See which lenders will give you the best business caveat loan. Instant online results.
This is a totally free process and will not affect your credit rating.
Borrow from $5,000 to $500,000
Fixed or variable interest rates
Repayments to suit your budget
Terms from 1 month to 5 years
Secured & unsecured options
Own a business and have an ABN
Business is GST-registered
Permanent Citizenship or Residency
Minimum business-operating time of six months
Can provide business bank statements
Business Caveat Loans are a type of short-term business finance secured using a property owned by the borrower. The amount you can borrow is based on the available equity in the property used as security.
They have faster approval times and higher interest rates than traditional secured business loans.
A business caveat loan uses your property or land as security against the loan. This allows faster approval speeds on applications, as lenders will generally only assess the available equity in your property and approve an amount between 70% and 100% of its value.
They are similar to standard business loans, with a few points of difference:
Most caveat loans are approved within one or two days
Loan terms are shorter — often between 1 and 12 months
Many caveat loans charge interest on a monthly basis
Interest rates are generally higher than other forms of business finance
Minimal documentation required to apply
You can only borrow up to the value — or a percentage — of your property’s equity
A caveat is a document lodged on the title of real estate. Only one caveat can be lodged on the property at a time, and indicates to other lenders or homebuyers that the property is acting as security.
Business caveat loans are most often used by small-business owners, who cannot meet traditional qualifying criteria for a business loan.
Limited operating time and a lack of business financials are major hurdles when applying for business finance, and property-backed borrowers benefit from limited requirements and fast access to cash flow when using business caveat loans.
While there are benefits to caveat loans, their high rates and short terms generally only make them suitable if:
You're unable to access other forms of business finance
You own a business operating for less than two years
You have sufficient equity in property or land
Business caveat loans can be used for any legitimate business purpose, including managing your day-to-day operations, making inventory purchases, or expanding your business to further growth.
Business caveat loans can range anywhere from $1,000 to $50 million.
Caveat loans allow you to borrow up to a specific percentage of the available equity in your property — most lenders will offer between 70% and 90% — however some lenders allow borrowing up to the full value.
Business caveat loan interest rates are generally higher than other business loans. As caveat loans are designed as a short-term finance solution, interest is often charged monthly. Many lenders will offer interest rates from 1% per month.
There can also be a number of fees attached to caveat business loans, including:
Property valuation fees
It’s important that when comparing various lenders for a caveat loan, you consider any initial or ongoing fees — such as property valuation or monthly fees — before applying.
This will ensure you understand the total overall cost of your caveat loan and are comfortable you can make repayments.
Applying for a business caveat loan is simple, and requires fewer supporting documents than a standard business loan.
As the loan amount is based entirely on the borrower’s available equity, the lender will only need to assess the value of the property to determine eligibility.
To apply for a caveat loan you will need to:
Complete an online application with a lender
Provide a list of assets and liabilities
Provide proof of property ownership
Lenders are often able to approve an application within two hours. If your application is approved, funds can be transferred to you within 24 hours.
Faster approval is possible with some lenders if the borrower:
Provides proof of income
Has no history of bankruptcy
Can demonstrate an ability to make repayments
You can apply for a Business Caveat Loan with Max Funding. Read our review of the lender to compare Australia’s leading business lenders, or use the Money smart form to see lender offers and apply direct online.
Business caveat loans are used to access business funds between $1,000 to $50 million, with lending amounts relative to the available equity in the property used as security.
Caveat loans require minimal documentation and have a faster approval turnaround than traditional business loans.
However, they also have shorter terms, and higher interest rates, and can only provide access to funding up to the value of your property.
Fast way to access finance
Credit history not important
The loan is secured against the lender's property
Can be used for any business purpose
Business finance if you cannot access other loan options
Simple application and minimal documents required