The short answer
A bank business refinance commonly takes up to three months or more, and at the end of it you may not be approved for the amount you need. Simple deals with up-to-date financials can move faster. Deals involving companies and trusts, commercial property, recent credit issues or overdue tax returns often take longer.
That's fine if you're refinancing to get a better rate and there's no deadline. It's a real problem if the refinance is meant to fund something with a date on it.
The typical stages of a bank refinance
Every bank is a little different, but most business refinances go through the same steps. Each one is a chance for a delay.
- Initial discussion and pre-assessment. You or your broker talk to the bank about what you need and whether it fits policy.
- Gathering documents. Usually two or more years of tax returns and financial statements, BAS, business and personal bank statements, details of all debts, and sometimes an accountant's letter. If your returns aren't lodged, the process stops here.
- Formal application. The full application is submitted and enters the bank's queue.
- Credit assessment. An assessor reviews serviceability, credit history and policy fit. Questions come back, often in more than one round.
- Valuation. The bank orders a valuation. It has to be booked, you or a tenant may need to meet the valuer at the property, and the report has to come back. If it comes in lower than expected, the amount offered can change.
- Approval and conditions. Formal approval is issued, often with conditions that need to be met before documents go out.
- Loan documents. Documents are prepared, signed and returned, sometimes with legal review.
- Discharge of the existing lender. The outgoing lender has to process a discharge, which has its own timeline.
- Settlement. A settlement date is booked and funds finally move.
Where the time really goes
| Common delay | Why it happens |
|---|---|
| Financials not ready | Returns not lodged or the latest year not finalised by the accountant |
| Assessor questions | Requests for extra documents or explanations, each adding days |
| Valuation booking and report | Waiting for a valuer, access to the property, then the report |
| Low valuation | The approved amount drops, so the deal is restructured |
| Complex entities | Trusts, companies and several guarantors need more checking |
| Credit file issues | Defaults, judgments or ATO debt trigger further review or a decline |
| Outgoing lender discharge | The old lender processes the payout on its own schedule |
The risk nobody mentions: you might not get the amount you need
Even after months of process, a bank may approve less than you asked for, or decline. Serviceability on older financials, a valuation that comes in low, or a credit policy change can all cut the amount. If you've committed to a purchase, a supplier or a tax payment on the strength of the refinance, that gap becomes urgent.
Your options when you can't wait
If your deadline comes before the refinance can settle, there are a few paths:
- Ask for more time. Sometimes a supplier, vendor or creditor will wait. Often they won't, or the cost of waiting is too high.
- Use an unsecured cash flow loan. Fast, but usually limited in size and with frequent repayments that strain cash flow. See cash flow loan alternatives.
- Bridge with a short-term secured loan. Borrow against property now, for exactly the time the refinance will take, then repay from the refinance when it settles.
How a bridge from Equity Tap works
Equity Tap lends from $50k to $5m for one to twelve months, secured by a first mortgage, second mortgage or caveat over residential or commercial property anywhere in Australia. Because we're a private lender, we skip the slowest steps in the list above:
- No valuation is ordered before approval.
- No tax returns, BAS, profit and loss, accountant's letter or bank statements for a property-secured loan.
- No credit check at initial assessment.
- No credit committee: the person who answers the phone is often the person who decides.
Once we have the scenario, conditional approval can often be given on the phone and a term sheet issued in about 30 minutes. Eligible loans can settle in as little as 24 hours. Interest for up to the first six months can be prepaid or added to the loan, so there are no scheduled payments while you wait for the refinance. Interest is not waived. When the refinance settles, it repays the Equity Tap loan.
Read more on refinance bridging loans.
For example
For example, a manufacturer applies to refinance a factory to release equity for new machinery. The machine supplier has a single unit available and wants payment within the fortnight. The bank's valuation alone is three weeks away. A short-term second mortgage over the factory pays the supplier now, interest is added to the loan, and the bank refinance repays it when it settles. If the refinance is delayed, the loan term can be set with room to spare.
Short-term means only paying for the time you need
A bridge isn't a replacement for the refinance. It's a way to get the money now and only have it for the time you need it. If you need it for two months, take it for two months. Our exit strategy guide explains how to plan the repayment.
Need money before your refinance settles?
Each loan is priced on your individual circumstances, aiming for the sharpest rate available for your situation, with the full cost shown before you proceed. Call 1300 123 024 or apply online. If you're working with a broker, they can send the scenario to us directly through our broker page.
Business-purpose lending only. Approval, timing and terms depend on the scenario.
Frequently asked questions
How long does a business refinance usually take?
Why is my bank refinance taking so long?
Can I get money before my refinance settles?
Will I definitely get the amount I applied for?
How fast can Equity Tap fund a bridge?
Does Equity Tap need a valuation too?
What happens if the refinance is delayed further?
Brokers: send the scenario through the Equity Tap broker channel and you will deal with the same lending team.