricing and fees
Market-based coupons plus OID and arrangement fees. Prepayment premiums step down on scheduled windows.
Who qualifies
Buyer profile
Post-revenue companies and acquisitive sponsors with clean KYC. Preference for platforms with EBITDA above $10M and a credible takeout plan.
Target profile
Predictable cash flow, customer concentration within reason, audited or review-level financials, no unresolved tax or legal bombs.
What credit committees actually check
Use of proceeds and structure
SPA, sources and uses, security package, intercreditor, escrow and earnout mechanics, and clean takeout mapping.
Cash flow and leverage
Pro forma EBITDA, seasonality, capex, working capital needs, coverage on cash and PIK if present.
KYC and governance
Ownership map, sanctions, related parties, board control, and step-in rights on default.
Process and target timeline
1
Scope and structure
Map the stack, collateral, and takeout. Align with the SPA and timeline. Issue the data list on day one.
2
Market testing and term sheets
Circulate to lenders, capture pricing and covenants, negotiate protections. Shortlist the best fit and lock the path to docs.
3
Documentation and CPs
Facility agreement, security docs, intercreditor, legal opinions, insurance, and completion tests cleared for funding.
4
Closing and monitoring
Funds released, covenants tracked, takeout milestones managed so the refinance lands on schedule.
If equity is light, here are credible paths
- Bring a counter-guarantee from a stronger parent or a rated insurer
- Pledge marketable securities or post a cash margin to improve advance
- Add an ABL on working capital and size the term bridge to enterprise value
- Resize the transaction or stage the purchase to match provable cash flow
Documents lenders expect to see
Core file
SPA draft, sources and uses, 24 to 36 months financials, QoE if available, org charts, ownership map, and compliance certificates.
Collateral and controls
Security package term sheet, lien searches, intercreditor framework, insurance schedule, key supplier and customer contracts.
Need a bridge loan to close your acquisition?
We arrange acquisition bridges for qualified buyers. Scope the structure, build the lender file, source terms, and close.
- Senior, unitranche, or mezzanine bridge mapped to your takeout plan
- Real underwriting with bank-ready documents and investor access
- Hands-on coordination from IC to funding
Request Terms For Your Acquisition
Financely acts as an arranger on a best efforts basis. We are not a bank. Eligibility depends on KYC and AML, sanctions screening, and credit approval by our partners. Nothing on this page is a commitment to lend or to buy securities.