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Bridge loan
Short-term capital that covers the space between two known events — a closing, a payout, a permanent facility that's coming. A bridge only works when the thing on the other side is real.
- Size
- $50,000 – $2,000,000
- Term
- 3 – 12 months
- Speed
- 3 – 10 business days
- Best for
- A documented, dated exit
What this actually costs
- Amount funded
- $250,000
- Total dollar cost
- $21,250
- Payment schedule
- Interest-only monthly, balloon at month 6
- Annualized rate
- 17.0% APR
Illustrative only. Your actual terms depend on your business and the funder.
How it works
- 01
You show the exit
The purchase agreement, the SBA commitment, the receivable, the sale. On paper.
- 02
The funder underwrites the exit, not just you
How certain is the event, and what happens if it slips 60 days?
- 03
Funds go out fast
Bridges are priced for speed and certainty of close.
- 04
The exit repays it
One payoff, usually in a lump sum, at the event.
Bridges carry points at close plus an interest rate, and the points don't prorate if you pay off early. A six-month bridge repaid in three can cost more per day than an advance. We show both the total and the cost per month held.
When it fits
- A closing, refinance, or payout is documented and dated.
- The delay is procedural, not a question of whether the money is coming.
- You'd lose a real, quantifiable opportunity by waiting.
When it's the wrong tool
- The exit is a conversation, not a contract.
- You'd need a second bridge if the first one slipped.
- The gap is operating cash flow, not an event — that's a line or a term loan.
Common uses
- An acquirer covering the gap between signing and an SBA funding.
- A contractor holding retainage on a job that's closing out.
- An operator covering a deposit while a permanent facility documents.
Questions
- What counts as an exit?
- A signed purchase agreement, a lender commitment letter, a documented receivable with a payment date. A verbal promise doesn't.
- What if the exit slips?
- Extensions exist and they cost money. We ask for extension terms in writing before you sign, not after.
- Are bridges cheap?
- No. They're priced for speed and short duration. A bridge held longer than planned is one of the more expensive mistakes in this market.
- Can you bridge an acquisition?
- Sometimes, and it's a file we see often through Clearly Acquired. Bring the LOI or the purchase agreement.
See what you'd actually pay.
Three documents to start: the last four months of business bank statements, a driver's license, and a voided check. That's the whole file to get options back.
FundMainStreet.com is a financing arranger, not a lender or a bank. We connect business owners with third-party funding partners and are compensated by those partners when a transaction closes; we disclose that compensation to you before you sign. Approval, terms, and funding are determined solely by the funding partner. Merchant cash advances are purchases of future receivables, not loans. All figures shown on this site are illustrative and are not an offer or commitment to fund.