Free tool
Exit plan checklist
Every sensible second mortgage starts with the way out. Choose how you expect to repay, tick what's genuinely in place, and see what still needs work.
Why the exit comes first
A second mortgage for business is normally a shorter-term arrangement that sits behind your existing home loan. It is meant to be repaid by something specific: the sale of an asset, a refinance into a longer-term loan once the business is in better shape, or trading profits over a set period. When that something is fuzzy, the loan tends to drift, and drift on a secured loan is what puts property at risk.
This checklist turns the exit into a list of plain facts you either have or don't. It's deliberately cautious. If you can tick five or six boxes, you're in a strong position for a conversation. Two or three means there's homework to do first, and that's still worth knowing before you start an enquiry.
The three exit routes, briefly
Sale. The cleanest exit, as long as the asset, the price and the people who must agree are all clear. The risk is time: campaigns run long and offers come in under hope.
Refinance. Common when the second mortgage is fixing something temporary, such as unlodged returns or an ATO arrangement, that would otherwise stop a mainstream lender. The risk is that the fix takes longer than planned.
Cash flow. Workable for smaller amounts when the borrowing itself improves the numbers. The risk is a bad quarter.
For the full picture, read building your exit plan on day one and what happens if repayments become difficult.
Frequently asked questions
Why plan the exit before borrowing?
Because the exit is what keeps a short-term secured loan short. If you know from day one how it will be repaid and what could delay that, you borrow the right amount for the right term and avoid paying for extensions you didn't plan.
Which exit do lenders prefer?
There's no single favourite. What matters is that the exit is specific, realistic and backed by evidence, such as a sale with a likely value and timeline, or a refinance with a clear reason it will be approved. A vague 'cash flow will cover it' is the weakest version.
Can I have two exits?
Yes, and it's sensible. A primary exit (for example a refinance) and a fallback (for example the sale of a vehicle or investment) gives you options if the first one runs late.
What if I can't tick most of the boxes?
That's useful to know now rather than later. It may mean borrowing less, choosing a longer term, or using a different kind of finance altogether. A specialist can talk it through with no credit check when you first enquire.
Got a way out in mind? Let's pressure-test it.
Tell us what you need and how you plan to repay. One specialist reads it, there's no credit check at the enquiry stage, and you'll get a straight answer.
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