FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Chelmer Small Business Loans
Tell me how you can avail the Chelmer Small Business Loans
Chelmer unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from an traditional company loan?
The application to get this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an immediate response, and have the funds on your account within 24 hours. Traditional company loans have an interest rate per annum together with additional fees and charges. The business loan is an upfront priced loan therefore you’ll be aware in advance of the amount you will have to pay, including any interest, fees or charges. Then, it is divided into a daily or weekly payment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every company reason, such as managing cash flows, company remodels and marketing to purchase inventory, new equipment, for general working capital and so much more. The loan is not available for personal purposes.
About larger Chelmer Business Loans
What is the Larger Chelmer Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to be operating for a minimum of 3 years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can I use the funding for?
A large company loan is a great option for almost all business purpose including company renovations, to purchase equipment or inventory or as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. This can be done in the form of a charge over assets, and may include the registration of this with the PPSR or making as a caveat.
A director’s or personal ensure is a commitment to repay credit that is general in nature, rather than defining security over a particular asset. The person signing the guarantee is personally liable if the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been that are registered for personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be granted according to the date the security interest was registered.
Caveats are legal form of document to offer the legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re requesting larger business loans of $250K or more, we may offer an initial pre-approval that will help make the process. We may be able to apply for this without a credit check and within 6 hours of the initial application. The pre-approval is based upon an initial evaluation that involves you answering a few financial well-being checks. It is in no way an offer, nor is it a guarantee of financing. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you might receive could be based on different terms.
Application process
Do I qualify for funds?
You may be eligible for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form in just a few minutes, and a dedicated business loan specialist will be in touch to assist you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s License) along with an NZBN/IRD that is valid and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 months bank statement, an IRD statements, last 2 years finalised financial statements, plus interim current financial year financials such as age-related payables and aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) We can usually provide an answer within an hour – as long as you make your application during standard business time and let us utilise the bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statement, we’ll provide the decision in just the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we may be able to offer the conditional pre-approval in about six hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be quicker based on the specifics of each application. Certain deals have been approved in 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal company hours. Also, permit us to use the advance bank verification link to check your bank’s information online. If you decide to send us copies of your bank statements , it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) we usually offer an answer within an hour – provided you submit your request within standard business hours and you allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statements, we will be able to provide the decision in just 1 business day.
For Larger Business Loans ($100K and up) we might be able to provide the conditional pre-approval within about six hours. Once you have 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 within just 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours and let us use the advance bank verification to instantly verify your bank account information online. If you opt to send us documents from your account statement, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a certain amount we consider a variety of aspects to determine how much we can lend you well-being of the company as well as the amount of the repayments your company can support. The total amount of your loan will depend on the specifics of your business.
If you apply for a specific amount we will consider a number of variables to determine your health of the company and the extent of repayments your company can support. The amount you receive from your loan will be determined by the particulars for your business.
Fees & repayments
How much should you charge for an business loan?
If you decide to make an application for the company financing, we will assess the risk profile of your business and provide you with a customised offer, including the amount of the loan, the duration and interest rates. This company loan is an upfront-priced loan and you’ll be aware in advance of the total amount due, which includes any charges or interest.
What is the basis for the rate I will be charged?
Business loan interest rates depend on several factors such as the amount that is borrowed, what company assets the money will be used for in addition to the industry that the company operates in, how long the business has been running, how long the company has sufficient cash flow to pay for the loan, as well as the overall well-being or financial standing of the business.
What are the charges?
There are no hidden costs for our company loans, and you’ll know exactly how much you need to pay and when, starting from day one. There’s no compounding interest, and the loan comes with no additional fees (as as you make your payments on time).
We don’t charge an application fee. You can apply for a loan with no cost upfront or any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing 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% of the amount of the loan.
Can I pay off the loan in advance?
You can choose to repay the entire amount of the loan in full at any time.
If you are deciding to do this please speak to our friendly company credit specialists. We will provide you with repayment details along with an early payout estimate. This is calculated as the total of the principal amount remaining plus any accrued interest as of the time of the early payout and 1.5 percent of the principal remaining plus 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 repayments either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being clear about the ways we gather information, use it, and exchange it, as well as ensure the security of your information is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to protecting the security of clients and privacy. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account details online. This allows us to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a company owner uses an asset that they own to obtain the loan. The asset could be an asset belonging to the personal, like the family home, or it could be a company asset such as a vehicle or other piece of machinery.
The vast majority of the lenders including the big banks, tend to make loans secured by assets. If you’re struggling to pay back the loan, the asset might be transferred to the lender. In essence it’s a way of securing new financing using the value of what you already own.
What do I require security for 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 the personal guarantee. In the event that you fulfill your loan obligations (as specified in your loan contract) Asset security is not required. For loans over $150K generally there is an individual guarantee and security in the form of charges on assets.