Overcome a Cash flow Crunch with Caveat Loans from HomeSec
A caveat or a short-term loan for a business is a fast-settling loan structured for a short term duration. Unlike other loans, caveat funding provides quick settlements once the application is completed and approved funds can be in your account in as little as 24 hours. There is no necessity to submit income proof and credit history is irrelevant as this funding is secured. HomeSec will offer the funding against real estate assets such as a home or commercial property, and the borrower should repay the entire amount within the predetermined time. Once the borrower repays the money to us, we remove the caveat from the title of the property, and the transaction gets completed.
What do you mean by short-term caveat loans?
Caveat funding is a quick way to get access to funding for your business as the process is different than a traditional mortgage loan. This loan is also known as an equitable mortgage or unregistered second mortgage. The borrower needs to have equity in a property to get a caveat loan against them. Once funding has been approved Homesec will lodge a caveat over the property, this sits behind your current mortgage and remains until the debt is repaid.
How to use quick caveat loans?
In New Zealand, caveat funding is a faster source of funds for a short term. The borrower commonly uses it for managing the cash flow or any unexpected business expense. If you have recently sold a commercial asset and need funds for another purchase, but the time for settlement does not match up, then caveat funds are another option in this situation.
You can also use caveat loans for completing the residential developmental projects and commercial renovations. Caveat funding helps to raise the capital necessary for construction, with a caveat, lodged on the property. The lenders will release the caveat from the title once the property gets sold or refinanced. Business owners with a need for cash flow injection can also apply for caveat lending. For instance, if you own a business, you can use caveat funds for:
- Paying an overdue tax debt if the tax office will not wait for payment
- Increasing working capital for maintaining the daily business operations and paying the outstanding invoices
- Purchasing new stock, ordering equipment or taking advantage of a massive discount
- Doing commercial property renovations before selling
- Buying inventory
- Making business improvements and renovations
- Rebranding a business through advertising
- Expanding a company
- Meeting sudden unexpected business costs
- Consolidating other loans
- Assisting a business in surviving a downturn
- For accessing the funds to capitalise on a business opportunity
Who can apply for a caveat loans?
Only business owners can apply for caveat loans. Anyone with equity in a property, residential or commercial can apply for caveat lending and use them as security. HomeSec accepts different types of properties as security against caveat funding. It includes residential, industrial and commercial properties. We also accept batches.
Based on the property value and the borrower’s requirement, you can get funds ranging from $20,000 to $500,000 as fast caveat loans. The loan amount varies due to the borrower’s equity available in the security being offered. The overall caveat loan cost depends on different fees and the interest payable. All fees are capitalised into the caveat loan and are repaid at expiry, there are no exit or early repayment fees with Homesec.
Advantages of fast caveat loans
Short-term caveat funding includes unbelievable benefits, making it most appealing among business owners. Some of them are as follows.
You can apply for caveat loans with HomeSec, and get application approval and funding settlement within 24 hours.
Low doc requirement
The paperwork necessary for this funding is less than other traditional mortgage loans, making it hassle-free and faster to apply.
After you have repaid the loan, HomeSec will instantly lift off the caveat from title with minimal red tape and fuss.
The terms for the caveat funding are flexible. You can negotiate the term anywhere from one month to 1 year.
Documentation Necessary to apply for caveat loans
HomeSec require minimal documents for securing caveat funding, which is as follows.
- Registered NZBN details
- Rates notice for security property being offered
- Copy of current mortgage statement for any first mortgage debt
- Copy of photo ID for all borrowers
- Copy of sale agreements if applicable
How to apply for Caveat funds from HomeSec?
At HomeSec, you can submit a loan application online or on your phone. Upon receiving your loan application or enquiry, we will reply with an indicative quote, including the details like the interest rates, loan structure, and the required documents. If the proposal is acceptable and you agree, we will issue you a more detailed and formal offer letter. You can sign the proposal and submit with the necessary documents for verification. Once formally approved our solicitor will issue the security documents. After receiving the signed security documents, we will lodge the caveat and transfer the funds and settle them in your bank account.
Thus, if you have equity in a property and need funds for business use, quick caveat loans can be a cost-efficient and relatively faster source of short-term funds for business use. So, apply online or call us for short-term caveat loans to overcome a cash flow crunch within a short time.
Frequently Asked Questions
Loan amounts range from $20,000 to $500,000 and are determined by the available equity in your real estate asset.
A caveat loan can be funded in as little as 24 hours.
Yes, credit history is not relevant to our funding, however in some cases we may require any court judgments to be repaid from the loan proceeds.
Along with completing our online application, you will need to provide ID, rates notice and a current mortgage statement.
Any business owner with a registered NZBN can apply for a business loan, provided the funds are being used for a business purpose and you have sufficient equity in real estate.