Quick answer
A loan scenario summary is a one-page overview of what you need, why, the property offered as security, what is already owed on it, how the loan will be repaid and when the funds are needed. Lenders use it to decide quickly whether a scenario fits their policy. A clear, honest summary usually leads to faster, firmer indicative terms.
Key points
- Keep it to one page with the key numbers up front
- Lead with the amount, purpose, security and exit
- Disclose credit issues and debts plainly
- Attach the few documents that prove the main points
- Update the summary when anything changes
Why a summary speeds things up
Private lenders see many enquiries every week. The ones that move fastest are the ones where the lender can understand the whole scenario in a couple of minutes. A scattered email chain, a pile of unlabelled attachments or a phone call with half the numbers missing slows everything down and invites more questions.
A one-page scenario summary solves that. It puts the essential facts in a predictable order, so a lender can quickly decide whether the deal fits and what terms might apply. It also forces you to think through the weak points before someone else finds them.
The structure that works
Use short headings and keep each section to a few lines. The order below mirrors how lenders think.
1. The request
State the amount you need, the term you expect and when the funds are needed. If there is a hard deadline, such as a settlement date or a court date, give it.
2. The purpose
Explain in a sentence or two what the money will be used for. Examples: completing the purchase of a warehouse after the bank reduced its offer; clearing an ATO debt to stop a director penalty notice escalating; funding stock for a seasonal peak. Lenders need to know the loan is for business purposes, and the purpose helps them understand the risk.
3. The security
List each property offered: the address, type (house, unit, shop, industrial, land), who owns it, its approximate value and how you estimated that value. Note anything unusual, such as a lease, zoning issue or heritage listing.
4. Existing debt
For each property, list any existing mortgage with the lender, approximate balance and whether repayments are up to date. Mention any caveats or other registered interests you know of.
5. The exit
This is the most important section. Say how the loan will be repaid and when. Common exits include sale of a property, refinance to a bank or another lender, a contract payment, a business sale or trading cash flow. Give evidence: an agent’s appraisal, a signed contract, a refinance pre-approval or a schedule of expected receipts. If there is a backup exit, mention it. See our guide to exit strategies lenders accept.
6. The borrower
Name the borrowing entity (company, trust or individual), its directors or trustees, and a one-line description of the business and how long it has traded.
7. Credit history
Be upfront. List any defaults, judgments, tax debts, payment arrangements or past insolvency, with dates and whether they are resolved. A sentence of context for each is enough.
What to attach
Keep attachments to the few documents that prove your main points: recent rates notices or title searches for each property, the latest statement for each existing loan, evidence of the exit, and any notice that is driving the timing, such as a statutory demand or a settlement notice. Label each file clearly. The settlement checklist helps you work out what else may be needed later.
Writing tips
Write plainly and stick to facts. Avoid adjectives like “excellent” or “prime” unless you can support them. Round numbers sensibly. Do not hide problems in the hope they will not come up; lenders find them, and discovering them late damages trust.
If the scenario has a complication, such as a property held in a trust or an existing lender that needs to consent to a second mortgage, mention it and explain how you plan to deal with it.
A worked outline
Here is how a short summary might read for a fictional scenario:
Request: About $600,000 for 12 months, needed within 10 days. Purpose: Complete purchase of a factory unit after the bank’s valuation came in short of the contract price. Security: The factory unit being purchased plus the directors’ home in a Melbourne suburb, estimated from a recent appraisal and comparable sales. Existing debt: Home loan with a major bank, current and up to date. Exit: Refinance to the bank within 9 to 12 months, once a full year of updated financials is available; backup exit is sale of an investment unit. Borrower: Pty Ltd company trading for eight years in commercial joinery; two directors. Credit: One paid default from several years ago relating to a utility account.
The figures above are fictional and for illustration only. A lender can read a summary like this in under a minute and respond with useful questions or indicative terms.
Keep it current
Scenarios change. A sale may fall through, a valuation may come back different, or the deadline may move. Update the summary when anything material changes and send the new version. Lenders appreciate borrowers who keep them informed, and it prevents decisions being made on stale information.
How the summary helps you
Writing a summary often reveals gaps in your own plan. If you struggle to explain the exit in two sentences, the exit may need more work. If the total debt against the security looks high, the exit strategy timeline and LVR calculator can help you test alternatives before you approach a lender.
Getting started
Our enquiry form is built around the same structure, so completing it is a good first draft of your summary. Check your eligibility with no credit check, and we will follow up with any questions.
You can start your enquiry now.
Frequently asked questions
Do I need an accountant to prepare the summary?
No. Most business owners can prepare it themselves in under an hour. An accountant or broker can help if the structure is complicated.
Should I include financial statements?
Not usually at the first stage. Private lenders focus on security and exit, so a short business description is enough. They will ask for more if they need it.
How detailed should the exit section be?
Detailed enough to be believable. Name the exit, give a realistic date and attach evidence, such as a contract, a sales appraisal or a refinance pre-approval.
What if I am not sure of the property's value?
Give an approximate figure and say how you arrived at it, such as a recent appraisal, comparable sales or a council valuation.
Prefer to start now? Enquire here
About 60 seconds. No credit check when you first enquire, and a secured lending specialist calls you back.