FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Chermside West Small Business Loans
Tell me more about Chermside West Small Business Loans
Chermside West unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from a traditional company loan?
You can apply for the Small Business Loan in under 10 minutes via the internet or by phone. You will receive a same day response and have the funds on your account within 24 hours. Traditional company loans reference an annual interest rate as well as other fees and charges. The business loan is a pre-paid loan which means you know in advance the total amount due, which includes the interest, fees and charges. Then, it is broken down into either weekly or daily installment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company need, such as control of cash flow business renovations, marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available to fund personal expenses.
Concerning Larger Chermside West Business Loans
What is the Larger Chermside West Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are scheduled weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount the business needs to have been operating for at least three years, and have an annual income of $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funds for?
A Larger Business Loan can be used for nearly any business use, including business remodeling, buying equipment or inventory or as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. This is by taking a charge over assets, and may be registered in the PPSR or registering a caveat.
A director’s or personal guarantee is a commitment to repay credit that is generally based rather than defining the security for a particular asset. The person who is signing the guarantee is personally liable in the event that the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It reflects security interests registered in respect of personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be granted depending on the date that a security interest has been registered.
Caveats are legal document that is filed to provide an official notice of a claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for an enterprise loan that exceeds $250K we can offer an initial pre-approval that will help simplify the process. It is possible to apply for this without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial assessment that includes you answering some financial health questions. It’s in no way an offer, nor is it a guarantee of financing. Acceptance without condition is subject to an extensive credit evaluation and any offer you receive could be on different conditions.
Application process
Can I be 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)
- can demonstrate at least 6 months worth of trade (for 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 fast and easy. Just fill out the online application in just a few minutes, and an experienced business credit specialist will contact you to help you.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s License), 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: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) We can usually provide a response in one hour, provided you apply in quality business timings and allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you want to send us copies of your bank statement, we’ll provide the decision within the span of one business day.
For the Larger Business Loan ($100K or more) we could be capable of provide the conditional pre-approval 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, this could be shorter based on the specifics of each application. Certain deals have been approved within the space of 24 hours.
The quickest way to apply is to make sure you apply during normal business hours, and let us use the modern bank verification link to verify your bank information online. If you choose to upload copies of your bank statements it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer within one hour – as long as you make your application during normal business times and permit us to use the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statement, we’ll provide the decision in just an business day.
For the Larger Business Loans ($100K up to $500,000) we might be in a position to offer you with pre-approval conditional to your application in around six hours. Once you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based upon the circumstances for each application. Some agreements have been approved in the space of 24 hours.
The fastest method for you to apply is make sure you apply during normal business hours and let us use the sophisticated bank verification to instantly confirm your bank details online. If you decide to upload the copies of bank accounts, it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a specific amount we look at a variety of aspects for determining the well-being for your company and the level of payments your company is able to afford. The amount you receive from your loan will depend on the specific circumstances of your company.
If you apply for a specific amount we look at a range of variables to determine how much we can lend you such as well-being of the company and the amount of the repayments your company can support. The total amount of the loan will be determined by the specific circumstances for your business.
Fees & repayments
How much do you charge for the cost of a company loan?
When you apply for business loans with us business financing, we will assess the risk assessment the business and offer an individualised offer, including the amount of loan, the term and the interest rates. The business loan is an upfront cost loan and you’ll know the exact amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I am charged?
Interest rates for company loans rates depend on a variety of factors like the amount of money that is borrowed, what business assets the funds are used to purchase and the sector the company operates in, how long the company is in operation as well as in the event that the business has enough cash flow to support the loan, as well as the overall health or financial standing of the company.
What are the costs?
There are no hidden fees for our company loans, and you’ll know exactly how much you’ll need to pay and when, right from the first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments in time).
We do not charge an application fee. You can apply for a loan absolutely no upfront cost and no commitment to apply.
The Origination Fee is the cost associated with the setting up and management of the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I repay the loan earlier?
You can choose to repay all of your loan in full at any time.
If you are deciding to do this please contact our helpful company lending specialists. The specialists will offer you with details for repayment as well as an early payout amount. It will be calculated using the total of the principal amount remaining plus any accrued interest as of the time of early payment plus 1.5 percent of the principal amount remaining and any fees that remain unpaid.
What are the repayment methods?
To ensure that you don’t miss payments and to work with your cash flow cycle we provide repayments either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear the ways we gather data, process, exchange and secure your information, is crucial and an integral 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 secure your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to security for our clients and security. We employ a highly sophisticated bank verification system link to instantly confirm your bank account information online so we can offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when the business owner makes use of an asset that they own to secure the funds for a loan. The asset may be an asset belonging to the personal, like the family home or an business property like a truck or other piece of machinery.
The majority of the lenders including the major banks, prefer to guarantee loans against assets. If you’re struggling to pay back the loan, then your assets could be sold by the lender. In essence it’s a way of securing new financing using the worth of the asset you already own.
What do I need security to secure an company loan?
For loans of up to $150,000, it is not necessary to secure assets upfront to access the money however, we do require the personal guarantee. In the event that you fulfill the loan terms (as detailed in the loan contract) the security of assets will never be needed. For loans of over $150,000 typically, you will need an individual guarantee and security is provided in the form of a charge over assets.