Commercial Finance Education
Bridge financing is short-term funding used to bridge a gap until longer-term financing, a sale, or another liquidity event. It provides capital when timing creates a need for immediate funds before the primary funding source—such as a refinance or sale—is available.
Sometimes a business or investor needs capital now, but the long-term funding source—an SBA loan, permanent mortgage, or sale—is weeks or months away. Bridge financing fills that gap.
Bridge loans are typically 6–24 months. The borrower expects to repay from a refinance, sale, or other liquidity event. Lenders evaluate the exit strategy: Can the borrower realistically refinance or sell within the term? Collateral, credit, and structure affect eligibility and pricing.
Brokers and advisors often encounter clients who need bridge financing but were declined by a bank or primary lender. Those declined deals may be eligible for second look through a referral partner network. No approval is promised; each deal is evaluated on its merits.
Typical scenarios where bridge financing applies:
The lender advances funds based on collateral, exit strategy, and structure. The borrower uses the capital for the intended purpose—acquisition, purchase, renovation—and repays when the exit occurs. Terms, rates, and advance rates vary by lender and deal.
Eligibility depends on the strength of the exit. Lenders want confidence that refinance or sale will occur within the term. Deals declined by one source may be evaluated differently elsewhere. Brokers with a signed referral agreement can send declined business loans for review.
Business acquisition. A buyer has signed a letter of intent to acquire a company. SBA financing is in process but will take 60–90 days. A bridge loan funds the closing; repayment comes when the SBA loan closes.
Commercial property value-add. An investor purchases a commercial building that needs renovations. Permanent financing will fund after lease-up. Bridge financing funds the purchase and improvements; the investor refinances when the property is stabilized.
Fix-and-flip. An investor buys a residential property to renovate and sell. Bridge financing funds the purchase and rehab. Repayment comes from the sale, typically within 6–12 months.
Declined by bank. A borrower applied for bridge financing and was declined due to timeline or structure. The broker refers the deal to a referral partner for second look. Alternative lenders may evaluate the deal differently.
Brokers refer bridge deals when they fall outside their primary lender box. CPAs and consultants refer clients who need interim financing for acquisitions or transitions. The common thread: a need for a different evaluation than the first lender provided.
Second look is not a guarantee. Send declined business loans and hard-to-place bridge deals through the referral process. Review the referral agreement before submitting. See declined deals for more on how these situations are handled.
Submit borrower and request details by email.
We evaluate the opportunity and identify possible funding paths based on multiple factors.
Partners stay informed throughout the process.
When a deal closes, partners may receive 35% revenue share per the agreement.
FAQ
Bridge financing is short-term funding used to bridge a gap until longer-term financing, a sale, or another liquidity event. It is typically used when timing creates a need for immediate capital before the primary funding source is available.
Acquisitions, commercial real estate purchases, business transitions, fix-and-flip projects, and situations where a borrower needs funds now but expects to refinance or sell within a defined period. The bridge loan is repaid when the exit occurs.
Bridge loans are typically 6–24 months, though terms vary by lender and deal. The borrower expects to repay from a refinance, sale, or other liquidity event within that period. Terms depend on structure and exit strategy.
Yes. Brokers, CPAs, consultants, and advisors with a signed referral agreement can submit declined bridge financing deals for second look review. The financing partner evaluates the opportunity; no approval is guaranteed.
Exit strategy, collateral, timeline, borrower credit, and deal structure. Lenders evaluate whether the exit is realistic and supports repayment. Deals declined by one source may be evaluated differently elsewhere.
Referral partners submit declined deals through the referral partner process. Review the referral agreement first, then send deal details. See send declined business loans and declined deals for more information.
Have a declined bridge financing deal?
Review the referral agreement, sign it, and submit opportunities for evaluation.
