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Bridging Finance

Get short term finance by unlocking the cash that is tied up in a transaction.

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Applications are free, and won't affect your credit score.
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Speed of Funding

Within Hours
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Interest Rate

Starting at 15%
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Finance amounts

Up to R5M
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Finance amounts

R500k to R5M
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From R1.10 per R1000 per day
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Speed of Funding

Within Days

Is bridging finance what you need?

Here are a few simple details to help you decide.


Bank Loan

Funding Amounts

R10k to R2M
R500k to R5M

Speed of Funding

As little as 24 hrs
Multiple weeks

Fee Structure

Fixed factor rate
Interest rates

Best For

Businesses with a card machine
Businesses who own fixed assets

Early Settlement Penalties

No penalties. But no advantage to early repayment either.
Some times penalties for early settlement.

Repayment Structure

Proportional to revenue. Earn less, pay less.
Rigid monthly payments

Bridging Finance

Traditional Bank Loan

Funding amounts

R500k to R10M

Speed of funding application

Within Days
Weeks to months

Fee structure

Fixed cost per day of use
Interest rate

Best for

Businesses which have cash locked in a transaction
Established businesses that own a property, and don't need funds fast

Early settlement

Check for penalties (Lender-dependent)
Normally penalties for early repayment

Repayment structure

Rolled-up or fixed
Inflexible repayment structure. Normally over longer-terms.
Interested in pricing?
Use our Bridging Finance Calculator to get an estimate on loan pricing

When should I use Bridging Finance?

Here are some examples of where bridging finance might come in handy.

Property Sale


If you've recently sold a property and want access to the cash that is owed to you before the formal sale goes through, this is a great solution.
Finance Amount
Up to 80% of Sale Amount
Short Term (12 Months)

Mortgage Advance


If you've applied for a mortgage, and had your bond approved you may want to get access to that cash early. A mortgage advance helps you do this.
Finance Amount
Up to R5M
Up to 2 years
Speed of Funding
Within Days
Low to Medium

Estate Agent Commission

Estate agents don't need to wait for property sales to go through to get your commission paid. A commission advance unlocks cash in the transaction for you.
Finance Amount
Up to 70% of Comm.
Short Term (3-6 Months)

Debtor Book Finance

Do you often experience late payment or long payment terms from customers? There is a bridging finance solution that unlocks your debtors book.
Finance Amount
Up to 70% of Pre-Approved Amount
Short Term (3-6 Months)

Fair and transparent fees

No referral fee

FundingHub does not charge you anything for an application - we're free to use, forever.

Unlock trapped cash

Cash advances have the benefit of payments that are proportional to your turnover. Earn less, pay less.

Easy payments

Automatic deductions from your card machine turnover means payment is hassle-free.

Bridging finance calculator

Use this handy calculator to check your fee's.
* Calculator assumes a cost of R1.10 per R1 000 per day
** Calculator assumes a maximum Loan to Value (LTV) ratio of 80%, this may differ
*** Calculator does not include any processing (admin) fee's which may be included in the loan price, depending on the preferred lender.

What is Bridging Finance?

Bridging finance is a type of loan that bridges your cash flow when a large transaction is pending. You can use the surety of that transaction being completed as a method of unlocking a portion of the cash tied up in that transaction.

There are many different types of bridging finance.

Property Bridging Finance

You have successfully sold a property and awaiting the deal to pull through but your cash flows cannot wait for the transaction to be concluded. In a nutshell you are borrowing against a sold asset.

Lenders offer up to 75% advance on the value of the sold property after deducting bond and all transfer costs. The proceeds can be used for working capital, deposit on the next property etc.

The loan would be settled when the sold asset has is transferred to the buyer.

Commission Payment

If your business gets paid commission for the work that it does, but that commission only arrives late, or well after the work has been completed, then commission bridging may be useful for you.

The lender is able to see that you are due to be paid your commission, and they then issue you funding on the back of that assumption.

Debtors Book Finance

If you have a large debtors book where you have a number of outstanding payments that are due to you, you may be able to get short term bridging finance against those outstanding accounts.

The likelihood of this will depend on what type of accounts are outstanding and the amounts.

Contract Delivery

If you have won a contract and are needing finance to deliver on it, you may be able to access a specific type of contract-based bridging finance that uses the contract amount as a form of security.

