Gap Financing for Real Estate, M&A and Trade
Gap Financing
Gap financing provides the capital required to close a transaction when senior debt and sponsor equity do not cover the full funding requirement. Also known as interim, mezzanine, or top-up financing, these facilities are critical for closing real estate acquisitions, completing project budgets, or securing working capital until a long-term structure is finalized.
What Gap Financing Covers
Gap financing solutions are designed to cover shortfalls between primary funding sources and the total capital required. Common scenarios include real estate developers missing 10–20% of required equity, businesses raising bridge loans pending permanent financing, and project sponsors needing interim funding until tax credits or grants arrive.
Types of Gap Financing
Mezzanine Loans
Subordinated debt that sits behind senior loans but ahead of equity. Provides flexible repayment and higher returns for lenders.
Preferred Equity
Equity infusion with priority return rights over common equity. Often used in real estate and corporate structures.
Bridge Loans
Short-term loans to close acquisitions or refinance existing debt until a long-term facility is arranged.
Industries & Use Cases
Gap financing applies across industries where timing or equity shortfalls create funding pressure.
Real Estate
Acquisitions, development, construction cost overruns, and refinancing gaps.
Project Finance
Renewable energy, infrastructure, and industrial projects with delayed equity or grant inflows.
Corporate Finance
Working capital needs, acquisition financing, or balance sheet top-ups for mid-market businesses.
Gap Financing Instruments
| Instrument | Size Range | Purpose |
|---|---|---|
| Mezzanine Debt | $5M – $100M | Cover 10–20% equity shortfalls in real estate or corporate transactions |
| Preferred Equity | $2M – $50M | Top-up equity contributions without diluting control entirely |
| Bridge Loans | $5M – $75M | Close acquisitions or refinance until long-term debt arrives |
Our Process
Clients engage us with a retainer. We define the funding shortfall and confirm suitability for gap financing structures.
We assess senior loan terms, sponsor equity, collateral, and projected cash flows. This determines the structure and lender appetite.
We present the transaction to specialty lenders and funds with forward-flow commitments for mezzanine, bridge, and preferred equity.
We manage lender negotiations, documentation, and term sheet auctions until the gap facility is finalized and funded.
Illustrative Transactions
Real Estate Acquisition
$18M acquisition funded with senior debt covering 70% and sponsor equity at 15%. We arranged $2.5M mezzanine financing to close the deal.
Renewable Energy Project
$65M wind farm faced equity delays. A $10M preferred equity injection bridged the shortfall until tax equity closed.
Corporate Working Capital
Mid-market manufacturer secured $8M bridge loan to fund supply chain until receivables were collected.
Why Choose Our Gap Financing Services
- Access to specialty lenders, mezzanine funds, and private equity groups
- Forward-flow commitments ensure real liquidity, not speculative outreach
- Structured underwriting and transparent reporting throughout the process
- Average closing time of 6–12 weeks, depending on documentation readiness
- Transactions closed across real estate, energy, and corporate sectors
Request a Proposal
If your deal is short of equity or waiting on long-term funding, gap financing can close the shortfall. We arrange mezzanine loans, bridge facilities, and preferred equity injections. Retainers start at $25,000 with success fees agreed per mandate.
Request a ProposalFrequently Asked Questions
What is the minimum deal size?
Our gap financing mandates typically start at $2 million. Smaller transactions may not justify costs of structuring and legal documentation.
Do you guarantee funding?
No. We operate on best efforts with structured underwriting and a clear lender distribution process.
What are the fees?
We charge a retainer starting at $25,000 and a success fee payable at closing. Fees vary with deal size and complexity.
How fast can you close?
Most gap financing closes within 6–12 weeks depending on readiness of documentation, counterparty diligence, and collateral.
Can gap financing replace equity entirely?
No. Lenders expect sponsors to maintain skin in the game. Gap financing complements but does not replace equity contributions.
What types of lenders provide gap financing?
Specialty debt funds, mezzanine funds, private equity firms, and family offices. Each has its own return expectations and covenants.
Financely is an advisory and placement firm. We arrange gap financing solutions through specialty lenders and institutional investors. All financings are subject to due diligence, credit approval, and executed documentation. Engagement fees are non-refundable.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
Trade Finance
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Submit a RequestProject Finance
Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
Submit a RequestAcquisitions
Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
Submit a RequestFor Banks
Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
