Term Loan, Revolver or Bridge? Choosing the Right Facility for Your Business

Start with the purpose

The Facility Request section of our loan form asks you to choose a facility type. The right answer follows from what the money is for and how it will be repaid. A mismatch, such as funding a ten-year asset with a one-year facility, creates refinancing risk that our credit committee will flag.

Term loan

A term loan provides a fixed amount, drawn once or in tranches, and repaid over an agreed period. It suits capital expenditure, expansion projects and long-term investments. Repayment can be amortising, a bullet at maturity, or a balloon structure.

Revolving credit facility

A revolver lets you draw, repay and redraw up to an agreed limit. It is the natural fit for seasonal working capital and liquidity buffers. You pay interest only on the amounts drawn, plus a commitment fee on the unused portion.

Bridge loan

Bridge financing covers a short gap, typically under one year, until a defined event such as an asset sale, an equity raise or long-term refinancing. The repayment event must be credible and clearly documented.

Acquisition finance

Used to fund the purchase of a company or business unit. We look at the combined group's cash flow, the purchase price multiple and your own equity contribution.

Trade finance and working capital facilities

These finance the trading cycle, from purchasing inventory to collecting receivables. They are often secured on the receivables or goods being financed.

Asset-based lending and equipment finance

These facilities are sized against the value of specific assets, such as receivables, inventory, plant or equipment. They can unlock more capacity than cash-flow lending for asset-rich businesses.

Project and real estate finance

Project finance is repaid from the cash flows of a specific project, supported by contracts and offtake agreements. Real estate finance is secured on commercial or residential property and sized against its value and income.

Refinancing

Refinancing replaces existing debt, often to extend maturities, reduce cost or consolidate lenders. Include your current facility details in the Financials section.

Not sure?

Choose Other or the closest match and describe your needs in the purpose of funds field. Our bankers will propose the most suitable structure in the indicative term sheet.