Need the money now but your property sale hasn't settled?

The sold sticker is on the board and the contract is signed. On paper, the money’s there. In the bank account, it won’t be for another six, eight or twelve weeks. Meanwhile the business has a supplier to pay, an ATO balance to clear or an opportunity that won’t wait for settlement day.

A short-term loan secured over the property you’ve sold closes that gap, then disappears at settlement when the proceeds pay it out.

How does borrowing against a sold property work?

Until settlement, the property is still yours, so it can still be used as security. The process is simple:

1. We review the sale contract, the existing mortgage balance and your selling costs.
2. A loan is sized to sit comfortably inside the net proceeds.
3. Security is registered behind the existing mortgage: a caveat loan for Victorian property, or a registered second mortgage in every other state, which serves the identical purpose on a similar timetable.
4. Funds are released to the business.
5. At settlement, your conveyancer pays out the existing mortgage, then this loan, and the balance comes to you.

Because the sale contract is the exit, these loans tend to be among the most straightforward short-term deals we fund. Secured amounts up to $250k can sometimes be funded on the day of application, and up to $5m may be possible within 24 to 48 hours.

How much can I borrow before the sale settles?

The calculation starts with the sale price and works down.

Item	Illustrative figures
Contract price	$1,000,000
Less existing mortgage payout	$450,000
Less agent’s commission and marketing	$25,000
Less conveyancing and discharge costs	$5,000
Net proceeds expected	$520,000
Comfortable short-term loan within that	Well below $520,000, leaving a buffer

We won’t lend right up to the net figure. We allow a buffer for interest, costs and the chance that settlement is delayed. Our page on how equity is calculated explains the loan-to-value thinking behind this.

What could reduce my proceeds at settlement?

Two things catch owners out more than anything else.

The clearance certificate. Since 1 January 2025, foreign resident capital gains withholding applies to the value of all property at a rate of 15%. Australian-resident sellers avoid it by giving the buyer an ATO clearance certificate before or at settlement. The ATO says applications can take up to 28 days to process and advises lodging “at least 28 days before” settlement — and ideally as soon as you’re considering a sale. A certificate is valid for 12 months. Without one, 15% of the price is withheld, which can leave too little to repay the loan on the day.

ATO debt. The ATO can issue garnishee notices to “solicitors, real estate agents or purchasers involved in the sale of property you own”. If the business owes the ATO, tell us. It’s often cleaner to pay the ATO from the loan now — see ATO tax debt loans — than to have the proceeds intercepted at settlement.

If both are under control, send us the sale details and we’ll work out what the property can support.

What if the sale falls through?

It happens: a buyer’s finance fails, a building report spooks them, or settlement is delayed and then rescinded. A responsible plan has a second exit. Common fallbacks:

• Relisting — if the property sold once at a sensible price, it can likely sell again;
• Refinancing the short-term loan into a longer facility;
• Selling another asset the business or its owners hold.

An unconditional contract with a reputable buyer is the strongest position, since finance and building approvals are already behind it. Conditional contracts can still work, but expect more questions about the fallback.

A delayed settlement is far more common than a failed one. The buyer’s lender runs late, a document is missing, or the parties agree to push the date back a week or two. That’s why the loan’s end date should sit comfortably beyond the contract’s settlement date rather than on it. If your conveyancer tells you settlement is moving, pass the news on straight away so the loan can be adjusted calmly instead of at the last minute.

An illustrative example

Fictional scenario with rounded figures.

A Perth plumbing company’s director has sold an investment house in Joondalup for $1m. The contract went unconditional last week, with settlement in ten weeks. Meanwhile the company has a chance to buy a competitor’s van fleet and stock for $180,000, but the seller needs payment within a fortnight.

The existing mortgage is $450k. After selling costs, net proceeds should be about $520k. The director’s clearance certificate application was lodged when the property was listed, and the certificate is already in hand. Because the house is in Western Australia, we lend $200,000 over it by registered second mortgage, covering the purchase and costs. The fleet is bought on time, and the loan is paid out from the proceeds when the sale settles ten weeks later.

Is this different from bridging finance?

They’re close cousins. This page is about a property that’s already sold and an amount the business needs before settlement. Classic bridging is usually about buying a new property before selling an existing one. If you’re buying premises before your current property sells, see short-term bridging finance and bridging loans for business. If the money is needed to complete a purchase rather than run the business, look at settlement shortfall.

Sold but still waiting? See if you qualify

Waiting weeks for your own money while the business needs it now is frustrating, and it’s exactly the kind of timing problem a short-term loan is meant for. Sending the enquiry takes about a minute. There’s no credit check when you first enquire, and your details aren’t passed around a long list of lenders — one person at our desk reads the sale details and the property information, then rings you.

Please be accurate: the property address and state, the contract price, the settlement date and whether the contract is unconditional all change the answer.

Unlock funds before settlement →