Bridging Finance in Action: How a Business Owner Sold on Their Own Timeline

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 a bridging loan would be structured to take the pressure off.

This is a hypothetical worked example, not a transaction Vía Private has funded. Figures are indicative and do not represent an actual client.

The situation

Say a Sydney company borrower has a $1,150,000 business loan falling due, secured against an investment property it owns, and wants to repay it by selling that property on the open market. The trouble is timing, because preparing and settling a sale takes months, the existing lender won't extend, and a bank refinance can't move fast enough.

How the facility would be sized

• Borrower: private company (Pty Ltd), business purpose
• Security: residential investment house in Sydney, valued at $2,000,000, not an owner-occupied home
• 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

Where a purchase and a sale are both in play the number that decides it is peak debt, and Rose Bay works that through on two investment assets inside one structure. Castle Hill carries a real de-identified facility written for a company as trustee of a family trust.

How it would work

The facility sits at $1,300,000, which is exactly 65% of the $2,000,000 value. Because a borrower in that position has no spare cash flow while preparing the sale, we'd capitalise the interest for the full term so there are no monthly repayments to manage. After capitalised interest and establishment costs the net advance would be $1,169,187.50, which clears the $1,150,000 business loan and leaves $19,187.50 for legal and settlement costs.

How the exit would stack up

The deadline pressure comes off, and the owner controls the timing of the sale instead of being forced into a quick, discounted price. On a $2,000,000 sale, after a 2% agent fee of $40,000 and repaying the $1,300,000 facility, the borrower would keep roughly $660,000 in equity. That margin is the whole reason a structure like this works, because a clear, credible exit is what turns a scenario 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.

Hypothetical example only, not a transaction Vía Private has funded. 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.