Know the rate, fees and valuation cost before you commit
A $30 million funding line
We have a $30 million funding line specifically set aside as a non-bank facility, so the capital is ready when you need it.
A letter of offer, usually within 24 hours
We review your application and aim to provide a letter of offer within 24 hours of your enquiry, with the rate, fees and valuation cost set out before you commit to anything.
The valuation, quoted first
We quote the valuation cost before it's ordered, and you only proceed if you're happy with the pricing. Every property is valued at fair market value by our panel of professional valuers. Once you accept and the valuation is complete, most loans settle within 48 hours.
You speak directly with the decision maker.
Deal example
Toorak, Melbourne, VIC · $320,000 · ATO debt removal and working capital
Our client needed to remove ATO debt, purchase stock and fund working capital while restructuring his wholesale furniture business. Being in debt to the ATO precluded him from major banks. Using a lowly leveraged investment property as collateral, we provided the funds and the business is now trading strongly.
What is a caveat loan?
A caveat loan is a short-term business loan secured by a caveat lodged on the title of a property you own. At Vivian Locke Capital the caveat sits behind your existing mortgage, which stays as it is, and records our interest in the property. Loans run from $100,000 to $10,000,000, from 1.75% per month, interest only, for 1 to 24 months. They're for Pty Ltd companies only, with a director as guarantor. Every loan is commercial in nature and every property is valued before funds are released.
Clear ATO debt, fund working capital or bridge a settlement
Every loan has a clear commercial use, stated in your application with the amount required.
ATO or BAS debt
Clear ATO or BAS debt and restore your borrowing capacity. Clearing tax debt is one of the most common uses, supported by a serviceability letter from your accountant.
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Working capital
Bridge a cash flow gap and keep the business trading, then repay from a refinance, a sale or business cash flow at the end of the term.
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Settlement deadline
Settle a purchase or meet a settlement deadline, with the valuation completed before funds are released.
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Stock and equipment
Buy the stock, vehicles or machinery a new contract needs, secured against property you already own.
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Bridging finance
Bridge between selling one property and buying another, with the sale stated as your exit strategy.
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Equity release
Unlock equity in your property for business purposes, against a valuation and a stated exit strategy. If you'd rather the loan be registered on the title, compare second mortgages.
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Caveat loan rates, terms and LVR
Vivian Locke Capital caveat loans start from 1.75% per month, interest only, for 1 to 24 months, from $100,000 to $10,000,000.
| Loan amount | $100,000 to $10,000,000 |
|---|---|
| Rate | From 1.75% per month |
| Term | 1 to 24 months |
| LVR | Up to 75% of the property value on residential security, less what is owed. Commercial and land are assessed case by case. |
| Repayments | Interest only, no principal repayments during the term |
| Security | Residential, commercial and land |
| Location | Australia-wide, with no postcode restrictions |
| Borrower | Australian Pty Ltd companies only, with Australian property as security |
| Valuation | On every loan, quoted before it's ordered |
The rate, fees and valuation cost are set out in your letter of offer before you commit to anything.
Can my company apply for a caveat loan?
Yes: Vivian Locke Capital's caveat loans are for Australian Pty Ltd companies with residential, commercial or land property as security, for commercial purposes only. Every loan is written on the same conditions:
- An Australian Pty Ltd company borrows, and a registered director signs as guarantor with ID for AML and KYC checks.
- The security is Australian residential, commercial or land property.
- The funds have a clear commercial use. We don't offer personal or consumer loans.
- Your accountant or financial planner provides a serviceability letter.
- You state your exit strategy: a refinance, a sale or business cash flow.
- The property is valued before funds are released, and the valuation cost is quoted before it's ordered.
Because the loan is secured against the property, the assessment centres on the property value, the current debt against it and your exit strategy, supported by a serviceability letter from your accountant. Your accountant's serviceability letter is the document to have ready before you start.
Caveat loan or second mortgage: which fits your deal?
