Settlement

Settlement is the point at which a facility's conditions precedent have been satisfied, security documents are executed and registered as required, and funds are actually advanced, whether that is the completion of a property purchase or the release of a working capital facility. It follows credit approval and documentation, and on a property transaction is coordinated between the borrower's and vendor's representatives and the lender to release funds at the same time as title or possession transfers. Delays to settlement are commonly caused by an outstanding condition precedent, a title or PPSR issue uncovered late, or a priority deed with an existing lender taking longer than expected to finalise, which is why experienced brokers push to identify and clear these items well ahead of the intended date rather than in the final days. For a borrower under time pressure — a settlement shortfall, an expiring contract, or a maturing facility elsewhere — the practical speed to settlement is often the single most important feature of a lender, more so than pricing.

Related

Commercial property loans · Conditions precedent · Refinance