Bridge Loans
A commercial bridge loan is short-term capital designed to close a transaction when timing is the enemy.
You use it to acquire, refinance, stabilize, or complete a transition, then exit into longer-tenor debt or a sale.
This is not consumer lending. It is purpose-built funding for commercial assets and operating businesses.
Close now, clean up later. A bridge facility buys time to execute an exit, protect a closing date, and avoid losing the deal to slow credit committees.
When a Bridge Loan Makes Sense
Bridge financing is expensive relative to permanent debt. It earns its keep when delay costs more than the rate.
The best bridge deals have a clean collateral story, a realistic exit, and a borrower that can move fast with documentation.
Commercial Real Estate closings
- Acquisition bridge when bank timing does not match the PSA.
- Refinance bridge to cure maturity or replace a lender under stress.
- Bridge-to-perm when occupancy or NOI needs seasoning.
- Capex and light value-add when proceeds are tied to a plan and a budget.
M&A and business acquisition bridges
- Fast close for an LOI or APA where conventional leverage will miss the deadline.
- Seller fatigue situations where speed is the leverage point.
- Bridge to SBA, unitranche, or bank refinance after integration and reporting clean-up.
- Bridge against hard collateral plus a defined takeout plan.
Trade-driven bridge use cases
- Working capital bridge while a structured trade facility is being arranged.
- Bridge secured by eligible receivables, inventory, or contracted cash flows.
- Temporary liquidity to execute a shipment cycle and move into a borrowing base.
What is not a fit
- “No-doc” deals and vague stories with no exit.
- Borrowers who cannot produce bank statements, corporate docs, and a clear use-of-funds.
- Situations where the only plan is “we will refinance later” with no pathway.
- Residential consumer purposes.
Typical Structures and What Lenders Underwrite
Terms vary by jurisdiction, asset class, leverage, and sponsor profile. Still, most credit decisions come down to five questions.
If one of these is weak, price goes up or the deal dies.
1) Collateral quality
- What secures the loan and how clean is the lien path.
- Valuation support: appraisal, comps, rent roll, or asset schedule.
- Control points: accounts, cash management, insured interests, collateral access.
2) Exit plan
- Sale, refinance, takeout facility, or permanent financing.
- Proof the exit exists: lender conversations, DSCR path, stabilization plan, timeline.
- What happens if the exit is delayed and what reserves exist.
3) Sponsor strength
- Track record, liquidity, contingent liabilities, and decision speed.
- Recourse position, guarantees, and carve-outs where applicable.
- Prior experience with the asset type and business model.
4) Uses and controls
- Clear sources and uses that match the bridge purpose.
- Draw controls for capex and third-party payments.
- Covenants and reporting that match risk.
What Financely Delivers
Financely acts as advisor and arranger. We are not a bank or a direct lender.
We underwrite the file, package it to lender standards, and run a controlled term sheet process through regulated partners.
For broader coverage, see What We Do
and Pricing.
Underwriting and packaging
- Credit narrative built around collateral, exit, and downside controls.
- Lender-ready data room checklist and document clean-up plan.
- Sources and uses, timeline, and closeability risk check.
Term sheet control
- Targeted outreach to appropriate bridge lenders and desks.
- Term sheet comparison across leverage, pricing, covenants, and timing.
- Coordination of third-party reports and legal workflow to closing.
Process and Timeline
Bridge debt moves fast when the borrower is organized. It moves painfully slow when documentation is scattered or the exit is fuzzy.
A standard workflow looks like this:
- Day 1 to 2:
initial underwriting call, document request list, and feasibility check.
- Day 3 to 5:
packaging, lender matching, and structured outreach.
- Week 2:
indicative terms, lender Q&A, and third-party report ordering.
- Weeks 2 to 4:
legal docs, conditions, funding, and post-close controls.
What We Need From You
If you want speed, start with the basics. The document list depends on whether the bridge is tied to commercial real estate, an acquisition, or a trade-driven asset base, but these items come up in nearly every mandate:
Borrower and sponsor
- Entity docs, ownership, and authorized signers.
- KYC, AML, and sanctions screening materials.
- Bank statements and a liquidity snapshot.
- Track record and prior deal references where relevant.
Deal file
- PSA or LOI, closing timeline, and deposit details.
- Use-of-funds and any capex budget with contractor scope.
- Financials and KPIs for operating businesses.
- Rent roll, T-12, appraisal status, insurance, and property profile for commercial real estate.
Fees and Economics
Bridge lenders price risk and speed. Expect lender economics such as interest, origination points, legal costs, and third-party reports.
Our advisory fees depend on scope and complexity. Published ranges and packaging options are available on Pricing.
If the deal requires regulated execution, we bring in appropriately licensed partners as part of the close.
Common Reasons Bridge Deals Fail
- No credible exit:
the takeout is hope, not a plan.
- Weak documentation:
missing statements, unclear ownership, or inconsistent numbers.
- Collateral uncertainty:
lien issues, title problems, or valuation gaps.
- Slow sponsor:
delays in providing docs or signing conditions kill momentum.
- Misaligned expectations:
asking for permanent-debt pricing on transitional risk.
Need a Bridge Facility Fast?
If you have a time-sensitive commercial closing and a defined exit plan, submit your mandate.
We will revert with a scoped quote and next-step document list.
Apply For A Quote
Disclaimer: This page is for general information only and does not constitute advice, an offer, or a solicitation.
Financely acts as advisor and arranger through regulated partners and is not a bank or direct lender.
Any transaction is subject to diligence, KYC, AML, sanctions screening, legal review, and approvals by relevant stakeholders.
Terms, timing, and availability depend on asset, jurisdiction, borrower profile, and lender discretion.