FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Cedar Creek Small Business Loans
Let me know how you are able to avail the Cedar Creek Small Business Loans
Cedar Creek unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What is this Unsecured Loan different from an ordinary company loan?
The application to get this Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and funds may be available in just 24 hours. Traditional business loans refer to an annual interest rate together with additional fees and charges. We offer a company loan is an upfront priced loan so you will be aware in advance of the total amount to be paid, including any fees, interest or charges. This is then divided into a daily or weekly installment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every business need, such as the management of cash flow, business remodeling, marketing to purchase inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal use.
Concerning Larger Cedar Creek Business Loans
What is the Larger Cedar Creek 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 with a maximum of 36 months. Repayments are either weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the company needs to be operating for a minimum of 3 years and have an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funding be used for?
A larger company loan can be used for almost any business use, including business remodeling, buying new equipment or inventory as well as for general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. It is usually in the form of a charge against assets, and may include the registration of this in the PPSR or registering as a caveat.
A director’s or personal ensure is a commitment to repay credit that is generally in nature rather than stipulating security over an asset. The person who is signing the guarantee is personally accountable if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be granted according to the date a security interest that is registered.
An affidavit is an official document that is filed to offer an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250,000 it’s possible to offer an initial pre-approval that will help simplify the process. We may be able to do this without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial well-being checks. It’s neither an offer nor a guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer that you may receive may be based on different conditions.
The application process
Can I be eligible for funding?
You may apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application in just a few minutes, and a dedicated company expert in lending will contact you to guide you.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Application details including credit consent twelve months of bank statements, IRD statement as well as the two most recent years’ financial statements, and interim current financial year financials, Aged Payables and Aged Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we usually offer an answer within an hour, provided you apply during quality company times and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statements , we are able to provide an answer in as little as one company day.
For the Larger Business Loan ($100K or more) we could be capable of provide you with pre-approval conditional to your application within 6 hours. Once you have signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Certain transactions have received approval within just 24 hours.
The quickest method is to make sure you apply during standard business hours, and permit us to use the modern bank verification link to confirm your bank details online. If you opt to upload documents from your account accounts, it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K or more) we usually provide a response in one hour – provided you apply in normal business times and you allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your banking statements, we are able to provide a decision within an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be able to provide the conditional pre-approval in around 6 hours. Once you have signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, it could be faster based on the specifics of each application. Certain offers have been approved in just 24 hours.
The fastest method can be ensure you apply during standard business hours. You can also let us use the advance bank verification link to verify your bank information online. If you opt to send us documents from your account statements, it can take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a specific amount we look at a variety of aspects in order to assess what is the well-being that is your company and the extent of the repayments your business is able to afford. The amount you receive from your loan will be contingent on the specifics for your company.
When you make an application for a particular amount, we look at a range of elements to determine how much we can lend you such as health of the business and the amount of repayments that your company can support. The total amount of the loan will be determined by the specific circumstances of your company.
Fees & repayments
How much do you charge for a business loan?
If you decide to make an application for business loans with us business loans, we will assess the risk profile for your business and offer you with a customised offer, including the amount of loan, the term and the interest rates. A business loan is a loan that is priced upfront which means you be aware in advance of the total amount payable including any charges or interest.
What is the factor that determines the price I pay?
Interest rates for company loans rates depend on a variety of factors such as the amount that is that is borrowed, what business assets the funds are used to purchase, the industry the company operates in, how long the business has been in operation, what percentage of the business has enough cash flow to pay for the loan, and general well-being and creditworthiness of the business.
What are the cost?
There are no hidden costs for our company loans, and you’ll know precisely how much it is that you be required to pay and when, from the first day. There’s not any compounding interest and there are no additional charges (as long as you make your payments in time).
We do not charge an Application Fee. You are able to apply for a loan no cost upfront or any obligation to sign up.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay out the loan in advance?
You can choose to repay the entire amount of your loan at any point in time.
If you are deciding to pursue this option, please speak to our friendly business loan professionals. They’ll provide you with repayment details and an early payout figure. It will be calculated using the sum of the principal amount remaining and any accrued interest at the time of early payout and 1.5 percent of the principal balance and any fees that remain unpaid.
What are the repayment methods?
To ensure that you don’t miss due dates and also to be in line with your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as making it clear the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of huge importance and a vital element 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 financial information and our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their privacy. We make use of an advanced bank verification system that allows you to immediately verify the bank account details online, allowing us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an company owner borrows from an asset they own to get the funds for a loan. The asset can be a personal asset like the family home, or a business asset such as a truck or piece of equipment.
The vast majority of the lenders not just the big banks, tend to guarantee loans against assets. If you’re struggling to pay back the loan then the asset might be taken over by the lender. In essence it’s an opportunity to secure new financing using the worth of the asset you already own.
What do I need security to secure a business loan?
For loans that exceed $150,000, there is no requirement for asset security in advance to gain access to the funds However, we do need a personal guarantee. In the event that you fulfill your loan obligations (as stipulated in your loan contract) and you are able to meet your obligations, asset security will never be needed. For loans that exceed $150,000, generally, there is the option of a personal guarantee and security in the form of charges on assets.