A Short Term Business Loan can be a Caveat Loan / First or Second Mortgage or an Unsecured Business Loan.
Caveat Loans or First Mortgage loans are fast settling short term loans which are generally for a period of between 6 to 12 Months. They are asset based loans and are secured against real estate (usually a house, commercial property or residential or industrial land) Caveat Loans are available to clients who wish to retain their existing 1st mortgage but require a short term line of funding beyond their current credit provider’s capacity.
A Second Mortgage is a loan secured against a property that already has a First Mortgage attached to it. You will still have your original lender on the title of your property and the second mortgage ranks after this.
An Unsecured Business Loan requires no collateral and utilises a financial product that lends against the cash flow of your business. Loan approvals to small businesses are based on business fundamentals like cash flow, not based on the value of business assets.