FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Camira Small Business Loans
Tell me more about Camira Small Business Loans
Camira unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What is this Unsecured Loan different from an traditional business loan?
You can apply for this Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and have the funds in your account within 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. The company loan is a loan that is priced upfront so you will be aware in advance of the total amount to be paid, including any interest, fees or charges. Then, it is broken down into either a daily or weekly repayment figure.
What could the Small Business Loan be used for?
A Small Business Loan can be used for almost every business purpose including managing cash flows, company improvements, advertising to purchase inventory, new equipment, for general working capital, and much more. The loan cannot be used for personal reasons.
Concerning Larger Camira Business Loans
What is the Larger Camira Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are weekly or fortnightly depending on your cash flow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your company needs to be in operation for at least 3 years, and have an annual income of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funding be used for?
A larger company loan can be used for almost any business reason, such as company renovations, purchase of equipment or inventory or as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required for accessing funds over $150,000. It’s as a result of an charge over assets, and could include registration on the PPSR or registering as a caveat.
A personal or director’s guarantee is a guarantee to pay back a loan that is generally in nature rather than stating security over a particular asset. The person who is signing the guarantee is personally accountable if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It reflects security interests registered in respect of personal property (including objects or assets). The PPSR allows preference over private property granted depending on the date that a security interest that is registered.
Caveats are legal form of document to provide an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for the Larger Business Loan of more than $250,000, we may offer an initial pre-approval to ease the process. It is possible to make this decision without a credit check, and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering a few financial well-being questions. It is neither an offer nor a guarantee of finance. A conditional approval is subject an extensive credit evaluation and any offer that you might receive could be based on different terms.
The application process
Are I eligible for funding?
You are eligible to apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form in just a few minutes, and a dedicated business loan specialist will be in touch to help you.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K-$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: Information on the application including credit consent and 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, and interim financial statements for the current year including Aged Payables, Aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we can often provide an answer within an hour – as long as you make your application at quality company time and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you opt to send us copies of your bank statements , we are able to provide a decision within 1 company day.
For Larger Business Loans ($100K to $500K) we may be likely to offer you with a conditional pre-approval in about 6 hours. After you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Certain offers have been approved in 24 hours.
The most efficient method would be to ensure you apply during standard company hours. Also, allow us to use the advance bank verification to instantly check your bank’s information online. If you decide to upload documents from your account statement, it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) We can usually offer an answer in just one hour – provided you make your application at normal business hours and permit us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statement, we’ll provide an answer within one business day.
For Larger Business Loans ($100K and up) we may be likely to offer you with pre-approval conditional to your application in around six hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Some agreements have been approved in the space of 24 hours.
The quickest method would be to ensure you apply during standard business hours, and permit us to use the advanced bank verification system link to instantly confirm your bank details online. If you decide to upload copies of your bank accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. When you submit an application for a particular amount, we will consider a number of aspects to determine what is the well-being for your business and the extent of repayments that your company will be able to support. The total amount of your loan will be contingent on the specific circumstances for your business.
When you apply for a set amount, we take into consideration a variety of factors to determine how much we can lend you such as well-being that is your company as well as the amount of the repayments your business can afford. The amount you receive from your loan will be determined by the specific circumstances that are unique to your company.
Fees & repayments
How much should you charge for an company loan?
If you decide to request our business loans, we will assess the risk assessment of your business and provide you with a customised offer that includes the amount of the loan, the duration and the interest rates. This business loan is an upfront cost loan therefore you will know in advance the total amount to be paid, including any charges, interest rates or fees.
What determines the amount I’m charged?
Business loan interest rates depend on a variety of factors like the amount of money borrowed, what company assets the money will be used for, the industry the company operates in, how long the company has been operating, in the event that the company has sufficient cash flow to support the loan, and general health as well as creditworthiness business.
What are the charges?
There are no hidden fees with our business loans. You’ll know precisely how much you’ll need to pay and when, right from day one. There’s no compounding interest, and there are no additional charges (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You can request a credit loan without any upfront costs or the obligation to take action.
The Origination Fee covers the costs associated in establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I pay out the loan in advance?
You may choose to pay back the entire amount of the loan early at any time.
If you choose to pursue this option, please call our helpful company lending professionals. They will offer you with details on repayment as well as an early payout amount. It will be calculated using the total of the remaining principal amount and any accrued interest at the time of the early payout and 1.5 percent of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss due dates and also to be in line with your cash flow routine, we provide payments that are either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my information be protected?
Protecting your information, and being transparent about the ways we gather information, use it, and exchange it, as well as protect your information, is crucial and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We use an advanced bank verification system that allows you to instantly verify the bank account details online. This allows us to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the business owner utilises an asset that they own to get the funds for a loan. The asset can be a personal asset like the family home or it could be a company asset like a truck or other piece of machinery.
The majority of lenders, including the major banks, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, then the asset could be transferred to the lender. In essence it’s an opportunity to secure new financing by making use of the value of what you already have.
Should I need security to secure an business loan?
For loans up to $150K there is no requirement for asset security upfront to access the money but we require a personal guarantee. need a personal guarantee. As long as you follow your loan commitments (as specified in your loan contract) the security of assets will never be needed. If you take out loans in excess of $150,000 typically, you will need personal guarantee and security is provided in the form of charges on assets.