FREQUENTLY ASKED QUESTIONS
Caveat Loans
WHAT IS A CAVEAT LOAN:
These are loans which are designed to settle within 24 hours of receiving your applications. We do not look at the applicants income or credit history... we simply look at the equity in the real estate being offered as security.
WHY PEOPLE TAKE OUT CAVEAT LOANS.... here are some real life examples....
CASH FLOW CRISIS.
We had a plastering firm who had secured a big job, and to secure the big job the director gave 90 day terms to the project builder. The plasterer had 13 other plasterers on site working for him, and at around day 40 of 90, he ran out of money to pay wages. It was a union controlled site, so if no wages were paid, apart from having upset employees, they would be kicked off site. Payday was a Friday and he came to us on a Thursday. We loaned him $65000 for 2 months, and secured the debt against his house in
MAXIMISE PROFITS.
We have recently funded a doctor who needed access to $450,000 to buy medical equipment. The money he would have otherwise had to pay for this new consignment was not yet due and payable from the companies who he had sold his last consignment to. This new consignment would see him make 300% markup inside 2 months, so to pay 8.5%per month to get immediate access to the funds for 2 months was a small price to pay in order to make a large profit. We will get paid back from the realized income from the sale of either consignment one or two, or from a refinance of his property portfolio… whichever occurs first.
OPPORTUNITY TOO GOOD TO MISS.
We have had a variety of importers and retailers who have got onto a shipment of goods that they can buy off price if they pay cash in the next few days. These goods are not stolen. It is a straight forward commercial transaction where a manufacturer wants to clear old stock at a dramatically reduced price. When a retailer or importer can make 200% mark up or more as a result of getting their hands on this stock, paying 10% a month for 2 months in order to get the money in 24 hours makes good business sense…. Rather than miss out on the deal, and the profits.
CONSOLIDATION.
We have many property investors who for one reason or another have fallen behind in their repayments. In order to refinance at a competitive rate, they need to bring their mortgage/s up to date. This is where we come in. As long as there is enough equity in the security properties, we will not be concerned about the fact that their first mortgage is in arrears…..However we will pay the funds directly to the first mortgagee to bring the loan up to date. (in these cases we do not advance the funds to the borrower) Often the client may have left things until the last minute, and situation is that critical that the first mortgagee is ready to send the sheriff around to evict. This is where the need for fast service is paramount.
THERE ARE MANY OTHER REASONS why people take out caveat loans. They could need access to funds in 24 hours to….
- Pay off an overlooked or overdue tax debt
- Fund a short fall on a commercial property settlement
- Provide business cash flow due to an unexpected downturn
- An urgent advance on a pending refinance or property sale
We will lend for any worthwhile business or commercial investment purpose, as long as there is enough equity in the property (our max LVR is 75%), and as long as there is an Exit Strategy. (i.e.: sale of the property, refinance, or payment from a trade debtor, etc)
WHY DON’T THE BANKS OR FINANCE COMPANIES FUND THESE LOANS?
Basically it comes down to speed, and in many cases, lack of financial records. If the borrower can wait 2 months, the bank can refinance them. If the borrower can wait 2 weeks, AND THEY HAVE FINANCIALS SHOWING GOOD CASHFLOW AND PROFIT RESULTS, they will get an overdraft or business loan.
However if you need cash TOMORROW, they come to us.
Still not convinced??? Then ask yourself…. if I needed access to a large sum of money by tomorrow (leaving out rich uncles, etc), how would you get it?
WHAT SETS HOMESEC APART FROM OUR COMPETITORS?
- SPEED. We are virtually the only short term lender who CAN physically settle within 24 hours. Many say they can, but their business practices and lack of resources makes it impossible.
- SERVICE. We issue letters of offers on approved loans within 2 working hours, and legal contracts within 5 working hours once the offer has been accepted by the borrower. We don’t require valuations, A&L statements, financial records, etc. Our staff keep the clients and brokers in the loop at every stage of the 24 hour process.
- INNOVATIVE PRACTICES. We email our loan contracts, rather than the 20th Century way of posting them, which could take 2 – 3 days to arrive. In addition, we settle by Telegraphic Transfer… not by cheque or internet transfer. This means the money hits the borrowers account as cleared funds within 2 working hours.
- WE ARE THE LENDER. As we hold the funds that we lend out, we don’t have to go off and broker the deals to investors or other lenders.
WHAT IS THE SBFA?
(It is your protection!)
The SBFA is the Short Term & Bridging Finance Association, of which HomeSec is proud to be a founding member. The role of the SBFA is to self regulate the short term finance industry to ensure the highest standard of disclosure & professionalism by it's members. Only genuine lenders who operate geniune finance companies may become members of the SBFA, and all must adhere with a strict Code of Conduct. For your peace of mind when borrowing money short term, ONLY deal with an accredited member of the SBFA.
Unsecured Personal Loan
HomeSec, your non-conforming personal finance alternative, offers an Unsecured Personal Loan for home, land, investment property or commerical property owners. We can also arrange smaller loan amounts of under $10000 if you do not own any property.
Our Product is unique in that it being internet based, we can FUND applications within 24 hours of submission. It offers borrowers with a stable income and reasonable credit history immediate access to up to $30,000 for their personal use.
Many people, despite being good credit risk, simply don't fit the bank's "perfect applicant" criteria.
You may be self employed or a contract, have a paid credit default, be financially affected from a recent divorce or be new or returning to Australia. We believe home owners are good credit risks who may need funds to achieve their future goals. We don't prejudge you according to statistics, We listen to your individual needs and circumstances, assess you as a person and provide the kind of support and trust that you expect.
Our Personal Loans are from $1,000 up to $30,000 for various purposes. Our relaxed serviceability and other credit criteria should ensure that almost all people qualify for a Personal Loan from us.
All loans are essentially unsecured, as we are assessing the applicant rather than taking a charge over the assets. However, our funders reserve the right to take a registered charge or lien over the applicant's assets should their credit circumstances change or they fall into arrears.
Applying for a Personal Loan from us is easy. Simply click on the Personal Loans page of our website and download the application form. It takes around 10 minutes to complete, and once completed and signed, simply fax or post it back to us for approval in 8 - 24 hours. If approved, we will email or fax the loan contracts to you... whichever you prefer. It can then settle in as little as 24 hours.
Home Loans
In light of the recent global credit crisis, accessing a home for borrowers who have no financials or a bad credit history is becoming very very difficult. Many lenders tightened their lending criteria considerably, and some have stopped lending all together. The home loan division of HomeSec fully understands the difficulty that many borrowers face in trying to buy a home, investment property, or simply refinance. Many brokers will go out of their way to get you the best rate from a bank, but when the banks say NO, they are no longer able to assist you. At HomeSec, assisting customers who have been turned away by the banks is exactly what we do.... in fact it represents the majority of the home loans that we write.
FINDING SOLUTIONS is what we are all about. So if you need experience to get you out of a tricky situation, you have DEFINITELY come to the right place!
Applying for a Home Loan or Refinance from us is easy. Simply call us on 03 9017 6611, and in 10 minutes we will have your application complete, and we get an answer for you in minutes.