FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Corinda Small Business Loans
Tell me what you think of the Corinda Small Business Loans
Corinda unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What makes this Unsecured Loan different from an ordinary business loan?
The application to the Small Business Loan in under 10 minutes via the internet or over the phone, receive an answer within the same day and have the funds available in just 24 hours. Traditional business loans refer to an annual interest rate together with additional fees and charges. This business loan is an upfront priced loan so you will know ahead of time the total amount due, which includes any fees, charges or charges. This is then broken down into either weekly or daily payment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any company use, including cash flow management, company remodeling, marketing to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used to fund personal expenses.
About the Larger Corinda Business Loans
What is the Larger Corinda Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee which is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the business needs to be trading for at least 3 years with an annual turnover of at least $700,000. 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 to demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A Business Loan of a larger size can be used for almost any business purpose including company renovations, to purchase equipment or inventory, as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. This is by way of charge over assets and can include registration in the PPSR or filing as a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is general in nature, rather than stating security over a particular asset. The person who is signing the ensure is personally responsible if the business creditor 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 reflects security interests registered in respect of personal property (including objects or assets). The PPSR grants preference over private property granted depending on the date that a security interest was registered.
The caveat can be described as a formal document filed to provide the legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan that is greater than $250K, we may offer a preliminary pre-approval to help smooth out the process. We might be able to do this without a credit verification and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes the answer to a series of financial well-being checks. It’s in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you might receive could be subject to different terms.
The application process
Can I be eligible for funding?
You may be eligible for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for a 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 simple. Complete the online form within a couple minutes, and an experienced company expert in lending will be in touch to guide you through the process.
To apply for up $100,000, you’ll require ID details (valid Driver’s License) and a valid NZBN/IRD as well as at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent twelve months of bank records, IRD statement, last 2 years finalised financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) we can often offer an answer within one hour – as long as you make your application in standard business timings and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your banking statements we can provide the decision in just the span of one business day.
For the Larger Business Loan ($100K or more) we might be in a position to provide you with conditional pre-approval in around six hours. After you’ve signed your pre-approval form, it will take about 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Certain offers have been approved in less than 24 hours.
The fastest way is to ensure you apply during normal business hours, and let us use the advance bank verification link to check your bank’s information online. If you decide to send us the copies of bank statements , it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we usually provide an answer within one hour if you submit your request at standard business hours and let us make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements, we’ll be able to provide an answer within the span of one business day.
For Larger Business Loans ($100K to $500K) we might be likely to provide the conditional pre-approval in about six hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Certain offers have been approved within 24 hours.
The most effective method would be to 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 documents from your account statement, it takes a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a certain amount we look at a variety of elements for determining how much we can lend you health of your company and the level of repayments that your business can support. The total amount of your loan will be contingent on the specific circumstances that are unique to your company.
When you make an application for a set amount, we look at a range of elements to determine the health that is your business and the extent of the repayments your company will be able to support. The amount you receive from your loan will be determined by the particulars the company.
Fees & repayments
How much do you charge for the cost of a business loan?
When you request our company financing, we will assess the risk profile of your company and offer you with a customised offer, including the amount of the loan, the duration and the interest rates. A business loan is an upfront-priced loan which means you know in advance the total amount you will have to pay, including costs, fees, or interest rates.
What determines the rate that I am charged?
Business loan interest rates vary due to variables like the amount to be that is borrowed, what company assets the money are used to purchase, the industry the company operates in, the long the company is in operation for, whether the business has sufficient cash flow to pay for the loan, and also the overall health or creditworthiness of the business.
What are the cost?
There are no hidden fees for our company loans, and you’ll know precisely what you need to pay, and when, starting from day one. There’s no compounding interest, and there are no additional charges (as long as you make your payments on time).
We do not charge an application fee. You are able to get a cash loan no cost upfront or commitment to apply.
The Origination Fee covers the expenses involved with setting up and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I pay off the loan early?
You can decide to repay all of your advance loan at any time.
If you do decide to do this please contact our helpful business loan specialists. They will provide you with repayment details as well as an early payout amount. It will be calculated using the total of the principal remaining and any accrued interest at the time of early payout in addition to 1.5% of the principal balance and any fees that remain unpaid.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in with your cash flow general, we provide repayments either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being upfront about the ways we gather information, use it, and exchange it, as well as secure your information, is crucial and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to customer security and security. We make use of an advanced bank verification system link to instantly verify your bank account information online so we can offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the company owner uses an asset that they own to obtain the funds for a loan. The asset can be either an individual property, such as the family home, or it could be a business asset such as a vehicle as well as a piece of machine.
The vast majority of banks, not just the big banks, tend to secure loans against assets. If you’re having trouble paying back the loan then the asset could be taken over by the lender. In essence it’s means of securing new financing making use of the value of what you already own.
Are I require security to secure an business loan?
For loans that exceed $150,000, it is not necessary to secure assets upfront to access the money, however we do require a personal guarantee. In the event that you fulfill the terms of your loan (as stipulated in your loan contract document) the security of assets is not needed. For loans that exceed $150K, generally, you are able to get personal ensure and security is provided in the form of a charge over assets.