Bridge Financing in U.S. Markets

Bridge financing (sometimes called interim or gap financing) is a short-term funding solution used to “bridge” a gap between now and a future event. It is often secured by real estate, inventory, or receivables and carries higher rates because of its short duration.

When is bridge financing used?

• Real estate transactions — bridging the time between purchase of a property and securing long-term mortgage financing or selling another asset.
• Business acquisitions — funding the purchase price while waiting for investor capital or bank loan approval.
• Construction projects — financing work-in-progress until draws are received from lenders or project owners.
• Operational cash gaps — covering payroll or supplier costs when payments from customers are delayed.

Bridge loans typically range from one to twelve months. Payments may be interest-only or incorporate a balloon payment at maturity.

Nicolas’s expertise

Nicolas Lescalier collaborates with private lenders and specialty finance companies across the U.S. to structure bridge loans that make sense. His process includes:

• Collateral evaluation — determining the loan-to-value ratio based on appraised property or receivables.
• Exit strategy — ensuring there is a clear source of repayment, whether from sale proceeds, long-term refinancing or cash flow.
• Speed — coordinating with lenders who can underwrite and close quickly, often within days.
• Transparency — providing clear term sheets detailing fees, interest rates and extension options.

Bridge financing can be a powerful tool when used correctly but can be risky if the exit plan is uncertain. Nicolas advises clients on alternatives and helps compare costs to longer-term solutions.

Example

A property developer in Florida found an off-market apartment complex but needed to close quickly. Traditional financing would take months. Nicolas arranged a 9‑month bridge loan secured by the property at 70% loan-to-value. This allowed the developer to acquire the building, make renovations, and then refinance into a lower-cost permanent loan.

External resource

For an overview of commercial real estate bridge loans, see this Investopedia article.

Considering a bridge loan?

Bridge financing should align with your timeline and exit strategy. Contact Nicolas to evaluate whether a bridge loan is right for your project.