Commercial Bridging Loans in Australia
A commercial bridging loan is short-term property-secured finance for business, investment or development purposes. Because the funds are not for personal use, the facility is assessed on the asset, the purpose and the exit rather than on consumer serviceability, which is why it can settle in days rather than weeks.
In short: terms typically run 3 to 18 months, security can be residential, commercial, industrial or land, LVRs commonly sit up to 65% to 75%, and interest can usually be capitalised. Rates start from around 8.5% p.a. for commercial facilities, subject to eligibility. The exit is what determines both approval and price.
This is one of three bridging loan types we arrange, alongside residential bridging and second mortgages.
What is a commercial bridging loan?
Short-term finance used for a genuine business, investment or development purpose, secured against property. Also described as business bridging finance, an SME bridging loan, a corporate or company bridging loan, or a commercial mortgage bridging loan. The labels differ, the structure does not.
What defines it is the predominant purpose of the funds, not the type of property securing it. A loan against a residential investment property for a business purpose is commercial. A loan against a commercial building to buy a family home is not. Get the classification right at the outset, because it determines which lenders can help you and how quickly.
What "NCCP exempt" actually means for you
Most commercial bridging pages state that these facilities are NCCP exempt and move on. It is worth understanding both sides, because it is the central difference between this product and residential bridging.
What you gain. The lender is not required to conduct the consumer suitability assessment, so documentation is lighter, verification requirements are narrower, and approval and settlement move considerably faster. Structures that would be difficult under consumer rules, such as capitalised interest across a whole term with no servicing, are routine here.
What you give up. The responsible lending obligations that protect consumer borrowers do not apply. There is no unsuitability assessment done on your behalf. The protections of the National Credit Code do not apply, and access to external dispute resolution is generally more limited. You are treated as a commercial party capable of assessing the transaction yourself.
That trade is entirely reasonable for an experienced borrower with a clear plan. It is not reasonable if you are being encouraged toward a business purpose declaration to get faster money for what is really a personal transaction. Lenders take those declarations seriously and so should you. If your purpose is genuinely mixed, say so and have it assessed properly.
How commercial bridging loans work
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Security is assessed. Property or properties are valued and the acceptable loan-to-value ratio is set.
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The facility is structured around the amount required, the term and how interest will be handled.
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Funds are advanced for the acquisition, the project, the refinance or the working capital need.
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The exit occurs. A sale, a refinance, a project completion or a liquidity event repays the facility plus any capitalised interest and fees.
The assessment weights the asset, the purpose and the exit rather than long-term income serviceability. Full mechanics in how bridging loans work.
What property can be used as security?
Wider than most borrowers expect, and wider than a bank will generally accept:
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Residential property held for investment, including multiple securities cross-collateralised
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Commercial offices, retail and mixed use
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Industrial warehousing and light industrial
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Development sites with or without approval
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Vacant land, at more conservative LVRs
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Specialised or non-standard assets, case by case
Property type drives both the LVR and the price. Prime metropolitan residential and good commercial stock price sharpest because they are liquid. Land, specialised assets and thin regional markets price wider, because the lender is pricing how quickly the security could be sold if the exit fails.
Construction and development bridging
A bridging loan for construction is not a construction facility. It does not fund progressive drawdowns against a builder's claims. It covers the periods on either side of one:
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Site acquisition before development finance is in place, so you can settle on the land while the facility is arranged.
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Completion funding where a construction facility has been exhausted or has expired but the project is nearly finished.
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Take-out bridging after practical completion, holding the asset while a term refinance or a sell-down completes.
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Cost overrun and stage gaps where timing between stages has slipped.
Development bridging facilities typically run 6 to 18 months at more conservative LVRs, commonly 65% to 70%, and price above standard commercial bridging because the asset, the timeline and the exit each carry more risk. Lenders will want the feasibility, the contract position, the approval status and a genuinely evidenced exit.
If you are a developer rather than an occasional builder, see bridging loans for developers for how those facilities are assessed. For the difference between bridging and a construction loan proper, see bridging loan versus construction loan.
Business bridging finance
Where the need is business cash flow rather than property acquisition, the same product answers it, secured against property you or your entity already own.
Common triggers include an ATO payment arrangement, settling a commercial purchase before an existing asset sells, funding a contract or supplier commitment, taking out an expiring facility while a bank refinance completes, or a short working capital gap ahead of a known receipt.
The test is the same as everywhere else: is there acceptable security, is the purpose genuine, and is the exit evidenced rather than hoped for. See bridging loans for business owners and self-employed borrowers.
Worked example
A business owner needs to settle on an adjacent industrial site quickly. Their bank will lend, but not inside the contract timeframe.
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Existing industrial property value: $2,800,000
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Existing debt to be refinanced: $900,000
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Funds required for the acquisition: $700,000
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Bridging facility, first mortgage: $1,600,000
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LVR: $1,600,000 against $2,800,000 is approximately 57%, comfortably inside guidelines and therefore priced toward the better end.
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Interest: nine months at 8.5% p.a. capitalised, approximately $102,000, taking the balance at exit to about $1,702,000.
