What is a Caveat Loan?

Do you need access to $50,000 or more in under 5 Days?

One of the easiest way of getting hold of that $50,000 or more very very quickly is via Caveat Loans.

Caveat loans are usually an option when you need to raise funds in hurry.

You can use a caveat loan for anything for your business. This could include expansion, marketing, investments, commercial property purchases, etc. caveat loans will carry a little higher interest than a normal business loan.

The funder gives you the money and  will place a legal contract (caveat) over the title of your property. This is just like a Bank placing a mortgage over your home when you borrow money.

Caveats can be placed behind a normal mortgage, whcih means that you already have a mortgage over your property – the caveat can be placed after that – so when you sell your home or other asset – you will need to pay your mortgage off first and then the caveat and whatever is left will come to you.

The Caveat loan and Second (2nd) Mortgage industry are a result of the banks not being able to provide access to funds in a expedioius time frame. Banks while offering a valuable service to the community are not set up to lend money in under 48 hours.

How much does it cost?

Because of the fact the caveat is behind your normal 1st Mortgage – there is more risk for the funder who is giving you the money.

Also as  Caveat lenders we do things fast  – I mean very very fast – in under 48 hours – so it is necessary to charge a higher interest rate than the banks.

Usually the interest rates are anywhere from 1 – 2 % per week.

When you compare it to the normal bank rates – you may think its expensive – however – this kind of loan only suits a select few – who definitely need the funds very quickly.

Also, one thing you need to keep in mind is that because these loans are only short term – usually 3 months or less – the effective rate is "only" around 12 – 24% for those 3 months. So if you think about it its not too expensive.

You will have the option to pay these interest payments on a montly basis or you can add it (capitalise) on to your loan amount.

So for example, when you borrow $100,000 for 1 month at say 6% per month – at the end of that month you will need to pay back $106,000.
 
Call us now to get started on 1300 557 771 or complete an online enquiry form - Apply Now.