The exits lenders accept
Sale of the security or another asset, supported by a contract, listing and appraisal. Refinance to a bank or another lender, supported by an approval or at least a serviceability position that plainly works. Contracted receivables — settlement of a legal claim, a completed project payment, a grant or tax refund. And, for developments, settlement of pre-sold or completed stock.
How exits are evidenced
Statements of intention are not evidence. Lenders want an exchanged contract, a written approval, a signed agency agreement with comparable sales, a pre-sale schedule with deposits held, or a valuation supporting the assumed sale price. The more documentary support the exit carries, the higher the LVR and the sharper the price the transaction can attract.
Timing and buffers
Match the term to the realistic exit timetable, then add a buffer. Selling commercial property in Australia commonly takes three to six months from listing to settlement; refinances take four to twelve weeks. A three-month facility against a five-month exit is a structural error that costs default interest and extension fees.
Strong borrowers also nominate a secondary exit — a second asset that could be sold, or a fallback refinance — so a delay in the primary path is not fatal.
Key points
- The exit is the event that repays the loan.
- Evidence beats intention every time.
- Set the term longer than the realistic exit timetable.
- Nominate a secondary exit wherever possible.
Frequently asked questions
Can I extend if my exit is late?
Extensions are possible but discretionary and usually carry a fee and repriced interest. They are not guaranteed.
Is 'I'll refinance to a bank' enough?
Only if it is credible and supportable. Without evidence that a bank would approve, it is treated as a weak exit.
What is the strongest possible exit?
An exchanged unconditional sale contract with a settlement date inside the loan term.