Bridgement Finance

Introduction

Bridgement offers South African businesses a revolving credit facility that behaves like a modern overdraft. You are approved for a limit, you draw only what you need, you pay interest only on what you use, and once you repay, the facility is available to draw again.

Who it suits

This fits an SME that wants a flexible safety net rather than a lump-sum loan: a facility to dip into for stock, a gap, or an opportunity, and to top up as needed without reapplying each time.

What you get

  • A revolving facility you can draw from repeatedly up to your limit.
  • Interest charged only on the amount you actually use.
  • Fast, fully online application and approval.
  • No paperwork mountain and no equity given away.

How the cost works

You pay for what you draw, at a cost quoted upfront, rather than a fixed fee on the full limit. The flexibility to repay and redraw makes it well suited to ongoing, unpredictable cash needs.

Our take

A revolving facility is often more useful to a small business than a one-off loan, because cash needs rarely arrive in a single lump. Bridgement’s draw-repay-redraw model fits how SMEs actually trade. Compare it with fixed working capital loans and the full funding range to choose the right structure.

See if you qualify

Related: Working capital loans  ·  Cash flow  ·  All funding options

Main Features

Qualifying Criteria

Bridgement offers funding to registered businesses from any industry sector.

To qualify, you need to meet the following minimum criteria:

  • Have a registered business in South Africa
  • Annual revenue over R500 000
  • Trading for longer than 6 months

Bridgement does not offer startup grants or funding, finance to start or buy a business or finance for a new business with a tender or purchase order.

  • Repayment Terms: You may pay back your loan over 1 to 12 months. Bridgement also allows lenders to settle early at any stage and get rewarded with a discount.
  • Application process: Apply online and get pre-qualified for a financing facility. You will be required to share your banking or accounting data, which will determine the limit on your credit facility.
Pricing

Rates start at 1,7% per month and are dependent on several data points, which include credit data, government data, legal records, other public data, trade history, quality of invoices and debtors, etc.

Pros and Cons

Pros

Rewards for early settlement.

Cons

High monthly sales requirement to qualify.
FAQs

Traditional bank loans can be a lengthy and complex process, often requiring significant collateral and a strong credit history. Bridgement offers an alternative funding solution. Here’s a breakdown:

  • Loan Approval: Bridgement uses an alternative data scoring system, making it potentially easier to qualify than a traditional bank loan.
  • Speed: Bridgement’s online application process can be completed quickly, with funding decisions often delivered within days.
  • Collateral: Bridgement typically doesn’t require traditional collateral like property, making it a good option for businesses with limited assets.

Bridgement can be a good option for a variety of businesses, especially those experiencing:

  • Growth: Needing capital to invest in inventory, marketing, or expansion.
  • Cash Flow Gaps: Bridging temporary gaps between expenses and income.
  • Unexpected Costs: Covering emergencies or unforeseen expenses.

Bridgement has a clear repayment structure outlined in the loan agreement. Not meeting repayment terms could lead to late fees, collections efforts, and potential damage to your credit score. It’s crucial to carefully assess your business’s ability to repay before applying.

The Bridgement process typically involves:

  • Online Application: Complete the online application form with details about your business and funding needs.
  • Documentation: Submit any necessary documents requested by Bridgement.
  • Credit Assessment: Bridgement will assess your business’s creditworthiness using its alternative data scoring system.
  • Loan Offer (if approved): Bridgement will present a loan offer outlining terms, interest rates, and repayment schedule.
  • Funding: Once accepted, Bridgement will disburse the loan funds to your business account.
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