FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Chandler Small Business Loans
Let me know more about Chandler Small Business Loans
Chandler unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from the traditional company loan?
Apply for your Small Business Loan in under 10 minutes on the phone. You’ll receive an immediate response, and have the funds in your account within 24 hours. Traditional company loans are based on an annual rate of interest plus other fees and charges. Our company loan is a loan that is priced upfront and you’ll know ahead of time the total amount to be paid, including the interest, fees and charges. Then, it is broken down into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for almost any company need, such as managing cash flows, business remodels and marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used to fund personal expenses.
About larger Chandler Business Loans
What is the Larger Chandler Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount the company needs to be operating for at least three years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be used for?
A Larger Business Loan can be used for almost every company use, including business renovations, purchase of inventory or new equipment or as 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 necessary for funding of more than $150,000. This is in the form of a charge against assets, which could also include registering this on the PPSR or filing a caveat.
A director’s or personal guarantee is a guarantee to pay off a credit line that is general in nature, rather than stating the security for a particular asset. The person who signs the guarantee is personally accountable if the company the borrower fails 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 which are registered with respect to personal property (including the assets or goods). The PPSR grants the priority of personal property granted according to the date a security interest has been registered.
Caveats are legal form of document to offer notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
When you’re applying for the Larger Business Loan of $250,000 or more we can offer a preliminary pre-approval to help ease the process. It is possible to make this decision without a credit check and within 6 hours of the initial application. The pre-approval process is based on a preliminary assessment which includes answering a couple of financial well-being questions. This is not an offer of credit or guarantee of finance. A conditional approval is subject an extensive credit evaluation and any offer you are offered could be subject to different terms.
The application process
Are I eligible for funding?
You may apply for a 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)
- must show at least six months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Just complete the online application within a couple minutes, and a dedicated business credit specialist will contact you to assist you.
For a loan of up to $100,000, you’ll require the right identification documents (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Information on the application including credit consent, 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we usually offer an answer within one hour – as long as you submit your request at quality company timings and allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your banking statement, we’ll offer a decision in as little as the span of one business day.
For Larger Business Loans ($100K or more) we could be likely to offer you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved within just 24 hours.
The quickest way to apply is to make sure you apply during normal company hours and let us use the advance bank verification link to instantly confirm your bank details online. If you choose to send us the copies of bank statements it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we usually provide an answer in just one hour, provided you make your application in standard business timings and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your bank statements, we are able to offer a decision within the span of one business day.
For the Larger Business Loans ($100K to $500K) we may be capable of offer you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however it could be faster based on the specifics of each application. Some deals have been approved within the space of 24 hours.
The quickest method for you to apply is make sure you apply during normal business hours and let us use the sophisticated bank verification to verify your bank information online. If you send us copies of your bank accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. When you submit an application for a certain amount, we will consider a number of elements to determine the health of your company and the level of repayments that your company can afford. The total amount of your loan will depend on the specific circumstances for your company.
If you apply for a set amount, we take into consideration a variety of elements to assess the well-being for your business and the level of the repayments your company is able to afford. The amount you receive from your loan will be contingent on the specific circumstances that are unique to your company.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to apply for our business credit, we will assess the risk assessment that you have for your company and offer an individualised proposal that includes loan amount, term and interest rates. This business loan is an upfront-priced loan and you’ll be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I’m charged?
Business loan interest rates depend on a variety of factors like the amount of money that is borrowed, what company assets the money are used to purchase in addition to the industry that the company operates in, the long the business is in operation, in the event that the company has sufficient cash flow to pay for the loan, and the general health or creditworthiness of the business.
What are the costs?
There are no hidden costs for our business loans, and you’ll know exactly how much you be required to pay, and when, from day one. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments punctually).
We do not charge an application fee. You are able to apply for a loan without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I repay the loan earlier?
You may choose to pay back the total amount of your loan early at any time.
If you decide to do this please contact our helpful business loans specialists. They’ll provide you with repayment details and an early payment figure. It will be calculated using the total of the remaining principal amount plus any accrued interest as of the time of early payment in addition to 1.5% of the principal remaining and any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss due dates and also to be in line your cash flow cycle we offer repayments either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being clear about how we collect the information we collect, use, share and safeguard your data, is crucial and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to protecting the security of customers and security. We use an advanced bank verification system that allows you to immediately verify the bank account details online to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where a business owner uses the assets they have to make the funding. The asset could be an individual asset, such as the family home or a business asset such as a truck or other piece of machinery.
The vast majority of banks, not just 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 an opportunity to secure new financing by using the value of what you already own.
Do I require security to get a company loan?
Up to $150,000 in loans no asset security is required before you are able to access the money, however we do need a personal guarantee. So long as you comply with the terms of your loan (as stated in your loan contract document), asset security will never be needed. For loans that exceed $150K, generally, you are able to get the option of a personal guarantee and security in the form the charge of assets.