Considering short-term property-secured business finance?
Discuss the business purpose, property security and exit strategy with a specialist.
Loan availability and structure depend on the borrower, purpose, security and exit strategy.
Business-Purpose Assessment
We clarify the borrowing purpose, property security, amount, term and repayment strategy before approaching lenders.
Private Lender Comparison
We compare relevant private-lending structures, rates, fees, security requirements and conditions.
Exit Strategy Required
A credible and documented repayment or refinance plan is central to any short-term lending assessment.
Short-Term Property-Secured Business Finance
Private lending can provide short-term, property-secured finance when a business transaction does not fit a bank’s timing or policy. A caveat loan may involve a legal interest recorded against property, while other private loans may use a first or second mortgage. The appropriate security depends on the lender, property and transaction.
When Private Lending May Be Considered
Common business purposes include working capital, bridging a property settlement, purchasing stock or equipment, completing a project, paying a time-sensitive business expense or refinancing an upcoming commercial debt maturity. Availability and structure depend on the borrower, purpose, security and exit plan.
What Is a Caveat?
A caveat is a legal notice showing that another party claims an interest in a property. It can restrict dealings such as a sale or further registration until it is removed or the caveator consents. Borrowers should obtain independent legal advice about the proposed security and loan documents.
Rates, Fees and Repayment Risk
Private loans are commonly short term and can carry higher interest rates, establishment fees, valuation and legal costs, default charges and early-repayment conditions. If the loan is not repaid, the lender may enforce its security and the property may be at risk. Compare the total repayment amount—not only the stated rate.
A Clear Exit Strategy
Lenders generally require evidence showing how the debt will be repaid, such as a property sale, confirmed business receivable, refinance, asset sale or other documented source. A hoped-for refinance is not guaranteed, so timing and contingency planning matter.
Regulation Depends on the Loan
The legal and regulatory treatment can depend on the borrower, property and predominant loan purpose. A business-purpose declaration does not by itself determine the law. We clarify the scenario and recommend independent legal and tax advice before commitment. For general information about secured borrowing, see Moneysmart.
Property-Secured Finance
The proposed security, available equity and existing encumbrances affect lender options.
Short-Term and Exit-Focused
Loan terms are generally short, making the repayment plan and contingency strategy essential.
Our Benefits
A Clear, Evidence-Based Lending Strategy
Private lending should solve a defined short-term need without creating an unmanageable repayment problem. We assess the full transaction and explain the proposed cost, security and conditions before an application proceeds.
Information Lenders Commonly Require
This may include identification, company and trust records, the business-purpose explanation, property details, current mortgage statements, rates notice, valuation access, proposed use of funds and evidence supporting the exit strategy.
Questions to Ask Before Proceeding
- What is the total interest, lender fee, broker fee, valuation and legal cost?
- Is interest paid monthly, prepaid or capitalised?
- What security will be registered and in what priority?
- What happens if settlement or the exit strategy is delayed?
- Are extension, default or early-repayment fees payable?
Frequently Asked Questions
How quickly can a caveat loan settle?
Timing varies with the lender, property, valuation, documents, legal work and existing mortgagee requirements. No settlement timeframe can be guaranteed.
Can I use my home as security for a business loan?
Some lenders may consider residential property security, but this can place the property at risk. The purpose and borrower structure can also affect the applicable law. Obtain independent legal advice.
Can private lending refinance bank arrears?
Possibly, where the security, serviceability or interest provision and exit strategy are acceptable. Replacing one short-term problem with a higher-cost loan may not be suitable.
Important: This is general information only. Loan availability, regulation and suitability depend on the circumstances. Approval is subject to lender criteria, valuation, verification and legal documentation.
Compare Total Cost
We compare interest, establishment fees, legal and valuation costs, default terms and repayment conditions.
Plan the Exit Before Entry
We test the proposed repayment source, timing and backup options before recommending an application.
Private Lender Options
Diversify Your Choices: Truely Private Lender Options, Expanding Horizons for Your Caveat Loan Journey.
No Loan Too Small
Fueling Ambitions Big and Small: Catering to Caveat Loan Sizes From $10k, All the Way Up to $1 Million. Your Scale, Our Capability.
Streamlined Application - Approval
Simplifying Success: Streamlined Application-to-Approval for Caveat Loans, Clearing Pathways to Your Business Goals.
How It Works
01
Initial Scenario Review
Define the business purpose, amount, timeframe, borrower and reason private finance is being considered.
02
Security and Equity Review
Review the property, existing debts, available equity, ownership and proposed security position.
03
Exit Strategy Assessment
Verify the primary repayment source, expected timing and a realistic contingency if plans change.
04
Lender and Cost Comparison
Compare suitable lenders, total costs, conditions, security and default or extension provisions.
05
Application and Legal Review
Provide the selected lender's documents, valuation access and independent legal review of the facility.
06
Settlement and Repayment Plan
Coordinate outstanding conditions and settlement, then track the exit date and repayment milestones.
