FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Cashmere Small Business Loans
Let me know about the Cashmere Small Business Loans
Cashmere unsecured loans provides the range of $5,000 to $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 the traditional company loan?
It is possible to apply for this Small Business Loan in under 10 minutes online or on the phone. You’ll receive a same day response and the funds could be in your account within 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. The business loan is an upfront priced loan which means you know in advance the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into a daily or weekly installment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company reason, such as cash flow management, business renovations, marketing to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal purposes.
About Larger Cashmere Business Loans
What is the Larger Cashmere Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are either weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funds be utilised?
A Business Loan of a larger size can be used for almost every business use, including company renovations, to purchase inventory or new equipment as well as for 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 necessary for accessing funds over $150,000. It is usually in the form of a charge against assets, and may include the registration of this with the PPSR or the registration of a caveat.
A director’s or personal ensure is a guarantee to repay a loan which is generally in nature rather than specifying security over a particular asset. The person who is signing the ensure is personally responsible if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR grants the priority of personal property assigned according to the date the registration of a security interest.
An affidavit is an official document that is filed to provide the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking an enterprise loan that is greater than $250K it’s possible to offer an initial pre-approval in order to smooth out the process. It is possible to apply for this without a credit check and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves answering a couple of financial health checks. This is neither an offer nor a guarantee of financing. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you receive could be on different terms.
The application process
Can I be eligible for funding?
You can apply for an company 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)
- can demonstrate at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application in just a few minutes, and an experienced business credit specialist will be in touch to assist you.
To apply for up $100,000 you’ll need identification details (valid Driver’s Licence), a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Information on the application including credit consent, 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, and interim financials for the current financial year such as age-related payables and aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we usually offer an answer in just one hour – as long as you submit your request during quality business hours and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your bank statement, we’ll provide a decision in as little as the span of one company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we might be likely to offer you with pre-approval conditional to your application within about six hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, it could be faster based upon the circumstances for each application. Certain offers have been approved within less than 24 hours.
The quickest way to apply is to make sure you apply during standard company hours. You can also allow us to use the modern bank verification to confirm your bank details online. If you opt to send us duplicates of your banking statement, it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K and up) we can often provide an answer within one hour, provided you make your application during standard business times and allow us to use the bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your banking statements we can offer a decision in as little as one business day.
For the Larger Business Loans ($100K and up) we could be in a position to provide the conditional pre-approval 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 can be faster depending on the circumstances of each application. Certain transactions have received approval in the space of 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours. Also, let us use the sophisticated bank verification link to verify your bank account information online. If you opt to upload the copies of bank statements it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a specific amount we consider a variety of factors in order to assess your health that is your business and the amount of repayments that your business will be able to support. The total amount of your loan will depend on the specifics for your business.
When you make an application for a set amount, we consider a variety of elements to assess the well-being of your company and the level of repayments your business can support. The total amount of your loan will depend on the specifics for your business.
Fees & repayments
How do you charge for an business loan?
When you apply for one of our business credit, we’ll assess the risk profile that you have for your business and provide you with a customised offer, including the loan amount, the terms and the interest rates. A company loan is an upfront priced loan and you’ll know the exact amount to be paid, including any interest rates, fees or charges.
What determines the amount I’m charged?
The interest rates on company loans rates vary due to factors including the amount that is borrowed, what company assets the funds are used to purchase as well as the field the business operates in, how long the company has been operating as well as how long the business has enough cash flow to pay for the loan, and overall well-being and creditworthiness of the company.
What are the cost?
There are no hidden costs with our business loans, and you’ll know exactly how much you’ll be required to pay and when, starting from day one. There’s no compounding interest, and no extra fees (as as long as you pay your payments punctually).
We do not charge an application fee. You are able to get a cash loan with no upfront cost or commitment to apply.
The Origination Fee covers the costs associated with the setting up and management of the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay out the loan in advance?
You can decide to repay the entire amount of your loan at any point in time.
If you decide to take this route, please contact our helpful company lending specialists. They’ll offer you with details for repayment and an early payment figure. The figure will be calculated as the sum of the principal balance and the accrued interest up to the time of early payment and 1.5% of the principal remaining and any fees that remain unpaid.
What is the process for repayments?
In order to help you avoid missing repayments and to fit in with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and knowing the ways we gather, use, exchange and ensure the security of your information is of huge importance and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to protecting the security of clients and privacy. We use an advanced bank verification system link to immediately confirm your bank account information online so we can offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when a business owner makes use of the assets they have to make the funding. The asset can be a personal asset like the family home, or an company property like a truck or piece or equipment.
The vast majority of banks, even the major banks, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, the asset could be taken over by the lender. In essence it is means of securing new financing using the worth of the asset you already have.
What do I need security to secure an company loan?
Up to $150K in loans no asset security is required before you can access the money however, we do need the personal guarantee. So long as you comply with your loan commitments (as specified in the loan contract) and you are able to meet your obligations, asset security will never be needed. For loans of over $150,000 generally there is personal ensure and security in the form charges on assets.