Bridging Finance Structured for Your Needs

ASAP Finance offers a wide variety of bridging loan solutions for borrowers all over New Zealand. Cashflow timing gaps are natural occurrences in business; bridging these gaps can be the difference between securing your next big project or sitting on the side-lines.

Offering both open and closed bridging solutions, ASAP Finance gives you the confidence go unconditional on your next property as you wait to realise profits from a prior project or venture. Our short-term bridging loans are tailored to your individual needs, offering quick and hassle-free finance during the bridging period at competitive interest rates to suit the loan term.

Whether you are an investor looking to up-scale your investment portfolio or a property developer looking to secure your next big project, our team will find a solution that will suit your funding needs.

Key Advantages of ASAP’s Bridging Finance

  • Bridging loans are typically capitalised interest loans and are intended to bridge a gap where increased debt makes servicing strenuous. We take advantage of our independence to structure bespoke bridging loans specific to the needs of our clients.
  • We can assume security over one or both properties, with lending available against both the property being sold and the property being purchased.
  • ASAP Finance has the ability and scale to lend $50,000,000 on a single transaction.
  • Evergreen funding lines provided by ASB & BNZ are supported by private equity ensuring funding is always available for our clients.
  • Our loans are settled quickly, often within 48 hours, so borrowers don’t need to be concerned about losing their chosen property while waiting for an approval.
  • Take advantage of our term specific rates, with lower interest rates available for short term loans.
  • We work with your financial adviser or mortgage broker to coordinate a sale and purchase timeline.

We offer two types of bridging loans:

  • Closed: A closed bridge loan is one where you, as the developer or investor, have a known exit strategy in place. In this instance, you would (a) know how you will pay back the loan and (b) have a specific date that this will occur. For example, you may require funds to settle on the purchase of a new property before the sale of an existing property has been completed. In this scenario, you would have a binding sale and purchase agreement for your existing property. This gives both you and the lender certainty as to what funds will be available and when. Sale proceeds can then be applied to reduce debt against your new purchase. Exit strategies in closed bridge scenarios are clearly defined, giving it a lower risk profile than that of open bridge loans.
  • Open: An open bridge loan is one where there is no clear exit strategy in place. For example, you are required to settle on a newly acquired property prior to procuring a binding sale and purchase agreement for your existing property. As you are yet to obtain a sale and purchase agreement for your existing property, there is no fixed date or guaranteed income, thus making it a riskier proposition for both you and the lender. ASAP finance provides short-term loans for a wide variety of open and closed bridging scenarios, enabling you to capitalise on the next opportunity that comes your way!

Our Bridging Loans Assessment

At times when property investors or developers need to settle a new property, bridging finance can be like a lifeline. The last thing you need is to be on tenterhooks for fear the deal will fall over. In the fast-paced world of property the saying time kills all deals has never been truer.
Our lending managers are experienced investors & developers, so we understand the need for a quick, hassle-free approach. Our loan assessment process is short and sweet.

What we review:

  • Details of the security
  • Your current loan balances
  • Your proposed equity contribution
  • Sale and purchase agreements
  • Details of your proposed exit strategy

For more information on loan terms and funds, read our lending criteria.

ASAP Funding Process

  • Submit a funding application. We work quickly, assessing your project and providing indicative terms in as little as 24 hours.
  • Issuing of formal letter of offer. Following your acceptance of the indicative terms, we issue a letter of offer detailing:  
    • Our fees (including a legal quote for your solicitor)
    • Your interest rates
    • Loan terms
    • Any terms and conditions (we try to keep these as minimal as possible) Unlike other lenders, our letters of offer are fully credit approved; we stand by our commitment to fund your project.
  • Creation of loan documents. Once you have accepted the offer and paid the loan deposit, we work with your mortgage broker to arrange complete loan documents.

If you are working with a mortgage broker, we will pay brokerage direct, typically equivalent to 1% of the loan amount on drawdown. Our establishment fee and legal costs are payable by you. These are stipulated upfront.

Apply for Bridging Finance Structured for Your Needs

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For any assistance:

FAQ

What is a bridging loan?

A bridging loan is usually short-term finance for when you have purchased a new property but are yet to sell your existing property. The bridging loan helps you close the gap until you can access the equity through sale of your existing assets.

What is the minimum term for a bridging loan?

We can tailor our bridging loan term to meet your specific needs and can offer terms from 3 months to 12 months.  We recommend a minimum term of at least 3 months even if you think you need less time, to allow for unforeseen delays in completing the settlement of the sale of your existing property. 

