Do you own a small business or are planning on a start-up but do not have enough funds? Getting a business loan approved for start-ups or small businesses is a hard nut to crack. With so many legalities involved and a long waiting time, a business loan might not interest you as much as a caveat loan would.
What is a caveat loan?
If you own a piece of property that you can use as security then caveat loans are just the right choice for you. Caveat loans are agile and uncomplicated. It allows a borrower to easily access funds even within 24 hours of applying.
A caveat loan is secured by real estate property over the loan term by a caveat which is a legal testimony which the granter lodges on the secured property. This is a short term loan used for business purposes.
8 best key features of a caveat loan
Flexibility: Caveat loans are flexible in amounts. The borrower may borrow anywhere from $1,000 to $50 million under this option. It depends directly on the value of the land or property used as security.
No valuation requires: Unlike the other business loans where the borrower has to meet a set of strict lending criteria and has to provide detailed evidence of revenues and trading histories to lend money, caveat loans are simpler. You do not need to get your resources evaluated. You may even get a caveat loan on bad credit history.
Takes less time: The agile nature of a caveat loan is what makes it different from a regular mortgage loan. A caveat loan customarily gets approved within a day or two. You do not have to wait for months and years to start your business.
Customized loan terms: The borrower and lender can together agree on the loan term. The loan term of a caveat loan may vary from 1 to 12 months. The borrower may decide on how much time they’ll need the funds.
Online accessibility: To further cut the time and effort, most banks offer caveat loans online. This makes the loan settlement much quicker. The loans may even get sanctioned within 24 hours of applying.
Property types allowed:You don’t need a specific type of property to apply for a caveat loan. All kinds of properties from industrial land, residential, or commercial properties can be used as a security against a caveat loan.
Up to 100% LVR: The caveat loan is being charged on the property so the value of the property is evaluated and not the credits. This makes it suitable for businesses as it can be accessed quickly and unlike other funds up-to 100 % loan to value can be accessed within 24 hours.
Zero upfront fees: One of the best features of caveat loan is that the customer need not pay upfront expenses. No application fee or commercial credits are charged which makes caveat loans even more convenient for businesses.
Overall outlook
With multifarious benefits and immense features, caveat loans are the best choice for small businesses looking for funds. It leads to easy cash flow. Even businesses looking for funds to expand their work can opt for caveat loans and enjoy fast access to money.
