Why every loan application needs a clear exit

At Southern Cross Partners, we strive to help all Kiwis achieve financial freedom through specialist lending for situations that need special attention. It’s been our guiding light for more than 25 years.

It's all about seeing people get from A to B through property investment, and knowing they’ll be better off through an SCP loan. Understanding how a borrower will repay their loan with us is what we call a clear exit.

When you're referring a client to us, it's important to ensure the client's exit strategy is outlined in your application. A borrower can exit a loan in several ways, some of which we've outlined below:

• Bank transfer. We provide short-term lending for a range of different property investment needs. Many of our borrowers take out a loan with us so we can help them transition to traditional bank lending. Once a borrower's finances are in order, they'll be able to refinance with a bank.
• Asset sale. This is another common clear exit strategy with borrowers. This is when a borrower sells the security property we’ve lent on. From there, they're free to secure their next property. A prime example is someone who wants to build a new home prior to selling their existing home.
• Refinance once consented. Banks can sometimes be tricky to work with for construction borrowers seeking resource consent. We can give them the funding they need to secure the property. Then once borrowers have sorted through the necessary steps to begin construction, they move to traditional bank lending or wrap it into other debt they have.

There are many other clear exits at the end of a loan term, which is why our application process always start with a conversation about the purpose of a loan and what the borrower's goals are.

So, if your borrower needs lending and doesn’t fit the traditional banking system, please reach out to us, and we can talk about how we can make it work together.