At Vivian Locke Capital, a caveat loan is secured by a caveat on the title, and a second mortgage by a mortgage registered behind your bank loan. Both start from 1.75% per month, interest only, and both leave your existing loan as it is.
| Caveat loan | Second mortgage | First mortgage | |
|---|---|---|---|
| How it's secured | A caveat lodged on the title of a property you own, recording our interest in it | A mortgage registered on the title behind your existing bank loan | A first-ranking mortgage registered on the title |
| Your existing loan | Stays as it is; the caveat sits behind it | Stays as it is; the second mortgage sits behind it | The property carries no other mortgage, or the existing loan is repaid at settlement |
| The step that releases funds | Once you accept and the valuation is complete, a caveat is lodged over the property and the funds are released | Once you accept and the valuation is complete, the second mortgage is registered behind your existing loan and the funds are released | Once you accept and the valuation is complete, the mortgage is registered on the title and the funds are released |
| Rate | From 1.75% per month, interest only | From 1.75% per month, interest only | From 8.65% p.a., interest only |
| Term | 1 to 24 months | 1 to 24 months | 1 to 24 months |
| Use it when | You want short-term funding secured by a caveat, with nothing registered or refinanced | You want the equity in a property that already has a mortgage, with your bank loan left as it is | The property carries no existing mortgage, or you're refinancing the existing loan |
Compare second mortgages in full, or see first mortgages. All three sit under our commercial property loans.
How fast is a caveat loan?
We aim to provide a letter of offer within 24 hours of your enquiry, and the loan settles after acceptance and valuation. Most caveat loans settle within 48 hours of acceptance, once the valuation is complete.
1
Tell us what you need
Complete our short questionnaire with your loan amount, the property you are offering as security and how the funds will be used. It takes 2 minutes.
2
Get your offer
We review your application and aim to provide a letter of offer within 24 hours of your enquiry, with the rate, fees and valuation cost set out.
3
Valuation, caveat, funds
Once you accept and the valuation is complete, a caveat is lodged over the property and the funds are released. Most caveat loans settle within 48 hours of acceptance.
The loan documents go to your lawyer before settlement. Have your lawyer ready to review them when they arrive, so the document stage keeps pace with the valuation.
What we need from you
To provide a letter of offer, we require the following information.
Loan details
1
Clear commercial use of the funds with the amount required
2
The term required (1 to 24 months) and your exit strategy after our term expires
3
Details of the borrowing Pty Ltd company with its ABN and the nature of the business
Security details
4
The full address of the proposed security and details of the security type (house, land, commercial premises, etc.)
5
Your estimated value of the proposed security and the current debt level on the property
6
Details of the guarantor(s) and their ID to comply with AML and KYC requirements
What a caveat loan costs, and how the valuation is quoted
A Vivian Locke Capital caveat loan costs from 1.75% per month, interest only, with the rate, fees and valuation cost set out in your letter of offer before you commit.
Every loan is secured against a valuation of your property, carried out at fair market value by our panel of professional valuers. There is no loan without one. We quote the valuation cost before it's ordered, and you proceed only if you're happy with the pricing.
The valuation feeds the assessment: the property value, the current debt against it and your exit strategy, supported by a serviceability letter from your accountant.
What happens if your exit moves?
If your exit moves, the property stays the security: a Vivian Locke Capital caveat loan remains on the title until it's repaid, on the terms in your loan documents, so read them with your lawyer before you sign.
Your exit strategy is how the loan is repaid at the end of its term, and it's assessed before any offer is made. There are 3 exits:
- A refinance, for example with a bank
- The sale of a property
- Business cash flow
The loan is secured against your property, so the property value, the debt against it and your exit are weighed together, supported by a serviceability letter from your accountant. If your exit timing changes during the term, tell us as early as you can.
A caveat loan isn't for personal or household spending: every loan is commercial in nature, to a Pty Ltd company.
Loans we've settled, from $125K to $1M
Each card is a settled deal as Vivian Locke Capital tells it: the place, the amount, what the funds were for and what happened next.
Deal example
Pimpama, QLD
$1,000,000 settlement for an interior design business
Our client operates an interior design business on the Gold Coast. They had been developing a home in Pimpama, but inflationary cost blowouts put them in mortgagee possession with their existing bank, and they needed a quick settlement to keep the property. We organised an urgent settlement and the client kept the property.
