Southern Cross Partners is in the business of providing borrowers with short-term property finance to help them get from A to B. We do this through our peer-to-peer lending model; we have a pool of investors who invest their money into the loans that we approve (and invested our own money first).
A clear exit strategy tells us when, and how, our borrowers intend to repay their loan with us, and it’s an important part of our loan assessment process. This gives our investors the information they need to decide whether they’ll invest in a loan, as well as certainty over when and how they’ll get their money back on the loan.
When you refer a client to us, it’s important to outline your client’s exit strategy in your loan application.
There are several ways a borrower can exit a loan with us, including:
- Bank transfer: Many of our borrowers take out a loan with us so we can help them transition to traditional bank lending. Once they’ve got their finances in order, they repay their loan with us and then refinance with a traditional bank.
- Asset sale: This occurs when the borrower sells the security property we’ve lent on. From there, they're free to secure their next property. This usually happens when a borrower wants to build a new home prior to selling their existing home.
- Refinance once consented: When it comes to construction loans, it can be hard for borrowers to get funding from a traditional bank without a resource consent. As a non-bank lender, we have more flexibility than a traditional bank, so we’re usually able to step in when the big banks won’t. Once the borrower has received their consent, they repay the loan and seek funding from a traditional bank or wrap it into other debt they have.
Remember, we’re a people-first business and our team always make time to understand your clients’ needs. So, if you think you’ve got a loan for us – let's chat. Once we understand the purpose of the loan, your borrower’s goals and what their exit strategy is, we can consider the structure of the loan to help get your client from A to B.
