What is a Temporary Bridging Loan?

A temporary bridging loan is a short-term financing solution that helps cover financial gaps while you await incoming funds, such as proceeds from a property sale or pending business transactions.

While commonly used in real estate transactions for securing a property before selling an existing one, businesses can also leverage bridging loans for urgent cash flow needs. These loans provide instant approval and flexible repayment terms of up to five years.

Types of Temporary Bridging Loans in Singapore

There are different types of bridging loans in Singapore, each catering to specific financial needs:

1. Property Bridging Loans

Ideal for homeowners and property investors, this loan helps finance the purchase of a new property while awaiting the sale of an existing one. It can be used to cover down payments, mortgage obligations, or related costs until the transaction is finalised.

2. Business Bridging Loans

Designed for businesses needing short-term capital, this type of bridging loan helps cover operational expenses while waiting for client payments, receivables, or investment funds. It ensures smooth cash flow, allowing companies to seize business opportunities without financial disruption.

3. Personal Bridging

Need a financial bridge for a short-term need? Personal bridging loans provide quick access to funds for individuals facing a temporary financial gap. These loans can cover various expenses, from unexpected bills to urgent home repairs, offering a temporary solution until a more permanent one is in place.

Eligibility for Short-Term Bridging Loans in Singapore

The eligibility requirements for temporary bridging loans will depend on what type you are planning to get:

Eligibility for Property Bridging Loans

For property-related bridging loans, applicants must meet the following conditions:

• Be a Singapore Citizen or Permanent Resident aged 21 and above.
• The loan amount granted depends on the CPF funds to be refunded or the expected cash proceeds from the sale of the current property.
• Applicants must provide proof of an ongoing property sale, such as a sales and purchase agreement.

Eligibility for Business Bridging Loans

To qualify for a business bridging loan, the applicant must meet the following criteria:

• The business must be registered and physically operating in Singapore for at least six months. Eligible entities include Sole Proprietorships, Partnerships, Limited Liability Partnerships (LLPs), and Companies.
• At least 30% of the business must be locally owned by Singapore Citizens (SCs) or Permanent Residents (PRs), either directly or indirectly through ultimate individual ownership.
• Businesses with corporate shareholders may still qualify, provided they meet the local equity ownership requirement.

If you want to know more about the requirements for temporary bridging loans, feel free to talk to us.

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Documents Required for a Temporary Bridging Loan

The specific documents you’ll need depend on the purpose of your bridging loan. To help you prepare, we’ve provided an overview of the different requirements you might need:

Requirements for Property Bridging Loans

If you’re applying for a property bridging loan, you will typically need to provide:

• Option to Purchase (OTP) for the new property
• Exercised OTP for the property being sold
• CPF withdrawal statements (if applicable)
• Latest bank loan statements for existing mortgages

Requirements for Business Bridging Loans

For business bridging loans, lenders may require the following:

• Director and shareholder details (including NRIC copies)
• Corporate parent details, if applicable (to verify local equity holding eligibility)
• Latest 2 years' Notice of Assessment for all directors/shareholders
• Company’s latest 2 years' financial reports
• Latest 3–6 months' company bank statements

How to Apply for a Temporary Bridging Loan in Singapore

When you choose us as your corporate loan broker, you can expect a seamless and efficient process designed to help you secure the right financing.

1. Initial Assessment

We start with a comprehensive evaluation of your or your company's needs and situation to determine what loan option aligns with your requirements and eligibility. Our assessment includes:

• Identifying the required loan type (e.g., unsecured business loans, property refinancing, or working capital financing).
• Evaluating key eligibility factors such as company incorporation length, property value, and existing loan obligations.

2. Overcoming Loan Rejections

If you’ve faced rejection from banks, our LoanOwl platform provides a faster and more accessible pathway to approval. With our industry expertise and lender network, we help you overcome financing challenges and secure funding without unnecessary delays.

3. Documentation & Submission

Once eligibility is confirmed, we collect and organise the required documents before submitting the application to the most suitable lenders. Our structured approach ensures a smooth and efficient process.

4. Successful Financing

Upon lender approval, the loan is disbursed, and we receive a success fee or a referral fee from the lender, depending on the type of financing. Our priority is to help you secure funding with transparent terms and a hassle-free experience.

Why Choose LoanOwl?

As a finance broker in Singapore with extensive experience, we provide instant bridging loan solutions with fast approvals and quick disbursements, ensuring you get the funds you need without delays. We work with trusted lenders, connecting you to reputable financial institutions that offer reliable financing options. Our experienced team is here to help you explore your options and make an informed financial decision.

Our commitment to transparent loan terms means no hidden fees or unexpected surprises—just clear and straightforward financing.

Partner with LoanOwl today and find the SME loan in Singapore that suits your needs.

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Interest Rates for Short-Term Bridging Loans

The interest rates for bridging loans in Singapore vary based on:

• Loan amount
• Loan duration
• Borrower’s credit score
• Collateral value

The typical interest rate is 5% to 6%, but it varies by lender and loan type. Secured loans often offer lower interest rates compared to unsecured options.

For the best rates, LoanOwl helps you compare multiple lenders to find the most cost-effective solution.

Can I Get a Bridging Loan with Other Financial Obligations?

Yes, but lenders will assess your existing financial commitments before approving a temporary bridging loan. Your debt-to-income ratio, outstanding loans, and ability to service additional debt will impact eligibility.

f you already have an ongoing mortgage or business loan, LoanOwl can help structure a financing plan that works for you.

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