Commercial bridging finance sized on the exit, not your client's income.
A commercial bridging loan sized on peak debt and repaid from the sale or the refinance, not from your client's income.
- Facility
- $100K - $10M
- Term
- 3 - 60 months
- Indicative
- Same day
- Security
- 1st mortgage
Timing is the whole problem.
Nobody is asking whether your client can service the bridging finance. They are asking whether the money lands before the settlement does. That is the whole job of a bridging loan.
A private bridging loan lender answers it in a day rather than a month, because the test is different. Banks underwrite the borrower. We underwrite the exit.
A contract of sale, a formal refinance approval, a facility rolling off, a settlement on a development where the bridge is exit finance rather than construction funding, a dated capital event - any of them will carry a bridge. Give us the date and we will tell you today whether it is real.
Send it like this
A few sentences gets you terms.
A light touch to submit, and no accreditation to clear first. Security, number, dates, exit - that is the whole submission. Below is one written for this scenario.
- To
- deals@alphaconcapital.com.au
- Subject
- Bridging finance - indicative terms?
Client settles on 12 Nov, sale of the outgoing asset settles 9 Dec. Needs $640K for 6 months against 14 Example St, Parramatta NSW 2150, unencumbered, worth about $1.1M. Exit is the contract of sale, copy attached.
How credit structures it
How we price commercial bridging finance.
Peak debt, not the advance
We size on total debt at its highest point - prepaid interest and fees included. Your bridging loan exit strategy sets the term: a dated one, or an open bridging loan priced for the uncertainty. Works on day one but fails at peak? Tell us early.
Bridging loan vs second mortgage
Alphacon Bridge and Alphacon Fast are first-mortgage products. If the first is worth keeping, the deal prices on Alphacon Second behind it - name the incumbent at submission, because consent is the long pole.
Cross-collateralised exits
Security over both, outgoing title released at its settlement - the usual shape of a bridging loan for investment property. The release figure is in the letter of offer, not negotiated later.
Bridging loan rates and parameters
- Facility
- $100K - $10M
- Term
- 3 - 60 months
- Security
- 1st registered mortgage
- LVR
- 75% on peak debt
- Servicing
- Not assessed
- Borrower
- Company or trust
- Bridging finance rates
- Priced per deal
- Interest
- Prepaid or interest only
- Purpose
- Business or investment only
Bridging finance rates in Australia follow the security, the peak LVR and the strength of the exit, so they are quoted per deal rather than off a board rate. Bridging loan LVR caps at 75% of peak debt, and prepaid interest counts toward it. A dated exit is a closed bridging loan and prices better than an open one. The $10M ceiling is an Alphacon Fast facility, so large bridging loans are metro - above $3M, Sydney, Melbourne and Brisbane.
Indicative. Subject to credit assessment, a panel valuation and satisfactory security.
Send this
What a private bridging finance lender needs to see.
What kills it
- Security address, current mortgage position and the incumbent lender
- The exit: contract of sale, refinance approval or the dated capital event, with evidence
- Peak debt required and the date funds are needed
- Any valuation completed in the last six months, even if it is addressed to another lender
An exit that is a plan, not an event
"They'll sell next year" is not an exit. A listing authority and a marketing schedule is.
The valuation coming in short
The commonest cause of a repriced bridge. One comparable sale on the same street beats a rates notice.
First mortgagee consent left to the end
It can take longer than everything else combined. First thing we start, first thing we ask you about.
That is the whole file. Send it and we will come back with a position.
Broker questions
Commercial bridging finance, answered.
What is bridging finance?
Short-term funding that covers the gap between money going out and money coming in. Bridging loans explained plainly: your client needs to settle, complete or pay before the sale, refinance or capital event that repays it lands. The facility is secured on property and repaid from that event, not from trading income.
How does a bridging loan work?
We size the facility on peak debt - the advance plus prepaid interest and fees at their highest point - and set the term to the date of the exit. Interest is prepaid or interest only, so there is nothing to service along the way. The exit repays the facility, and on a cross-collateralised deal the outgoing title is released at its settlement.
What LVR does bridging finance go to?
Seventy-five per cent, struck on peak debt rather than the advance, so prepaid interest and fees sit inside the cap. Check a scenario with the LVR calculator before you submit.
Can you refinance a bridging loan from another private lender?
Yes. A bridging loan that is expiring, or one written at a rate the client cannot carry for another term, refinances on the payout figure, the security and the exit. Send the incumbent's payout and anything they have issued in writing - the refinance and debt rescue page carries the rest.
Am I eligible, and how long does the process take?
A company or trust borrower, a business or investment purpose, a first registered mortgage over Australian property and an evidenced exit. That is the bridging loan eligibility test in full. The process: indicative terms the same business day, then settlement in days once the valuation and legals are away.
How quickly can a bridge settle?
Indicative terms the same business day on a complete submission. From acceptance, settlement is driven by the valuation and the legals. Days rather than weeks once documents are out.
Do you need my client's income?
Not as a servicing test - interest is prepaid or interest only, so there is nothing to service. These are low doc bridging loans in the sense that matters: no income verification, no payslips, no tax returns. Alphacon Fast runs on self-declaration with no credit score assessed. Alphacon Bridge, the cheaper of the two, wants an accountant's letter or prepaid interest and credit above 600; that is the trade for the lower rate. Either way the decision sits on the security, the peak LVR and an evidenced exit.
Will you take second mortgage behind a bank?
Not on Alphacon Bridge or Alphacon Fast - both are first-mortgage products. Where the first mortgage is worth preserving, the deal prices on Alphacon Second behind it, subject to a combined LVR inside 70% and the first mortgagee's consent. Name the incumbent at submission so consent runs in parallel.
What happens if the exit slips?
Talk to us before the repayment date, not after. Extensions are assessed on the same basis as the original facility and are far easier to arrange while the file is performing.
What is the difference between bridging finance and a bridging loan?
Nothing. Same facility, two names - the industry says bridging finance, the client says bridging loan. Here it is one product line: Alphacon Bridge where the file is clean, and fast bridging finance on Alphacon Fast where the date or the file will not wait.
Do you write business and commercial bridging finance only?
Only. Business bridging loans to companies and trusts - an SME bridging loan, a corporate one, the same test either way - for business or investment purposes, secured by a registered mortgage over Australian property. We write bridging finance across Australia - metro, regional and rural. Not consumer credit - Alphacon does not hold an Australian Credit Licence, and we do not write owner-occupied lending.
How is private bridging finance different from a bank bridge?
A bank underwrites the borrower, so it wants servicing, financials and a committee date. We underwrite the exit. No servicing test and no committee date to wait on, which is why an indicative position comes back the same business day and settlement is driven by the valuation and the legals rather than a queue. A bridging loan declined by a bank on servicing is not declined here. It is the trade brokers make with private bridging finance lenders: a higher rate against a date your client can actually hold.
Do I need to be accredited to submit a bridge?
No. Any bridging finance broker can send a scenario cold and get an indicative position back the same business day. Accreditation is free, takes about five minutes, and we will run it alongside your first deal rather than making you clear it first.
What does short term bridging finance cost?
It is priced on the peak LVR, the security and how firm the exit is, so it is quoted per deal rather than off a board rate. Establishment, management, valuation and the risk fee where one applies - Alphacon Bridge carries none - are set out in the product guide, and every number sits in the letter of offer before your client signs. No discharge or exit fee for repaying early - 14 days notice on Alphacon Bridge, 30 on Alphacon Fast.
Your deal deserves a decision-maker.
Security, the number, the dates and the exit - that is the whole submission. A light touch to send it, no call centres, a straight answer the same day.