What is the difference between an open and closed bridge?

A closed bridge is when you have purchased a new property and have sold your existing property but the date of settlement of your existing property is after the date on which you need to settle the purchase of the new property, hence bridging finance is required for a known period.  An open bridge is where you have purchased a new property but have not yet sold your existing property, hence bridging finance is required for an unknown period.  ASAP Finance offers both closed Bridging Loans and open Bridging Loans. 

Are bridging loans interest-only loans or capitalised interest loans?

ASAP Finance offers both interest-only and capitalised-interest loans for bridging scenarios. The repayment type will ultimately depend on your cashflow requirements and ability to service interest repayments. 

Client Reviews

We are proud of work our clients have completed

Subdivided Sections

90 residential Lots (including Super Lots) located in Hobsonville Point, Auckland. The subdivided sections were unencumbered, and the client required funding to complete the construction of houses across the wider group. An on-demand cashflow facility was provided to enable the group to meet cashflow obligation.

Loan: $20,000,000
End Value: $33,500,000
Loan-to-value: 60%
Term: 12 months

Residential Block Refinance

A large block of residential land located in North Auckland. A Land Bank Facility was provided to enable the client to complete resource consenting for the subdivision. The Loan Facility provided refinance for the existing mortgage, a further advance facility to cover consenting costs, as well as capitalised interest and fees.

Loan: $6,000,000
End Value: $12,000,000
Loan-to-value: 50%
Term: 12 months

Commercial Property Acquisition

A client was in the process of selling a residential investment property, when settlement was called on the commercial property he had recently purchased in Te Aro, Wellington. A 3-month bridging loan (secured against both properties) was provided to enable the client to meet his settlement obligations while he completed the sale process for his residential investment property. No valuations were required.

Loan: $1,750,000
End Value: $2,620,000
Loan-to-value: 67%
Term: 3 months

Land Purchase

Vacant industrial land located at Tauriko Business Estate, Tauranga. The industrial property loan was provided as a ‘bridge’ to enable the client to complete a restructure of its group debt currently with a main bank. The client would eventually build a warehouse on the site. Repayments were on an interest-only basis. No valuation was required.

Loan: $5,000,000
End Value: $7,500,000
Loan-to-value: 67%
Term: 6 Months

Commercial Office Purchase

A six-level commercial office building in Auckland CBD. A commercial property loan was provided to assist with the purchase of the property. Settlement occurred within just 48 hours of receiving the loan application enabling the client to avoid penalty interest and default action. Repayments were on an interest only basis. No valuation was required.

Loan: $7,200,000
End Value: $10,500,000
Loan-to-value: 69%
Term: 3 months + extension

Purchase

A residential investment property located in Mt Roskill, Auckland. The ‘low doc’ loan facility was approved with limited financial information provided by the client. Repayments were to be made on an interest-only basis. No valuation was required.

Loan: $635,000
End Value: $910,000
Loan-to-value: 70%
Term: 6 months

Master-planned Subdivision

This construction loan was structured into two parts: (i) the purchase of an unconsented block of land in Lincoln, Christchurch, and (ii) construction and associated earthworks for the initial stages of the 120-lot land subdivision. The construction loan included capitalised interest and fees, and a revolving GST facility. 50% presales cover was achieved prior to drawdown from the construction facility.

Loan: $19,000,000
End Value: $29,230,000
Loan-to-value: 65%
Loan-to-cost: 80%
Term: 12 months + extension

Single-house Build

A section purchase and construction of a single house within a greenfield subdivision in Flat Bush, Auckland. The construction loan included capitalised interest and fees with no repayments required during the build. Funding was approved without a fixed price contract in place and no valuation drawdown reports were required – instead, drawdowns were provided based on agreed milestones.

Loan: $840,000
End Value: $1,200,000
Loan-to-value: 70%
Loan-to-cost: 82%
Term: 9 months

Terrace-townhouse Development

Construction of 29 terraced townhouses, and subsequent subdivision located in Whenuapai, Auckland. The loan facility provided for capitalised interest and fees, and included a revolving GST facility. Funding was provided without any pre-sales or a QS appointed to the project.

Loan: $12,950,000
End Value: $19,300,000
Loan-to-value: 67%
Loan-to-cost: 81%
Term: 12 months

Commercial Property Acquisition

A client was in the process of selling a residential investment property, when settlement was called on the commercial property he had recently purchased in Te Aro, Wellington. A 3-month bridging loan (secured against both properties) was provided to enable the client to meet his settlement obligations while he completed the sale process for his residential investment property. No valuations were required.

