FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Calamvale Small Business Loans
Let me know more about Calamvale Small Business Loans
Calamvale unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from an traditional business loan?
Apply for this Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and have the funds on your account within 24 hours. Traditional company loans are based on an annual rate of interest as well as other fees and charges. The company loan is a pre-paid loan and you’ll be aware of the total amount due, which includes any interest, fees or charges. This is then broken down into weekly or daily payment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business reason, such as managing cash flows, business improvements, advertising, to purchase inventory or new equipment, to fund general working capital and much more. The loan is not available for personal purposes.
Concerning Larger Calamvale Business Loans
What is the Larger Calamvale Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term up to 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the business needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funding be used for?
A Larger Business Loan can be used for nearly any company need, including business remodeling, buying inventory or new equipment, as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required for accessing funds over $150,000. It is usually as a result of an charge on assets, which could also include registering this with the PPSR or making a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is general in nature rather than defining security over an asset. The person who is signing the ensure is personally liable in the event that the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR allows preference over private property assigned in accordance with the date on which a security interest has been registered.
A caveat is a legal document filed to offer an official notice of a claim to a property.
What exactly is a preapproval without Credit Check?
If you’re applying for an enterprise loan of $250K or more, we may offer an initial pre-approval to ease the process. We could be able to do this without credit checks and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves the answer to a series of financial health checks. It is in no way an offer, nor is it a guarantee of finance. Acceptance without condition is subject to a full credit assessment and any offer you may receive may have different terms.
The application process
Do I qualify for funds?
You may apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Just complete the online application in just a few minutes, and a dedicated company lending specialist will contact you to help you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, plus interim financials for the current financial year as well as Aged Payables and Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we can often offer an answer within one hour, provided you submit your request during standard company times and you allow us to utilise the bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statements we can provide a decision within one business day.
For Larger Business Loans ($100K to $500K) we may be able to offer you with conditional pre-approval in about six hours. After you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval, however this can be quicker based on the specifics of each application. Some transactions have received approval within less than 24 hours.
The most efficient method would be to ensure you apply during normal company hours and let us use the advance bank verification link to verify your bank information online. If you opt to upload duplicates of your banking accounts, it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer within one hour – as long as you apply in normal business hours and permit us to use the bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your banking statements, we will be able to offer a decision in as little as the span of one business day.
For Larger Business Loans ($100K up to $500,000) we might be likely to provide you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval in 24 hours.
The fastest method is to ensure you apply during standard business hours. You can also allow us to use the modern bank verification link to instantly verify your bank information online. If you send us documents from your account statements, it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a specific amount we look at a variety of aspects in order to assess your well-being for your business and the level of repayments that your business will be able to support. The amount you receive from the loan will be determined by the specifics that are unique to your company.
When you make an application for a set amount, we take into consideration a variety of aspects to determine your well-being of your business and the level of repayments your company can afford. The total amount of your loan will be determined by the specifics that are unique to your company.
Fees & repayments
How much do you charge for a company loan?
If you decide to request one of our business loan, we will assess the risk assessment the business and offer you with a customised offer, including the amount of the loan, the duration and interest rates. The company loan is an upfront-priced loan and you’ll be aware of the total amount you will have to pay, including interest rates, fees or charges.
What is the factor that determines the price I will be charged?
Interest rates for business loans rates differ based on various factors like the amount of money borrowed, what company assets the money are used to purchase in addition to the industry that the company operates in, how long the business has been operating and how long the company has sufficient cash flow to fund the loan, and the general health as well as creditworthiness business.
What are the fees?
There aren’t any hidden costs for our company loans. You’ll know precisely how much you need to pay, and when, starting from the first day. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments in time).
We do not charge an application fee. You can get a cash loan with without any upfront costs or obligation to proceed.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay out the loan earlier?
You can repay the total amount of your advance loan at any time.
If you do decide to pursue this option, please call our helpful business credit professionals. They’ll offer you with details on repayment and an early payment figure. It will be calculated using the sum of the principal remaining and the accrued interest up to the time of early payment in addition to 1.5% of the principal balance and any fees that remain unpaid.
What are the repayment methods?
To make sure you do not miss due dates and also to be in line your cash flow schedule, we provide payments that are either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my information be secure?
Protecting your information, and knowing how we collect information, use it, and exchange it, as well as safeguard your data, is of huge importance and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to security for our customers and privacy. We make use of an advanced bank verification system that allows you to instantly verify the bank account details online. This allows us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where an business owner uses assets they own to secure the funding. The asset could be an asset belonging to the personal, like the family home, or an business property like a truck as well as a piece of machine.
The majority of the lenders even the banks with the biggest size, prefer to secure loans against an asset. If you’re struggling to pay back the loan, the asset could be transferred to the lender. In essence it is the process of securing additional financing using the value of what you already own.
Are I need security to secure a company loan?
Up to $150,000 in loans the requirement for asset security is not required upfront to access the money however, we do require an individual guarantee. As long as you follow your loan commitments (as stated in your loan contract document) Asset security is not required. If you take out loans in excess of $150,000 typically, you will need the option of a personal guarantee and security that is in the form charges on assets.