If you’re facing a Settlement Funding Shortfall right before settlement, you’re not alone. It’s one of the most common “everything is approved but we’re still short” problems in property and business transactions. The timing is the killer: the contract doesn’t care that your funds are “nearly there”. Settlement is settlement. Contact us today if you need urgent help bridging the gap.
What a Settlement Funding Shortfall Really Looks Like
A Settlement Funding Shortfall is usually not a “money problem”. It’s a timing and sequencing problem. Common triggers include:
- Your bank redraw or refinance is delayed by one document, one signature, or one valuation condition
- Sale proceeds are coming, but not in time for today’s settlement
- You underestimated total settlement costs, adjustments, or lender fees
- A related transaction (sale, refinance, transfer) is running late and your incoming funds don’t line up
- A last-minute condition changes your cash contribution requirement
The consequence is the same: you need a clean, dependable way to bridge the gap without losing the deal, incurring penalty interest, or renegotiating under pressure.
What Is a Caveat Loan and Why It Suits a Shortfall
A caveat loan is a short-term loan secured against real property, where a caveat is lodged to protect the lender’s interest. For you, that means it can be assessed and arranged faster than many traditional bank processes, because the focus is on the equity position and the exit strategy, not months of financials and committee cycles.
When used for a Settlement Funding Shortfall, caveat finance is often structured as a bridging solution: you access funds now, complete settlement, and then repay the caveat loan when your planned funds land (sale proceeds, refinance, business inflow, or another approved facility).
Benefits of Caveat Finance for a Settlement Funding Shortfall
Used properly, caveat loans can be a straightforward solution to a time-sensitive problem:
- Speed when time is the main risk: Fast approvals and the ability to target same day settlement in the right scenario
- Funding when banks can’t move: A non bank business lender can often act faster for urgent settlement needs
- Short-term focus: You’re not locking into a long, restrictive facility if you only need a short bridge
- Clarity around exits: A good lender cares most about how you’re repaying and how quickly
- Flexible loan sizing: In the right scenario, you may be able to borrow up to $10million
- Transparent pricing: You should understand the total cost, not just the headline rate (we can discuss options with an interest rate starting at 9.2% p.a where applicable)
The key is using caveat finance as intended: a controlled bridge, not a long-term crutch.
Where Secured Lending Fits In When Settlement Is Close
When you’re days (or hours) from settlement, you don’t need theory. You need a lender who can coordinate the moving parts and get it done without drama.
Secured Lending is a private lender in Australia and a non-bank lender. We operate Australia wide, including Sydney, Adelaide, Melbourne, Brisbane, Perth, Gold Coast, and Canberra. Our job is to take an urgent settlement scenario, confirm what’s needed, and move quickly.
How We Approach Your Settlement Funding Shortfall
We keep it practical and outcome-driven:
- We review the shortfall amount and the settlement deadline
- We confirm the security property and equity position
- We map the exit strategy so the loan stays short-term by design
- We coordinate with your broker, solicitor, conveyancer, and any incoming lender
- We structure the facility to match the timeline, not the other way around
This is why borrowers come to us for emergency timing issues. Not because they’re disorganised, but because real transactions don’t always run to schedule.
Typical Scenarios We Help With
Here are examples of when caveat lending can make sense:
- A purchase settlement where your refinance is approved but delayed
- A sale-and-buy chain where funds are “in flight” but not accessible in time
- A commercial settlement where bank conditions can’t be cleared fast enough
- A business-critical property transaction where delay risks losing the asset
- A last-minute adjustment shortfall that creates an unexpected funding gap
If you’re dealing with an emergency settlement window, we can act as a private lender urgent option where timing is the priority and the plan is clear.
What You Can Expect With Secured Lending
You want certainty and momentum, not a drawn-out process. We focus on:
- Speed: the aim is funding within 24 hours when the file supports it
- Coordination: we work directly with your professional team to reduce delays
- Straight answers: we tell you early what’s achievable and what isn’t
- Fit-for-purpose structures: short-term, secured business loan that match the exit
We’ve facilitated over 500 strategic commercial loans, and that experience matters when everyone is waiting on settlement and the pressure is real. The point isn’t to “sell” you money. It’s to help you complete settlement cleanly and move on to your next step.
Pricing and Limits
Costs depend on the deal specifics, risk, and timeframe. In suitable cases, we can discuss an interest rate starting at 9.2% p.a. Loan sizing depends on equity and structure, and for the right scenario you may be able to borrow up to $10million.
FAQs
1. How quickly can a caveat loan be arranged for a Settlement Funding Shortfall?
If the security and exit are clear and documents are ready, it may be possible to target same day settlement or funding within 24 hours. Timing always depends on the specifics and legal readiness.
2. What can I use the funds for?
For this purpose, it’s commonly used to cover the gap between available funds and settlement requirements, including adjustments, last-minute shortfalls, or delayed incoming funds.
3. Do you operate only in one state?
No. Secured Lending operates Australia wide across Sydney, Adelaide, Melbourne, Brisbane, Perth, Gold Coast, and Canberra.
4. Is Secured Lending a bank?
No. We are a non-bank lender and Private Lender in Australia, focused on short-term secured solutions for time-sensitive transactions.
5. What do you look for to approve an urgent settlement caveat loan?
We focus on the property security position, the amount of the shortfall, and the credibility of the exit strategy (how the loan will be repaid).
6. Is caveat finance suitable if my bank finance is already approved?
Often yes. Many Settlement Funding Shortfall cases happen precisely because bank finance is approved but delayed. A caveat loan can bridge timing while the primary facility completes.
How We Can Help
Secured Lending can review your Settlement Funding Shortfall, confirm what’s needed for settlement, and arrange a caveat loan or bridging loan structure that matches your timeline. If you need fast action for an urgent settlement, we’ll coordinate with your advisers and move quickly toward a clear outcome. Secured Lending is a short-term lending solution you can rely on. When you’re ready, our team is here to help you move quickly and confidently. Our team specialises in urgent short term loans solutions.
