Bridging Finance in Action: How a Business Owner Sold on Their Own Timeline
How a business owner used a $1.3m bridging loan to clear a maturing business debt and sell their property without a rushed price. A worked example.
Timing is the problem bridging finance solves. Plenty of borrowers have a strong asset and a clear plan, but the wrong dates. Here is a worked example of how we structured a bridging loan to take the pressure off.
This is an illustrative example. Figures are indicative and do not represent an actual client.
The situation
A Sydney company borrower had a $1,150,000 business loan, secured against a family-held home, that was falling due. They wanted to repay it by selling the property on the open market. The trouble was timing: preparing and settling a sale would take months, the existing lender would not extend, and a bank refinance could not move fast enough.
The deal at a glance
- Borrower: private company (Pty Ltd), business purpose
- Security: residential house in Sydney, valued at $2,000,000
- Loan: $1,300,000 first mortgage, at 65% of the property value
- Term: 9 months, with a 6 month minimum
- Interest: capitalised for the term, so no monthly repayments
- Exit: sale of the security property
How we made it work
We set the facility at $1,300,000, which is exactly 65% of the $2,000,000 value. Because the borrower had no spare cash flow while preparing the sale, we capitalised the interest for the full term, so there were no monthly repayments to manage. After capitalised interest and establishment costs, the net advance was $1,169,187.50. That cleared the $1,150,000 business loan and left $19,187.50 for legal and settlement costs.
The outcome
The deadline pressure came off, and the owner controlled the timing of their sale instead of being forced into a quick, discounted price. The exit stacked up comfortably: on a $2,000,000 sale, after a 2% agent fee of $40,000 and repaying our $1,300,000, the borrower kept roughly $660,000 in equity. A clear, credible exit is what turns a deal like this into a fast yes.
Broker takeaway
When your client is asset-rich but under a deadline, bridging finance buys time. Bring us a genuine exit, usually a sale or a refinance already in train, and we can move at private-credit speed rather than bank speed.
Talk to Vía Private
Vía Private provides property-secured bridging finance to companies and trusts across NSW, VIC, QLD and the ACT. Brokers welcome.
Illustrative example only. Vía Private is an Australian non-bank private credit lender providing property-secured commercial loans to companies and trusts for business and investment purposes. All lending is subject to credit approval and valuation. General information only, not financial or credit advice.