Loans
Bridging finance when the bank won't approve
Bridging finance is short-term capital that covers the gap between a need now and a known repayment event soon - a settlement, a sale or a refinance. Secured against property your company or trust already owns, it settles in days and is repaid in full when the exit lands. It is assessed on equity and the exit rather than payslips, which is why it works for self-employed borrowers and business owners the bank has declined on income proof.
Cover the gap and settle on time.
The amount, the asset and the timeframe. We’ll match you with a funder and email you their introduction. Reply to it and they’ll be in touch.
- No cost and no obligation. An enquiry is not a commitment to anything.
- We match you with a funder and email you their introduction. Reply to it and they take it from there.
- Your details stay with us until you reply to the introduction.
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How bridging finance works
A bridge is sized to a gap, not to your long-term balance sheet. You borrow against property your company or trust already owns, settle quickly, and repay in full when a defined event completes - a sale settles, a refinance lands, or the next stage of a project draws down. Because it’s short-term and exit-driven, the assessment turns on three things: the security, your equity position, and how credible the exit is. Full financials and income history usually aren’t the deciding factor.
When the bank won’t approve the bridge
The most common reason people end up here is that a bank has declined a bridging loan, or will not approve it in time, and a purchase settlement date is already fixed. Banks assess a bridge on peak debt - the existing loan plus the new purchase, before anything sells - and test that against fully documented income. Many also want to see cash in hand to cover the whole interest bill for the bridging period. A self-employed applicant with lumpy income, a recent ABN or financials that are not yet lodged does not fit that model, however much equity sits in the two properties.
A private bridge is assessed the other way around. The questions are: how much equity is there across the property you hold and the one you are buying, what is the evidence for the sale price of the current property (a signed contract, a listing, or an agent appraisal), and how certain is the exit. Interest is usually capitalised into the loan, so there are no monthly repayments while you wait to sell - see capitalised and prepaid interest. The total borrowing is sized against the combined value of both properties, up to around 75% LVR, and the term runs to the expected sale, typically one to twelve months. If the current property takes longer to sell, an extension is sometimes possible, but the safer approach is to set a realistic term with buffer from the start - see what if my exit is delayed below and what is an exit strategy.
Instead of payslips and tax returns, the file is built from the contract of sale on the new property, the listing or agent appraisal (or contract) on the current one, recent rates notices for the security, a statement for any existing first mortgage, and bank statements. With those in hand, and a purchase date on the contract, settlement can run in days rather than weeks - see how fast can you settle. Bad credit history does not rule the loan out on its own, because the decision rests on equity and the exit; see borrowing with bad credit and borrowing with no financials. If the gap is working capital rather than a settlement, a low doc business loan may be the better fit.
One line matters. Private bridging through Lienhouse is for business purposes: a company, trust or business owner buying premises, an investment property or settling a purchase connected to the business, or a director bridging a settlement where the borrowing is for the business. A pure owner-occupier home purchase with no business purpose is consumer credit and is treated differently; that route runs through a licensed mortgage lender or broker, not a private business lender. If you are unsure which side of the line you sit on, read what is a business purpose declaration before you enquire.
The cost of a private bridge is higher than a bank’s rate, but it is priced for months, not years. Weigh it against the alternative: missing settlement, paying penalty interest to the vendor, and in the worst case losing the deposit and the property. If you have a settlement date and the bank has said no or gone quiet, use the enquiry form with the two property values, the existing mortgage balance and the settlement date, and you will get an indicative position quickly.
What it’s typically used for
The common jobs are timing problems. Buying commercial premises before your existing property sells. Covering a settlement that falls due before funds arrive - including an unconditional auction purchase. Clearing a pressing liability, such as an ATO bill or a maturing facility, and refinancing it out once a longer-term facility completes. Funding the gap between project stages. In each case the bridge does one job: it buys time you can’t get from a slower process, against an asset you already hold.
Open vs closed bridges
A closed bridge has a contracted exit - a signed sale, or an unconditional refinance with a known date - so it prices keenly and runs to that date. An open bridge covers an exit that’s expected but not yet locked; it carries a longer maximum term and tighter terms to reflect the looser timing. The stronger and more documented your exit, the better the bridge. Pricing also depends on whether the bridge sits in first or second position behind any existing first-mortgage lender. All terms are subject to assessment and a valuation.
What we’ll need
The security details, a sense of the numbers - amount, value, and any existing first mortgage - and a clear exit: the event that repays the loan, and roughly when. That’s usually enough for the funder to come back with an indicative position. The file we ask for is deliberately light; the work is making sure the exit holds up.
- Companies or trusts with a firm exit - a contracted sale, settlement or refinance
- Buyers who need to settle before an existing asset sells
- Time-critical deals a bank can't fund inside the deadline
- Borrowers without a clear, credible exit (no exit usually means no approval)
- Owner-occupier consumer borrowers (business-purpose only)
- Anyone needing long-term, ongoing finance rather than a short bridge
Sounds like your situation?
Tell us the amount, the asset and the timeframe. We’ll match you with a funder and email you their introduction.
How it compares
FAQ
Do I need a signed contract to qualify?
A closed bridge needs a contracted exit - a signed sale or an unconditional refinance with a known date. An open bridge is possible where the exit is credible but not yet contracted, on tighter terms.
How fast can it settle?
Often within days once we have the security details, the valuation position and a clear exit. Urgent matters can move faster where a recent valuation already exists. Subject to assessment.
What if my exit is delayed?
Build in buffer from the start. An extension is sometimes possible depending on the position and the asset, but a realistic timeframe set upfront is what avoids the problem.
The bank declined my bridging loan because I'm self employed. Can I still get one?
Often, yes, where the purpose is business-related. A private bridge is assessed on the equity across both properties, the evidence for the sale price of the current one and the exit, not on payslips or lodged tax returns. Interest is usually capitalised, so there is no serviceability test on monthly repayments while you wait to sell. A pure owner-occupier home purchase with no business purpose is consumer credit and is not something we fund.
Can I get a bridging loan with bad credit?
Credit history is not the deciding factor. The lender looks at the security, the equity position and how certain the exit is. Defaults or a past arrangement will be looked at, and may affect pricing, but they do not rule out a bridge on their own where the equity and exit stack up.
Do I need to be refused by a bank before applying?
No. A bank refusal is not required. Many borrowers come to private bridging because the bank cannot meet the settlement date, not because it has formally declined. What matters is the equity, the exit and the purpose of the loan.
Cover the gap and settle on time.
No cost, no obligation. The form is back up the page and takes two minutes.