Bridge Financing
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Catalyst Private Credit > Bridge Financing
Short term financing for a gap between a funding need and an expected repayment event, such as a property sale or longer term financing. The proposed exit, timing, and contingency plan are central to the review.
Structured around the repayment event. Bridge loans are short-term financing structured around the anticipated repayment event. An expected sale or refinance should be supported by evidence, such as a sale agreement with its conditions and closing date, or the approval status of a receiving lender.
Plan for a delay. Consider what happens if the expected event is delayed or produces less money than planned. A useful bridge proposal explains the amount required, the timing gap, the evidence supporting the exit, and the plan if circumstances change.
- Amount required and the timing gap
- Evidence supporting the expected sale or refinance
- Closing dates and conditions
- Outstanding debts and costs to be paid from proceeds
- Available security
- Contingency plan if the repayment event is delayed
It is the plan for repaying the loan. For a bridge, it may be a sale or refinance; for other loans, repayment may come from regular cash flow. Consider what happens if the expected event is delayed or produces less money than planned.
Consider lender and broker fees where applicable, legal and valuation costs, payment frequency, minimum interest, early repayment conditions, renewal charges, and the amount due at maturity. Ask for the total cost under your expected repayment timing.
No. An inquiry begins the discussion. Funding requires approval, completed documentation, acceptable security where required, and satisfaction of the applicable conditions. Timing varies with the transaction and the parties involved.
Have a transaction in mind? Share a brief overview and the date you need funding.
Discuss Your FinancingHave a transaction in mind? Share a brief overview and the date you need funding, and we can begin by identifying the information needed for a review.
