Quick answer
Caveat loans are business loans. The money must go into a business, such as tax debts, wages, stock, equipment, premises, buying a business or paying out a partner, although the security can be your home. Sole traders, companies and trusts can all apply. We write caveat loans on Victorian property from $20k to $5m; for property in other states a short-term registered second mortgage does the same job, usually just as quickly.
Key points
- Every caveat loan we write is for a business purpose; the security can still be your family home.
- Working capital, ATO debts, stock, equipment, premises, deposits and partner buy-outs all qualify.
- Personal spending, including renovating the home you live in, doesn't qualify.
- Sole traders, partnerships, companies and trusts can borrow; every property owner signs.
- $20k to $250k is possible same day; up to $5m is possible within 24–48 hours.
- Purpose
- Business only
- Borrowers
- Sole traders to trusts
- Loan size
- $20k – $5m
Yes, a business can get a caveat loan. In fact, that’s the only kind we write. A caveat loan is business-purpose lending: the money has to land in a business and do a business job, even when the security behind it is the family home. Get the purpose right and the rest of the file usually falls into place quickly.
This page sets out where the line sits, who can borrow, and what that means for speed.
Can a business get a caveat loan?
It can, and businesses are who these loans are built for. The usual borrower is an owner who has equity in property, a cost that can’t wait, and a known event coming that will repay the loan.
We lend from $20,000 to $5,000,000 against residential or commercial property. On Victorian property, that’s a caveat loan. In every other state and territory, we write a short-term registered second mortgage, which does the same work behind your bank and is usually arranged just as fast.
The trading history doesn’t need to be long, and the structure doesn’t need to be fancy. What we want to see is simple: a genuine business, a genuine purpose and a genuine exit.
What can a business caveat loan be used for?
Almost anything that keeps the business trading, grows it, or protects it. Here’s how the line usually falls:
| Counts as business use | Doesn’t count |
|---|---|
| Wages, rent and supplier bills during a cash-flow gap | Holidays, school fees or a family car |
| ATO debts — BAS, GST, PAYG withholding, company tax | Renovating the home you live in |
| Stock or materials for a contract or a busy season | Paying down personal credit cards |
| Plant, vehicles or equipment the business runs on | Weddings, gifts or personal investments |
| A deposit on business premises or a development site | Living costs between jobs |
| Buying a business, or paying out a partner | Anything you can’t tie back to the business |
| Refinancing a short-term business loan that’s falling due |
Two common cases deserve their own pages. If the pressure is a tax bill, our page on ATO debt loans shows how the payout is usually handled. If a partner wants out, paying out a business partner walks through the numbers.
Why the business-purpose declaration matters
Our loan documents include a declaration that the funds are for business purposes. It isn’t a box-ticking exercise. It records what the money is actually for, and it has to be true when you sign it. We often pay a creditor directly, such as the ATO, a vendor or a supplier, because that makes the purpose obvious and saves everyone a step.
If a request mixes business and personal needs, we fund the business portion only. That’s not us being difficult. It’s the kind of lending we do, and keeping it clean protects you as much as us.
Can I get a caveat loan for personal use?
No. We don’t lend for personal purposes, and an honest lender won’t pretend otherwise. If what you need is a home renovation, a car or a family expense, a caveat loan from us isn’t the right product, and a bank or a consumer lender is the place to start.
Where people sometimes get tangled is the security. Using your home doesn’t make it a personal loan. A plumber borrowing against the family house to buy a second van is borrowing for business; the house simply secures it.
An illustrative example, with round numbers and invented details. A landscaping company asks for $150,000. Of that, $120,000 is for a skid-steer and a tipper truck ahead of a council contract, and $30,000 is for a new kitchen in the director’s home. We’d look at the $120,000 equipment portion, secured over the director’s Frankston house, worth $900,000 with $480,000 owing. Combined LVR after the loan: ($480,000 + $120,000) ÷ $900,000 ≈ 67%. The exit is the first two contract payments over the following few months. The kitchen waits, or is funded another way.
Know which side of the line your purpose sits on? Start a business enquiry and tell us what the money is for in a sentence or two.
Do I need an ABN or a company to apply?
You need a business, not a particular structure. The Australian Business Register links ABN entitlement to “carrying on or starting an enterprise in Australia”, so an active ABN is the usual starting evidence. Beyond that, each structure works:
- Sole trader. You borrow in your own name. No company needed.
- Partnership. The partners borrow together, and each partner who owns the property signs.
- Company. The company borrows; directors usually guarantee. ASIC requires every company director to hold a director ID, which is handy to have ready.
- Trust. The trustee borrows on behalf of the trust, and we’ll read the trust deed to confirm it has the power to borrow and give security. Property in a trust or company covers this in detail.
The borrower and the property owner don’t have to be the same. A trading company can borrow against a house owned by its director, or a warehouse held by a family trust. Whoever owns the property signs as security provider.
Can I use my home as security for a business caveat loan?
Yes. Homes are among the most common security we see, alongside investment properties, shops, offices and factories. Your existing home loan stays where it is; the caveat or second mortgage sits behind it.
Two things to settle early. First, every registered owner signs, so a spouse who isn’t in the business needs to understand and agree to the deal. Second, have a firm exit in mind, because the loan is built to be repaid within months, not carried for years. Using your home as security goes deeper on both.
How fast can a business caveat loan fund?
Where the paperwork lines up, $20k to $250k is possible the same day, and up to $5m is possible within 24–48 hours. A business file moves fastest when you have these ready from the first call:
- the property address, the owners and your current lender’s latest statement;
- your ABN, plus company or trust details if relevant;
- photo ID for every owner, director and guarantor;
- a one-line purpose and the payee details, such as an ATO payment reference or a supplier invoice;
- your exit and its expected date.
Our same day caveat loan page explains the five things that decide whether same day is realistic.
Got a business job that can’t wait? See if you qualify
You already know what the money is for, and that’s half the assessment done. The other half is your property and your exit, and we can look at both quickly.
The form takes about 60 seconds, and there’s no credit check when you first enquire. What you send stays with us as the lender; it isn’t circulated to a crowd of other financiers. Someone from our credit team reads it and calls you to talk through your situation. Please answer accurately, especially the property, the state it’s in, the business purpose and the date the funds need to land, because those answers shape the structure.
Frequently asked questions
Can a sole trader get a caveat loan?
Yes. You don't need a company. What matters is a genuine business, usually shown by an active ABN, plus equity in property and a clear way to repay. The loan is in your own name and secured over property you own.
Can I borrow for my business and for a personal expense in the same loan?
No. We fund the business portion only. If part of what you need is personal, such as a holiday or a renovation on the home you live in, that part has to come from somewhere else.
Can I use a caveat loan to pay a business tax debt?
Yes. Paying the ATO for BAS, GST, PAYG withholding or company tax is one of the most common business purposes we see. Tax debt is considered case by case.
Does the business need to own the property?
No. The property can be owned by you personally, your spouse, a related company or a trust. Whoever owns it signs as security provider, and usually as guarantor too, so they need to be comfortable with the deal.
Do I need financial statements for a business caveat loan?
Not always. Many short-term files rest mainly on equity and the exit. We may ask for recent bank statements or BAS to confirm the business is trading and the purpose is real, and larger loans may need more.
What if my business doesn't own any property at all?
There are unsecured options for trading businesses without property, typically $5k to $500k, sized on turnover and bank statements. Mention it on the enquiry form and we'll talk through what fits.