What is it? (plain English)
A bridge loan is short-term, business-purpose capital that helps an investor secure or reposition a property now, with a clear plan to repay it later through a sale or a refinance. It "bridges" the gap between two points.
Who is it for?
Investors who need speed or a gap-filler — to win a time-sensitive deal, season a property, or bridge to longer-term financing.
When might it make sense?
When timing matters more than the lowest rate — competitive offers, auctions, or a property that needs to be stabilized before it can qualify for permanent financing.
Good to know
Bridge loans are asset-based, often interest-only, and short-term. The whole loan depends on a credible, time-bound exit — so the lender scrutinizes how and when you'll repay. If the exit slips, extension fees follow.
Potential advantages
Speed and certainty to act on opportunities; flexible; buys time to execute a plan.
Potential limitations
Higher cost than permanent financing; short clock; depends entirely on the exit materializing; extension fees if it doesn't.
Documents you may need
Property and valuation information, the exit plan, entity documents, proof of reserves, insurance.
Questions to ask before you choose
- What's my exit, and by when?
- Do I have a backup exit?
- Is the cost of the bridge justified by the opportunity?
- Is title clean?
How Kyon helps
We help you confirm the exit is credible before you borrow, arrange the bridge to match your timeline, and — where it fits — fund directly.