The worst phone call before settlement
It happens more often than banks would like to admit. A formal approval is issued, the contract goes unconditional, everyone books settlement, and then the bank calls. A valuation came in short. Credit policy changed. A routine final check turned up something the assessor did not like. A loan amount was cut. Whatever the reason, the approval is withdrawn or reduced, and settlement is days away.
Failing to settle on an unconditional contract is expensive. The vendor can issue a notice to complete, charge penalty interest, keep the deposit or sue for losses. For a business buying premises, a development site or another business, losing the deal can also mean losing the plan built around it. The answer is not to start again with another bank. There is no time for that.
Why we can move when a bank cannot
Equity Tap is a direct, independent private business lender lending its own money. There is no credit committee; the person who answers the phone is often the person who makes the decision. We do not order a valuation before approval, and for a property-secured loan we do not need tax returns, BAS, profit and loss statements, an accountant's letter or bank statements. Conditional approval can often be given on the phone, a term sheet issued in about 30 minutes, and eligible loans can settle in as little as 24 hours.
That is why we are regarded as one of the fastest second mortgage business lenders in Australia. Speed is built into how we lend, not added for emergencies. We never guarantee approval or timing, but a call the same day the bank pulls out gives you the best chance.
How replacement funding is usually structured
We lend 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. In a failed-finance scenario, the structure depends on how big the hole is.
| What happened | A typical structure |
|---|---|
| The bank withdrew the whole loan | A first mortgage over the property being bought, often with additional security over another property you own |
| The bank cut the loan amount | Keep the bank's reduced loan and cover the shortfall with a second mortgage or caveat over another property |
| The deposit or balance is the problem | A second mortgage over your home or an investment property to fund the gap |
Where we sit behind a first mortgage, that first lender's consent may be needed. See urgent property settlement loans and second mortgage business loans for more detail on each structure.
The exit: getting long-term finance in place properly
A short-term loan here buys time. Once settlement is done and the pressure is off, you or your broker can find long-term finance without a deadline hanging over every conversation. That might be a different bank, the original bank once its issue is resolved, or a specialist lender. It could also be a sale of another asset or business cash flow. Our term can run up to twelve months, which gives a sensible window. Read our guide to business loan exit strategies and the page on a slow bank refinance, because that is often what the next stage looks like.
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. Interest is not waived. Each loan is priced on your individual circumstances, aiming for the sharpest rate available, with the full cost shown before you proceed.
Send us this, today
- The contract. Purchase price, settlement date and any notices already received.
- What the bank said. The original approval and the withdrawal or reduction, if you have it in writing.
- Security details. The property being bought and any other property you can offer, with existing mortgage balances.
- ID for the borrowers and guarantors.
- The amount you need to complete.
No credit check is made at initial assessment. If the bank's issue was credit history, defaults or an ATO debt, that is not automatically a problem for us. A credit check may be made before funding.
Timeline when settlement is days away
- Hour one: call us or have your broker call. We work through the numbers and the security.
- Within about 30 minutes of having the scenario: a term sheet, if the deal fits.
- Next: loan documents issued, explained and signed; solicitors talk to each other.
- Settlement: eligible loans can settle in as little as 24 hours.
If settlement cannot be met, your solicitor may be able to negotiate a short extension with the vendor. Knowing that replacement funding is approved and documented usually makes that conversation much easier.
For example, a business owner buying a warehouse whose bank cut the loan by several hundred thousand dollars three days before settlement might keep the reduced bank loan and fund the shortfall with a six-month second mortgage over their home, then refinance once the warehouse is settled and leased.
For brokers
Few things damage a broker relationship like a deal collapsing at the last minute. Send the scenario through our broker page. You deal with the same lending team, and a fast indicative answer lets you tell the client there is a way through.
Do not lose the deal over someone else's decision
If the bank has pulled out, call 1300 123 024 now or apply online. The sooner we have the details, the more options there are. You may also find our pages on being declined for an unsecured loan and bad credit business loans useful.
Business-purpose lending only. Approval, timing and terms depend on the scenario.
Frequently asked questions
My bank withdrew approval three days before settlement. Can you help?
Why would a bank withdraw an approval so late?
Can you cover just the shortfall if the bank reduced the loan?
Do you need a valuation like the bank did?
How do I repay the loan?
What if I can't settle in time?
Does a past bank decline count against me?
Brokers: send the scenario through the Equity Tap broker channel and you will deal with the same lending team.