FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Cannon Hill Small Business Loans
Let me know what you think of the Cannon Hill Small Business Loans
Cannon Hill unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from a traditional company loan?
Apply to this Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an instant response and the money could be on your account within 24 hours. Traditional company loans are based on an annual rate of interest along with other charges and fees. We offer a company loan is a pre-paid loan so you will be aware in advance of the total amount payable including any fees, charges or charges. Then, it is broken down into a daily or weekly repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost any business purpose including managing cash flows, company improvements, advertising to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used to fund personal expenses.
Concerning Larger Cannon Hill Business Loans
What is the Larger Cannon Hill Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are either weekly or fortnightly depending on your cash flow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large, your business needs to be in operation for at least 3 years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can I use the funding for?
A Larger Business Loan can be used for almost any business use, including business improvements, purchasing inventory or new equipment, as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. It’s in the form of a charge over assets, and may include registration through the PPSR or the registration of a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is general in nature, rather than stipulating security over an asset. The person signing the ensure is personally liable if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including items or assets). The PPSR gives prioritisation over property that is personal to be assigned in accordance with the date on which a security interest that is registered.
A caveat is a legal form of document to provide an official notice of a claim against a property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan that is greater than $250,000 we may be able to provide an initial pre-approval that will help simplify the process. We could be able to do this without a credit check and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves the answer to a series of financial health checks. It is neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you may receive may be subject to different conditions.
The application process
Do I have the right to receive funds?
You are eligible to apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a couple minutes, and a dedicated company credit specialist will call you to guide you.
To be eligible for up to $100,000 you’ll require proof of identity (valid Driver’s License) as well as an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details for application including credit consent twelve months of bank records, IRD statements as well as the two most recent years’ financial statements, as well as interim current financial year financials such as age-related payables and aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer in just one hour, provided you submit your request at standard company times and you allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your banking statements , we are able to provide an answer within one company day.
For Larger Business Loans ($100K up to $500,000) we may be in a position to offer you with pre-approval conditional to your application in around 6 hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, this can be quicker based upon the circumstances for each application. Certain transactions have received approval within the space of 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal company hours. You can also let us use the modern bank verification to check your bank’s information online. If you send us copies of your bank statements , it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) We can usually provide an answer within an hour, provided you apply during normal business time and allow us to make use of 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 can offer an answer in as little as an business day.
For the Larger Business Loans ($100K to $500K) We may be in a position to offer you with conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive 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 would be to ensure you apply during standard business hours, and allow us to use our advanced bank verification system link to instantly verify your bank information online. If you send us duplicates of your banking statements it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. When you make an application for a particular amount, we consider a variety of factors for determining how much we can lend you health of the business as well as the amount of payments your company is able to afford. The total amount of your loan will be contingent on the particular circumstances for your company.
When you make an application for a specific amount we look at a range of aspects to determine the health of the company and the amount of repayments that your business is able to afford. The total amount of the loan will be determined by the specifics of your business.
Fees & repayments
How much do you charge for an company loan?
If you decide to make an application for one of our company loans, we’ll assess the risk assessment the company and provide you with a customised offer that includes the amount of the loan, the duration and interest rates. This business loan is an upfront cost loan so you will be aware of the total amount payable including any charges or interest.
What determines the rate that I pay?
The interest rates on business loans rates vary due to factors like the amount of money of money borrowed, the company assets the money will be used for as well as the field the company is in, how long the company is in operation, how long the business has enough cash flow to cover the loan, and general well-being as well as creditworthiness business.
What are the charges?
There aren’t any hidden charges for our business loans. You’ll know precisely what you need to pay, and when, right from the day you sign up. There’s not any compounding interest and no additional fees (as as you make your payments in time).
We don’t charge an Application Fee. You can get a cash loan with without any upfront costs or any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I repay the loan early?
You can repay the total amount of your loan at any point in time.
If you do decide to pursue this option, please talk to one of our helpful company loans specialists. The experts will provide you with details on repayment and an early payment figure. The figure will be calculated as the total of the principal remaining and any accrued interest at the time of early payout and 1.5 percent of the principal amount remaining and any outstanding fees.
What is the process for repayments?
To help you avoid missing payments and to work your cash flow schedule, we offer repayments either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be protected?
Security of your data, and being transparent about how we collect the information we collect, use, share and safeguard your data, is of huge importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to customer security and security. We use an advanced bank verification system link to instantly verify your bank account details online to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the business owner uses an asset 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 property like a truck as well as a piece of machine.
The majority of banks, not just the major banks, prefer to make loans secured by an asset. If you’re struggling to pay back the loan then the asset could be sold by the lender. In essence it’s a way of securing new funding using the value of what you already own.
What do I require security for a business loan?
For loans of up to $150K, there is no requirement for asset security prior to the loan’s access however, we require a personal guarantee. require an individual guarantee. As long as you follow the terms of your loan (as stated in your loan contract) Asset security will never be required. For loans that exceed $150K, typically, you will need the option of a personal guarantee and security in the form the charge of assets.