Property backed business loans - Sparrow Loans

Bridging loans

Commercial & business bridging loans

  • From 6.5% p.a.
  • Fast approvals ( within 48 hours )
  • NSW, VIC, QLD

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THE FUTURE OF BRIDGING LOANS – Simple. Fast. Fair

Applying for a business bridging loan shouldn’t be complicated – apply online & have approval in only 48 hours from Australia’s best private lender!

We lend to businesses and individuals that require bridging loans secured against Australian real estate. We take a common-sense approach to lending and can often assist when the banks cannot.

Founded in 2018, Sparrow Loans is a boutique short-term commercial bridging loan specialist and is there to help you grow your property portfolio hassle-free.

While other lenders promise fast turnaround times and excellent customer service, we can honestly say that we offer a unique customer experience with our hands-on approach to customer care.

Are you a business owner needing a commercial bridging loan with no hidden fees, surprises or hassle?

To get started you need
An ABN or ACN | At least 12 months in business | Australian based

The Sparrow Bridging Loans Advantage

Buying an investment or commercial property and need funds fast? Is settlement looming and you haven’t secured your funding? Are you fed up with dealing with banks?

Buisness loans by Sparrow Loans

Responsiveness

We assess your bridging loan application quickly and will come back to you within 2 business days.
Buisness loans by Sparrow Loans

Support

Whether you are a business borrower or a referral partner, you will have a dedicated relationship manager to help you through the bridging loan application process.
Buisness loans by Sparrow Loans

Trust

We work hard to give you a smooth bridging loans application process with clear requirements. You can be sure that our funds are ready to settle when your bridging loan is approved.

Key Features

  • Interest Rates from 6.5% p.a.
  • Up to 75% LVR
  • No minimum term
  • No application or commitment fees
  • Approval within 2 business days
  • NSW, VIC & QLD Property accepted
  • Flexible Repayments available
  • Quick release of funds within 2 weeks

Our Bridging Loans

What is a bridging loan?

Bridging loans are short-term loan facilities that can help businesses buy and sell a property or refinance from one lender to another.

MoneySmart tells us that a bridging loan is short-term finance that covers the period between buying a new property and selling your existing property.

For example, companies may need short term bridging finance when they purchase property before securing a loan. With settlement looming, companies find themselves stressing when their primary lender of choice has long turnaround times that do not match the settlement period or if they have committed to purchasing a property at an auction and are required to settle within a short period. A bridging loan essentially ‘bridges the gap’ between settlement and securing your long term loan facility.

Some companies might purchase a property and look to deleverage their overall debt by selling another asset before finding a more long term lending facility. A bridging loan can also help here for the duration of the sales period. The proceeds will then either pay down the whole loan or a portion of the loan when the property sells before the company refinances the bridging loan with another lender.

Bridging loans are generally more expensive than a long term facility in exchange for the flexibility to purchase a new property before you have sold an existing property or asset. They can also allow you to capitalise the interest, so you are not burdened with interest payments while you find a solution that is better suited for your business. In addition, having more time means that you can breathe easily, as you have more time and control over your asset strategy!

You have more control over your loan term and interest repayment structure, and you can settle quickly with a bridging loan. As bridging loans are short term facilities, you can select a loan term of up to 12 months. However, due to the higher interest rate in exchange for speed to settlement and loan flexibility, most businesses do not want a bridging loan longer than 12 months.

At Sparrow Loans, we offer bridging loans secured by property assets without a minimum loan term requirement. You can choose a loan term as little as one week without being charged interest for a more extended minimum period. This flexibility offers companies the chance to minimise their cost of bridging finance while enjoying the benefit of a quick settlement within two weeks! In addition, we offer LVRs up to 75% for most property types and can approve your loan within two business days!

If you’re looking for a lender that can settle quickly and smoothly, then have a look at our Bridging Loans. If you have an urgent transaction that needs to settle within the next two weeks, we can help!

business bridging loans - sparrow loans

Our business bridging loans allow you to capitalise 100% of the loan facility’s interest too.

  • How do you determine the property value?

If you are a talented negotiator and have secured an offer on an investment property below the property’s market value, we can help you there too. We can lend against a current property valuation rather than the Contract Sale price. We do not penalise you for finding an excellent investment opportunity in this market.

  • No minimum term

Whether you need a loan for 1 month or 12 months, we give you the flexibility to choose your loan term as you prepare to refinance with the bank for a more long term loan facility.

Apply for your bridging loan in 3 easy steps!

Step 1

Buisness loans by Sparrow Loans
Complete our bridging loan application form online – this takes about 5 minutes.

Step 2

Buisness loans by Sparrow Loans
Get a Letter of Offer with our rates, fees & any additional information required to proceed to unconditional approval.

