Caveat Loans - Which lender is the best?
There is a wide range of caveat lenders in Australia. The question is, which one is the best? Because each lender has their own strengths & weaknesses. Along with a wide range of costs and interest rates. Also, each lender and product has a range of features which are very different to traditional lenders. We find, the speed of settlement as the most important requirement. Therefore, if this is your first look at short term caveat loans the correct advice is very important.
Loan Saver Network offers great customer service for fast, free assessment and advice for debt & short term loan solutions.
Above all, we assist with short term business caveat loans, backed by a mortgage. Indeed, we ensure the right solution for paying business debts, cashflow, or bridging loan purpose. We specialise in solving urgent financial problems for small business.
Caveat loans use flexible income criteria. As a result, no tax returns or proof of income required.
Short term lenders have a mixture of caveat loan products and interest rates. As a result, we help find you the lowest interest rate to suit your needs.
What Are the Uses for Caveat Loans?
Caveat Loans is specialist finance used mainly by small business and can be a great business finance option. Though, there are regulations on consumer caveat loans. For those reasons, the most common uses for a fast short term secured loan are:
- Firstly, you require business capital or short term cash flow.
- Secondly, buying real estate and need a bridging loan.
- Similarly, purchase business equipment.
- Also, to pay unexpected expenses or debts.
- Above all, tax debts have mounted, and they need to be paid urgently to continue trading.
All short term finance solutions require a clear exit strategy to repay the loan balance.
Features of short term caveat loans:
- Firstly, low-interest rates, from 1.0% per month.
- Up to 80% Loan Value Ratio available.
- Also, loan terms generally from 1 - 12 months. However, can be as long as 36 months.
- Plus, ongoing revolving facilities. Funds available in as fast as 24-48 hours.
- Also, loans available where no property valuations required.
- Flexible repayment options – daily, weekly, monthly, or combine the payment into the loan.
- Consolidate other loans, debts, credit defaults, as well as judgements and creditors.
- Likewise, used to prevent foreclosure by paying arrears and waiting for a property sale. Consequently, avoiding eviction and a mortgagee sale.
- Bad Credit is OK.
If you have business debt issues or arrears; then a caveat loan can be used to consolidate a variety of problems. Furthermore, short term business loan purposes may be:
- Assist with a short term cash flow issue
- Also, pay a tax debt or other creditor
- Finally, avoid a business wind up or credit issue.
What are Caveat Loans?
A caveat loan is a secured business loan using a registered caveat against real estate as security. Indeed, the difference between a caveat loan and a mortgaged loan is the type of security registered. ie a registered caveat vs a mortgage to secure the borrowed funds. As such, caveats register a financial interest in the property with minimal recovery powers. Therefore, most caveat loans use a registered caveat for speed then convert to a 2nd mortgage. As such, allowing the lender the authority to sell your property in the event of a default
Getting approval from the First Mortgagee to register a 2nd mortgage can take time. Consequently, a caveat is lodged to allow speed. As such, you have access to funding while the lender lodges the second mortgage.
In summary, a registered caveat allows access to funding fast (24-72 hours).
What Is A Caveat?
A caveat is a document registered against the title of real estate.
- Firstly, a caveat indicates a financial interest in real estate;
- Importantly, the caveat does not give the power to sell the property and recover monies owed.
What Purposes are Short Term Caveat Loans Used?
Secured short term loans are used mainly to for business purposes. Such as, paying debt such as tax debt, or obtaining funds to invest in business growth. Above all, short term loans are often used to access money fast. As a result, registered caveat loans could include purposes such as:
- Initially, paying tax debts.
- Secondly, using a bridging loan to buy a business.
- Thirdly, buying stock or equipment for a start-up business.
- Also, buying commercial real estate such as warehouses, offices, retail premises.
- Also, residential property in some circumstances.
- Restructuring business loans. Such as, refinancing business overdrafts, business loans or debts into a new entity.
- Also, closing a business and paying liquidation expenses.
- Finally, clear business use with an exit strategy.
Finally, do you have time on your hands and looking for a longer-term loan? Then, secured caveat finance may not be a suitable loan solution.
If so, call Loan Saver Network to discuss your business finance needs. Also, see our Tax Debt Loans page for information about Tax Debt Loans and ATO solutions.
What Loan Terms Are Available With Short Term Caveat Finance?
Secured Short Term Loan terms are mostly from one month to twelve months; however, a six-month loan term is typical. Also, longer terms are available depending on the loan purpose.
What Is Meant By An 'Exit Strategy'?
Exit strategy refers to paying the borrowed funds back to the lender. Closure of the loan by exit strategy is usually from the sale of an asset or paid off from the receipt of a lump sum via:
- Firstly, the purchase of an asset Mortgage refinance.
- Sale of stock
- Funds from a business venture.Finally, the sale of the business itself.
Furthermore, with a suitable exit strategy, the loan payments can be more flexible than with traditional finance. Therefore, payments can be made monthly or paid upfront when the caveat loans settle.
Caveat Loan Application Process
The caveat loan process is swift and simple. As such, the process starts with:
- Firstly, the assessment confirms the loan available against your security property.
- Secondly, completing business and other searches.
- Thirdly, valuation assessment. However, Some secured short term loans don't require certified valuations.
- Then, the loan offer is issued. To confirm, the loan amount, interest rate and fees. Mortgage or caveat documents completed.
- Finally, access your money at the settlement of your caveat finance.
The Caveat Loan Approval Process from start to finish can be as fast as 24 hours to have access to funding.
Requiring Caveat Finance?
If you require a caveat loan fro $5000 to $1,000,000 with no upfront fees* then apply now! We'll have one of our loan consultants call you as soon as possible.