Three months is a long time in business
A bank refinance commonly takes up to three months or more, and you may not be approved for the amount you need. The process looks simple on paper: application, credit assessment, valuation, approval, documents, settlement. In practice, each step queues behind other files. Credit asks for updated financials. The valuation comes back late or low. A new credit officer picks up the file and asks the same questions again. Meanwhile, whatever you needed the money for has not gone away.
Business owners usually refinance for a reason: to release equity, consolidate expensive debt, pay out a lender that has called in a facility, pay the ATO, or fund growth. If that reason has a deadline, a slow refinance turns a plan into a problem.
Bridge first, refinance second
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. In a refinance bridge, we provide the funds you need now, and the bank refinance, when it settles, repays us. You keep the refinance moving at the bank's pace while the business moves at its own.
This works because the exit is already in progress. You are not asking us to replace the bank permanently. You are asking for a short loan that covers the waiting time, typically a few months, and then steps aside. Read more about refinance bridging loans and business bridging loans.
First mortgage or second mortgage?
It depends on what the refinance is for.
- If an existing lender must be paid out by a deadline, we may take a first mortgage, pay that lender out, and be repaid when the new bank refinance settles. See first mortgage business loans.
- If you need extra funds but the current first mortgage can stay put, a second mortgage or caveat behind it is often the quickest path, with the first lender's consent where needed. See second mortgage business loans.
Bank refinance versus a bridge: how they compare
| Bank refinance | Equity Tap bridge | |
|---|---|---|
| Typical timing | Commonly up to three months or more | Term sheet in about 30 minutes; eligible loans can settle in as little as 24 hours |
| Financials | Usually years of tax returns, BAS and statements | Not needed for a property-secured loan |
| Valuation | Usually required | We do not order a valuation before approval |
| Decision maker | Credit department you never speak to | No credit committee; often the person you speak to |
| Term | 20 to 30 years | One to twelve months |
| Purpose | Long-term funding | Get the money now; the refinance repays it |
No payments while you wait for the bank
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. When the refinance settles, the bridge and its interest are repaid together. Interest is not waived. Each loan is priced on your individual circumstances, aiming for the sharpest rate available for that situation, with the full cost shown before you proceed. If the refinance is quick, you only pay for the time you used.
What if the bank says no?
This is the risk every refinance carries, and we talk about it openly at the start. If the bank declines, or approves a smaller amount than you need, you will need another way to repay the bridge. That could be a different lender, the sale of a property or asset, or business cash flow over the remaining term. Terms run up to twelve months, which gives time to pursue a second option. Our guide to business loan exit strategies explains how to plan a fallback.
If the bank has already withdrawn an approval close to settlement, our page on bank finance falling through deals with that specific situation.
What we need from you
- ID for borrowers and guarantors
- Security property details and the current mortgage balance
- What the funds are for and any deadline involved
- Evidence of the refinance: the application, a conditional approval, or the broker's notes on where it sits
We do not need tax returns, BAS, profit and loss statements, an accountant's letter or bank statements. No credit check is made at initial assessment, and bad credit or ATO debt is not automatically a problem.
How it runs
- You or your broker call with the refinance details and the deadline.
- Conditional approval is often given on the phone, with a term sheet issued in about 30 minutes.
- We explain the costs and the exit, documents are issued and signed.
- Eligible loans can settle in as little as 24 hours.
- The bank refinance settles and repays us.
For example, a transport operator whose equipment financier has called in a facility might take a three-month first mortgage bridge to pay that financier out by its deadline, while the bank refinance works through credit and repays the bridge when it lands.
Brokers: keep the deal alive
When your bank deal is stuck in credit and the client is losing patience, a bridge keeps the client with you and keeps the refinance yours. Send the scenario through our broker page for a fast indicative answer from the same team that decides.
Stop waiting on the bank
Apply online or call 1300 123 024. Tell us where the refinance is up to and what you need now, and we will tell you quickly whether a bridge fits.
Business-purpose lending only. Approval, timing and terms depend on the scenario.
Frequently asked questions
Why is my bank refinance taking so long?
Can you lend now and be repaid when my refinance settles?
Do I have to stop my bank application?
What happens if the bank declines my refinance?
Will I be paying two lenders at once?
I'm a broker with a refinance stuck in credit. Can you help my client?
Brokers: send the scenario through the Equity Tap broker channel and you will deal with the same lending team.