What Is Meant By An ‘Exit Strategy’?

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Exit strategy refers to paying the borrowed funds back to the lender. Therefore, finalising a loan using an exit strategy allows paying back the private finance from an expected lump sum payment. Consequently, this could be from the sale of an asset; or the receipt of a lump sum via:

  • Firstly, selling a property asset or another asset.
  • Secondly, mortgage refinances where the business loan is repaid by refinancing your principal mortgage and the caveat loan.
  • Also, repay the loan balance from the sale of business stock. Such as buying and importing goods for sale.
  • Otherwise, closed from funds obtained from a business investment.
  • Finally, repay the loan funds from the sale of a business.

Furthermore, with a suitable exit strategy, the loan payments can be more flexible than with traditional finance. Therefore, payments can be made monthly or paid upfront when the caveat loans settle.