Bridge loans.

A bridge loan is short term capital against a defined exit: a sale in contract, a refinance in process, a receivable event with a date on it. The exit is the underwriting, so the quality of the exit sets the terms.

How the process runs

1. Define the exit. The contract, term sheet, or event that repays the bridge, documented.
2. Collateral and sizing. The facility sized to the exit with a margin of safety.
3. Placement and close. Bridge lenders move fast when the exit is real; complete files commonly close in 1 to 3 weeks.

Typical terms in the market

Terms commonly run 3 to 24 months, frequently interest only with the balance due at the exit. Pricing sits above term debt because speed and short duration are the product. Real estate bridges are underwritten to loan to value; receivable and transaction bridges are underwritten to the certainty and timing of the event.

Documents you will need

1. Evidence of the exit: purchase contract, refinance term sheet, award letter, or equivalent.
2. Collateral documentation and valuations.
3. Recent financials and bank statements.
4. A sources and uses summary showing the bridge repaid with room to spare.

What lenders look for

Exit certainty first, collateral second, carry third: can the business service the bridge until the exit lands, and what happens if the exit slips 60 days. A bridge with a soft exit is not a bridge, and we will say so before a lender does.