Bridging Finance vs Personal Loans: Which Makes More Sense for Property Sellers?

Selling a property should be an exciting chapter, but it often comes with financial hurdles. Many sellers find themselves needing funds before the property transfer is finalised—whether for rates and taxes, deposits on a new home, bond and transfer costs, or simply moving expenses.

When this happens, two common options are personal loans and bridging finance. Both provide access to cash, but they work very differently. Let’s unpack the differences and see why bridging finance often makes more sense for property sellers.

How a Personal Loan Works

A personal loan is a lump sum borrowed from a bank or financial institution. Approval usually depends on your credit score, income, and repayment ability. Repayments are fixed and stretched over months or years.

While useful in many situations, personal loans aren’t always ideal for property sellers because:

• Approval can be slow, involving credit checks and paperwork.

• Repayment terms are longer, often locking you into debt beyond the property transaction.

• Interest rates can be high, especially if your credit record isn’t perfect.

How Bridging Finance Works

Bridging finance, on the other hand, is specifically designed for property transactions. It gives sellers an advance on the proceeds from their sale—before registration is complete. Once the property is transferred and the funds are released, the advance is repaid.

The advantages of bridging finance with The Bridging Solutions Group (TBSG) include:

• Faster access: Funds are released quickly, without the long wait of a bank loan.

• Purpose-built: Tailored for property-related expenses such as transfer duty, bond costs, and rates.

• Short-term: No minimum loan period—you only pay for the time you need.

• Simple process: Easy to apply, without the same heavy credit requirements as a personal loan.

Which Option Makes More Sense?

If you’re a property seller who only needs funds until your sale is finalised, bridging finance is usually the smarter choice. Unlike a personal loan, it’s short-term, flexible, and directly linked to your property transaction.

Instead of being tied down to a long repayment plan, you can access what you need, when you need it, and repay it as soon as your sale is registered.

The Smarter Solution with TBSG

At TBSG, we understand the pressures sellers face. Our bridging finance solutions are transparent, flexible, and designed to remove the stress of waiting for proceeds. Whether you need to pay rates, cover a deposit, or manage moving costs, bridging finance gives you the freedom to move forward confidently.

👉 Learn more about how bridging finance can help simplify your property sale at The Bridging Solutions Group.