Commercial bridging finance, arranged by a broker

The reader question here is not “what is bridging finance?” It is “who arranges a commercial bridging loan, and how would they structure mine?” Emet Capital packages the transaction, tests the exit, and approaches third-party lenders. It does not advance the money.

Definitions sit on what bridging finance is. Lender-type comparison sits on the bridging loan lenders guide. Education on peak debt, cost components and alternatives sits on the complete bridging finance guide. This page explains the broker method: the open versus closed exit test, the delayed-exit plan, net proceeds, documents and the process steps we actually run.

A bridging file is a timing problem attached to a repayment event. The structure follows the quality of that event, not a product name. Ben, a commercial finance broker at Emet Capital with 10 years' experience in private lending, works bridging files around three tests before any lender is approached.

Emet discusses commercial and business-purpose bridging only, secured by residential or commercial property, subject to lender assessment. Consumer bridging and home loans are not offered. A consumer-style purchase-before-sale of a home is a different product and is outside this service.

Timing depends on valuation, legal work, lender appetite, third parties and how complete the file is. A broker can sequence the work. No responsible party can promise a decision or settlement date. The steps below are the order we use, not a turnaround claim.

1. 1

   Map the transaction

   Record the amount, required date, business purpose, security, existing debt and the exact shortfall to be funded. Flag unknowns instead of estimating them.

2. 2

   Run the open versus closed exit test

   Classify the repayment event on today's evidence, not on the hoped-for date. Note every condition that still sits with a valuer, incoming lender, purchaser or authority.

3. 3

   Write the delayed-exit plan

   State the fallback if the sale, refinance or registration is late, and calculate peak debt including capitalised interest and known fees.

4. 4

   Compare net proceeds on the same assumptions

   Put eligible lender responses on one sheet covering net cash at settlement, amount owing at the planned exit, and amount owing at the delayed-exit date.

5. 5

   Assemble the document pack

   Collect identity, entity, title, debt, transaction and exit evidence. Identify gaps before a lender, valuer or lawyer has to ask for them.

6. 6

   Approach lenders that can assess this file

   Circulate a decision-ready summary to lenders whose appetite matches the security, purpose and exit type. Indicative terms are not an approval.

7. 7

   Coordinate conditions, legal work and settlement

   Track valuation, legal documents, consents and discharge mechanics. The lender and its advisers still control assessment and settlement.

The Australian Government's business-loan preparation guide lists identification, a business plan, financial reports, cash-flow information, forecasts and lease agreements as possible application inputs. A property-backed bridge also needs the transaction, title, existing debt and exit evidence. Requirements vary by lender; missing items delay assessment more often than extra items do.

Send identification and sensitive financial records only through an appropriate secure process. Flag conflicting balances rather than smoothing them.

The three illustrations below are labelled HYPOTHETICAL. They are not Emet Capital clients, completed transactions, case studies or indications of approval. They show how the exit test, delayed-exit plan and net-proceeds comparison change the file.

As commercial finance brokers, we provide access to over 50 lenders nationwide, including major banks, regional lenders, and private capital providers. Availability and lender appetite vary by transaction. We do not fund the loan and we do not choose a lender until the exit test, delayed-exit plan and document gaps are visible.

Begin with the amount, required date, security, existing debt and the evidence for the repayment event. We will say what is missing for an initial discussion. Lender assessment, valuation, legal work and complete documentation determine whether and when a proposal can proceed.