How long do bank approvals last? And what happens if they lapse?
As a general rule, specific approvals will last up to three months, although this does vary from lender to lender. Whether it’s just a few months or longer, it is a good idea to double check any pre-exiting preapprovals to ensure they are still valid before you confirm the purchase and delivery of an asset.
In some cases, preapproved lines of credit can be reviewed annually, which will give you greater confidence when it comes to timing the arrival of your new assets to exactly when you need them.
If your preapproval does lapse before you buy the asset, the lender may wish to reassess their approval. This will involve asking for updated information from you, such as year-to-date trading accounts.
If you have questions around how long your preapproval will last, and how to extend it, talk to your business partner at Finance New Zealand.