In every entrepreneur’s life, a time comes when they plan and wish on expanding their business but are unable to do so because of a lack of funding.
Even if they plan to apply for a business loan, the processing time, valuation of documents, high rate of interests, and less credit history stand as a hindrance in their path of growth.
This is where caveat loans come as a lifesaver for most businesses. Havenâ€™t heard of a caveat loan before? We have got you covered.
A caveat loan is a type of finance where the funds are secured against your piece of property. You may use any piece of property as a security to borrow a caveat loan. You will provide a piece of property as a caveat to the lender who would use it as security until you repay the loan.
The requirement of funds for business expansion can also be fulfilled by business loans. These loans, however, require proper documentation, good credit scores, and a lot of time to be sanctioned.
To skip this bothersome and long procedure of business loan, you can opt for a caveat loan. Even if you have a small piece of property or land, itâ€™ll work. The property however should be in Australia.
Caveat loans are easier, less complicated, and agile. Not much paperwork is required. Even if your credit history does not stand well, yet you will be eligible to access a caveat loan.
However, you must decide on an exit strategy for the caveat loan. You will have to decide the method of repaying the loan. In case your business does not get you the profits you expected, you might be given time to repay the debt.
Also, the caveat or the property used as security cannot be further used to get another loan unless the previous loan is repaid.
One of the prime reasons for the popularity of caveat loans among businesses is that the recipient gets to make most of the decisions.
The borrower may decide if he needs 100% of the property to be funded, or just a part of it according to his or her requirements. The recipient will also decide the mode in which he would like to repay the loan. Some ways include, repaying in commissions or cash, the amount can be refinanced, or collateral can be sold.
The borrower also gets to decide the time for repayment. Since caveat loans are short term loans the borrower may repay in a time of 1 month to 36 months.
Overall the key features which make caveat loans the best choice to expand your business are:
All these features and benefits provided by caveat loans are a clear indication as to why caveat loans can help you expand your business. Not many risks are involved and all your fund requirements can be met within 24 hours of applying. Want to expand your business? A caveat loan is just the right choice for you.
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