A bridging loan is designed to cover a time gap, not to solve long-term losses. Many SMEs are profitable on paper but experience stress because cash is “in transit”—in receivables, projects, or inventory.
When bridging is useful
Bridging is commonly used when:
- Your business is project-based and costs occur before collections
- You operate on B2B payment terms (30 to 90 days is common)
- You need to purchase inventory before peak demand
- You have won work and need execution cash to deliver
The key risk: repayment timing
The biggest mistake is taking bridging financing without confirming repayment timing. Before borrowing, identify:
- Expected collection dates and how reliable they are
- Whether collections come from one customer or many
- Your Plan B if a key payment is delayed
How to use bridging responsibly
Practical habits:
- Match tenure to the collection cycle (do not guess)
- Keep a buffer for late payment scenarios
- Track exactly what the funds were used for
- Avoid stacking multiple short-term facilities without a consolidated plan
What lenders typically want to see
Often requested:
- Operating bank statements showing real business activity
- Evidence of receivables, contracts, or invoices (when relevant)
- Financials that show margins and stability
- A clear view of existing obligations and monthly repayments
Key takeaway
Bridge financing works best when it is tightly linked to a clear cash inflow event. The clearer the timing, the safer the facility.
If you are bridging a real timing gap and want funding that fits the way SMEs operate, apply for financing and we will review your situation based on cash flow, not guesswork.