If you are somebody who needs money urgently but do not want to go the traditional route of taking a loan? There is surely a way out for this, and that is in the form of taking caveat loans. There are credit providers willing to give such an urgent caveat loan. The only requirement is that you need to have a real estate asset that you can mortgage for raising this loan.
This kind of loan is very useful for business owners who run into cash flow issues. They can take the caveat loan to tide over an immediate cash flow problem and make the repayment as per the scheduled and agreed timeframe.
Now why should you prefer a caveat loan?
The answer lies in the fact that traditional loans taking process can be a cumbersome one and also something that can take time. When you are facing a cash crunch, you need the money fast and the nature of caveat loan is that it is a fast settling loan. The loan is disbursed within the first 24 hours. The repayment period is usually within 12 months and a rollover can also be done.
Caveat loan – how does it work?
This is a loan that is given based on the asset you hold. The real estate can be any of the following:
- Residence or second home
- Plot of land
- Medical centre
- Child care centre
Once the loan is given against any of the above assets, the structuring is done for a period of between 1 month to a year.
You are allowed to exit the loan within the above period and can take the help of a refinance or the sale of the asset or any other cash flow you can arrange.
The common reasons for choosing caveat loans are:
- Businessmen using this loan as a bridge requirement between the sale of a property and for any funding that may be required.
- Cash flow for any business-related requirement as a temporary measure towards expansion of the business
- Requirement of cash for any auction that needs funding
- Settlement of a debt that has become overdue and this caveat loan is used as a refinance bridge to repay that loan.
The urgent caveat loan option is therefore an excellent recourse to meet finance requirements and allows you to monetize the real estate that you may be holding.