How long do bridge loans run?

Commonly 30 days to 12 months, with many written for three to six months and an extension option.

Do bridge loans require collateral?

Real-estate bridges are secured by the property. Business bridges may be secured by receivables or a blanket UCC filing.

Can I refinance a bridge into permanent financing?

That is the intended path. Start the permanent application before or alongside the bridge, not after.

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Funding Products

Bridge Loans for Small Business: Short Gaps, Clear Exits

August 21, 2026 6 min read

Bridge financing covers a short, defined period between a present need and a specific future event — a property sale, an SBA closing, a large contract payment or an insurance settlement.

It is priced for speed and short duration. That makes it appropriate for weeks or a few months, and dangerous when the exit event slips indefinitely.

Legitimate bridge situations

SBA loan approved but weeks from closing while payroll is due
Property under contract with a scheduled closing date
A large receivable with a confirmed payment date
Acquisition deposit required before permanent financing funds
Insurance claim approved but not yet disbursed

The exit test

Before taking bridge capital, write down the exact event that repays it, the date it is expected, and your evidence that it will happen. A signed commitment letter, a purchase contract or a confirmed remittance date all qualify. Optimism does not.

Then ask what happens if that date slips by 60 days. If the answer is unmanageable, either negotiate a longer term or do not take the bridge.

How pricing works

Bridge financing carries higher rates and often origination points because the lender is being paid for speed and short duration. Judge the cost against the value of the event you are protecting, not against a 10-year loan rate.

If your bridge cost is $6,000 and it preserves a $200,000 acquisition, the arithmetic is easy. If it merely postpones a decision, the arithmetic never works.

Common mistakes

Bridging to an event that has no contract behind it
Sizing the bridge to the maximum offer instead of the actual gap
Stacking a second bridge when the first one's exit is delayed
Ignoring extension fees buried in the agreement

Frequently asked questions

How long do bridge loans run?: Commonly 30 days to 12 months, with many written for three to six months and an extension option.
Do bridge loans require collateral?: Real-estate bridges are secured by the property. Business bridges may be secured by receivables or a blanket UCC filing.
Can I refinance a bridge into permanent financing?: That is the intended path. Start the permanent application before or alongside the bridge, not after.

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