Few things are more stressful for a business owner than having a lender pull financing days before a scheduled closing. It happens more often than people expect — underwriting finds an issue late, a bank's risk appetite shifts internally, or a condition of approval quietly can't be met. Whatever the reason, you're left with a closing date that isn't moving and financing that suddenly isn't there.
Here's what to do first:
- Get the real reason in writing. Vague explanations make it hard to fix the problem or find alternative financing quickly. Push for specifics.
- Call your closing attorney and any other party with skin in the game immediately. Sellers and title companies have seen this before and may be able to extend a deadline, especially with a credible replacement plan in motion.
- Move fast on alternative financing. This is where a bridge loan is often the right tool — it exists precisely for situations where speed matters more than getting the absolute best long-term rate.
- Don't sign anything out of panic. A bad financing decision made under a five-day deadline can cost more over time than a short delay would.
A financing gap this close to closing is recoverable more often than people assume, but only if you move quickly and with a clear head. This is exactly the kind of situation where having an advisor who can move on short notice, rather than starting a search from scratch, makes the difference between losing the deal and closing on time.