Commercial Bridging Loans
We arrange commercial bridging loans from $250k to $100m+ with quick approvals and settlements. Bridge the gap between property transactions with flexible short-term finance from specialist lenders.
We’ll handle the complexity while you seize the opportunity.
Commercial bridging loans at a glance
Commercial bridging rates currently sit at 7.60% - 13.25% p.a. The band is wide because bridging is priced on the risk and the speed of each deal, not a standard rate card.
The floor of 7.60% is generally reserved for a closed bridge with a contracted exit, a first mortgage over good security and a conservative LVR. The upper end applies to open bridging with no contracted sale, higher LVRs, second-mortgage positions, or funds that must settle in days through a private lender. Of course, your actual rate will depend on the specifics of your deal, your security and your chosen lender.
The point most borrowers miss: with a short-term facility the headline rate matters less than the term and the establishment fee. The real number is the total cost over the bridge, not the rate per annum.
- Interest rates 7.60% - 13.25% p.a.
- Loan term 6 - 12 months
- Indicative approval 48 to 72 hours
- LVR range 65% - 80%
- Security 1st or 2nd mortgage
- Exit strategy Sale or refinance
- Loan range $500k to $100M+
- Settlement 7 to 21 days
- Lender panel 60+ specialist lenders
All information is general guidance only. Your actual rate, term and LVR depend on your security, your exit strategy, your lender and your circumstances, and may differ from those on our commercial property loan interest rates page. Not financial advice. Please read our important disclaimer.
Is a commercial bridging loan right for you?
A commercial bridging loan is short-term finance, usually 6 to 12 months, that covers the gap between two property transactions. It is secured against property and repaid by a clear exit, either the sale of an asset or a refinance to longer-term finance. In our experience it fits three situations, all of them driven by timing. If you are not under time pressure, or you need to fund a build rather than bridge a gap, a different product is the better fit and we point you to it below.
A commercial bridging loan is the right fit if you're:
A business owner buying premises before selling
You have found the right premises for your business and need to secure it now, before your existing property has settled. A bridge covers the gap so you avoid a rushed sale or a disruptive double move.
An investor moving on a time-critical deal
An auction or off-market opportunity has come up and the timeline is tighter than a standard approval allows. A bridge lets you settle now and arrange your long-term commercial mortgage over the months that follow.
A developer securing a site
You need to lock up a development site at auction or private sale before the DA is approved. A bridge holds the site now and converts to construction or development finance once your plans and approvals are in place.
Over 60 business lenders. One specialist broker.
Our lending panel includes major banks, regional banks, specialist non-bank lenders, and private credit providers, including lenders who only deal through accredited brokers directly.
Nadine Connell
Commercial Finance Broker
How a commercial bridging loan works
A commercial bridging loan moves fast because it is assessed differently from a long-term loan. Rather than testing your serviceability in depth, the lender looks at the security and, above all, the exit, because the exit is how the facility repays. Interest is usually capitalised rather than paid monthly, which preserves your cash flow during the bridge. Here is how a typical bridge runs, from the moment the clock starts to the day it is repaid.
When a commercial bridging loan makes sense
A commercial bridge is defined by the situation and the exit, not the type of property securing it. These are the scenarios where a bridge does its job: a deal with a deadline, a timing gap between two transactions, or a window that closes before standard finance can move. We arrange each one across 60+ specialist lenders, matched to how quickly you need to move and how the facility will be repaid.
