How it works
A bridge facility covers a defined period before an expected event, such as an asset sale, receivable collection, longer-term financing, or another specified source of funds. Security and pricing depend on the transaction.
Where it can fit
Identify the exit amount, date, and conditions before focusing on the advance. A confirmed event with conservative timing creates a different proposition from hoping a future refinance becomes available.
Look closely at the trade-offs
Stress-test a delayed or smaller exit. Extension fees, default pricing, maturity, and enforcement rights matter when a bridge runs longer than planned. Repeated renewals can turn a short facility into expensive long-term debt.
Your next-step checklist
- Documented repayment event
- Delay and shortfall scenario
- Extension options and costs
- Security and maturity terms
Crack this combination.
What is the central question for a bridge loan?
Keys track learning on this device and, when signed in, in your Saved files library. Every dossier stays open.
Sources & further reading
This file draws on the following references. Product availability and requirements must be confirmed with the provider.
Levr: loan typesLevr: reviewing a debt term sheet