Caveat loans for business
By Bhavi Chadha · Updated 25 October 2026
Fast, short-term business funding secured by a caveat over property, for urgent needs with a clear exit. For business purposes only.
Tell us what you need and your broker, backed by our proprietary AI, will get quotes from the best-fit lenders for you to compare.
- Often the fastest property-secured option
- Compare quotes from multiple lenders
- No obligation
In a nutshell
A caveat loan is a short-term business loan secured by a caveat lodged on the title of a property you own, instead of a registered mortgage. The caveat stops the property being sold or refinanced without the lender knowing. Because there's no mortgage to register, caveat loans can be arranged in days, sometimes without a full valuation. They usually run for a few weeks to 12 months, cost more than a registered mortgage, and suit urgent needs such as an ATO deadline or a time-sensitive purchase, with a clear way to repay.
At a glance
- Security
- A caveat on a property title
- Typical term
- A few weeks to 12 months
- Speed
- Often days
- Typical use
- Urgent, short-term business needs
- Exit needed
- Sale, refinance or known payment
- Interest rates
- Vary by lender and loan
How a caveat loan works
A caveat is a notice lodged on a property's title that tells anyone dealing with the property that someone else has an interest in it. With a caveat loan, the lender lodges a caveat over property you own, usually with a loan agreement giving it an equitable charge, instead of registering a mortgage.
Because no mortgage needs to be registered, and some lenders don't need a full valuation, caveat loans can often be arranged in days. They're usually short, from a few weeks to 12 months, and the interest is often prepaid or capitalised.
For business purposes only. Splendid arranges caveat loans for business needs, not personal ones.
When a caveat loan makes sense
- Speed is critical, for example an ATO deadline or director penalty notice, a supplier who needs paying now, or a business or property purchase about to settle.
- The need is short, and you know how you'll repay: a property sale, a refinance, a large invoice or an R&D tax refund.
- Other lenders have said no because of credit issues, ATO debt or a short trading history.
If you have more time, a second mortgage or a first mortgage loan is usually cheaper.
Costs and risks
Caveat loans are among the most expensive forms of business finance, so use them for short, clearly defined needs. Compare the total cost of each offer, including establishment and legal fees, prepaid interest, and the fees that apply if you need to extend. If the exit is delayed, costs can climb quickly, and the lender can act to recover the debt from the property.
How we help
Your broker checks your property, timing and exit, then seeks multiple options from the private and non-bank lenders on our panel. If a registered second mortgage, an unsecured loan or a payment plan would cost less, we'll tell you.
Eligibility and documents
What lenders usually look for
- A business purpose for the loan
- Equity in residential or commercial property in your name or a guarantor's
- A clear exit, such as a sale, refinance or known payment
- Identification and title details for the security property
Documents you may need
- Identification for each borrower and guarantor
- Rates notice or title details for the property
- A statement for any existing mortgage on the property
- An explanation of the purpose and the exit
Requirements vary by lender. All lending is subject to each lender's credit criteria and assessment.
What lenders publish about caveat loans
Here's a selection of what lenders publish about caveat and short-term property-secured business loans. It isn't a full list of lenders or a ranking.
- Ventra Capital lends up to $2.5 million over 3 to 12 months, secured by a second mortgage or caveat, at up to 80% LVR with no valuation needed, and says it settles in 2 to 3 working days. Profile →
- Fundspot offers business loans secured against equity in residential, commercial or industrial property, including caveat and second mortgage loans, and says it considers new businesses and bad credit. Profile →
- Max Funding offers caveat and equity loans secured against property, alongside unsecured and low doc business loans of up to $1 million. Profile →
- Moneytech lends up to $250,000 without property security, and up to $500,000 with a caveat or mortgage guarantee. Profile →
- Speedy Finance lends up to $750,000 secured against property, for purposes including ATO debt, and says loans can settle in as little as 24 hours. Profile →
A sample of lenders, as published by each lender, checked 25 October 2026.
First mortgage, second mortgage or caveat?
Where the lender ranks
- First mortgage
- First, or the only lender
- Second mortgage
- Behind the existing first mortgage
- Caveat
- No registered mortgage; a caveat on the title
Usually suits
- First mortgage
- Larger loans, or property with no existing loan
- Second mortgage
- Using equity without refinancing your home loan
- Caveat
- Urgent, smaller and shorter loans
Speed
- First mortgage
- Days to weeks, allowing for a valuation
- Second mortgage
- Days, sometimes with consent from the first lender
- Caveat
- Often the fastest; some lenders skip the valuation
Cost
- First mortgage
- Lowest of the three
- Second mortgage
- Higher, because the lender ranks second
- Caveat
- Usually the highest
| First mortgage | Second mortgage | Caveat | |
|---|---|---|---|
| Where the lender ranks | First, or the only lender | Behind the existing first mortgage | No registered mortgage; a caveat on the title |
| Usually suits | Larger loans, or property with no existing loan | Using equity without refinancing your home loan | Urgent, smaller and shorter loans |
| Speed | Days to weeks, allowing for a valuation | Days, sometimes with consent from the first lender | Often the fastest; some lenders skip the valuation |
| Cost | Lowest of the three | Higher, because the lender ranks second | Usually the highest |
Related guides
Talk to us about a caveat loan
Tell us what you need and a little about your business. Your broker works out your cash flow and serviceability from your bank statements, then matches the product, amount, terms and lender to your business.
- Non-bank and private lending specialists, plus banks where they suit
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- We seek multiple lender options for you
- One conversation, no obligation
- Business finance from $30,000
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FAQs
Questions about caveat loans for business
A short-term loan secured by a caveat lodged on the title of a property you own, instead of a registered mortgage. The caveat warns anyone dealing with the property that the lender has an interest in it.
A second mortgage is registered on the title behind your first lender. A caveat loan relies on a caveat and the loan agreement instead. Caveat loans are usually quicker to arrange and cost more; second mortgages are usually cheaper and can run longer.
Often within days. Ventra Capital, for example, says it settles in 2 to 3 working days, and some lenders don't need a full valuation. Having your ID, title details and exit plan ready speeds things up.
It depends on the property's value and any existing loans. Some private lenders lend up to about 70% to 80% of the value across all loans on the property. Smaller loans are more common, but some lenders go into the millions.
Private lenders focus mainly on the property and the exit rather than your income history or credit score, so a caveat loan can be available when other lenders say no. They still need to be confident you can repay at the end of the term, usually from a sale, refinance or known payment.
Yes. Caveat loans are available across Australia, although some lenders focus on metropolitan property or particular states. Your broker can match you with lenders that accept property in your area.
Yes. Paying ATO debt quickly, for example after a director penalty notice or before a deadline, is a common use, often followed by a refinance to a longer-term loan.
They're expensive and short. If the exit is delayed, extension fees and default interest can add up quickly, and the lender can take steps to recover the debt from the property. Only borrow when the exit is realistic.
Not through Splendid. We only arrange finance for business purposes.
No. There's no cost to you for our service. We're paid by the lender when your loan settles, and there's no obligation to proceed.
This page is general information only and isn't credit, tax or financial advice. Lender details are taken from each lender's published information, checked 25 October 2026, and can change. All lending is subject to each lender's credit criteria and assessment.