What Exit Strategies Work for Private Lending? 2025 Guide

What Exit Strategies Work for Private Lending?

Common exits include property sale, bank refinance, development completion, or business income.

This is one of the most common questions about private lending in Australia. Here's everything you need to know.

The Short Answer

Common exits include property sale, bank refinance, development completion, or business income.

Detailed Explanation

Your exit strategy is how you'll repay the private loan. It's one of the most important factors lenders assess:

Common Exit Strategies:

1. Property Sale

• Sell the security property
• Sell another property you own

• Best for bridging loans

2. Bank Refinance

• Refinance to a bank or non-bank lender
• Usually lower long-term rates

• Need to meet bank criteria

3. Development Completion

• Sell completed units/houses
• Pre-sales settlement

• Refinance to residual stock loan

4. Business Income

• Repay from business cash flow
• Asset sale proceeds

• Contract payments

5. Investment Return

• Sale of investment assets
• Return of invested capital

• Dividend or distribution income

What Makes a Strong Exit Strategy:

• Clear timeline
• Evidence of feasibility

• Backup options
• Realistic assumptions

• Track record of similar exits

Key Points to Remember

• Private lending is a legitimate, regulated form of finance in Australia
• It's designed for borrowers who need speed, flexibility, or non-standard solutions

• Always understand your obligations before signing
• Work with reputable, verifiable lenders

• Have a clear exit strategy

Related Questions

What if my exit strategy fails?

This relates to what exit strategies work for private lending. The key consideration is understanding how private lending works differently from bank lending, focusing on property security rather than traditional lending criteria.

Can I extend if I need more time?

This relates to what exit strategies work for private lending. The key consideration is understanding how private lending works differently from bank lending, focusing on property security rather than traditional lending criteria.

How do lenders assess exit strategies?

This relates to what exit strategies work for private lending. The key consideration is understanding how private lending works differently from bank lending, focusing on property security rather than traditional lending criteria.

Getting Expert Advice

If you have specific questions about what exit strategies work for private lending, consider:

• Consulting a finance broker - They understand multiple lender options
• Seeking legal advice - Especially for complex situations

• Comparing multiple lenders - Terms vary significantly
• Using lending marketplaces - Access multiple options at once

Next Steps

Ready to explore private lending options?

On Introducr, you can post your funding request and receive competitive offers from verified private lenders within 48 hours. Compare rates, terms, and approval timeframes to find the best solution for your situation.

Disclaimer: This information is general in nature. Your situation may have specific considerations. Seek independent financial advice for your circumstances.

Last updated: January 2025