Auction purchases
- 10% deposit due on the fall of the hammer
- Unconditional 28-day settlement, no finance clause
- No time for a standard bank approval
Approval in 48 hours, settled within auction terms
Discuss an auction bridgeBuy before you sell
- Secure the right premises first
- Avoid a rushed or discounted sale
- No disruptive double move
Bridge for 6 to 12 months, repaid on sale
Discuss a buy-before-sell bridgeDevelopment site acquisition
- Secure the site immediately
- Arrange the DA while the bridge runs
- Convert to construction or development finance
Hold a strategic site ahead of approval
Explore development financeSettlement date mismatch
- Your sale is delayed by a few months
- The purchase settlement can't be extended
- Protect the deposit you've already paid
Bridge the gap between the two settlements
Discuss a settlement bridgeBusiness expansion
- A new premises opportunity appears
- A strategic location opens up
- You need to move before a competitor does
Move quickly, refinance to a term loan after
Explore commercial property loansRefinance delays
- Your existing facility is expiring
- The incoming refinance is running late
- Avoid lender default rates
Bridge until the refinance completes
Explore commercial refinancingWhat lenders look for in commercial bridging finance
Bridging is assessed differently from a long-term loan. Rather than testing your serviceability in depth, lenders underwrite the security and the exit, because the exit is how the facility repays. Five factors drive most decisions, and the quick check gives an indicative read on where you sit.
-
01
A clear, credible exit The exit is the single most important factor in any bridge, because it is how the facility repays. A contracted sale or a refinance pre-approval is the strongest position. A property listed for sale or a refinance in progress is workable. A bridge with no firm exit yet narrows the lender pool sharply and is priced accordingly.
-
02
The security backing the loan Bridging is asset-based, so the property carries the deal. Standard commercial property in a strong location, such as metropolitan office, retail or industrial, gives lenders the most confidence. Specialised, single-use or hard-to-value assets narrow the pool, because a slower resale weakens a sale-based exit.
-
03
Loan to value ratio (LVR) Most bridging sits at 50% to 65% LVR on a first mortgage. Lower gearing opens up more lenders and sharper rates. Higher gearing, or a second mortgage taking combined LVR toward 75%, is available through specialist and private lenders at a higher rate.
-
04
Timeline to exit Bridging is short-term by design, usually 6 to 12 months. A short, clearly dated exit is the strongest position. A longer or open-ended timeline, where the exit date is uncertain, raises the lender's risk and the rate, and is better suited to private capital.
-
05
Funds for deposit and costs A bridge covers the gap, not the entire purchase. Lenders want to see you can fund the deposit, stamp duty and transaction costs, with the bridge sized to the genuine shortfall. The more of your own funds in the deal, the broader the lender pool and the better the terms.
Quick eligibility check
Five questions, takes about 30 seconds
How will the bridge be repaid?
The exit is the first thing a lender assesses, because it is how the facility repays.
What property will secure the bridge?
Bridging is asset-based, so the security and its marketability carry the deal.
What LVR do you need across your security?
Lower gearing opens up more lenders and sharper rates. Combined LVR counts where a second mortgage is involved.
How soon will your exit complete?
Bridging is short-term by design. A short, clearly dated exit is the strongest position.
Can you fund the deposit and transaction costs?
A bridge covers the gap, not the whole purchase. Lenders want to see the deposit and costs are covered.
Commercial bridging assessment
Analysing your bridging finance eligibility...
Commercial bridging loan features by lender type
The right lender for a bridge depends on how fast you need to settle, the LVR you need and how firm your exit is, as much as your borrower position. Each category brings a different rate, a different speed and a different tolerance for higher gearing or an open exit. Major banks rarely write true commercial bridging, so the market sits across non-bank, specialist and private lenders.
| Feature | Bank and non-bank lenders | Specialist bridging lenders | Private capital |
|---|---|---|---|
| Maximum LVR | Up to 60% to 65% | Up to 70% | Up to 75% to 80% with structuring |
| Indicative rate | Lower end of the range | Mid-range, priced to risk | Top of the range, priced for speed |
| Approval timeframe | 1 to 2 weeks | 3 to 7 days | 48 to 72 hours |
| Exit flexibility | Contracted exit usually required | Clear exit, some flexibility on form | Open bridging considered, no contracted exit needed |
| Security accepted | First mortgage, standard property | First or second mortgage | First or second, flexible on property type |
| Loan size sweet spot | $1M to $100M+ | $500k to $50M | $500k to $30M |
| Interest treatment | Monthly or capitalised | Capitalised, typically | Capitalised or prepaid options |
| Best suited for | Clean deals with a contracted exit, lower LVR and time to spare on approval | Most standard bridges, moderate LVR, a clear exit and a quick turnaround | Speed-critical deals, higher LVR, open exits or complex security |
Commercial bridging loan fees and costs
Bridging is priced for speed and the short term, so the headline rate looks higher than a long-term loan. What matters is the all-in cost over your actual hold period, not the rate per annum. The list below is what a fully costed bridge looks like, and where the real cost sits.
