Short-term business loan exit plan: write it down before you ring

Fast funding is usually short-term funding. It bridges a gap: between pay day and a customer payment, between a settlement and a refinance, between a deposit and a delivery. Whoever lends the money cares a great deal about the other side of that bridge — how you’ll get off it.

That’s the exit plan. It doesn’t need to be long. It needs to be specific, believable and written down before you ring.

What counts as an exit?

The most common ones:

Exit	What makes it strong	Evidence
Property sale	Contract exchanged; settlement date set	Contract of sale
Refinance	Application lodged with a mainstream lender	Application or conditional approval
Receivable	A large, confirmed amount due from a reliable payer	Invoice, contract, payment history
Contract payments	Signed contract with clear payment terms	Contract and claim schedule
Insurance claim	Claim accepted and being processed	Insurer’s correspondence
Trading income	Steady turnover that covers repayments	Bank statements and a cash forecast
Asset sale	Equipment, vehicle or other asset with a buyer	Sale agreement or valuation

Notice the middle column. “We’ll sell the property” is an idea; “contract exchanged, settling 14 March” is an exit.

How do you write it in three sentences?

Illustrative example only.

1. What will repay the loan? “The loan will be repaid from the settlement of our unit in Toowong.”
2. How much, and when? “Contracts have exchanged at $640k with settlement on 14 March; after the existing loan, about $310k will be available.”
3. What if it’s late? “If settlement is delayed, we can refinance the unit with our bank, which has indicated it would consider it.”

That’s it. Three sentences, specific, with a fallback. It turns a request into a plan.

Why does the exit matter so much on fast loans?

Because speed means less time for everything else. A lender approving a loan in 24 to 48 hours can’t spend weeks on financial statements. The property and the exit carry more of the weight. A clear exit can be the difference between an option that’s merely possible and one that’s comfortable — and sometimes between a larger and a smaller amount.

Does the loan term fit the exit?

This is where many short-term loans go wrong. If the exit is a refinance that will realistically take three months, a two-month loan sets up a new deadline you can’t meet. Match the term to a conservative version of the exit, not the best case. If in doubt, ask for a little more time than you think you’ll need.

What makes a plan B believable?

Exits run late more often than early: settlements slip, refinance approvals take longer, customers pay late. A plan B might be:

• a second source — another receivable, another asset
• a refinance option if a sale is delayed
• an extension that’s possible under the loan terms (ask about this up front)
• trading income that could service the loan for a few months if needed

Lenders don’t expect a perfect plan B. They want to see you’ve thought about it.

When you’ve written your three sentences, start the 60-second enquiry and include them — or ring 1300 752 188 and read them out.

What if trading is the exit?

For many unsecured loans, trading is the exit, and that’s fine. Show it with:

• bank statements showing steady turnover — see bank statements
• a simple cash forecast that includes the new repayments
• an explanation of any seasonal dips

business.gov.au’s cash flow statement template is a quick way to build the forecast.

An illustrative exit plan

Illustrative example only. An engineering firm needs $400k within 48 hours to fund materials for a mining services contract. Its exit: three progress claims due over the following 90 days totalling $1.1m from a large contractor with a strong payment record. Plan B: a refinance of its workshop with its bank, which has already valued the property. The specialist sees a clear, dated exit with a fallback, and a property-secured facility is arranged on that basis.

How long should a short-term loan run?

Long enough for a conservative version of your exit, with a little room. Work it out backwards: when is the exit realistically going to land, how long could it slip, and what would the facility cost if it ran a month or two longer than planned? A loan that’s slightly longer than you think you need is usually cheaper and calmer than one that has to be extended in a hurry.

It also matters what happens at the end. Ask, before you sign, what the options are if the exit is late: whether the term can be extended, what that costs, and how much notice the lender wants. Knowing the answer in advance turns a potential crisis into a phone call.

Does the exit change which option suits?

Yes. A dated, documented exit such as an exchanged sale suits a short, property-secured facility. An exit that depends on trading over several months suits something sized on turnover with regular repayments. Matching the structure to the exit is part of what the first call works out.

Bring the way out to the call

A clear exit is the best thing you can bring to a fast funding conversation after the deadline itself. Asking what’s possible involves no credit check. Your enquiry stays with one team — no spreading your details across a host of lenders — and a real person calls you back to talk it through.

Please describe your exit honestly on the enquiry form, including when you realistically expect it. Accurate expectations are what let us match you to a term that fits. Or ring 1300 752 188.