Quick loans for settlement deadlines

Settlement dates don’t move just because your bank is busy. You’ve signed to buy a business, a building or a partner’s share. The deposit is paid. The bank says yes, but its documents won’t be ready until two weeks after the date in the contract. Missing settlement could mean penalty interest, a lost deposit or a lost deal. This is where quick private lending earns its keep.

The deadlines we help with

• Buying a business where the vendor won’t extend and bank finance is still being assessed.
• Buying premises where the bank’s valuation came in late or low.
• Buying out a partner who wants their money by an agreed date.
• Completing a property purchase while waiting for another property to sell.
• Paying a deposit or option fee to secure a deal before full finance is arranged.

How a settlement loan works

A private or specialist lender provides short-term funds secured on property, usually property you already own. The money is paid at settlement, often straight to your solicitor’s trust account or the vendor. When your long-term finance is ready, or the other property sells, the short-term loan is repaid.

The lender is mainly interested in three things: the security property, the settlement details and the exit. Evidence of the exit, such as a conditional bank approval or a signed sale contract, is the most powerful document you can provide.

Choosing the structure

Structure	Suits
Caveat loan	Short gaps of weeks to a few months with a firm exit
Bridging loan	Buying before selling, or waiting on a known sale
Private mortgage	Larger amounts or longer waits, first or second position
Commercial property loan	Buying premises when the bank can’t meet the date

Timeline: working back from settlement

The key to meeting a deadline is to plan backwards from it.

1. As soon as you suspect a delay, tell us the settlement date and contact details for your solicitor or conveyancer.
2. Same day: we’ll gather property details, title, existing loan statements and evidence of your exit.
3. Next one to two days: the lender orders a valuation and title search, and issues an offer.
4. Before settlement: documents are signed electronically by every owner, the caveat or mortgage is prepared, and the lender’s solicitor liaises with yours.
5. Settlement day: funds are paid.

Straightforward files can move faster than this, and up to $5m is possible within 24–48 hours once complete. Files with several owners, unusual property or unclear exits take longer.

What we’ll need from you

• The contract of sale or share sale agreement, including the settlement date.
• Your solicitor’s or conveyancer’s contact details.
• The bank’s conditional approval or letter, if you have one.
• Details of the security property: address, estimated value and any existing loan statement.
• Names of every owner on title, with ID.
• A short summary of where the rest of the funds are coming from.

Ask the vendor too

At the same time as arranging short-term finance, ask your solicitor to request a short extension. Some vendors agree, sometimes for a fee or penalty interest. Knowing whether that’s possible helps you decide whether a short-term loan is needed and for how long.

An illustrative example

A Gold Coast couple are buying an established childcare centre for $1.1 million, with settlement in 21 days. Their bank has conditionally approved the loan, but the final valuation and credit sign-off are running late and the bank expects to fund in five weeks. The vendor won’t extend. A private lender funds settlement on time with a first mortgage over the couple’s investment property and a second over their home, for three months. The bank’s loan repays it when it funds. Illustrative only.

Costs to weigh

A short settlement loan has costs: establishment, valuation, legal and interest for the time you hold it. Compare them with the cost of missing settlement under your contract, including penalty interest, the risk to your deposit and the value of the deal itself. In most cases, the short-term cost is small next to what’s at stake. Make sure your exit has a buffer, because bank delays can run longer than promised.

Protect your settlement

Tell us the settlement date, what you’re buying, what property you could use and how the loan will be repaid. We don’t credit check you when you enquire, your file isn’t shopped around to every lender, and one person will call you quickly to plan around your date. Share the contract dates accurately and we’ll work to them. Start your enquiry.