Why Banks Don’t Do Bridging Loans Anymore – And Why That’s a Problem
Before diving into why banks have stepped away from bridging finance, it’s worth first understanding what a bridging loan actually
A vehicle finance refers to a loan, usually secured against the vehicles (car, truck, ute, etc.) and is paid monthly over a term, usually between 3 and 7 years.
There are several options you can choose from for your vehicle finance, namely:
Nina and Carlos are opening a food truck business on the Sunshine Coast. They have little capital, so they need the monthly repayments to be minimal, at least in the first 2 years while they establish their business.
The total cost of the truck is $50,000.
Nina has a Permanent part time position and Carlos has 2 years of financials having worked for himself.
The truck was financed over 5 years with a 20% balloon payment at the end under a chattel mortgage. This allows lesser monthly payments of $823 per month (6% comparison rate), and a final repayment of $10,000 after 5 years. They opted for this balloon payment as they estimate this would be the residual value of the vehicle after 5 years. Legally they own the truck from Day 1 and so can make any modifications they desire.
The interest on the repayments are tax deductible and hence this proves a very manageable payment for Nina and Carlos.
Nina and Carlos are opening a food truck business on the Sunshine Coast. They have little capital, so they need the monthly repayments to be minimal, at least in the first 2 years while they establish their business.
The total cost of the truck is $50,000.
Nina has a Permanent part time position and Carlos has 2 years of financials having worked for himself.
The truck was financed over 5 years with a 20% balloon payment at the end under a chattel mortgage. This allows lesser monthly payments of $823 per month (6% comparison rate), and a final repayment of $10,000 after 5 years. They opted for this balloon payment as they estimate this would be the residual value of the vehicle after 5 years. Legally they own the truck from Day 1 and so can make any modifications they desire.
The interest on the repayments are tax deductible and hence this proves a very manageable payment for Nina and Carlos.
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Before diving into why banks have stepped away from bridging finance, it’s worth first understanding what a bridging loan actually
At AMC Finance (Australian Mortgage Corporation), we speak to people every week who are trying to move forward with legal
The 2025–26 Federal Budget, delivered amid growing pressures on household finances and small businesses, offers meaningful relief in key areas—particularly