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Caveat loans have become increasingly popular in recent times for a number of reasons. Changes in legislation, building activity, and availability of loan products from traditional lenders have all helped create a small but thriving market of caveat lenders.
However, most caveat lenders offer very similar products, which can make them unattractive to some borrowers. Lack of flexibility of the term of the loan, high upfront fees and penalties for early repayment mean borrowers are often cautious about utilising this type of finance.
Commerce Credit specialises in providing finance to all small business borrowers, not just property developers! Recognising the needs of this section of the market, Commerce Credit has developed an overdraft loan secured by caveat over property.
This new overdraft loan offers all the benefits of a caveat loan, and can usually be drawn down within 2-3 days from application. In addition, the overdraft facility allows early payment of principal (thereby reducing the monthly interest charge in following months), and a redraw facility. This redraw facility allows borrowers to access funds on the same day once a loan has been set up.
Kieran Gill from Commerce Credit believes that the structure of this new style of short term finance will only benefit borrowers. "Caveat loans can be far too rigid for most small business people. Our new Overdraft caveat loan will help small business people to access funds quickly, without the inflexible terms and heavy penalties for early repayment.".
To find out more about this new product, simply call Commerce Credit on 1300 166 639.
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