Short-term property loans are temporary facilities supported by real property and used for a defined commercial purpose. The category can include bridging finance, caveat-supported facilities, first or second mortgages and other private property lending. These labels overlap, so the right decision starts with purpose, security and exit—not the product name.
For a purchase, settlement or refinance gap, Emet Capital's commercial bridging finance service is the designated transaction page. This guide helps borrowers decide which short-term structure to investigate and which evidence to prepare. It is general information, not legal, tax or financial advice.
Choose the structure by problem
| Commercial problem | Structure to investigate | Main decision risk |
|---|---|---|
| Purchase before a sale or refinance completes | Bridging finance | Exit delay and peak debt |
| Urgent business payment supported by property | Caveat or other short-term property finance | Legal structure, total cost and weak exit |
| Additional debt behind an existing mortgage | Second mortgage | Consent, priority and combined debt |
| Existing facility maturity | Bridging or refinance | Treating a long-term affordability issue as temporary |
| Longer-term property funding | Conventional commercial mortgage | Using expensive short-term debt when time allows another process |
This is a triage table, not a product recommendation. The documents and jurisdiction determine the security structure, and lenders can describe similar facilities differently.
Bridging finance
Bridging finance connects a current property-related obligation to a later sale, refinance or liquidity event. The critical calculation is peak debt: the balance after interest and fees at the expected and delayed exit dates.
A closed bridge has a more identifiable exit, often a contracted sale. An open bridge relies on an event that is not yet contracted or approved. Both require a contingency because settlements and refinances can be delayed.
Read the complete bridging finance guide for exit and peak-debt modelling.
Caveat-supported finance
A caveat is a legal notice connected to a claimed interest in land. Whether a lender has a valid caveatable interest depends on documents and the law of the relevant jurisdiction. Borrowers should obtain legal advice and should not treat caveat lodgement as a simple replacement for mortgage due diligence.
A caveat facility may be considered for a defined business deadline where property support and exit evidence are ready. It may be unsuitable for consumer purpose, unresolved title issues or a speculative repayment plan. The complete caveat loan guide explains the preparation and legal-risk questions.
First and second mortgages
A registered mortgage gives the lender security rights over the property. A second mortgage ranks behind an existing first mortgage and can involve consent or priority arrangements. The combined debt, property value, first-lender terms and exit all matter.
A registered structure may take more legal coordination than some caveat-supported facilities but may better match a longer or more formal property-backed requirement. Compare the second mortgages for business guide and obtain legal advice on priority and enforcement.
Evidence every short-term lender needs
Different lenders use different criteria, but a decision-ready commercial file usually includes:
- borrower, guarantor and entity identification;
- property ownership, title and current debt information;
- evidence of value appropriate to the property and transaction;
- a document showing the business purpose, amount and deadline;
- a primary exit with dates, responsible parties and supporting evidence;
- a delayed-exit contingency;
- financial information or cash-flow evidence where payments are required;
- explanations for arrears, defaults, disputes or unusual title issues.
Disclose complications early. A fast initial indication based on incomplete facts is not useful if valuation, legal or credit review later changes the answer.
Compare total cost and cash flow
Calculate the cash received after deducted fees and retained interest. Then model scheduled payments, balance at the expected exit and balance at a delayed exit. Include interest method, establishment, valuation and legal fees, minimum-interest provisions, extension, default and discharge costs.
A capitalised-interest facility can reduce periodic cash payments but increase the balance. A paid-interest facility may preserve more equity but require stronger cash flow. Compare offers on identical amount, term and exit assumptions.
ASIC's commercial-loan information notes that misleading conduct, unconscionable conduct and unfair contract terms can be relevant, but commercial borrowers do not necessarily receive consumer-credit protections. Independent legal review of the actual contract is essential.
When short-term property finance may be unsuitable
Pause when there is no temporary exit, the purpose is consumer rather than business, property exposure is disproportionate to the commercial benefit, the borrower cannot explain total cost, or the facility merely delays insolvency or a structural cash-flow problem.
Also compare non-loan solutions: negotiate the settlement or payment date, restructure the transaction, sell another asset, arrange vendor terms, or use a purpose-specific working-capital, receivables or equipment facility. Each option has consequences that should be assessed with the relevant adviser.
Decision sequence
- Define the purpose, required net proceeds, deadline and consequence of delay.
- Decide whether the problem is a bridge, caveat scenario, second-position need or long-term refinance.
- Map property ownership, title, current debt and available support.
- Evidence the primary exit and delayed-exit plan.
- Compare written offers on the same assumptions.
- Review legal rights, extension and default provisions.
- Obtain accounting, tax or legal advice where relevant.
- Proceed only if the temporary facility has a credible end.