Entrepreneurs Should Know About Short-Term Caveat Loans

Short Term Caveat Loans29 Jan, 2023Finance

A short-term caveat loan is a secured financing type in which borrowers can obtain money by using real estate property as collateral. Caveat loans are for businesses that need short-term funding. A caveat is placed on the property used to secure finance and remains on the property until the business loan is repaid in full by the business owner. Borrowers prefer to borrow caveat loans instead of traditional first-mortgage, or second-mortgage loans because of the minimal documentation system.