Does Your Business Have the Best Technology? Using a Caveat Loan to Overhaul Your Tech

By: Aaron Robbins0 comments

If you’re one of the many businesses falling behind on technology adoption when it comes to artificial intelligence (AI) and data analytics, a caveat loan may be able to help reap productivity dividends.

Introducing robotic automation, artificial intelligence and big data analytics offers businesses the opportunity to revolutionise operations by reducing costs and lifting productivity growth.

Yet, a recent interim report released by the Productivity Commission has found that Australian businesses are falling behind when it comes to adopting artificial intelligence and data analytics.

Keep reading to learn more about the benefits of accessing the best technology and how to finance your tech leap with a caveat loan.

The benefits of data analytics and artificial intelligence for your business

Technology is one of the most rapid aspects of modern-day society, so it’s little wonder that introducing new technology into their businesses can feel daunting for many Australian business owners.

However, the benefits of introducing data analytics and artificial intelligence into your business can completely revolutionise your organisation as you know it and secure a foundation for growth well into the future.

We look at the benefits of introducing data analytics and artificial intelligence into your business:

1. Gains in productivity and efficiency

Humans will always be a necessary part of business, however, there are some tasks that artificial intelligence can handle at a pace that humans simply cannot match.

Your human resources are invaluable, so put them to work with more valuable responsibilities and let an AI program take care of the mundane, repetitive tasks that hold little value with a human completing them.

This allows businesses to maximise their human capital and grow their business.

Naturally, removing ‘human’ from human-driven tasks also reduced human error!

2. Improvements to your business speed

Suppose you want to get your business off the ground or expand into a new venture.

In that case, you’ll be excited to learn how AI can help deliver a more immediate and better return on investment plus enable shorter development cycles.

What this means for new ventures is that AI can help shorten the timeline between design to commercialisation — meaning that your cash flow begins sooner than anticipated.

Good to know: a caveat loan can also be one of the ways new ventures find their working capital and boost cash flow to get off the ground.

3. Making more informed business decisions

Making informed business decisions is a no-brainer for prudent owners of Australian businesses; data analytics allows business and company owners to make more-informed business decisions.

  1. Mitigating risks

It’s standard business practice to mitigate risks where possible.

Whether it’s theft, legal liability or employee safety, data analytics can help your business understand the existing risks and help predict future threats that may arise.

Better understanding allows business owners and operators to implement preventative measures and develop risk mitigation strategies.

Based on the information that analytic data technology can provide, a business can look to divest their interest from particular locations, determine necessary security, or identify liabilities that are left exposed and require business insurance.

Data analytics technology can help limit losses to your business after experiencing a setback, which, in the current economic climate, should be front of mind for those running businesses, especially small businesses.

5. Personalising your customer’s experience

With the market saturated with many different business models, finding a point of differentiation can feel challenging.

Personalising the customer experience within your business can help differentiate you from the pack.

Data analytics can allow organisations to run behavioural analytic models on their existing customer data, allowing them to optimise the customer experience.

Given the rise of e-commerce, this can be a particularly beneficial use of data analytics, leading to better lead generation, sales and customer engagement.

Financing data analytics technology and artificial intelligence with caveat loans

Finding the funds to invest in technological improvements for your business is simple when you consider the efficiency and flexibility of short-term caveat loans!

Unlike most other loans, caveat loans provide the efficiency and fast funding that Australian businesses need to continue the trajectory of their operations.

A short-term caveat loan may not have been the first financing option that sprung to mind when thinking about financing options for investment in technology, however, we explore why short-term caveat loans should unquestionably be a financing front runner for Australian business owners.

Caveat loans explained

A caveat loan is a business loan usually offered by private lenders, using the equity in a security property to finance the loan.

Private lending offers a much more personalised and flexible lending process.

At DFS, we access some of Australia’s best private lenders to place you with a caveat loan that best suits your needs while being an authorised credit representative of an Australian Credit Licence.

Property owners who also run businesses utilise fast caveat loans to provide working capital for various business purposes.

  • Caveat loans are a short-term business loan, typically offered between one month and two years.
  • Caveat lending is available on a real estate property with equity within its property value.
  • Any registered mortgage, such as a first mortgage, home loan or second mortgage, does not affect the caveat loan application.
  • The residential property or investment property is offered as security, where the lender’s interest in the property is put in place by a registered caveat on the property title. (Overseas properties aren’t able to be used as security).
  • Private lending doesn’t rely on your credit file, making caveat lending a fantastic option for those with bad credit.
  • Caveat lenders determine an exit strategy for your business to repay the loan (such as increased profitability due to implementing data analytics) and then set repayment schedules rather than relying on the result of a credit check.

How can short-term caveat loans be used to finance investment in technology?

Caveat loans effectively release equity from real property.

Therefore, provided there is sufficient equity to satisfy your desired loan amount, you could apply for a short-term loan under caveat finance.

A caveat loan through Diverse Funding Solutions can be funded in as little as 48 hours. 

Once you have the funds available, you can then look to put them towards investment in artificial intelligence and data analytics in your business!

What is the benefit of a caveat loan over other business loans?

There is more than one fundamental difference between caveat loans and other business loans; the hassle-free application process, no credit checks, and funding efficiency are the top three benefits caveat loans hold over more traditional forms of business finance or bank loans.

Other lenders may request a mountain of paperwork, take weeks or months to arrive at a loan decision and hold your business to strict lending criteria.

Unlike a mortgage, or most home loans (including second mortgages), with caveat loans, there are no valuations required in most instances!

Many lenders require years and years of tax returns to determine your cash flow and may charge application fees or other upfront fees before hitting the ‘approved’ button.

Do I need to access legal or financial advice before taking out a caveat loan?

The legal caveat on the title deed of your property is simply the way that the lender register’s their interest on your property — there is no requirement to seek professional financial or legal advice before taking out a caveat loan.

Of course, everyone’s personal circumstances are different; we advocate for all businesses to access the advice they feel is necessary before proceeding with any significant business decision, including entering into a lending transaction.

Accessing a fast caveat loan for your business to have the best technology

Diverse funding solutions can help you get a caveat loan quickly, on terms relevant to your unique business needs, with minimal documentation and interest rates starting at just 0.77% per month.

With no hidden fees and flexible loan terms, we strive to get our clients their caveat loan funded in a timely manner.

The Productivity Commission’s interim report found that in other OECD countries, the use of data analytic technologies is around 30%, whereas less than 10% of Aussie businesses are currently reaping the benefits of using data analytics.

With so few Aussie businesses taking up data analytics technology and artificial intelligence, an investment into technology could be the competitive advantage your business needs!

Access funds quickly — contact our team to learn more about how Diverse Funding Solutions could help your business get the best technology.

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