A refinance valuation comes in below the figure in your repayment plan

The asset value in your books is not an advance

You expect replacement finance to repay a maturing loan, but the new lender's valuation is lower than anticipated. Ask the lender to explain the effect on the actual proposed advance and remaining conditions. Do not keep the original borrowing estimate in the plan merely because the accounting value or your own sale expectation is higher.

Identify what the valuation covers

Imagine a business seeking a property-backed refinance. The report uses assumptions or exclusions that differ from the director's understanding of the property. Give the report to an appropriate adviser and ask for clarification through the agreed process. Correct factual errors with evidence; do not pressure a valuer to reach the number needed to make the loan work.

Update the cash requirement

business.gov.au's cash-flow guidance distinguishes estimated money coming in and going out. Replace an unsupported loan estimate with the current documented position, clearly identifying conditions. Compare the amount potentially available with the existing lender's payout and relevant transaction costs. A lower valuation matters because of its effect on available funding, not simply because it disappoints the owner.

Source: business.gov.au: Set up a cash flow statement

Ask about the lender's actual calculation

In the property example, the lender may apply its own advance criteria and deductions. Ask for the resulting proposal rather than inventing a percentage or assuming every dollar of value can be borrowed. Identify any additional information required and the expected assessment timing. A favourable valuation alone would still not establish unconditional funding or a confirmed settlement date.

Assess the proposed shortfall solution

If additional cash or security is requested, obtain advice about availability, consent and consequences before agreeing. Show any new borrowing and repayment obligations in the wider forecast. Do not count money promised by someone else until its position is understood. The solution to a valuation gap should be assessed as a fresh commitment, not treated as a minor paperwork correction.

Keep the maturity decision current

Tell the existing lender and advisers about material changes through the appropriate channels. Review the fallback and decision timetable while the new proposal is assessed. If no supported repayment path remains, seek urgent advice about the company's position. A revised valuation should trigger an honest funding review before the original plan becomes impossible to perform.