The expiry date that sneaks up
Private and bridging loans are meant to be short. You took one out for a good reason: to settle a purchase, fund a project, pay a tax bill or bridge until a sale. The plan was to repay it from a refinance or a sale before the term ended. Then something slipped. The sale took longer. The bank refinance stalled. The project ran over. Now the loan is weeks or days from expiry, and the lender has said it won't extend, or will only extend on terms that don't work.
What happens next matters. Once a private loan passes its expiry date, many lenders can charge default interest, add fees and begin enforcement. The longer it runs, the harder it becomes to fix.
How Equity Tap helps
Equity Tap is a direct, independent private business lender. We can refinance an expiring private or bridging loan with a new short-term secured loan, giving you a fresh term to complete your original exit. We lend from $50k to $5m for one to twelve months, secured by a first or second mortgage or caveat over Australian residential or commercial property.
Speed is the priority. Conditional approval can often be given on the phone and a term sheet issued in about 30 minutes once we have the scenario. Eligible loans can settle in as little as 24 hours. We don't order a valuation before approval, which removes one of the biggest delays in a refinance.
Why the usual options often fail
| Option | Why it often doesn't work in time |
|---|---|
| Ask the current lender for an extension | Already refused, or offered on punishing terms |
| Refinance to a bank | Commonly takes up to three months or more, and the loan history may lead to a decline |
| Another private lender that needs a valuation | Waiting for a valuer adds days you don't have |
| Sell the property quickly | A rushed sale can cost far more than a short refinance |
| Equity Tap short-term refinance | Conditional answer on the phone, no valuation before approval, eligible loans settle in as little as 24 hours |
What we need to move quickly
- The payout figure from the current lender, including any default interest or fees.
- The expiry date and any notices you have received.
- Property details for the security and any other mortgages on title.
- ID for every borrower and guarantor.
- Your exit: what was meant to repay the original loan, where it is up to, and why it was delayed.
We don't need tax returns, BAS or bank statements for a property-secured loan. There is no credit check at initial assessment, and arrears, defaults or a past decline are not automatically a problem.
Getting the exit right this time
An expiring loan usually means the original exit took longer than planned. We will look at that exit carefully and set a term that gives it room, rather than another tight deadline. If the original plan was a bank refinance, we will ask where it is up to. If it was a sale, we will look at the listing, the contract or the agent's advice. Our exit strategy guide explains what makes an exit believable.
For example, a business owner who used a bridging loan to buy new premises, planning to repay it from selling the old premises, may find the sale has taken longer than expected. A twelve-month refinance with interest added to the loan for the first six months can take the pressure off while the sale completes, with no scheduled payments in that period.
Repayment options
Repayments can be interest only, or interest for up to the first six months can be prepaid or added to the loan so there are no scheduled payments in that period. That can be especially useful when cash is already stretched from the old loan.
Caveat or second mortgage if title is crowded
Sometimes the expiring loan is itself a second mortgage, with a bank holding the first. In that case our loan can take the place of the outgoing second mortgage, or, if the first lender's consent will be slow, a caveat can sometimes be used. Where we refinance a first mortgage directly, see first mortgage business loans. We will tell you on the first call which structure fits the title and the timing.
Related situations
- A bridging loan that ran out before the sale: see refinance bridging loans.
- A cash flow lender that has stopped cooperating: see messed around by a cash flow lender.
- Multiple debts including the private loan: see business debt consolidation loans.
- A court judgment already in place: see business loans after a court judgment.
Pricing
Each loan is priced on the client's individual circumstances, aiming for the sharpest rate available for that situation, with the full cost shown before you proceed.
Don't wait for the expiry date
The earlier you call, the more options you have. Phone 1300 123 024 or apply online today. Brokers whose client's loan is about to expire can send the scenario through our broker page for a fast indicative answer.
Business-purpose lending only. Approval, timing and terms depend on the scenario.
Frequently asked questions
My private loan expires next week. Can you refinance it in time?
Can you refinance a loan that is already in default?
Do you need a valuation to refinance a private loan?
What do you need from my current lender?
Can I refinance a bridging loan that ran out before my sale settled?
Will I have to make repayments on the new loan?
Brokers: send the scenario through the Equity Tap broker channel and you will deal with the same lending team.