FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Cashmere Small Business Loans
Let me know how you can avail the Cashmere Small Business Loans
Cashmere unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from an ordinary company loan?
It is imaginable to apply for the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an answer within the same day and have the funds in your account in 24 hours. Traditional company loans have an annual interest rate together with additional fees and charges. Our company loan is a loan that is priced upfront which means you know ahead of time the amount you will have to pay, including any interest, fees or charges. This is then broken down into either a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business use, including cash flow management, business improvements, advertising to purchase inventory or new equipment, or as general working capital and so much more. The loan is not available for personal purposes.
About Larger Cashmere Business Loans
What is the Larger Cashmere Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term for up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan in this amount the business needs to have been in operation for at least 3 years with an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (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 company loan can be used for almost all business need, including company improvements, purchasing new equipment or inventory as well as for general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. It’s by way of charge on assets, and may include registration through the PPSR or making as a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is general in nature, rather than stipulating the security for a particular asset. The person signing the ensure is personally responsible if 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 reflects security interests which are registered with respect to personal property (including objects or assets). The PPSR grants priority over personal property to be granted depending on the date that a registration of a security interest.
An affidavit is an official document lodged to provide an official notice of a claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking an enterprise loan that exceeds $250,000 we can offer an initial pre-approval in order to simplify the process. It is possible to do this without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves the answer to a series of financial health questions. It is in no way an offer, nor is it a guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you might receive could be based on different terms.
The application process
Can I be eligible for funding?
You can apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application in few minutes and a dedicated company lending specialist will call you to guide you through the process.
To apply for up $100,000, you’ll need the right identification documents (valid Driver’s Licence), an NZBN/IRD that is valid and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details of the application, including credit consent, 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, in addition to interim financial statements for the current year including Aged Payables, Aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) We can usually offer an answer in just one hour – as long as you apply during standard business timings and you allow us to utilise the bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statement, we’ll provide the decision in as little as one business day.
For the Larger Business Loan ($100K to $500K) we may be likely to offer the conditional pre-approval within about six hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this can be quicker based on the particular circumstances of each application. Certain transactions have received approval within 24 hours.
The most effective method is to ensure you apply during standard business hours. Also, allow us to use our advanced bank verification system link to check your bank’s information online. If you upload the copies of bank accounts, it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) We can usually offer an answer in just one hour, provided you submit your request at standard business timings and let us use the advanced bank verification system to instantly verify your bank’s information online. If you opt to submit copies of your bank statement, we’ll offer the decision within 1 business day.
For the Larger Business Loans ($100K to $500K) we could be likely to offer you with pre-approval conditional to your application in about 6 hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this may be quicker depending on the circumstances of each application. Certain deals have been approved in just 24 hours.
The fastest way is to make sure you apply during normal business hours. Also, allow us to use our sophisticated bank verification to confirm your bank details online. If you opt to send us copies of your bank statements, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a certain amount, we consider a variety of variables that determine how much we can lend you health that is your company and the level of repayments that your business can afford. The total amount of your loan will be contingent on the specific circumstances for your company.
When you make an application for a particular amount, we will consider a number of variables to determine your well-being that is your company and the extent of the repayments your company can support. The amount you receive from your loan will be determined by the particulars the business.
Fees & repayments
How do you charge for a company loan?
If you decide to request one of our company loans, we’ll assess the risk profile for your business and provide you with a customised offer including loan amount, term and the interest rates. A business loan is an upfront-priced loan so you will know the exact amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I am charged?
Business loan interest rates depend on several factors such as the amount that is that is borrowed, what company assets the money are used to purchase as well as the field the business is in, how long the company is in operation, in the event that the company has sufficient cash flow to cover the loan, as well as the overall well-being and creditworthiness of the company.
What are the fees?
There are no hidden costs for our company loans, and you’ll be aware of the amount you be required to pay, and when, starting from the very first day. There’s no compounding interest and there are no additional charges (as as long as you pay your payments punctually).
We don’t charge an Application Fee. You are able to make an application for loans without any upfront costs or the obligation to take action.
The Origination Fee covers the expenses involved with establishing and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can choose to repay the entire amount of the loan early at any time.
If you are deciding to pursue this option, please talk to one of our helpful company credit experts. We will offer you with the details of your repayment and an early payment figure. The figure will be calculated as the sum of the principal amount remaining and any accrued interest at the time of early payment in addition to 1.5 percent of the remaining principal plus any outstanding fees.
What is the process for repayments?
To help you avoid missing repayments and to fit in your cash flow schedule, we provide payments that are either daily or weekly. These are automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and knowing the ways we gather data, process, exchange and safeguard your data, is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to security for our customers and security. We use an advanced bank verification system link to immediately verify your bank account details online, allowing us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a company owner makes use of the assets they have to get the funding. The asset can be either an asset belonging to the personal, like the family home or an business asset such as a truck or piece of equipment.
The majority of the lenders even the major banks, prefer to secure loans against assets. If you are having difficulty paying back the loan, then the asset could be transferred to the lender. In essence it is a way of securing new financing by making use of the value of what you already have.
Are I require security to get a business loan?
Up to $150,000 in loans it is not necessary to secure assets in advance to gain access to the funds however, we do require a personal guarantee. So long as you comply with your loan obligations (as stipulated in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150,000 generally there is an individual ensure and security in the form of an asset charge.