Direct caveat lender or broker: who decides, who gets paid, and how fast it moves

A direct caveat lender is the business that actually funds your loan and makes the credit decision. A caveat broker doesn’t lend; it finds a lender, packages your file and passes it on. Both can get you to the same place. The difference is who you’re talking to, how many people handle your file on the way, and who gets paid along the route.

We’re a direct lender, so we have a view. We’ll try to keep it fair, including the cases where a broker is the better call.

What is the difference between a caveat lender and a caveat broker?

The government’s business.gov.au guidance puts it simply: business loan brokers “don’t provide any funding themselves”. Instead, they work with you and a group of lenders to find a loan that suits.

	Direct caveat lender	Caveat broker
Lends its own money	Yes	No
Makes the credit decision	Yes, in-house	No, the chosen lender does
Who you speak to about your file	The people who assess it	An intermediary who relays it
Range of options	Its own products	Products from several lenders
How it’s paid	Through the loan’s own fees and interest	A fee from you, a commission from the lender, or both
Name on your title	The lender’s	The lender’s, never the broker’s

That last row matters. However you arrive, the caveat on a Victorian title, or the registered second mortgage elsewhere, is in the lender’s name. The lender is the party you’ll be dealing with until the loan is repaid.

Is it faster to go direct to a caveat lender?

Usually, because there are fewer hand-offs. Short-term deals rarely stall on the big decisions. They stall on small questions: whose name is on the title, what a trust deed allows, when the exit money lands. Every time a question has to travel through someone else, it loses time.

Here’s how the chain typically looks:

• Direct: you → the lender’s credit team → decision → documents → funds.
• Brokered: you → broker → lender’s credit team → questions back to the broker → back to you → answers back to the lender → decision → documents → funds.

A sharp broker who knows the lender well can shorten that loop, and some do it very well. But the extra step is always there. When we talk to you directly, the person asking the question is the person who’ll approve the loan, so most questions get settled on the first call. That’s a big part of why $20k to $250k is possible the same day, and up to $5m possible within 24–48 hours, when the file is ready. Our page on how fast private lenders settle explains what else drives the clock.

If speed is the priority, send us your details and you’ll be talking to our credit team rather than a middle step.

Do you pay a broker fee as well as lender fees?

Sometimes. business.gov.au notes that some brokers charge for their services, while others are free to you and “get a commission from the lender”. On short-term private loans, a broker’s fee may be paid at settlement or added to the amount borrowed, on top of the lender’s own establishment, legal and valuation costs.

None of that is wrong if it’s disclosed and the broker has earned it. The point is to see it clearly:

• ask the broker what they’re paid, by whom and when;
• ask whether their fee is added to your loan balance, since you’ll pay interest on it for the term;
• get the lender’s fees separately, in dollars.

When you come to us directly, there’s no broker in the deal, so there’s no broker’s fee to account for. You still pay our loan costs, which we set out in writing. What short-term loans cost explains each fee and when it’s charged.

How do you tell if a caveat lender is a direct lender?

Plenty of websites say “lender” loosely. A few simple checks sort it out:

1. Read the wording. “We lend” and “our credit team” point to a lender. “Our panel”, “we compare” or “we’ll match you” point to a broker or a lead service.
2. Ask who decides. A direct lender can tell you its credit team approves the loan. A broker will name the lender it’s sending your file to.
3. Check the offer. The lender’s name should appear on the loan offer and agreement. If a document doesn’t say who’s lending, ask.
4. Look up the business. The government’s free ABN Lookup shows whether a business’s ABN is active and the names it trades under.
5. Watch your phone. If several companies call you within an hour of one enquiry, your details have been sold or shared.

When does using a broker make sense?

More often than a lender might like to admit. A broker can be the right choice when:

• you want a broad comparison across many lenders and have time to shop;
• the deal is unusual, such as several properties across states with complex ownership;
• your needs fall outside what a particular direct lender writes, like a personal-purpose loan or long-term debt;
• you already have a broker who knows your business and your accountant.

A good broker earns their fee by saving you time and steering you away from bad deals. If you use one, you’re entitled to know which lender they’re recommending and why.

An illustrative example

Invented details; the point is the number of steps, not a promise about any broker.

A transport company needs $180,000 within the week to clear an ATO debt before enforcement escalates. The director owns a Dandenong warehouse worth $1,400,000 with $700,000 owing. That leaves $700,000 of equity, and the combined LVR after the loan is about 63%.

Through a broker, the file passes through four hands, and a question about the trust that owns the warehouse takes a day to answer. Going direct, that same question is raised and answered on the first call, the valuation is booked the same afternoon, and the caveat loan settles with the ATO paid directly from the funds.

What should you ask any caveat lender before you sign?

Whoever you deal with, these questions protect you:

• What’s the total cost in dollars over my expected term? Include every fee and all interest.
• How is interest charged? Monthly, prepaid or capitalised changes your cash flow.
• What happens if my exit runs late? Ask about extensions, default costs and refinance options. Our caveat loan refinance page covers the last one.
• Can I repay early, and what does it cost?
• Which structure goes on my title? A caveat for Victorian property, or a registered second mortgage elsewhere.
• Who exactly is lending, and who will I call during the loan?

A lender that answers clearly and in writing is one you can work with. For the eligibility side, see caveat loan requirements.

Rather talk to the people who decide? Start here

If you’d rather skip the middle step, we’re happy to look at your deal ourselves.

The form takes about 60 seconds, and there’s no credit check when you first enquire. Because we’re the lender, your details stay with us. They aren’t auctioned to a list of other companies, so you won’t be fielding a run of calls from strangers. One person from our credit team reads your answers and calls you. Please be accurate, especially about the property, the state it’s in and the date you need the money, so the first conversation can be a useful one.

Talk to a direct lender →