Loan: $1,750,000
End Value: $2,620,000
Loan-to-value: 67%
Term: 3 months

Land Purchase

Vacant industrial land located at Tauriko Business Estate, Tauranga. The industrial property loan was provided as a ‘bridge’ to enable the client to complete a restructure of its group debt currently with a main bank. The client would eventually build a warehouse on the site. Repayments were on an interest-only basis. No valuation was required.

Loan: $5,000,000
End Value: $7,500,000
Loan-to-value: 67%
Term: 6 Months

Commercial Office Purchase

A six-level commercial office building in Auckland CBD. A commercial property loan was provided to assist with the purchase of the property. Settlement occurred within just 48 hours of receiving the loan application enabling the client to avoid penalty interest and default action. Repayments were on an interest only basis. No valuation was required.

Loan: $7,200,000
End Value: $10,500,000
Loan-to-value: 69%
Term: 3 months + extension

Master-planned Subdivision

This construction loan was structured into two parts: (i) the purchase of an unconsented block of land in Lincoln, Christchurch, and (ii) construction and associated earthworks for the initial stages of the 120-lot land subdivision. The construction loan included capitalised interest and fees, and a revolving GST facility. 50% presales cover was achieved prior to drawdown from the construction facility.

Loan: $19,000,000
End Value: $29,230,000
Loan-to-value: 65%
Loan-to-cost: 80%
Term: 12 months + extension

Single-house Build

A section purchase and construction of a single house within a greenfield subdivision in Flat Bush, Auckland. The construction loan included capitalised interest and fees with no repayments required during the build. Funding was approved without a fixed price contract in place and no valuation drawdown reports were required – instead, drawdowns were provided based on agreed milestones.

Loan: $840,000
End Value: $1,200,000
Loan-to-value: 70%
Loan-to-cost: 82%
Term: 9 months

Terrace-townhouse Development

Construction of 29 terraced townhouses, and subsequent subdivision located in Whenuapai, Auckland. The loan facility provided for capitalised interest and fees, and included a revolving GST facility. Funding was provided without any pre-sales or a QS appointed to the project.

Loan: $12,950,000
End Value: $19,300,000
Loan-to-value: 67%
Loan-to-cost: 81%
Term: 12 months

Subdivided Sections

90 residential Lots (including Super Lots) located in Hobsonville Point, Auckland. The subdivided sections were unencumbered, and the client required funding to complete the construction of houses across the wider group. An on-demand cashflow facility was provided to enable the group to meet cashflow obligation.

Loan: $20,000,000
End Value: $33,500,000
Loan-to-value: 60%
Term: 12 months

Purchase

A residential investment property located in Mt Roskill, Auckland. The ‘low doc’ loan facility was approved with limited financial information provided by the client. Repayments were to be made on an interest-only basis. No valuation was required.

Loan: $635,000
End Value: $910,000
Loan-to-value: 70%
Term: 6 months

Residential Block Refinance

A large block of residential land located in North Auckland. A Land Bank Facility was provided to enable the client to complete resource consenting for the subdivision. The Loan Facility provided refinance for the existing mortgage, a further advance facility to cover consenting costs, as well as capitalised interest and fees.

Loan: $6,000,000
End Value: $12,000,000
Loan-to-value: 50%
Term: 12 months

Other Loan and Finance services

Construction and development loans

Development finance is our bread and butter. The bedrock of ASAP Finance is helping Kiwi developers with securing finance to get their development projects out of the ground, having reviewed thousands of transactions and facilitated over $3 Billion in lending to the NZ market.

Commercial & Industrial Loans

If you are planning on buying a residential or commercial investment property, then you need an investment property loan. Not all complex problems require complex solutions; our team of experienced lending managers will work with you to create a simple solution, specific to your needs.

Bespoke Investment Loans Settled Quickly

ASAP Finance is the ideal place for those needing to accelerate commercial acquisition time frames and maximise return on equity through tailored commercial property loans across NZ.

Bridging Finance Structured for Your Needs

ASAP Finance offers a wide variety of bridging loan solutions for borrowers all over New Zealand. Cashflow timing gaps are natural occurrences in business; bridging these gaps can be the difference between securing your next big project or sitting on the side-lines.

Land Bank Loans for Undeveloped Land

Undeveloped land rarely generates income, and we understand how hard it is to buy land with little cash flow. If you’re wanting to secure finance to purchase undeveloped land, you’ve come to the right place.

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