| Interest | 7.60% - 13.25% p.a. | The largest cost on most bridges, usually capitalised so nothing is paid during the term. The length of the bridge matters as much as the rate: nine months costs roughly 50% more than six, so compare the total cost over the term, not the rate per annum. |
|---|---|---|
| Establishment fee | 1.5% to 2.5% of facility | Charged upfront by the lender to set up the facility, often capitalised into the loan rather than paid in cash. On a $2M bridge, a 2% establishment fee is $40,000. It is the largest fee on most bridges, so it belongs in your cost comparison from the start. |
| Valuation | $1,500 to $5,000 | An independent valuation of the security. For speed, a desktop or short-form valuation is often acceptable on a straightforward bridge, which keeps both the cost and the timeline down. |
| Legal and documentation | $2,000 to $5,000 | Loan and security documentation, mortgage preparation and registration. Simpler than a development facility, since a bridge is a single advance against existing security. |
| Exit or discharge fee | 0% to 1% of facility | Charged by some lenders when the facility is repaid. Most specialist bridges carry no early-repayment penalty, so you can exit the moment your sale or refinance completes. Worth confirming before you sign, not after. |
| Broker fee | Typically nil | In most cases we are paid by the lender on settlement, at no cost to you. On some private-lender bridges a fee may apply, and where it does we disclose it upfront before you commit to anything. |
What will a commercial bridge cost you?
Enter the property you're buying, the exit property you're selling and the finance terms you've been quoted. The estimate updates as you type, showing how much you need to borrow, the total cost over the term, and whether the loan-to-value ratio sits inside what bridging lenders accept. Call 1300 262 098 for a free consultation.
Indicative estimate only, not a loan offer or financial advice. Results may be inaccurate. The bridge is assumed to fund the purchase less your deposit and to pay out the existing mortgage on the property you are selling. Interest is estimated as simple interest on the bridge amount across the term, and added to peak debt where capitalised. The establishment fee shown is an illustrative estimate and varies by lender. Buying costs such as stamp duty are not included here, estimate them with our stamp duty calculator. LVR is peak debt against the combined value of the security offered. Your actual figures will depend on a full lender assessment. For more, visit our commercial property loans hub.
6 mistakes that cost the most on commercial bridging finance
These six come up again and again on Australian bridging deals. Each one can cost tens of thousands of dollars, narrow your lender pool, or turn a fundable bridge into a decline. Here is how each one happens, and what to do instead.
What our clients say
Every client works directly with Nadine. Here is what some of them said about the experience.
How a Gold Coast business owner won a $2.06M warehouse at auction, before selling the old premises
A warehouse won at auction with an unconditional 14-day settlement. An existing premises still weeks from its own sale. A 90-day bridge that settled on time and protected the deposit.
A trade-supply business on the Gold Coast had outgrown its premises for years. When a 1,100 square metre warehouse came up at auction in Arundel, larger, better positioned and rarely available, it was exactly the site they needed. The catch was the terms: an unconditional sale on the fall of the hammer, a 14-day settlement and no finance clause. Their existing premises was on the market but realistically still seven weeks from its own settlement.
A standard commercial purchase loan could not move in 14 days, and their bank would not lend against the new warehouse while the existing property and its mortgage were still on the books. Selling first was not an option, because the auction would not wait. Without a way to settle on time, the 10% deposit of $206,000 paid on the day was the thing at risk, and the warehouse would pass to the next bidder.
