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.