You are facing a cash crunch and are exploring options to take a loan. However, you do not wish to go to conventional finance loan options. This is where the urgent caveat loan comes into play and can be your savior in such times of need.
The caveat loans are a different product. It is given to those who have a real estate asset that they can offer, and the loan is usually given pretty fast. You can get this loan even within 24 hours and that is why it is becoming a very sought-after loan product.
People who need money quickly and have some real estate asset that they can pledge against the loan have every reason to go for this caveat loan. The creditor values the property in question and as long as it has an LVR of between 70-75%, there is no problem whatsoever. The money is given immediately, and the exit strategy is worked out with the borrower.
The exit strategy too is a short one. It can range from a month to a year. The borrower has the option to clear it at any time and can even roll it over, if he is finding it difficult to repay at the end of the term period. Usually, the borrowers make the repayment and take fresh loans if they need the money.
If you have a house, plot of land, a medical center, child-care center or any such piece of real estate, you qualify for the caveat loan. It is thus possible to monetize a piece of real estate to take a caveat loan and use that fund for any immediate fund requirement.
Business owners often run into cash flow issues. The temporary problem they face can be addressed through the urgent caveat loan and they can tide over the crisis. The working capital they get out of this loan can often save their business from collapsing. Many of the businessmen take the opportunity to use their real estate asset for expanding business through this loan. That way they are able to put to use the otherwise dead real estate asset.
This loan is essentially provided only to those who can show that they are using the money for business or for investments that are not into property dealings. The interest rate is very reasonable as well.