We placed the deal with a specialist lender on our panel as a short-term bridge secured across both properties. Indicative approval came back inside 48 hours, and a facility of around $2.1M settled the warehouse inside the 14-day deadline. Interest was capitalised over a 90-day term, so there were no monthly repayments to find while both properties were held, and the facility carried no early-repayment penalty.
The existing premises sold 42 days later. The bridge was repaid in full from the proceeds, the facility was discharged with no penalty, and the total interest over the 42 days the bridge actually ran came to around $22,400. The deposit was never at risk, the business moved into a warehouse nearly double its old footprint, and turnover lifted around 22% in the first year on the larger site.
Figures are illustrative of a representative commercial bridging scenario, not a specific client. This is general information only, and your circumstances will differ. Speak to your accountant or a qualified adviser before making any finance decisions.
Ready to discuss your commercial property finance options?
Book a free consultation today. I'll work through your specific deal, talk you through your lender options, and help you all the way from application to settlement. No obligation. No upfront fees.
- 1 Consultation. We review your deal, the property and your numbers.
- 2 Market approach. We approach the lenders most likely to write your deal.
- 3 Your options. You compare offers, choose, and we manage through to settlement.
Commercial bridging finance questions, answered
The questions Australian business owners and investors most often ask me about bridging a property purchase, a settlement or a timing gap.
Bridging finance basics
What is a commercial bridging loan?
A commercial bridging loan is short-term finance that covers a timing gap, usually six to twelve months, secured against commercial or investment property. It lets you act on a purchase, a settlement or an opportunity now, then repay the loan later from a defined exit such as the sale of another property or a refinance.
A bridge is assessed mainly on the security and the exit, not on your serviceability, because it repays from a single event rather than ongoing cash flow. It sits within our commercial property loans range as the fast, short-term option.
How is bridging different from a standard commercial loan?
The difference comes down to time, and to how the loan repays.
- A standard commercial property loan is long-term, services from your cash flow, and takes weeks to settle. It suits buying and holding a property.
- A bridge is short-term, interest-only or capitalised, and can settle in days. It repays from a single event, your sale or refinance, not from ongoing income.
A bridge costs more per month, because you are paying for speed and flexibility over a short window. If you have time and want the lowest rate, a standard commercial property loan is the better tool. If your end goal is a build rather than a purchase, commercial construction finance is the right structure instead.
Can I get bridging finance with no property to sell?
Yes, as long as you have enough equity in other property or assets to secure the loan, and a clear way to repay it. The exit does not have to be a sale. A refinance to a longer-term facility, a capital raising, or the sale of a different asset all work.
Lenders assess your total security position and usually look for an LVR below 65% across all securities, plus an evidenced exit plan. We help you put that plan together before you apply.
Using bridging finance
Can I use bridging finance for auction purchases?
Yes, and it is one of the most common uses. Auction contracts are unconditional with no finance clause, so you need certainty of funds before you bid and the ability to settle inside the auction terms, often 28 days or less.
We can usually arrange indicative approval before auction day, with formal approval inside 48 to 72 hours of a winning bid, and settlement in as little as 7 to 21 days (actual timeframes vary by lender). The key is to line the bridge up before you raise your hand, not after.
Is bridging available for off-the-plan purchases about to settle?
Yes. If your original finance has fallen through, or you need more time to sell an existing property before an off-the-plan settlement lands, a bridge can cover the gap. The completed property provides the security.
You will need the contract and evidence that completion is imminent, and most lenders want the exit to land within about three months.
Is bridging finance available for development sites?
Yes. Developers often use a bridge to secure a site quickly, especially at auction or where a vendor wants a fast unconditional settlement, then move to a longer-term facility once plans and approvals are in place. The bridge holds the position while the next step is arranged.
You will generally need clear development plans, and a development application that is approved or well progressed helps. Site bridges sit toward the higher end of the bridging rate range, because the exit, a build or a sale, is further out. When the bridge converts, it usually rolls into property development finance or commercial construction finance.
Can I use bridging for business cash flow while I wait on invoices?
Usually not. Bridging is property-secured finance built around a property event, not a working-capital tool. If the real issue is cash flow while you wait on invoices, invoice finance is almost always the better fit.
