The One-Week Bridge Loan: Cutting Through the Hype
By Taimour Zaman, Founder, AltFunds Global
Let’s be blunt: in the world of finance, “fast money” is usually either a fairy tale or a nightmare. But when a client calls me, breathing fire about a deal that will vanish in days, they’re not looking for fairy tales. They want to know if the legendary one-week bridge loan is real. After a career navigating these waters, I can tell you it is—but you have to read the fine print written in lightning.
The institutions that operate in this hyper-fast lane are a world away from traditional banks. Think specialised private lenders and agile bridging finance companies. Their entire existence is predicated on speed, achieved by focusing on three non-negotiable pillars:
- The Asset is King: The loan is secured against a high-quality, liquid asset—typically prime real estate. This is the bedrock.
- The Exit is Everything: You must have a rock-solid, verifiable strategy for repaying the loan, like a confirmed long-term mortgage or a sale agreement.
- Skin in the Game: Lenders need to see your own capital at risk. This isn’t for the undercapitalised.
This velocity comes at a premium. The trade-off for a one-week close is a higher cost of capital. We’re discussing interest rates and fees that reflect the lender’s significant risk and operational agility. You’re not just borrowing money; you’re buying time.
So, forget the myth. The one-week bridge is a stark reality. It’s the financial equivalent of a nitro boost for your deal engine—incredibly effective for a short, critical burst, but guaranteed to burn fuel at a ferocious rate. Before you reach for it, be certain your destination is worth the ride.
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