Australia’s Fastest Short Term Business Loans

Borrow $20,000 to $2,000,000 in just 24 hours

What's a Short Term Business Loan ?

Hi I’m Paul Stone… Director of Australia and New Zealand’s largest national caveat lender… HomeSec Business Finance, and I quickly want to talk about the benefits of short term caveat loans for businesses and commercial investors. A Short Term Business Loan (or sometimes referred to as a CAVEAT LOAN) are fast settling loans, which are structured just for a short term of 1 to 6 months. Unlike normal forms of finance, these loans need to be able to settle quickly…. Generally within 24 hours from the time the application is first lodged. As such, there is no time for valuations, and bank style due diligence, and in many cases, a bad credit history is irrelevant.

What's a Short Term Business Loan ?

It is simply an ASSET LEND, where we secure the loan against a piece of real estate (whether it be a house, unit, land or a commercial property), and the borrower pays it back at a predetermined time in the next few months. This is known as an EXIT STRATEGY. Repayment of the caveat loan could be through a refinance, sale of an asset, business cash flow, commissions due…. Any event that we can verify is a suitable exit strategy.

We mainly go behind your current 1st mortgage, so we effectively sit as 2nd security on your property. Once our loan is paid out, our caveat is removed from your title, and that is the end of the transaction. AND NO, contrary to some myths around the place, your 1st mortgagee (being your bank) will not object and has absolutely no interest in any caveat going on title… simply as it doesn’t affect them in any way.

HOW SHORT TERM BUSINESS LOANS HAVE SAVED OUR CUSTOMERS ?

We had a plastering firm who had secured a big job, and to secure the big job the director gave 90 day terms to the project builder. The plasterer had 13 other plasterers on site working for him, and at around day 40 of 90, he ran out of money to pay wages. It was a union controlled site, so if no wages were paid, apart from having upset employees, they would be kicked off site. Payday was a Friday and he came to us on a Thursday. We loaned him $65000 for 2 months, and secured the debt against his house in Kew. In 2 months time, he paid us back when he got paid for the job. OUTCOME: We saved his bacon.

We had an electrical goods retailer who was notified by an importer of LCD televisions that an order of 500 LCD TV’s had been cancelled and that the bulk shipment was now on the wharf and the first in with cash can buy the lot off price. It is a straight forward commercial transaction where a manufacturer wants to clear the cancelled order at a reduced price. The retailer stood to make an additional 100% mark up or more if they could get their hands on this stock. The problem was the retailer did not have a spare $550,000 in clear funds.

Knowing that he has less than 24 hours to raise the money or else he would miss out on the deal, he came to us and used the equity in his house to secure the loan. As the LVR was slightly over our 75% limit, we also took a fixed and floating charge over his company to secure the shortfall. The loan was for 2 months, and he used the proceeds from the sale of the LVD TV’S to repay the loan within 2 months. As a result of the HomeSec short term caveat loan, he made an additional 100% mark up.

They could need access to funds in 24 hours to…

1. Pay off an overlooked or overdue tax debt
2. Fund a short fall on a commercial property settlement
3. Provide cash flow due to an unexpected downturn
4. An urgent advance on a pending refinance or property sale

Don’t forget, for the finance brokers reading this, you NEED to have this product in your product range. Too many brokers shy away from caveat loans for a variety of ill founded reasons…. However at the end of the day, being a finance broker is about finding solutions for your clients. If a client walks in today and needs urgent access to say $300,000…. A caveat loan is the ONLY solution!

Still not convinced??? Then ask yourself…. if I needed access to a large sum of money by tomorrow (leaving out rich uncles, etc), how would you get it?

There is a major myth about caveat loans and their costs

FIRSTLY, these loans are often high risk and they have to settle within 24 hours, so normal bank style checks & due diligence cant be done. PLUS we rely on real estate market appraisals rather than having the comfort of sworn valuations.

SECONDLY, short term caveat loans are just that… short term. Normal lenders (both banks and private lenders) want to build a loan book that grows and grows with each new loan they write, so they have no interest in funding a loan for just a couple of months… they want you to keep their money out there working for them for years… not months. Plus it is just not feasible to charge per annum interest rates of 5% per annum for just 1 or 2 or 3 months.

THIRDLY, one of the reasons HomeSec Business Finance can settle so quickly is because when a loan comes in our team in our head office all start work on your application. If it was left to one staff member, the process could take days, so there is an enormous cost in just processing the application and getting it from application to settlement in just 24 hours.

Our super low rates start at 1.95% per month. There is also an establishment fee and legal costs, ALL of which are CLEARLY noted on your Conditional Approval letter, and ALL interest and costs are capitalised into the loan, so there is NOTHING to pay until the end of the loan. This is great, as it won’t harm your cashflow, or place further financial pressure on you while you refinance, etc.

In doing the sums, if you take out a short term caveat loan for just 1, 2 or even 3 months, the cost is CHEAPER than getting a 12 month 2nd mortgage.

Want To Get More Information ?

Our friendly team of Homesec Business Finance experts are waiting to speak with you.