That said, if you hold property equity and have a genuine short-term gap with a clear repayment event, a bridge can occasionally serve as emergency funding. It is worth talking through which tool actually fits the problem before committing to either.
Rates, costs and repayment
What does a bridging loan actually cost, all in?
The all-in cost is more than the headline rate. A typical bridge carries:
- Interest, currently around 7.80% - 13.25% per annum, charged monthly or capitalised
- An establishment fee of 1.5% to 2.5% of the facility
- A valuation fee, often $1,500 to $5,000
- Legal and documentation costs, often $2,000 to $5,000
- An exit or discharge fee, which most specialist bridges do not charge
Because interest accrues over the whole term, the length of the bridge matters as much as the rate. The calculator on this page works out the total for your specific deal, including the interest over your actual hold period.
Are bridging loan rates negotiable?
To a point, yes. Your rate is driven by the LVR, the loan size, how clear and well-evidenced your exit is, and your track record. A strong application with a contracted exit and a lower LVR, under 60%, gives us real room to negotiate.
As your broker, we present the deal to the lenders most likely to price it sharply, rather than you approaching one lender and taking their first number.
Do I pay the interest monthly, or at the end?
You usually have three options: pay the interest monthly, capitalise it by adding it to the loan and paying it all at exit, or prepay it at settlement. Most borrowers capitalise, because it keeps cash free while the bridge runs, though it does increase the total cost since interest then accrues on a rising balance.
Each option can have different tax consequences, so confirm the treatment with your accountant. The ATO sets out when interest on a business borrowing is deductible, including the commercial context the funds are used in.
Exit, risks and getting started
What happens if my property sale falls through while I have a bridge?
This is exactly why we assess the exit so carefully up front. If a sale falls through, the usual paths are to find another buyer, refinance the bridge into a longer-term facility, or sell a different asset to repay it. Most lenders grant a short extension, often three to six months, though the rate can step up while it runs.
The protection against this is a backup exit agreed before you draw the loan. We build a primary and a fallback exit into every bridge we arrange, and a commercial refinance is often the natural fallback.
How quickly can I exit a bridge, and are there penalties?
You can usually exit the moment your sale settles or your refinance is ready. Most specialist bridges carry no early-repayment penalty after the first month, though some set a minimum term of around three months.
That flexibility is the point of a bridge, so you should not be paying for months you do not use. We confirm the early-repayment terms before you sign, so there are no surprises when your exit lands early.
What are the main risks with bridging finance?
The main risks all trace back to the exit:
- The property does not sell as quickly as planned
- It sells for less than expected, leaving a shortfall
- A planned refinance does not complete
- Interest accrues for longer than budgeted and eats into the result
None of these are reasons to avoid a bridge, but they are reasons to size it conservatively and to hold a fallback exit. We model a realistic timeline and a backup plan into every deal, so a slipped sale does not become a crisis.
How do I find out if a bridge is right for my deal?
The eligibility check and the calculator further up this page give you a fast read on the LVR, the cost over your term, and whether your exit stacks up. Both take about a minute.
For a deal-specific answer that factors in your property, your timeline and your exit, call us on [sbp_phone] or book a free consultation. Smart Business Plans has arranged over $550 million in commercial finance for 3,300+ Australian businesses, and we also arrange business loans for the operating side of your business.
More commercial property finance options & tools
Commercial bridging finance provides short-term funding when timing mismatches prevent standard long-term commercial loans from settling. Common scenarios include sale-and-buy timing, settlement before refinance approval, and capital release for further investment. Below are related loan structures and the next set of decisions bridging borrowers face.
Related loan structures
Bridging is almost always part of a larger commercial finance sequence. These are the structures bridging typically connects to.
More to consider
The next set of decisions bridging borrowers face — the property types where bridging is most commonly used, plus tools to model carrying costs across the bridging period.
Have a question? Just ask
Book a free, no obligation chat with our commmercial lending experts, or call 1300 262 098 to speak to our team.
