When you have strong equity but your bank says “no” because the income tests don’t stack up, you’re dealing with a classic serviceability failure. It’s frustrating, especially when the opportunity is real and the timeline is tight. Contact us today if you need a fast solution. Caveat loans for a serviceability failure exist for exactly this gap: lending where the security position is strong, but the traditional servicing model doesn’t reflect your current reality.
At Secured Lending, we’ve advised and assisted borrowers through this type of serviceability failure many times. We’ve also facilitated over 500 strategic commercial loans, including time-sensitive scenarios where speed and certainty matter more than paperwork perfection. If you need to move quickly, Secured Lending can help you move fast with a bridging loan for a serviceability failure. Assess your scenario today.
Why Serviceability Fails Even When You Are Asset Strong
A serviceability failure doesn’t mean you’re a risky borrower. It usually means the bank’s model can’t give proper credit to how you actually operate.
- Your income is irregular or seasonal (property, construction, medical, sales-based businesses)
- You have strong asset backing but high existing commitments on paper
- Recent business changes, restructuring, or one-off costs distort the last two years’ financials
- You’re self-employed and the add-backs and adjustments you know are real don’t fit bank policy
- You need funds for an urgent settlement and the bank’s timeline is the real issue
In these moments, you’re not asking for a long-term solution from a slow process. You’re asking for short-term capital to protect a deal, meet a deadline, or stabilise cash flow while a longer-term refinance is arranged.
What a Caveat Loan Is and Why It Suits Serviceability Failure
A caveat loan is a short-term loan secured against real property, where the lender registers a caveat on title to protect their interest. The assessment is typically security-led, which is why it can suit lending where income tests fail but equity is strong.
Benefits of caveat finance for a serviceability failure include:
- Speed when timing is critical, including fast, same day settlement in the right scenario
- A practical solution for urgent settlement deadlines where banks can’t meet timeframes
- A clear pathway to bridge you to a refinance, sale, or liquidity event
- Access to secured business loan without waiting months for full bank credit assessment
- The ability to act on opportunities (acquisitions, stock purchases, renovations, equipment upgrades) without missing the window
This type of lending is not designed to replace sensible long-term funding. It’s designed to give you breathing room and control when time is working against you.
How Secured Lending Helps You Get This Done Quickly and Cleanly
When you approach Secured Lending for caveat loans for a serviceability failure, you’re not getting a generic template. You’re getting a private lender urgent response with a clear plan: confirm the security, confirm the exit, and structure the loan so you can execute.
We’re a Private Lender in Australia, a non bank business lender, and we operate Australia wide across Sydney, Adelaide, Melbourne, Brisbane, Perth, Gold Coast, Canberra. That matters because serviceability failure scenarios are often location-sensitive and time-sensitive, and you need a lender that can coordinate quickly with valuers, solicitors, and settlement agents.
What We Focus on First
To move fast, we zero in on the points that actually drive approval and settlement:
- Your usable equity position in residential or commercial property
- The urgency and timing of your settlement or payment obligation
- Your exit strategy (refinance, sale, business cash flow event, or other defined outcome)
- The loan amount and how it will be applied
This is what allows funding within 24 hours in appropriate circumstances. Where documentation and parties are ready, we can also target fast, same day settlement.
Typical Real-World Uses We See
Caveat finance for a serviceability failure is often the difference between securing an asset and losing it. Examples we regularly assist with include:
- Bridging a purchase while waiting on a property sale to settle
- Covering an emergency cash call tied to a business obligation
- Paying a deposit, releasing stock, or funding a short-term working capital gap
- Preventing penalties or default where an urgent settlement deadline is looming
- Completing a renovation or value-add works prior to sale or refinance
The through-line is always the same: you have a clear reason, strong security, and a timeline that banks won’t match.
Borrowing Capacity and Pricing Clarity
With Secured Lending, you can borrow up to $10million depending on the strength of the security and the structure. Pricing is risk and scenario dependent, but we can offer an interest rate starting at 9.2% p.a in suitable cases.
Because this is short-term lending, the real value is certainty and speed. You’re using the facility to protect a transaction, preserve optionality, and buy time to implement your longer-term funding move.
What the Process Looks Like With Us
You want a process that reduces friction, not one that creates it. Here’s how we typically run it:
- We review your scenario and confirm it fits a caveat structure
- We assess the property security and equity position
- We confirm the exit strategy and timeframe
- We coordinate documentation and settlement so you can meet the deadline
If you’re facing an urgent settlement, we keep the steps tight and decision-led. You’ll always know what’s needed and why.
How We Can Help
If you’ve hit a serviceability failure but you’re equity strong, you don’t need to sit on the sidelines while a bank reconsiders. Secured Lending exists for time-sensitive scenarios where you need a practical solution, not a policy lecture. We arrange secured business loans and short-term caveat funding that can work as an emergency backstop or a deliberate bridging strategy. 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.
FAQs
1. If I’ve failed bank servicing, can I still qualify for a caveat loan?
Yes, if you have sufficient equity in residential or commercial property and a credible exit strategy. The focus is typically on security and timeframe rather than standard income ratios.
2. How fast can Secured Lending fund a caveat loan?
In suitable scenarios, we can achieve funding within 24 hours. Where all parties are aligned, fast, same day settlement may be possible.
3. What loan sizes can you provide for serviceability failure scenarios?
Subject to security and structure, you can borrow up to $10million.
4. What interest rate should I expect?
Pricing depends on the deal, but we can offer an interest rate starting at 9.2% p.a for suitable applications.
5. What properties can be used as security?
We facilitate caveat loans secured against residential or commercial property, assessed on equity and marketability.
6. Is Secured Lending a bank?
No. We are a non-bank lender and Private Lender in Australia, operating Australia wide including Sydney, Adelaide, Melbourne, Brisbane, Perth, Gold Coast, and Canberra.
