The main risks are that your exit does not happen on time, that costs escalate through extension and default charges, and that the lender enforces its security. Because bridging is secured on property, failure to repay can mean repossession and sale of that property, potentially at a price below what you expected.
Exit risk is the big one. Sales fall through, refinances are declined, planning takes longer than promised and works overrun. Any of these can leave you holding a facility past its term.
Cost risk follows from it. Extensions typically bring further fees and a higher rate, and rolled-up interest means the settlement figure grows over time rather than staying still.
Valuation risk matters too. If the property is worth less than assumed, or is harder to sell than expected, the amount recovered on a sale may not clear the debt — and any shortfall can still be pursued, particularly where personal guarantees are in place.
Personal guarantees make directors personally liable for that shortfall. This is not a technicality; guarantees are enforced. Take independent legal advice before you sign, and only proceed if you could withstand the worst case.