Property Development Funding: Property Term Loan vs Bridging Loan
Cash flow gaps hit hard in property development. Land costs loom before sales clear, or construction pauses between phases. You need funding that matches your timeline. Would that be a Property Term Loan for steady progress or a Bridging Loan for urgent needs?
Let’s take a look at the different property development funding options. Here, we’ll take a deep dive into the difference between a property term loan and a bridging loan.
What’s a Property Term Loan For?
A Property Term Loan funds property development over a structured period, typically 3 to 24 months, with repayments aligned with project milestones, such as construction phases or sales.
Think land servicing, construction phases, or bridging between stages. A Property Term Loan fits here.
Repayments flex to your cash flow, milestones like phase ends or sales. Less rush, lower rates than bridging. Funds support the full cycle.
Developers lean on these for steady momentum.
What’s a Bridging Loan For?
You need cash yesterday. An auction pops up with prime land. Or you’re closing a deal but waiting on a payout. That’s when Bridging Loans shine.
They deliver funds in days, often within a week. Terms last six to 12 months. You pay interest monthly, then settle the loan at exit, like a sale or refinance. Speed comes at a cost: higher rates reflect the rush.
Perfect for one-off hurdles. Not built for long builds.
Property Term Loan vs Bridging Loan: The Breakdown
Both tackle property development finance gaps. But choose wrong, and timelines suffer.
Term Loans offer lower costs and flexibility for ongoing builds; Bridging Loans prioritise speed for one-off needs.
Here’s the quick comparison.
| Aspect | Property Term Loan | Bridging Loan |
| Duration | 3–24 months, phase-aligned | 6–12 months, exit-driven |
| Repayment | Milestone or cash flow based | Interest-only, bullet payoff |
| Speed | 3–5 days approval | Same week often |
| Rates | Lower, structured risk | Higher for urgency |
| Ideal Use | Development bridging finance | Quick land grabs, auctions |
Flexi-cap Term Finance Fits Both Worlds
Taurus Capital’s Flexi-cap term finance gives you R1-million to R20-million. Secure it with unencumbered non-residential property or JSE shares. We match terms to your exits.
You get a Property Term Loan structure with Development bridging finance speed. No bank waits. Clear rates upfront.
