When you’ve signed a property contract, the timeline is real. Deposits, extensions, special conditions, and settlement dates don’t wait for your cash flow to “catch up.” If you’re facing a short-term funding gap and you need to prevent default penalties or termination of a signed property contract, a caveat loans solution can be a practical tool for Contract Default Avoidance. Contact us today to discuss your scenario.
What a Caveat Loan Is in Plain Terms
A caveat loan is a short-term, property-backed loan where the lender lodges a caveat on title as part of the security position. It’s commonly used when you need funds quickly and you have equity in residential or commercial property.
This type of finance is typically used to bridge a timing mismatch, not to create long-term debt. In a Contract Default Avoidance scenario, it can be used to meet an upcoming payment obligation linked to your signed contract, while you finalise a longer-term plan (sale, refinance, settlement of another asset, business receivables, or an incoming distribution).
Why Caveat Finance Can Help with Contract Default Avoidance
Default on a signed contract can trigger more than a stern letter. Depending on your contract terms, you may face penalty interest, loss of deposit, damages claims, or termination. Even where there’s room to negotiate, your bargaining power improves dramatically when you can show you have funds ready to perform.
- Speed when timing is the real risk: Fast approvals can reduce the chance of an “emergency” turning into a contractual breach.
- Protecting your position: Funding can help prevent default penalties or termination of a signed property contract, keeping your deal intact while you execute your next step.
- Short-term flexibility: A caveat loan can bridge weeks or a few months, rather than forcing a rushed asset sale or an unfavourable refinance.
- Clear purpose: The goal is simple—meet the contractual obligation on time, then exit the loan cleanly.
Used properly, caveat finance is less about “more leverage” and more about control: staying in the driver’s seat when timelines are non-negotiable.
Where Secured Lending Fits and Why Speed Matters
Banks and many institutional lenders aren’t built for urgent, document-heavy property timelines. When you’re staring down an urgent settlement date or a pending default notice, you usually don’t need a lecture—you need a workable structure, a clear checklist, and a lender who can act.
Secured Lending is a private lender in Australia and a non bank business lender. We operate Australia wide across Sydney, Adelaide, Melbourne, Brisbane, Perth, Gold Coast, and Canberra. Our role is to review your scenario quickly, confirm what’s possible against your property security, and coordinate a funding pathway that supports a Contract Default Avoidance outcome.
If you need a private lender urgent solution, we focus on practical execution: what can be done, by when, and what documents are actually required to proceed.
How We Structure Caveat Loans for Contract Default Avoidance
When a signed property contract is on the line, the structure matters as much as the speed. We typically work through:
- Your deadline and trigger points
We map the exact date funds must land, what constitutes default under the contract, and any grace periods (if they exist). - Your security and equity position
Caveat loans rely on property security. We assess your residential or commercial property and the equity available. - Your exit strategy
The fastest loan is still a loan—you need a clear exit. Common exits include refinance, sale, settlement of another transaction, or a confirmed cash event. - Your funding amount and buffer
Contract problems often come with extra costs (penalty interest, legal fees, bridging costs). We aim to structure a facility that solves the whole problem, not just part of it.
Depending on your scenario, we can arrange a secured business loan and short-term facilities designed for urgent settlement. In suitable cases, funding within 24 hours may be available, and we can work toward fast, same day settlement when circumstances and documentation allow.
What You Can Expect in a Time-Sensitive Deal
Speed comes from preparation and coordination. When you engage Secured Lending for Contract Default Avoidance, we focus on reducing delays:
- We confirm your goal: prevent default penalties or termination of a signed property contract
- We assess the property security and loan size needed
- We coordinate valuation requirements where necessary
- We document the facility with a clear term and exit plan
- We push toward settlement as quickly as the deal permits
Our facilities can be structured for substantial requirements—you may be able to borrow up to $10million, depending on the property, equity, and exit strength. Pricing varies by risk and structure, with an interest rate starting at 9.2% p.a for qualifying scenarios.
This is designed for the moments when waiting creates more damage than paying for speed.
Common Contract Default Avoidance Scenarios We See
These are realistic situations where caveat finance can be the circuit-breaker:
- You’re short on funds to complete by settlement due to delayed refinance approval
- A sale you’re relying on hasn’t settled yet, but your purchase must settle now
- You need to clear a payment condition to stop a termination notice being issued
- You’re coordinating multiple transactions and one has slipped by days or weeks
In each case, the goal is the same: protect the contract you’ve already signed and keep control of the outcome.
FAQs
Can a caveat loan stop my contract from being terminated?
It can help you meet a payment or settlement obligation in time, which may prevent default penalties or termination of a signed property contract. Outcomes depend on your contract terms and timing.
How fast can Secured Lending fund for an urgent settlement?
In suitable scenarios, funding within 24 hours may be possible. We also work toward fast, same day settlement where documentation, security, and settlement logistics allow.
What security do I need for a caveat loan?
Caveat loans are secured against residential or commercial property. The available amount depends on equity, location, and the strength of your exit strategy.
How much can I borrow for Contract Default Avoidance?
Subject to assessment, you may be able to borrow up to $10million. The right amount is driven by the contract obligation, costs, and a sensible buffer.
Is Secured Lending a bank?
No. Secured Lending is a non-bank lender and a Private Lender in Australia, operating Australia wide including Sydney, Adelaide, Melbourne, Brisbane, Perth, Gold Coast, and Canberra.
What does pricing look like on short-term caveat finance?
Pricing depends on risk, term, and structure. In qualifying scenarios, an interest rate starting at 9.2% p.a may apply, but final pricing is assessed case by case.
How We Can Help
If you’re trying to hold a signed property contract together under pressure, you need a lender who understands timelines and acts decisively. Secured Lending reviews your Contract Default Avoidance scenario, confirms the security position, structures a bridging solution, and coordinates settlement with urgency and care. Secured Lending is a short-term lending solution you can rely on. When you’re ready, our team is here to help you move quickly and confidently. Our team specialises in urgent short term loans solutions.