Deal example
Flinders View, QLD
$125,000 working capital for a carpentry business
Our client required $125,000 for his carpentry business, for urgent working capital to cover expenses, invoices and subcontractors for upcoming projects. We released these funds quickly against his property.
Deal example
Moreton Island, QLD
$200,000 capital raise for a business
Our client needed urgent funds for his business. We provided a $200,000 capital raise as a 6-month pre-paid facility against his unencumbered leasehold property on Moreton Island.
Deal example
Nashua, NSW
$500,000 for a film production project
Our client operates a film production company and urgently needed $500,000 for an upcoming project. He had large equity in a Byron Bay Shire home in Nashua and contacted us. We released funds within a week of the valuation.
Who you're dealing with
Vivian Locke Capital provides caveat loans, second mortgages and first mortgages to Pty Ltd companies with residential, commercial or land security, from $100,000 to $10,000,000.
Vivian Locke Capital loans are made through our lending entity, Vivian Locke & Partners Pty Ltd, ABN 89 639 401 648. We have a $30 million funding line set aside as a non-bank facility. Every loan is commercial in nature, made to an Australian Pty Ltd company, secured against Australian property and valued before funds are released. We don't offer personal or consumer loans. You speak directly with the decision maker.
Questions directors ask
How do I check who I'm dealing with before I sign?
Before signing with Vivian Locke Capital, check the legal entity and ABN, read the letter of offer and have your lawyer review the loan documents. Vivian Locke Capital loans are made through our lending entity, Vivian Locke & Partners Pty Ltd, ABN 89 639 401 648, which you can look up on the Australian Business Register. Your letter of offer sets out the rate, fees and valuation cost before you commit, so you compare the full cost, not only the rate.
How is a caveat loan different from waiting for the bank?
A Vivian Locke Capital caveat loan sits behind your existing bank loan, which stays as it is, so nothing is refinanced to release the funds. The assessment centres on the property value, the current debt against it and your exit strategy, supported by a serviceability letter from your accountant. We aim to provide a letter of offer within 24 hours of your enquiry, and once you accept and the valuation is complete, most caveat loans settle within 48 hours. The rate starts from 1.75% per month, interest only, for 1 to 24 months, so the loan is repaid from a refinance, a sale or business cash flow.
Can I use a caveat loan to meet a settlement deadline on a purchase?
Yes, a Vivian Locke Capital caveat loan can fund a property purchase settlement or bridge between selling one property and buying another, for a commercial purpose. Start the questionnaire as soon as the deadline is set: we aim to issue the letter of offer within 24 hours of your enquiry, and once you accept and the valuation is complete, most caveat loans settle within 48 hours. The valuation is never skipped, so build its time into your settlement date. Your exit, such as the sale of the other property or a refinance, is stated in your application.
Can a caveat loan be used for personal purposes?
No. A Vivian Locke Capital caveat loan is a commercial loan to a Pty Ltd company for business purposes, and we don't offer personal or consumer loans. Every borrower is an Australian company, with a registered director as guarantor who provides ID for AML and KYC checks.
What does a company need to provide for a caveat loan?
Six things: the commercial use of the funds and the amount, the term and your exit strategy, the borrowing company's details and ABN, the security property's address and type, your estimate of its value and the debt on it, and the guarantor's details and ID for AML and KYC checks. Your accountant's serviceability letter supports the application. With those in hand, we aim to issue the letter of offer within 24 hours of your enquiry.
Get your letter of offer
Tell us the amount, the property and what the funds are for. It takes 2 minutes, and we aim to have your letter of offer to you within 24 hours of your enquiry.
Important Information
- Please note that we do not offer personal or consumer loans. Loans are commercial only in nature.
- Please be advised that you must provide a suitable serviceability letter from your accountant or financial planner, and clearly state your exit strategy for the loan.
- Please ensure you provide all forms of ID to comply with AML and KYC requirements and be a registered director of an Australian company.
- Vivian Locke & Partners Pty Ltd, trading as Vivian Locke Capital, ABN 89 639 401 648.