FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Coalfalls Small Business Loans
Let me know about the Coalfalls Small Business Loans
Coalfalls unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from an traditional company loan?
It is possible to apply for your Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an instant response and funds may be available in just 24 hours. Traditional company loans are based on an annual rate of interest plus other fees and charges. This business loan is a loan that is priced upfront so you will know ahead of time the total amount payable including any fees, interest or charges. This is then divided into a daily or weekly amount to be paid back.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business purpose including cash flow management, business renovations, marketing to purchase inventory, new equipment, or as general working capital and so much more. The loan is not available to fund personal expenses.
Concerning Larger Coalfalls Business Loans
What is the Larger Coalfalls Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size the company needs to have been operating for at least three years and generate an annual revenue of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funds be used for?
A large company loan is a great option for almost every business purpose including company renovations, purchase of new 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 a secured loan?
Asset security is required to obtain funding above $150,000. This is in the form of a charge over assets, and may be registered with the PPSR or making as a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is general in nature, rather than stating security over a particular asset. The person signing the guarantee is personally accountable if the business creditor 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 contains security interests registered in respect of personal property (including objects or assets). The PPSR allows the priority of personal property granted according to the date the security interest that is registered.
An affidavit is an official document lodged to provide the public notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking larger company loans that exceeds $250K we may be able to provide a preliminary pre-approval to help make the process. We could be able to apply for this without a credit check and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial health questions. It’s not an offer of credit or guarantee of financing. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you receive could have different conditions.
Application process
Do I qualify for funds?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application in few minutes and a dedicated business lending specialist will contact you to assist you.
To apply for up $100,000 you’ll need ID details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K-$250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Information on 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 current financial year financials, Aged Payables and Aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we usually provide an answer within an hour – as long as you apply in standard company time and you allow us to use the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your banking statements , we are able to provide the decision within just the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we could be in a position to offer the conditional pre-approval in around 6 hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Certain transactions have received approval in less than 24 hours.
The fastest way can be ensure you apply during normal company hours. Also, allow us to use the modern bank verification link to confirm your bank details online. If you opt to send us copies of your bank statement, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often provide a response in one hour – provided you submit your request at standard business hours and permit us to utilise the advanced bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statements, we’ll be able to offer the decision in just an business day.
If you are applying for Larger Business Loans ($100K to $500K) we could 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 approximately 2-3 days to receive final approval, however this can be faster depending upon the circumstances for each application. Certain deals have been approved in 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours and allow us to use the advance bank verification link to instantly verify your bank information online. If you send us the copies of bank statements, it can take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a specific amount we look at a variety of aspects for determining what is the health for your company and the amount of repayments that your business can support. The amount you receive from your loan will depend on the particular circumstances of your company.
When you apply for a certain amount, we take into consideration a variety of variables to determine the well-being of your company as well as the amount of payments your business will be able to support. The amount you receive from the loan will be determined by the particulars of your company.
Fees & repayments
How do you charge for a company loan?
If you decide to apply for business loans with us company loans, we’ll assess the risk assessment of your company and provide you with a tailored proposal that includes the loan amount, the terms and the interest rates. A business loan is a loan that is priced upfront and you’ll be aware of the total amount payable including any charges, interest rates or fees.
What determines the rate that I will be charged?
Interest rates for business loans rates vary due to factors like the amount of money that is borrowed, what business assets the money will be used for, the industry the business is operating in, how long the business has been in operation and whether the business has sufficient cash flow to support the loan, as well as the overall health and creditworthiness of the company.
What are the fees?
There aren’t any hidden costs with our company loans, and you’ll know precisely what you be required to pay and at what time, from day one. There’s no compounding and no extra fees (as as long as you pay your payments punctually).
We do not charge an application fee. You are able to apply for a loan with without any upfront costs or any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan earlier?
You may choose to pay back all of your loan early at any time.
If you are deciding to take this route, please speak to our friendly business lending experts. We will offer you with details for repayment and an early payout figure. This will be calculated as the total of the remaining principal amount plus any accrued interest as of the time of early payout, plus 1.5% of the principal balance and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payments and to work with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and knowing how we collect information, use it, and exchange it, as well as safeguard your data, is vital and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their security. We use an advanced bank verification system link to instantly verify your bank account information online so we can provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where the business owner borrows from assets they own to make the funds for a loan. The asset may be a personal asset like the family home or an business asset such as a vehicle or other piece of machinery.
The majority of lenders, even the largest banks, are inclined to guarantee loans against assets. If you’re struggling to pay back the loan, then the asset could be taken over by the lender. In essence, it is an opportunity to secure additional financing taking advantage of the value of what you already own.
Are I require security for an company loan?
For loans up to $150,000 no asset security is required before you are able to access the money however, we require a personal guarantee. require a personal guarantee. In the event that you fulfill the loan terms (as specified in your loan contract document), asset security will never be required. For loans over $150K generally, there is an individual ensure and security that is in the form a charge over assets.