Boosting Cyber Security With Caveat Loans

By: Aaron Robbins0 comments

Cyber security has been an increasingly hot topic amongst Australian businesses over the past few years.

In recent months, however, cyber security has taken centre stage, with the Optus Data Breach making waves in news headlines.

Australia’s biggest data breaches and cyber attacks showcase the importance of cyber security and why every business, large or small, should have a robust cyber security management plan in place.

Making sure the curtain doesn’t close for good on your organisation can take a significant investment of intellect, time and money.

Below, we spotlight how caveat loans can help boost your cyber security.

What is cyber security?

Cyber security is the term given to protecting sensitive information and critical systems from digital attacks and cyber risks.

When people consider cyber risks, it’s easy to hone in on cybercriminals — cyber risks, however, are any risk associated with an organisation’s damage or disruption, including financial loss.

The damage or disruption that can occur from erroneous use of information systems can be crippling, and it can come at your own employee’s hands, not necessarily a cyber-criminal.

Therefore, considering the full breadth of cyber security can feel overwhelming for business owners.

How to establish a cyber risk management framework

Several considerations must be made when planning your cyber risk management framework.

Some of the top ways that your business can establish a cyber risk management framework are:

Implementing cyber risk insurance

Cyber insurance is a crucial component in any cyber security framework, however, simply putting an insurance policy in place does not mitigate all risks.

As with any insurance policy, it pays to seek professional assistance such as commercial insurance specialists, who intimately understand your needs and the risks your business and industry face.

Risk management plan

Planning is the most critical step to understanding your cyber security needs and how to build a robust risk management framework.

Performing a risk assessment, analysing your threat level and creating an incident response plan should be some basic steps to begin planning how you’ll mitigate current and potential cyber risks.

Educate employees

Employee education on the policies and plans you put in place is paramount in the fight to fortify your cyber security.

Empowering your team through training and education on cyber security awareness is the best way to prepare them to respond to cyber threats and remain conscious about their own cyber practices.

Automating tasks

Task automation comes with many benefits.

Not only can it help reduce human error (which can lead to data breaches), but task automation can also help maximise your employee time on more meaningful or commercially viable activities (not to mention increases in efficiency).

In today’s digital era, many technological solutions help automate tasks.

Ensuring your business has the best tech is one thing, but ensuring that you responsibly implement the tech to help boost your cyber security should remain front of mind.

Ensuring your business has the best tech

How caveat loans can help build a cyber risk management framework

Finding a solution to overhaul your cyber security may require a significant investment into your business.

Affording additional staff (whether IT or in management), accessing cyber risk consultants, implementing cyber insurance policies, formulating training programs, or overhauling your technology to build a more secure tech base can be an expense some businesses don’t have but can’t afford to live without.

Many clients approach us at DFS for a short term finance solution to enable them the immediate cash flow to put towards their business.

Regardless of the business purpose, a caveat loan may be the solution.

Caveat loans explained

Cyber threats are ever-present, so many organisations want to take action immediately to fortify their cyber security.

If your business needs to source finance to boost your cyber security, then you probably can’t wait weeks or even months for a traditional lending transaction with a bank or standard lender to settle.

The speed, efficiency and flexibility of caveat loans make them an attractive finance option for businesses that require funds quickly.

What are short term caveat loans?

Caveat loans are a short term loan, available to business owners who also own property.

Using a security property, caveat lenders can effectively release real estate property equity over loan terms between one and twelve months.

You can access up to 75% of your property value with Diverse Funding Solutions!

How are caveat loans secured?

As we mentioned, a caveat loan is secured using a real property that you own, whether it be a residential property or investment property.

The lender’s interest is registered on the property title, meaning that the caveat loan sits behind any existing mortgage.

This means that even if you have a home loan, first mortgage or second mortgage on the property, provided you have sufficient equity to cover your cyber security plans, a short term caveat loan could be the answer to boosting your business’s cyber security.

Note: Overseas properties aren’t able to be accepted as security for caveat loans.

How is a short term caveat loan repaid?

Unlike most other business loans that rely on your business’s cash flow or revenue forecasting to service the loan, caveat loans are repaid using an exit strategy and repayment schedules.

This strategy is the lender’s way of verifying that your business can comfortably repay the loan across the chosen loan term.

Many businesses use expected sales, property sale, insurance pay-outs, and refinancing to repay caveat loans.

Is the caveat loan process the same as bank loans?

Caveat lending is renowned for being highly dissimilar to other loans, including home loans!

Many people can recall the mountain of paperwork required to set up their mortgage or have experienced the complicated and uncertain process of accessing finance for business purposes.

The fundamental difference between caveat loans and business loans from banks and other lenders is that they are usually offered through private lending.

Diverse Funding Solutions has access to a selection of Australia’s top private lenders. 

Here’s what you can look forward to when you choose Diverse Funding Solutions for your caveat loan:

Minimal documentation

Forget a laundry list of documents to pull together for your loan application — minimal documentation is required for a short-term caveat loan.

A caveat loan application with DFS is hassle-free and only requires your identification, council rates’ notice and recent mortgage statement.

For most applications, there are no valuations required either!

Competitive interest rates

Our caveat loan interest rates start at just 0.77% per month. 

Particularly for seasonal businesses, or those with bad credit, banks can charge high interest rates for finance, especially given the recent interest rate hike from the Reserve Bank of Australia.

Fast funding

Fast caveat loans earn their nickname: a DFS caveat loan can be funded in as little as 48 hours from when the lender receives your application.

Fast approvals and funding make caveat loans an attractive option over other transactions for businesses that need money fast.

No credit checks

For businesses that have suffered through the COVID-19 pandemic, supply chain shortages, or who are getting off the ground, passing a credit check can be a hurdle to finance approval.

Thankfully, private lenders do not rely on your credit file when determining your suitability for accessing caveat loans and have much more flexible lending criteria.

Working with businesses like yours, the lenders available to you through Diverse Funding Solutions can see past your cash flow and instead seek out your capability for repaying a short term caveat loan.

How to apply for a caveat loan

The Australian Cyber Security Centre encourages all Australian organisations to enhance their cyber security.

Improving your business’s cyber security resilience is made possible with a caveat loan from Diverse Funding Solution.

To begin the application process for a caveat loan, all you need to do is simply fill in our express quote request.

Otherwise, our trusted team members are ready to see how your property can secure a caveat loan and your business’s future in a highly volatile cyber environment.

apply for a caveat loan
apply for a caveat loan

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