1. What is a Caveat Loan?
A caveat loan is used predominantly for business purposes. Caveats are generally used to allow faster settlement then conventional loans also giving access to the funds immediately. Caveats are secured against some form of security (normally house or commercial real estate). Most lenders will get a valuation done on the security and will lend a maximum of up to 75-80% of the valuation. The caveat sits behind a first mortgage (ie normally a bank. The funder will seek to ensure the purpose of funds are predominantly for business use ie payment of a business related account, investment into another business.

2. When do businesses need caveat loans?

• Urgent requirement of funds for any business purposes
• May need to settle a contract which has a deadline approaching (ie borrower may have placed a large non refundable deposit which is at risk if the contract doesn’t settle)
• A builder/developer might have an incomplete property that requires some short term funds to complete (as building estimates may have fallen short), once the work is completed the property can be sold or refinanced to a cheaper lender.
• Payment to customs to clear goods being held at the docks. This enables the goods to be released to allow the borrower to get their goods and continue trading
• Urgent need to payout overdue creditors. The risk of not paying creditors needs to be addressed urgently so short-term funds or caveats are used to eliminate the risk of defaulting with the creditors

3. The process

1. Enquiry received
2. Application Pack sent to borrower with a list of items required relevant to assisting their situation
3. Once the Application Pack is received, formal assessment is done
4. Proposal is submitted to investor or review
5. Once approved, Letter of offer is sent to client for review, once signed and returned
6. Mortgage document stage
   Docs are sent to clients legal representative. Client brings 100 points ID and signs docs in front of their solicitor. This way they also receive legal advice. Their solicitor will send the docs back via express post
7. Once executed docs are received. The lender will book a time with the Lands Titles Office (LTO) to register their caveat. Once this occurs funds are released to the client via their nominated account

4. What we need from the applicant

• Completed application form
• 100 Points ID
• Rates notice for security being offered
• Recent mortgage statements
• Description for purpose of funds

5. Term Length & Rate
Term length is usually dictated by the client, they select how long they would like the funds. Normally from 1-6 months.
Rate, this is determined by the lender once they have completed the due diligence.

6. Why Astute and not the competition?
Astute offers you obligation free quote upfront (once due diligence is complete). Astute can offer genuine fast turnarounds 24 hours if you require urgent funding. Astute promises to offer a much higher level of service generally experienced out in the marketplace. If you are looking to get short term funding it is worth considering “what is the cost of not getting the funding done right the first time?”

7. Customer service advantages

• Direct access to your account manager, you won't be dealing with multiple decision makers
• After hour service
• Available online via chat