Bridge Financing
-
Catalyst Private Credit > Bridge Financing
Catalyst bridge loans give borrowers the time and certainty to execute a plan. We fund acquisitions, refinances and recapitalizations on short timelines, secured against real estate or business assets, with a defined path to repayment.
When a bridge loan makes sense. A bridge loan is the right tool when the opportunity is real, the exit is identifiable and the conventional lender cannot meet the deadline. Typical situations include acquiring a property before a sale of another closes, refinancing a maturing facility while a longer-term lender completes its approval, or funding a deposit and closing costs on a time-sensitive purchase. The cost of a bridge is measured against the value of certainty: a missed closing or a forced sale is almost always more expensive than a few months of private interest.
How Catalyst structures a bridge. We begin with the exit. If the plan to repay is credible and the security covers our exposure at a conservative loan-to-value, the loan can be structured quickly. Interest is usually paid monthly or prepaid from proceeds, fees are disclosed up front, and extension options are written into the commitment so that a short delay in the exit does not become a default. Our credit committee reviews every file directly, which is why we can give a straight answer early.
- Terms from 6 to 24 months with extension options
- Interest-only structures to protect cash flow
- Secured by real estate, receivables or equipment
- Term sheet within 48 hours of a complete package
- Clear exit planning built into the structure
- Broker referral fees protected
With a complete package, appraisal and clear title, Catalyst can issue a term sheet within 48 hours and fund in as little as two to three weeks. Tell us the closing date on the first call and we will say whether it is realistic.
Usually a first or second mortgage on real estate, sometimes combined with a general security agreement over business assets. Loan-to-value is kept conservative so the loan remains safe if the exit is delayed.
Extension options are written into most commitments. A short delay is a conversation, not a default, provided the security and the plan still hold up.
Have a transaction that needs certainty and speed? Talk to the Catalyst credit team about how we would structure it.
