By 
As a businessman wanting cash flow urgently and not willing to go through the usual route of taking loans, the caveat loan presents a unique option. You will get the cash that you require as long as you can show real estate asset with a valuation of LVR 70-75%. The loan provider will then immediately give you the loan that you can repay as per the agreed exit strategy.
Why is this caveat loan so unique?
It is because unlike the normal finance options, there is less paperwork, the disbursement is
quick, these loans are also referred to as fast track loans. You have the option of making the
repayment within a couple of months or at the end of the agreed period. If you are unable to do so, you can also rollover the loan to another date.
The urgent caveat loan is being preferred by businessmen and those wanting immediate cash, due to the ease of getting it. Even if somebody has a credit history that is not very good, the caveat loan can be availed as they only need to show real estate asset that has the right valuation.
That is a great thing since otherwise such people would have to take loans from lenders at much higher rates of interest. The term caveat loan is so called due to the caveat placed on the sale of the real estate asset by the asset owner till he settles the loan with the loan provider. The loan provider has thus given a loan with the caveat that the borrower will not sell the real estate.
This real estate can be a shop, a plot of land, a medical centre and the like. Businessmen wanting to either expand their business or having to meet debt obligations often make use of the caveat loans to meet this requirement and then when their cash flow improves, they settle the loan.
Business men also use the caveat loan as a bridge loan. The cash that they are able to get thus comes in handy to meet the sudden requirement, making use of the real estate asset. This asset would otherwise just be a dead asset, particularly if they are not getting any rental income out of it. It is prudent to monetize the assets you hold and the caveat loan provides this opportunity to monetize real estate assets whenever money is to be raised.
