What is a Short Term Caveat Loan?
A short term Caveat Loan is a ‘fast settling’ business loan that simply sits behind your current 1st Mortgage.
Caveat Loans for business purposes are secured against real estate, and they are called Caveat Loans because we use a caveat to secure the loan on title. This enables us to fund you in just 24 hours. Caveat Loans are perfect if you need access to extra funds by tomorrow, and you want them for a very short term of 1 – 6 months.The interest and costs are all capitalised into the loan, so you don’t make any payments during the loan term. It’s just all repaid in one hit at the end. (often from a refinance or property sale, etc)
As it is a business loan, all interest and costs are fully tax deductible.
SOME REAL EXAMPLES
A property developer urgently needed $240,000 to use as a deposit on a piece of prime land that came on the market. This property purchase would make him a fortune, if only he could get the money quickly. HomeSec funded him in 24 hours by securing the caveat loan against his house.
A dentist had a huge tax debt, and he couldn’t get equipment finance until the tax debt was paid. We paid the tax debt within 24 hours.
A cafe owner heard a competitor was selling his cafe and he needed $400,000 to snap it up. He simply couldn’t wait for the bank as the opportunity of a lifetime would have vanished by the time bank funding was available. So HomeSec made it all happen in 24 hours with a short term caveat loan.
If you have sufficient equity in real estate, you are almost certain to be APPROVED and funded within 24 hours.
Frequently Asked Questions
Loan amounts range from $20,000 to $5M and are determined by the available equity in your real estate asset.
A caveat loan can be funded in as little as 24 hours.
Yes, credit history is not relevant to our funding, however in some cases we may require any court judgments to be repaid from the loan proceeds.
Along with completing our online application, you will need to provide ID, rates notice and a current mortgage statement.
Any business owner with a registered ABN or ACN can apply for a business loan, provided the funds are being used for a business purpose and you have sufficient equity in real estate.