FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Carbrook Small Business Loans
Let me know more about Carbrook Small Business Loans
Carbrook unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What makes this Unsecured Loan different from an ordinary company loan?
The application for this Small Business Loan in under 10 minutes online or on the phone. You’ll receive an instant response and funds may be available in just 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. Our business loan is an upfront priced loan and you’ll be aware of the total amount due, which includes any fees, interest or charges. This is then divided into weekly or daily repayment figure.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for almost any business use, including the management of cash flow, company renovations, marketing for purchasing inventory or new equipment, as general working capital and much more. The loan cannot be used for personal use.
About Larger Carbrook Business Loans
What is the Larger Carbrook Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to be operating for at least three years and have an annual turnover of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funds be utilised?
A Larger Business Loan is a great option for almost every business reason, such as company improvements, purchasing new equipment or inventory, as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It’s by taking a charge against assets and can include the registration of this on the PPSR or registering as a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is general in nature, rather than stipulating the security of a specific asset. The person who signs the guarantee is personally accountable if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR gives preference over private property granted in accordance with the date on which a security interest has been registered.
A caveat is a legal document filed to offer the legal claim to property.
What exactly is a preapproval without Credit Check?
When you’re applying for larger company loans of $250K or more, we may offer a preliminary pre-approval to help simplify the process. We could be able to do this without a credit check, and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves the answer to a series of financial health questions. This is not an offer or guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you may receive may be subject to different terms.
The application process
Are I eligible for funding?
You can apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application within a few minutes and a dedicated business loan specialist will call you to guide you.
For a loan of up to $100,000 you’ll need identification details (valid Driver’s License), a valid NZBN/IRD and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent as well as 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, and interim financial statements for the current year including Aged Payables, Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within an hour if you submit your request at standard business time and let us make use of the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statements , we are able to provide the decision within the span of one business day.
If you are applying for a Larger Business Loan ($100K to $500K) we could be able to provide you with conditional pre-approval in about 6 hours. Once you have signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Some transactions have received approval within less than 24 hours.
The quickest way to apply is to make sure you apply during normal company hours. You can also let us use the advance bank verification link to instantly check your bank’s information online. If you upload duplicates of your banking accounts, it takes a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer within one hour – as long as you make your application during standard business timings and permit us to make use of the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statement, we’ll provide a decision in as little as one business day.
For Larger Business Loans ($100K or more) We may be able to offer the conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this may be quicker depending on the specifics of each application. Certain offers have been approved in the space of 24 hours.
The fastest way can be ensure you apply during normal business hours. You can also allow us to use our advance bank verification link to instantly check your bank’s information online. If you opt to send us duplicates of your banking accounts, it can take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a certain amount, we consider a variety of factors for determining the health for your company and the extent of repayments your business is able to afford. The total amount of your loan will be contingent on the specifics for your business.
If you apply for a set amount, we take into consideration a variety of aspects to determine the well-being of the business and the amount of payments your business is able to afford. The amount you receive from the loan will be determined by the particulars the company.
Fees & repayments
How much do you charge for an business loan?
If you decide to apply for one of our business loan, we will assess the risk profile that you have for your company and offer you with a tailored offer, including the loan amount, the terms and interest rates. This business loan is a loan that is priced upfront therefore you will know the exact amount payable including any charges, interest rates or fees.
What is the basis for the rate I’m charged?
The interest rates on business loans rates depend on a variety of factors including the amount borrowed, what business assets the money are used to purchase in addition to the industry that the company is operating in, how long the business is in operation, in the event that the company has enough cash flow to support the loan, and the overall health as well as creditworthiness business.
What are the cost?
There aren’t any hidden costs for our business loans, and you’ll know precisely how much you be required to pay and when, from the first day. There’s no compounding 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 make an application for loans absolutely no upfront cost and no the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I repay the loan early?
You can repay all of your loan early at any time.
If you decide to pursue this option, please call our helpful business loan experts. They will offer you with the details of your repayment along with an early payout estimate. It will be calculated using the sum of the remaining principal amount and accrued interest to the date of early payout plus 1.5% of the principal remaining and any outstanding fees.
What are the repayment methods?
To make sure you do not miss repayments and to fit in your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from your designated business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as making it clear the ways we gather the information we collect, use, share and safeguard your data, is of paramount importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to customer security and privacy. We utilise a sophisticated bank verification system link to instantly confirm your bank account information online so we can provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a business owner uses an asset they own to get the loan. The asset could be a personal asset like the family home, or it could be a company asset like a truck or piece of equipment.
The majority of the lenders not just the big banks, tend to secure loans against assets. If you’re struggling to pay back the loan, then the asset could be sold by the lender. In essence it is an opportunity to secure new financing by making use of the value of what you already own.
What do I require security to secure an business loan?
Up to $150K in loans there is no requirement for asset security upfront to access the money, however we do require the personal guarantee. So long as you comply with the loan terms (as stated in the loan contract) and you are able to meet your obligations, asset security will never be needed. For loans of over $150K typically, you will need the option of a personal guarantee and security is provided in the form of a charge over assets.