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Establishment fee at 1.5%: $24,000. Legal and valuation costs are additional.
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Exit: the bank refinances the combined holding once twelve months of trading figures for the expanded site are available.
Pricing, LVR and fees depend on the security, the purpose, the valuation and the lender's assessment of your exit.
Working to a settlement date? Send us the property, the amount required, the purpose of the funds and your intended exit. We will tell you quickly whether it is achievable in the time available, and we will tell you if it is not. Request an assessment.
What commercial bridging costs
Commercial facilities start from around 8.5% p.a., with development bridging typically 9% to 11%, subject to the security and the transaction. Establishment fees commonly run 1% to 2.5% of the loan, with legal, valuation and any line fees additional.
On short facilities the fixed fees can represent a large share of the total cost, so compare the all-in dollar figure over your expected term rather than the headline rate. Detail on interest rates and costs and fees, or model it with the bridging loan calculator.
Exit strategies
The exit is the single most important element of a commercial bridging application. Common exits:
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Sale of the security property or of other stock
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Refinance to a bank or non-bank term facility
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Completion and stabilisation of a development, then refinance
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Staged sell-down of completed stock
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A contracted liquidity event or asset realisation
Evidenced beats intended every time. A signed contract, a formal approval in principle or a documented sales campaign changes both the approval odds and the price. See bridging loan exit strategies.
Who uses commercial bridging loans
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Property investors securing off-market or time-sensitive acquisitions
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Developers bridging between project stages or holding completed stock
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Business owners needing short-term capital against property
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Self-employed borrowers with income that is harder to verify quickly
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Borrowers declined by a bank on policy rather than on the merits of the deal
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Companies and trusts, including multi-entity structures
See who we help, or the full range of bridging loan use cases including auction purchases and settlement timing gaps.
Commercial or residential: which applies?
Commercial bridging is for business, investment or development purposes. Faster, more flexible on security and structure, priced above residential, with fewer borrower protections.
Residential bridging is for personal, domestic or household purposes. Regulated, with responsible lending obligations and consumer protections, and slower as a result.
The classification follows the purpose of the funds. More on how that works in bridging loan types.
What you will need
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Identification for directors, trustees and guarantors
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Entity details, ABN or ACN, and trust deed where applicable
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Details of the security property or properties, and current rates notices
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Existing loan statements or payout figures
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Contract of purchase or sale where relevant
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A written statement of the purpose of funds
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A documented exit strategy with supporting evidence
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Feasibility, approvals and builder details for development scenarios
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Solicitor details
Commercial applications generally need less financial verification than consumer ones, but more on the transaction itself. Expect the questions to focus on the deal rather than on your payslips.
Frequently asked questions
What is a commercial bridging loan?
Short-term property-secured finance for a genuine business, investment or development purpose. Assessed on the asset, the purpose and the exit rather than on consumer serviceability, which is why it settles faster than a bank facility.
Are commercial bridging loans regulated?
Facilities for genuine business or investment purposes are generally NCCP exempt, meaning consumer credit protections and responsible lending obligations do not apply. That buys speed and flexibility and removes protections you would otherwise have.
What is the difference between a business bridging loan and a commercial bridging loan?
In practice, none. Business bridging loan, commercial bridging finance, SME bridging loan, corporate bridging loan and company bridging loan all describe the same product from different angles. What matters is the purpose of the funds and the security.
Can I get a bridging loan for construction?
Yes, though it works differently from a construction facility. Bridging covers site acquisition before development finance is arranged, completion funding where a construction facility has run out, or holding a finished project until a refinance or sell-down. It does not fund progressive drawdowns against builder claims.
What LVR is available on commercial bridging?
Commonly 65% to 75% depending on the security and the exit, with development facilities usually more conservative at 65% to 70%. Land and specialised assets sit lower again.
What property can be used as security?
Residential investment, commercial, industrial, development sites and vacant land, with non-standard assets considered case by case. Property type drives both the LVR and the pricing.
Do I need financials?
Usually less than a bank would require, because the assessment focuses on the asset and the exit. You will still need to evidence the purpose of the funds and demonstrate that the exit is credible.
How quickly can a commercial bridging loan settle?
Where the security is straightforward and documentation is ready, within days rather than weeks. Complex security, multiple entities or development scenarios take longer.
Can a company or trust borrow?
Yes. Company and trust borrowing is standard in commercial bridging, including multi-entity structures, with director or trustee guarantees typically required.
What if my purpose is partly personal?
Say so at the outset. Classification follows the predominant purpose, and a business purpose declaration made to obtain faster or less regulated finance for what is really a personal transaction is a serious matter. Mixed purposes are common and can be assessed properly.
More answers in our bridging loan FAQs.
Speak with a commercial bridging specialist
Commercial transactions turn on timing, and the useful answer is usually whether something is achievable by a specific date. We assess the security, the purpose and the exit, and compare options across Australia from a panel of bank, non-bank and specialist lenders.
Contact our team with your scenario and deadline, or read more about our brokerage.