Fast Caveat Loans in Australia

Utilising Assets To Finance Your Business.

What is a caveat loan?

As the owner of a small business or start-up, you know how hard it can be to get approved for a business loan. A majority of lenders will require that you meet a set of, often strict, lending criteria and that you provide them with detailed evidence of your revenue and trading history before they can lend you any money.

If you are unable to access other business finance options but own a piece of property that you can use as security, then caveat loans are one way to access the financial aid you so desperately need.

  • Short-term financing option in which is securitised by either a clean title, or an existing mortgage
  • The title is a government ownership record; simply using an owned property a security against the lender of interest
  • A useful option to meet urgent needs for those owning or paying off a property.

Caveat loans are short-term business finance tools that allow businesses to access the funding they need quickly. Caveat loans are to businesses what payday loans are to individuals. They offer shorter loan terms and turnaround times and have higher interest rates than the typical business loan.

Are Caveat Loans a Practical Solution?

If you are confident that the person or entity looking to buy your property will pay you before the loan’s term comes to an end, then why not?

However, if you do not have ready buyers or are using refinancing as an exit strategy, it could be hard to count on this option since there is no guarantee you will receive payments within a specified period.

This type of loan helps in improving cash flow for your business. It can be an option if you need faster loan approval.

What can I use caveat loans for?

Caveat loan provide business owners with more financial flexibility, they can be used for.

  • Improving cash flow
  • Purchasing more stock
  • Renovating or rebranding the business
  • Expanding existing business
  • Paying off unexpected business costs

How Caveat Loans Work?

Caveat loans are secured business loans that require borrowers to use their land or property as security against the money being borrowed. Under this option, you can borrow anywhere from $1,000 to $50 million, but it'll all depend on the value of the land or property you’re offering as security.

Usually caveat loans will allow you to borrow up to a specific percentage of your property’s value – usually 70 to 90 per cent. But it is still worth noting that some will allow you to borrow your property’s full value.

Caveat loans primarily function like a second mortgage, which means that you can claim ownership of the security (property or land), or the equivalent amount in equity used as security, should the borrower fail to pay back the loan. Once you take out a caveat loan, you cannot use the property as collateral elsewhere or sell it until you’ve paid off the loan.

Caveat loans generally get approved within a day or two, with most having a loan term of between one to twelve months.

With Caveat loans, there is usually no need to provide the documentation - like property valuation, proof of income, or revenue forecasts - you might be required to make available when taking up a conventional business loan. Take a look at how to apply for a caveat loan to get more information on what is needed.

Advantages and disadvantages of a caveat loan

Advantages
Disadvantages
- A fast and easy way to access finance.
- Credit history does not impede the ability to obtain a loan.
- The loan is secured against the lender's property.
- Very versatile; borrowers can use a caveat loan for many purposes.
- Only a short term option.
- Due to its fast nature, it may incur higher costs than other loan types.

Case study: using a caveat loan to secure a quick source of finance

Hannah has a property in Gosford valued at $500,000, with an owing of $210,000. She however has decided that she wants to renovate the property and requires a source of fast finance. Although she is soon to get income in future, she wishes to renovate her property now.

For this case, a caveat has been issued to her lender. They use the property as security to grant a loan, however are not able to sell the property.

In just 24 hours, the funds were transferred into her account, and was able to access sufficient funding. After five months, she was able to secured funds and repay the loan.

What makes Maxiron Capital's caveat loan better?

At Maxiron Capital, we operate under the principle that our customer’s satisfaction is of upmost priority. We are here to provide caveat loans to offset all your emergency business financial needs and help your business achieve an upper hand when in the market. With rates as low as 2%, our caveat loans include:

  • Borrow from $100,000 up to $2,000,000
  • Up to 3 years loan term (including term extension)
  • Quick loan application process (can be settled within one day)
  • Flexible repayment schedule tailored to your needs
  • Up to 100% LVR
  • Interest rate from 1% per month
  • All Australian location
  • Payback early to save interest

How do I get started?

Step 1

Fill out our pre-approval form - it takes only 5 minutes!

Step 2

Receive an immediate decision - upload a few documents for verification

Step 3

Receive your funds in as quick as 1 working day

FAQs about the caveat loan

  • How fast can I obtain a caveat loan?

    - Here at Maxiron Capital, we value our customer’s time and understand that time is money. For this reason, we have revised our application procedure.
    - Complete the application process which takes only 5 minutes to complete and you will receive a decision on your caveat loan application.
    - To apply for a caveat loan, simply fill out our pre-approval application to see whether you’re eligible. After your application has been approved, funds can be transferred to you within just 24 hours.

  • How can I determine the caveat loan amount I am entitled to?

    - Maxiron Capital clients are granted access up to 100% of their property’s Loan Value Ratio (LVR).
    - LVR is calculated as a percentage that is derived from dividing the borrowed amount to the value of the property secured by the lender.
    - Essentially, you can borrow up to 100% of the property value you choose to secure against the loan.

  • What are the accepted properties to be eligible for a caveat loan?

    At Maxiron Capital we accept a whole range of properties, ranging from residential, commercial, industrial, land and farm. We don't however accept overseas properties.

  • Do Caveat Loans Settle Faster than Second Mortgages?

    Well, it all depends on the agency lending you the money. Some lenders have refinancing specialists on hand to guide their borrowers, enabling them to pick a refinancing product that will help them receive the capital they want as soon as possible.