Bridging loans for business and investment purposes

Last updated 6 November 2026 · Reviewed by 360 MMS Compliance

What is a private bridging loan?

Bridging finance lets you buy before you sell. Instead of waiting for one property to settle, you borrow for a short period while you hold both, then repay the loan when the sale settles or when longer-term finance is arranged.

A private bridging loan does this for a business or investment deal. Because the loan is for a business purpose, it sits outside the National Credit Code, so the Code's consumer protections don't apply in the same way.

When might a business or investor use bridging finance?

• Moving premises: a business buys new premises before selling its current ones.
• Changing investments: an investor buys a commercial or industrial property before selling another non-residential property.
• Waiting on longer-term finance: the purchase settles before a standard commercial loan is in place.

Here, "investment" means non-residential investment. Credit to buy or improve a residential investment property is generally covered by the National Credit Code, so it isn't a private bridging loan.

Residential bridging or private bridging: what's the difference?

If you're buying your next home before you sell, start with residential bridging. If the deal is for a business or non-residential investment, private bridging may fit.

Private bridging isn't for a loan where the main exit is selling your own home. If you're buying your next home before you sell the one you live in, see bridging loans: buying before you sell.

How are repayments and the exit handled?

Private bridging loans are usually interest-only, or the interest is capitalised. With capitalised interest, nothing is paid during the bridge: the interest is added to the balance, so you pay interest on interest and the debt grows until the loan is repaid.

The exit is how the loan ends. It's usually the sale of a property, or a refinance to a longer-term loan once the deal has settled. The lender will want to see a realistic exit before making an offer. If the sale is slower or brings in less than planned, more interest builds up and more debt may be left to refinance, so plan for delays.

What does the lender look at?

• The security: the property or properties offered, and what they're worth.
• The borrowers: an individual, a company or a trust, and that the purpose is genuinely business or non-residential investment.
• The exit plan: how and when the sale or refinance will happen, and what happens if it takes longer.

Borrowers need to be Australian or New Zealand citizens or Australian residents. The lender will assess your application against its criteria, and a valuation is part of the process.

What are the pros and cons of a private bridging loan?

Possible pros:

• You can secure a business or investment property without waiting for another sale to settle.
• It gives you time to sell instead of selling under pressure.
• Companies and trusts can borrow, not only individuals.
• Capitalised interest can ease cash flow during the bridge.

Possible cons:

• Private bridging generally costs more than a standard commercial loan.
• Capitalised interest grows the balance and reduces what's left from the sale.
• You carry two properties and more debt for a while.
• Repayment depends on the sale or refinance happening as planned.
• The National Credit Code doesn't apply, so independent legal and financial advice matters.

How do I apply for a private bridging loan, step by step?

1. Talk to your broker or our team. Share the purchase, the sale, the timing and how the loan will be repaid.
2. Get a quote. The structure is talked through and the loan is quoted individually, with no rate sheet.
3. Provide your documents. Details of both properties, the existing debt and the exit plan. Every borrower signs a business purpose declaration.
4. The assessment. The lender assesses the security, the borrowers and the exit against its criteria, and a valuation is part of the process.
5. The offer. If the loan is approved, you receive a loan offer and documents. Get independent legal and financial advice before you sign.
6. Settlement and exit. The loan settles, and it's repaid when the sale settles or the refinance is in place.

How can 360 Private help?

360 MMS is a mortgage manager, and 360 Private is its specialist private lending offer for business-purpose property deals. We can help with:

• Your scenario: the purchase, the sale and the timing, with you or your broker.
• The right path: residential bridging instead, if you're buying a home to live in.
• The structure: interest-only or capitalised interest, and what the exit looks like.
• A quote: each loan is quoted individually, based on the security, the borrowers and the exit.
• Working with your advisers: your broker, accountant and solicitor.
• Getting started: apply through your broker or contact our team directly.

FAQs

Sources and further reading:Moneysmart: Bridging finance · ASIC: National Credit Code · business.gov.au: Choose your funding

General information only. It doesn't take into account your objectives, financial situation or needs, and it isn't credit, tax or legal advice. 360 Private loans are for business purposes only, aren't regulated by the National Credit Code, and are subject to lending criteria; fees and charges apply. Kuone Pty Ltd T/As 360 MMS (ABN 81 621 683 672), Australian Credit Licence 504193.