A two-week bridge, repaid five days early at a discount

The challenge

The manufacturer had bought a larger site in Bendigo with settlement set for the 14th. The sale of their existing premises was contracted and unconditional, but settling on the 28th.

Two weeks apart, with $260,000 of the purchase price sitting in a building they had already sold. Missing the settlement date meant a penalty interest clause and, on the vendor’s reading, a right to walk.

Another lender could bridge it in principle but not inside two weeks, and quoted a three-month minimum term for a fourteen-day problem.

The solution

We took security over the outgoing property and funded $260,000 the following day, structured as a bullet repayment against the sale settlement.

The term was written at four weeks to leave headroom if the sale slipped, priced at our preferential bridging rate because the exit was contracted and dated. Bridging facilities run to a maximum of twelve months, so a four-week term sits well inside that.

No amortising schedule, no monthly repayments to manage. One payment when the sale money landed.

Why the deal worked

The exit was already unconditional. That is what separates bridging from working capital: the risk is fourteen days of timing, not whether the money exists.

Because we price on days rather than a minimum term, a two-week facility costs two weeks. The client was not paying for a three-month product to solve a two-week problem.

The outcome

Both settlements completed. The sale landed on the 23rd, five days ahead of schedule, and the facility was cleared the same afternoon.

We discounted the remaining cost for the early payout. The manufacturer paid for nine days of a facility written over four weeks.