Southern Cross Partners Blog

Why is a clear exit so important at SCP?

Written by Southern Cross Partners | Oct 26, 2022 11:59:13 PM

For more than 25 years we’ve been focused on helping people start new opportunities. But as conservative lenders, we want to ensure we are only lending on the best opportunities.


It’s all about seeing people get from A to B and understanding how SCP can play a role in that. Understanding how a borrower will repay their loan with us and how they’ll be better off 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. Many of our borrowers engage with us so we can help them transition to traditional bank lending. Once working with us for a year, borrower’s finances will be in order, and they will be able to move to a traditional bank.
  • Asset sale. This is a common clear exit strategy with borrowers. An asset sale is where clients sell the property we’ve lent on. From there they are 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 are generally unsupportive of construction projects prior to consent being issued. We work with borrowers to 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 starts with a conversation about the purpose of a loan and what the borrower’s goals are.


When we understand upfront what the clear exit is, we can then better understand other aspects of the loan structure. So, if your customers need lending and don’t fit the traditional banking system, please reach out to us, and we can talk about how we can make it work together.