Whatever asset you use to secure your business loan, you can still sell it if you want to during the loan term. In some cases this may require our agreement. Sale of the asset generally arises in the following situations:
- Sell your asset and repay the business loan.
If you choose to sell your asset, you lender may take the proceeds of the sale and repay your business loan and provide any extra money to you.
- Offer another asset to secure the business loan.
If you’re buying a new asset(or already have another property to use as security), your lender may agree to take the new or other security in place of the existing security. You may have to execute further documentation to enable this to happen.
- Sell your asset and use the cash to secure the business loan.
If you want to sell but haven’t found another asset to buy, the money from the sale of your asset can be held to secure your business loan until you find something else. You may need to provide your lender with some further documentation to cover this arrangement.
Before you sell your property
When you decide to sell your asset it’s important you notify your lender first as they will need to let you know what they require and when to allow the sale to proceed smoothly.
If you’d like to discuss your options with a business manager, complete our short enquiry form and we'll contact you or call us on 132 142 (8am-8pm, Mon - Fri).
Things you should know
The taxation position described is a general statement. You should obtain your own independent tax advice in relation to your individual circumstances.