If the bank says NO, DFS can get you a YES!
With only four weeks until the financial year rounds out, chances are you’re looking at ways to reduce your business or company’s tax liability, or set yourself up for success in the new financial year; a caveat loan can make this possible.
Despite End of Financial Year (EOFY) only being a matter of weeks away, fast caveat loans are a fast finance solution for obtaining business funds quickly to buy the gear you need.
We explain how you can utilise a short term caveat loan to improve your business, attract tax incentives and finance your next business asset.
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Whether it’s further deductions you’re seeking or to fit out your business with equipment to hit the ground running come July 1, there are still Government tax incentives for businesses who purchase assets this financial year.
Thanks to the high turnover threshold, almost every Australian business is able to take advantage of the Temporary Full Expensing Scheme.
As we wrote about in our recent blog about Getting Your Business Sorted for EOFY, if you fit the eligibility criteria, you can claim an immediate deduction for the business portion of a new (or used) asset’s cost in the first year that it was used or installed ready for use (provided the use was a taxable purpose).
Purchasing business assets before the financial year ends can be a smart decision, as you can also take advantage of the stocktake or EOFY sales that many wholesalers and retailers offer at this time of year.
When looking to purchase new assets or equipment for your business this late in the financial year, time is not on your side.
Not only do you need to source finance, but also source the equipment itself and make the purchase before June 30.
That’s why fast caveat loans can be such an ideal finance solution; caveat loans settle faster than most other bank loans and business loans in Australia!
When you apply for a caveat loan through Diverse Funding Solutions, we offer:
A traditional business loan could see you waiting weeks for an approval, which means you might miss the June 30 deadline.
If time is of the essence, then caveat lending could be the solution you need to get your business assets on the ground and installed in time.
Caveat Loans are a business loan product that uses real estate property as security, so eligibility is met by business owners who also own property.
A caveat loan is available even if you have an existing mortgage on your property, whether that be a first mortgage or second mortgage!
Provided the property value means that there is sufficient equity for your desired loan amount, we can look to provide sufficient funding for a range of business purposes.
Keep in mind though, that we cannot accept overseas properties as a security property.
A caveat loan application with Diverse Funding Solutions is processed efficiently due to our lending criteria.
At DFS, we are one of Australia’s well-known private lenders for business purposes, and as private lenders, we do not have the same rigidity and complexity in assessing your application as other lenders do.
What this means is that we don’t need to rely on your credit file, or even check your credit history; there’s no mountain of paperwork required, no tax returns, no formal property valuations required (for most applications) and not even your revenue forecasts!
Our application process is hassle-free, with minimal documentation required and suits those with bad credit!
This all translates into a smooth and efficient application process for you, when you apply for a caveat loan!
Naturally, you have more questions about how caveat loans work, so we are happy to explore some of the commonly asked questions by our many clients who look to access a Caveat Loan.
Caveat loans are secured by the property the business owner holds.
Essentially, a caveat loan unlocks the equity that is sitting in a real estate property.
The reason we can access equity in a property even if there is a home loan or second mortgage currently on the title is because we register our lender’s interest on the property by placing a legal caveat on the title deed of the property.
This means that our interest in the security property sits behind any mortgage or home loan, and we, therefore, do not need permission from those other lenders to access the property’s equity.
Important to note: we cannot offer legal advice, so if you need legal or financial advice prior to using your property as security, then, as a responsible lender, we advocate for you to do this first.
To understand how much equity is currently sitting in your property, we do need to look at the valuation of the property minus of course any home loans or second mortgages that are attached.
We do this by asking to review your mortgage and conducting a valuation of your property.
One of our clients in Melbourne, as explained in our case study, received their Diverse Funding Solutions approval letter and Caveat Loan offer back the same day as their application, subject to the valuation of their property, which was then completed a mere two days later.
Short term caveat loans are considered a short term loan as they typically have loan terms anywhere from one month to two years.
At DFS, we are interested in working to terms relevant to your specific needs, and so loan terms will vary depending on your particular situation — we can offer a term extension if need be.
Other loans or loan types may be secured by the asset that you’re seeking to borrow money for, and therefore require a serial number or Vehicle Identification Number.
Caveat Loans are secured using your real estate property, not the item or asset being purchased.
Many businesses use caveat lending to improve or smooth their cash flow position, access working capital, renovate their business premises, hire staff, or even perform a debt consolidation of their existing business debts.
Similar to any other lender, the final interest rate applied to your caveat loan will be determined throughout the course of assessing your application.
That being said, Diverse Funding Solutions proudly offer some of the most competitive caveat loan interest rates on the private market, starting at 0.77% per month.
This makes being able to finance large purchases with borrowed money more attractive, and in some cases can even help you save interest.
Our Caveat Loans also come with no hidden fees which makes us a lender you can rely on.
The fundamental difference between private funding and traditional borrowing is around our lending criteria and how we assess your ability to repay the loan.
Due to not relying on your credit history or existing cash flow, we devise a suitable exit strategy for the loan to be repaid and set out repayment schedules in accordance with the exit strategy.
Whether you’re looking to purchase assets before the end of the financial year, improve cash flow, perform debt consolidation or purchase another franchise or shop front, applying for a caveat loan with DFS is made simple.
Simply fill in your details to obtain an express quote with your desired loan amount, and we will do the rest!
If you need fast finance to get the assets you need before EOFY, then request a call back or apply today!