Quick snapshot:
Loan Amount: $2.4 million
Loan Type: Bridging loan (short term business finance)
Purpose: Working capital to cover wages, supplier invoices, and day-to-day operations
Problem: Business facing urgent cash flow issues due to delayed payments from clients
Solution: Bridging loan secured against commercial property, settled within 4 business days
When a small business hits a cash flow wall, it doesn’t just stall—it risks coming undone. That was the situation a Sydney-based manufacturing company faced when several key clients delayed payments by 30 to 60 days, leaving them unable to pay staff or replenish materials. The company had existing contracts, ongoing orders, and long-standing supplier relationships—all jeopardised by a short-term funding gap.
The owner had already approached the banks but was told the credit assessment could take six to eight weeks. That timeframe might suit a long-term investment—but not an urgent operational cash flow need. This is where a fast, flexible bridging loan became the most practical tool for survival and continuity.
Why a Bridging Loan for Working Capital Makes Strategic Sense
Traditional business loans typically require extensive paperwork, rigid eligibility criteria, and weeks (if not months) of processing time. They’re ideal for long-term expansion, but not when a business needs an immediate injection of cash.
In contrast, a bridging loan is designed specifically for these scenarios. It’s a short-term facility, usually backed by property, that allows businesses to unlock equity quickly to resolve urgent financial pressure. In this case, Secured Lending arranged a $2.4 million bridging loan within four business days, secured against the client’s commercial warehouse in Western Sydney. No redraw clauses. No funding delays. Just fast finance with a clear exit strategy.
Key uses of the funds included:
Paying overdue wages to staff
Settling time-sensitive supplier invoices to avoid business interruption
Meeting monthly fixed costs like rent and utilities
This facility acted as a financial buffer while waiting for invoice payments to be finalised. The borrower repaid the loan six weeks later using incoming cash from those delayed accounts receivable.
Secured Lending’s Detailed Approach: More Than a Loan, It’s a Lifeline
What makes bridging finance effective isn’t just the speed of settlement. It’s the structuring of the loan in a way that ensures the business doesn’t dig itself into a deeper hole.
At Secured Lending, we take a consultative approach. For this loan, we:
Assessed the urgency: We prioritised the loan because payroll was due within the week.
Valued the security: A same-day desktop valuation confirmed enough equity in the property to support the $2.4 million loan.
Verified the exit strategy: We reviewed the client’s accounts receivable ledger to ensure they had sufficient incoming payments due to repay the loan.
This wasn’t a case of pushing funds out quickly without diligence. It was about balancing speed with sound risk management.
We also tailored the loan term to suit the situation—a six-week initial term with the option to extend by another four weeks if payments were further delayed. There were no early exit fees, giving the business full flexibility to repay as soon as funds became available.
Bridging the Gap Between Urgency and Opportunity
Short-term business finance isn’t just for survival. Used wisely, it can create breathing room to make better decisions, preserve stakeholder trust, and avoid costly long-term consequences like defaulting on obligations or losing staff.
Here are three ways this client turned a cash crisis into a growth opportunity:
Protected Reputation: Paying suppliers on time preserved trust, securing favourable terms for future contracts.
Retained Talent: Ensuring wage payments kept their skilled labour force intact at a critical production stage.
Avoided Penalties: Meeting rent obligations and avoiding bounced payments protected their credit history.
This is why bridging loans aren’t just emergency tools; they’re strategic when deployed at the right time, with the right structure, and supported by professionals who understand business realities.
Can a short-term bridging loan actually help a small business grow, not just survive?
In many cases, yes. The key is aligning the loan term with a clear repayment source, understanding the timing of inflows and outflows, and not overleveraging. That’s where Secured Lending steps in with practical, case-by-case support.
How Secured Lending Can Help
We specialise in fast, short-term business loans tailored for real-world business challenges. Whether it’s a cash flow pinch, a supplier settlement, or a need to act quickly on a new opportunity, our products include:
Bridging Loans
Caveat Loans
First Mortgage Finance
Second Mortgage Finance
Short Term Business Loans
We understand that timing is everything. That’s why we work fast, assess real risks, and structure funding to suit your exact needs.
If you’re a business owner or advisor navigating a similar cash flow challenge, speak with one of our lending experts today on 1300 795 175 or email info@securedlending.com.au. Let us help you regain control of your finances—quickly, and with purpose.