Do you qualify for Bridging Finance?

Through FundingHub, you are likely to qualify for bridging finance if you meet the following criteria:

  • You have cash locked in a transaction/asset that is fully paid for including: Property sale, commission payment, debtors book, or contract delivery.
  • You are applying through a business, or as an agent of a business.
  • Your business is earning a monthly revenue of R30k or more per month.

* Figures are for example purposes only, and may vary from business to business.

How Does Bridging Finance Work?

Bridging finance can take on a few different structures, depending on how/where the cash is trapped.

The structure of your finance will largely depend on the type of finance you apply for.

The majority of bridging finance deals are one or a combination of these:

  • The sale of a property
  • Commission due to an estate agent
  • A debtor's book
  • A purchase order/contract that is due for delivery

Here's how the bridging finance process works:

Step 1: You identify trapped funds that you would like to free up.

Step 2: You apply for bridging finance.

Step 3: The funder will do there due diligence on you and your business. If the bridging finance is for a purchase order or contract, they will look at the suppliers and buyers involved too.

Step 4: The funder will pay you a percentage of the value of the trapped capital. This usually extends up to a maximum of 85%. You will get charged interest on that amount which you have accessed.

Step 5: At the end of the period (i.e. when you get paid the cash due), you repay the funder, including any outstanding interest. Sometimes the lender may ask for their name to transferred onto any contracts as a beneficiary.

The payment terms for bridging finance are generally flexible. If it for the sale of an asset, the finance is generally payable in a lump sum. Most lenders will work with you to find a suitable payment arrangement that suits both parties.

How Much Does a Bridging Finance Facility Cost?

The cost structure of these types of business loans is based on the number of days that you use them for.

Cost Structure

Because they are a form of short term finance, that is meant to bridge you through a period of cash shortage, the cost is calculated on a pay on a pay-for-what-you-use basis.

Fee's Charged

The fee charged depends on the type of loan, and the business applying.

A good guideline is a cost of between R1 and R1.50, per R1 000 loaned, per day.

An example explains the fee structure below.

A typical Bridging Finance example:

A business sells their property for R1 000 000. The estimated length of the property sale and transfer is 60 days.

The business wants access to that cash for a new project they are launching, and can't afford to wait 60 days for transfer to go through.

They use a bridging finance facility to access 70% of the sale price, loaning R700 000.

The lender quotes a fee of R1.10 per R1 000 per day, plus an application and administration fee of R2 000, due on loan initiation.

The loan repayment schedule may look something like this:

Accumulated Cost
Amount Paid
Balance Outstanding
R2 000 (fee)
R700 000
R23 100.00
R723 100
R45 430.00
R745 430
R46 200.00
R746 200.00
R180 000
R18 000
R50 800
R200 000
R20 000
R30 800
R210 000
R21 000
R9 800
R220 000
R9 800
Total Repaid:
R120 000

* Figures are for example purposes only, and may vary from business to business.

Additional Fee's

Depending on the lender, there may be fee's that you get charged beyond the 'interest' payment which is explained above.

These fee's may add to the overall cost of your loan, and you should always check your contract thoroughly before signing.

Some examples of additional fee's to look out for:

  • Early repayment fee. Check if there are any clauses in your contract for the case where you get access to the funds earlier than anticipated, and want to repay the loan earlier. Are there any early-repayment fee's?
  • Application fee. Some lenders will charge a fee for the application, on acceptance of a loan. Usually application is free until the point at which the contract is signed.
  • Admin fee. Some lenders will also/either bolt on an admin fee for any processing of funds that they need to do.

Types of Bridging Finance

These are the main types of bridging finance:

  • Property/Fixed Asset Disposal
  • Estate Agent Commission
  • Mortgage/Bond Advance
  • Debtor's Book Finance
  • Purchase Order/Contract Finance

Pro's & Con's of Bridging Finance

Advantages of Bridging Finance

Here are some reasons why some business owners like bridging finance:

  1. Quick access to cash
  2. Relatively inexpensive compared to other unsecured loans
  3. Access funds for growth
  4. Don’t give up equity
  5. Short term

Dis-Advantages of Bridging Finance

There are some negatives to bridging finance, too. Here are some:

  1. Can eat into profit margins,
  2. Not as fast as an unsecured loan

Check your Bridging Finance Options

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Applications are free, and won't affect your credit score.