Unsecured bridging: a cash-flow bridge when there's no property

Not every business has property, and not every gap needs it. A café waiting on a large catering contract payment, a consultancy with a big invoice due from a government client, an importer whose GST refund is being checked: these are real bridging gaps, but they’re smaller and shorter than a property move, and the business’s own trading is strong evidence.

An unsecured bridge uses that trading as the basis for the loan. Event A is the cost due now. Event B is the payment that’s coming.

How is an unsecured bridge different from a secured one?

	Unsecured cash-flow bridge	Property-secured bridge
Typical size	$5k to $500k	$20k to $5m
Assessed mainly on	Turnover and bank statements	Property value and the exit
Security	No property required	First mortgage, second mortgage or caveat
Suits	Smaller, shorter gaps for trading businesses	Larger gaps, property moves, longer terms
Repayment style	Often regular repayments from trading	Often repaid in one go by the exit

Neither is better in general. The right one depends on the size of the gap, how long it runs and what you have to offer.

What gaps suit an unsecured bridge?

• Waiting on a customer payment from a large contract or progress claim.
• A GST refund being checked by the ATO. The ATO notifies businesses within 30 days of lodgement if it retains a BAS refund for verification. Our guide on what to do when the ATO holds your refund covers the process.
• An R&D refund or grant payment where the gap is modest. See R&D Tax Incentive advances.
• Seasonal stock bought ahead of a peak that’s already contracted.
• A smaller insurance payout gap, provided trading hasn’t been badly interrupted.

What does the assessment look at?

Because there’s no property, the business itself is the evidence:

1. Bank statements, usually several recent months, showing turnover, consistency and how the account is run.
2. Time trading and the stability of revenue.
3. Existing debts and repayments, including any other short-term facilities.
4. ATO position: lodgements up to date, any tax debt, any payment plan. ATO debt is considered case by case.
5. The expected payment: what it is, from whom, and when.

One important point about ATO refunds: the ATO generally offsets refunds against tax debts. If there’s a debt on any of your tax accounts, the refund you receive may be smaller than expected, and that affects how much of the bridge it repays.

If the business is trading well and a payment is on its way, you can find out what an unsecured bridge could cover in a minute.

What are the trade-offs?

• Size. Unsecured amounts are smaller than property-secured ones.
• Repayment rhythm. Many unsecured facilities are repaid by regular instalments, so your cash flow needs to handle them until the payment arrives.
• Sensitivity to trading. If trading dips, capacity drops. After a major disruption, property security may be more reliable.
• Cost. Every facility is priced on its own circumstances. The best way to compare is on the total dollar cost over the expected term, which is why our bridging calculator asks for costs in dollars rather than as a rate.

An illustrative example

An event-hire business has a contract to supply a large regional festival. The festival organiser pays 30 days after the event, but the business needs to buy extra marquees and pay casual crew beforehand. Its bank statements show steady turnover over two years, with no property.

An unsecured facility of $120k funds the equipment and wages. The business makes regular repayments from trading, and when the festival pays, it clears the balance. (Illustrative scenario.) The exit here is a receivable: money owed to the business under a contract.

When should you use property instead?

If the gap is more than a few months, the amount is large, trading is disrupted, or you want a single repayment at the exit rather than instalments, a property-secured bridge usually fits better. Our overview of commercial bridging loans explains that side.

How do you prepare for an unsecured bridge?

Because the assessment relies on how the business trades, a little preparation goes a long way:

• Download recent business bank statements for the period the lender asks for.
• Bring BAS and tax lodgements up to date, and know your ATO balance.
• Have evidence of the incoming payment: contract, approved invoice, ATO correspondence or claim details.
• List existing facilities and their repayments, including any other short-term finance.
• Keep the account clean: avoid dishonours and unexplained transfers in the weeks before you apply.

A clear picture of your cash flow helps a lender size the facility properly, and makes it more likely that the first offer is the right one.

Bridge the gap on the strength of your trading

A business that trades well shouldn’t have to put the house on the line for a short, well-defined gap. Tell us your monthly turnover, what you need, and what payment is coming. The enquiry takes about 60 seconds, there’s no credit check when you first enquire, and your details aren’t forwarded to a crowd of lenders. A real person reviews it and calls you.

Please give your turnover and existing debts as accurately as you can. It’s what an unsecured bridge is sized on.

See what your trading could support →