Step 3

Buisness loans by Sparrow Loans
Receive your funds within 2 to 3 business days from unconditional approval. That's how quick we are!
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Bridging Loan Requirements

  • Current ABN
  • Current Australian business address
  • Registered for GST
  • All directors and owners of the business to be Australia-based
  • Must be in business for at least 12 months
  • Property security
  • Loan Serviceability (if the interest is not capitalised within the loan facility)
  • Clear exit strategy

Advantages of business bridging loans

  • Quick process for a quick settlement – avoid the stress of settlement risk where you may not be ready in time to settle on a property purchase, or where you might be in the Notice to Complete period and at risk of losing your deposit and the property, helps with purchasing at auction too as you might need your finance to come through within a few days of the purchase at auction
  • Buys you some more time to find a better solution if you need to refinance a loan where delays or extensions might be more expensive or damaging to your credit history
  • Avoid the stress of matching up the timing of selling a property with the timeline of purchasing a new property – rarely do these timelines perfectly match up
  • Allows you to borrow against the value of the property without needing to prove serviceability as long as the plan for exiting the loan is sound
  • Can choose a term as little as 1 week or as much as 12 months if needed which allows you to manage the overall cost of the loan to your investment

Disadvantages of business bridging loans

  • Generally more expensive which can add up if you choose a longer loan term
  • Can stumble across more opportunistic lenders while you’re in a time of need which means you may be signing off on more than you initially anticipated — it is good to read the fine print, scan the market and plan ahead as much as possible
  • You could be faced with exuberant default costs, for example, double the interest rate, default fees, administration fees and other fees that are incurred if you don’t pay out the loan on time
  • If you do default on the loan, you could lose the security property if you are unable to exit the loan or if the final loan amount is too high for another funder to take on after all the default interest, fees and charges have been added to the facility
  • Some bridging loans have a minimum term which means that if you are able to exit the loan within the minimum term you will still need to pay interest for this minimum period. If the minimum term is 1 month, this might not be much of an issue. However, if the minimum term is 6 to 12 months, you might be paying for more than you need.

Business Bridging Loans Frequently Asked Questions

See some of the questions our clients ask us all the time about our bridging loans. If you have any further questions we are more than happy to help.

How quickly can I get my bridging loan?

You can generally get approval for your bridging loan within 48 hours.

How does a bridging loan work?

Most people sell their commercial assets first and then buy their next investment with the available equity. But there are times when you see a commercial property opportunity that’s too hard to resist, and you want to buy it now.

If you wait for the bank to give you the money, the property could be sold to someone else, which means you miss out on this excellent investment.

A real pity as this asset may be just the thing you’ve been wanting. Bridging finance can solve this dilemma by giving you the funds for the commercial or investment property purchase while you wait for the bank to provide you with the money, which can take months. A Sparrow bridging loan gives you access to fast cash so you can snap up a property without having to wait for bank approval.

What are commercial bridging loans?

Property developers, property investors, and even landlords who want quick access to funds will use a commercial bridging loan. They are relatively the same as a personal loan, where you can utilise the funds for a short term of up to 12 months.

Commercial bridging loans use:

  • Commercial Property purchases (such as offices, restaurants and bars, retail premises, warehouses, industrial estates, accommodation, business parks, warehouses, factories, etc.
  • Renovation projects, office fit-outs and property development
  • Debt refinancing/consolidation
  • Business expansion or business purchase
  • Short-term working capital and inventory purchases
  • Temporary cash flow shortages.
How do I apply for a commercial bridging loan?

Contact us online or call us on 1800 258 374 – and we will be able to give you the best advice about a short term bridging loan.

One of our bridging loan lending team members will schedule a more in-depth meeting about the loan process, what’s involved and let you know about timings when your loan will be approved and when you can expect the money.

Documentation Review and Loan Offer – send us your application documents which we will review and return with a loan offer for the proposed finance for the bridging loan.

Asset Valuation – we will quickly conduct a valuation on the commercial property you wish to provide as collateral for the bridging loan

Loan Approved – your funding and finance will be made available to you and sent to your nominated bank account.

What documentation do I need for my bridging loan?
If you are purchasing a property, we will require a copy of the Contract of Sale (COS) and a receipt of the deposit amount. We will also require some evidence of serviceability to show that you will be able to refinance the loan with another lender at the end of the bridging term, or some evidence of the strategy that will be used to exit the loan.
How do I make my bridging loan repayments?

Your interest will be capitalised into the facility so you are not burdened with interest payments while you look for your long term solution.

Are there any extra fees with my bridging loan?
There are some fees involved in setting up your bridging loan. Sparrow Loans have an Establishment Fee (generally 2.2% inclusive of GST) and an interest charge. You will also be required to pay legal fees and disbursements at cost (generally between $2000 and $4000) and a valuation fee (starting from $500 for residential property assets).

Have questions? Our friendly team is available on 1800 258 374  weekdays 9 am – 7 pm AEST