Bridge Loans for Business Acquisitions: When Speed Beats Cost
In M&A, time kills deals — and bridge financing keeps them alive.
Every serious operator has faced it: you find the right business, but the bank is weeks behind.
That’s where bridge loans come in — short-term capital designed to help you close first and refinance later.
If you’re new to acquisition financing, start with our Business Acquisition Loans Guide for a full breakdown of senior, mezzanine, and seller-financed structures.
What a Bridge Loan Really Is
A bridge loan is temporary debt used to fund an acquisition quickly — usually for 6 to 18 months until long-term financing (like SBA, bank debt, or private credit) is in place.
It’s about speed, certainty, and flexibility, not cost.
Typical scenarios:
- Fast-moving acquisitions where sellers won’t wait for SBA approval
- Competitive auctions where cash-close capability wins the deal
- Refinancing after integration — use bridge capital now, refinance once operations stabilize
Why Operators Use Bridge Loans
- Speed to Close Institutional lenders move slow. Bridge lenders move in days, not months.
- Certainty of Execution Terms can be approved off a clean P&L, a signed LOI, and a clear plan — not a 50-page underwriting packet.
- Strategic Flexibility Allows for capital-light acquisitions, post-close restructuring, or partial rollovers.
- Negotiation Power Sellers prioritize buyers who can close quickly. A bridge loan gives you that leverage.
Typical Bridge Loan Terms (Lower Middle Market)
| Term | Typical Range |
|---|---|
| Loan Size | $500K – $10M |
| Duration | 6–18 months |
| Interest Rate | 11%–14% (interest-only) |
| LTV | Up to 80% on asset value |
| Closing Speed | 5–15 days |
| Exit | Refinance into SBA, bank, or private credit facility |
Bridge lenders care more about deal logic and collateral coverage than perfect tax returns — which makes them ideal for entrepreneurs executing smaller acquisitions or roll-ups.
When Bridge Loans Make Sense
- You’re buying a business under LOI with a seller who wants to close in 30 days.
- You need liquidity for a stock + asset split transaction.
- Your SBA or private credit lender approved the deal but can’t fund fast enough.
- You’re rolling up multiple businesses and plan to refinance them into one facility later.
If you’re combining bridge financing with other layers — like seller notes or earnouts — check out our guide on Seller Financing to see how hybrid structures reduce equity pressure.
Bridge vs. Traditional Financing
| Feature | Bridge Loan | SBA / Bank Loan |
|---|---|---|
| Speed | 5–15 days | 45–90 days |
| Documentation | Light | Heavy |
| Term Length | 6–18 months | 7–10 years |
| Rate | Higher (11–14%) | Lower (7–9%) |
| Ideal For | Quick close, turnaround | Long-term stability |
Bridge capital is tactical — you use it when the value of speed outweighs the cost of capital.
The best operators know it’s not the rate that kills you; it’s missing the deal.
How Aparti Capital Structures Bridge Deals
At Aparti Capital, we work with private credit lenders, family offices, and specialty finance funds that understand acquisition speed.
Our approach:
- Assess the acquisition’s fundamentals within 24 hours
- Match you with lenders who can issue term sheets in under a week
- Design a refinance plan before the deal even closes
The result: speed without chaos — structure without friction.
Schedule a Complimentary Strategy Call
If you’re under LOI and the clock is ticking, let’s move.
Our team will help you secure bridge capital fast — and build a long-term refinance plan that fits your acquisition.
