FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Cedar Creek Small Business Loans
Let me know how you can avail the Cedar Creek Small Business Loans
Cedar Creek unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
What is this Unsecured Loan different from an traditional company loan?
It is imaginable to apply for your Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and the money could be available in just 24 hours. Traditional company loans have an annual rate of interest along with other charges and fees. We offer a company loan is an upfront priced loan and you’ll know ahead of time the total amount due, which includes the interest, fees and charges. This is then broken down into weekly or daily 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 any business need, such as cash flow management, business renovations, marketing to purchase inventory, new equipment, as general working capital, and much more. The loan cannot be used for personal reasons.
About the Larger Cedar Creek Business Loans
What is the Larger Cedar Creek Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your business needs to have been trading for at least 3 years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A Larger Business Loan can be used for almost every company purpose including business improvements, purchasing new equipment or inventory or as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. It is usually as a result of an charge against assets, and may include registration with the PPSR or filing as a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally in nature rather than defining the security of a specific asset. The person who is signing the guarantee is personally liable in the event that the company creditor is unable to pay back 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 granted to individuals who own personal property (including objects or assets). The PPSR grants prioritisation over property that is personal to be assigned according to the date the security interest has been registered.
A caveat is a legal document lodged to provide an official notice of a claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for an enterprise loan that exceeds $250K we can offer an initial pre-approval to ease the process. We may be able to get this done without a credit verification and within 6 hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering some financial well-being checks. It’s neither an offer nor a guarantee of credit. A conditional approval is subject a full credit assessment and any offer you are offered could be subject to different conditions.
Application process
Do I qualify for funds?
You can apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Complete the online form within a few minutes and an experienced business loan specialist will call you to help you.
To apply for up to $100,000, you’ll need identification details (valid Driver’s License) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K – $250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details for application including credit consent and 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, as well as interim financials from the current financial year including Aged Payables, Aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K and up) we typically offer an answer in just one hour if you apply within quality company time and allow us to utilise the bank verification system to instantly verify your bank information online. If you choose to upload copies of your bank statements , we will be able to offer the decision within one company day.
For the Larger Business Loan ($100K to $500K) we may be able to offer the conditional pre-approval within about six hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Certain transactions have received approval within the space of 24 hours.
The quickest method would be to make sure you apply during standard business hours, and allow us to use the advance bank verification link to confirm your bank details online. If you upload the copies of bank statements it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) we can often provide an answer within an hour – as long as you make your application in standard business hours and you allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statements, we will be able to offer an answer in just 1 business day.
For Larger Business Loans ($100K or more) We may be able to provide you with conditional pre-approval within six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Some deals have been approved in just 24 hours.
The fastest method is to ensure you apply during normal business hours and allow us to use our advanced bank verification system link to instantly verify your bank information online. If you opt to upload duplicates of your banking statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a certain amount we look at a variety of variables for determining how much we can lend you well-being of your company and the amount of repayments that your company is able to afford. The amount you receive from the loan will be determined by the particular circumstances for your company.
When you submit an application for a certain amount, we consider a variety of aspects to determine how much we can lend you such as health that is your business and the amount of repayments that your business can support. The total amount of your loan will depend on the particular circumstances that are unique to your business.
Fees & repayments
How do you charge for an business loan?
If you decide to apply for the company credit, we will assess the risk assessment of your business and provide you with a customised offer including the amount of loan, the term and interest rates. This business loan is an upfront priced loan which means you know the exact amount payable including any interest rates, fees or charges.
What determines the rate that I pay?
The interest rates on business loans rates vary due to variables like the amount to be of money borrowed, the company assets the money will be used for, the industry the business is in, how long the company has been running and how long the business has sufficient cash flow to fund the loan, and also the overall well-being and creditworthiness of the company.
What are the cost?
There are no hidden fees for our company loans. You’ll know precisely what you be required to pay, and when, from the first day. There’s no compounding and the loan comes with no additional fees (as as you make your payments punctually).
We do not charge an Application Fee. You can request a credit loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay out the loan early?
You may choose to pay back the entire amount of the loan early at any time.
If you are deciding to do this please talk to one of our helpful company loans professionals. The professionals will provide you with details on repayment as well as an early payout amount. This is calculated as the total of the remaining principal amount and accrued interest to the date of early payout plus 1.5% of the principal amount remaining and any fees that remain unpaid.
What are the repayment methods?
To make sure you do not miss payments and to work with your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and making it clear how we collect the information we collect, use, share and protect your information, is crucial and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our customers and privacy. We use an advanced bank verification system that allows you to instantly confirm your bank account information online so we can offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an company owner makes use of an asset that they own to make the funds for a loan. The asset could be a personal asset like the family home, or a company property like a truck or piece or equipment.
The vast majority of lending institutions, even the banks with the biggest size, prefer to make loans secured by an asset. If you’re struggling to pay back the loan, then your asset may be taken over by the lender. In essence it’s a way of securing new funding making use of the value of what you already have.
Do I require security to secure a business loan?
For loans up to $150K it is not necessary to secure assets prior to the loan’s access however, we do need a personal guarantee. In the event that you fulfill your loan commitments (as stipulated in your loan contract document) Asset security is not required. If you take out loans in excess of $150K generally there is a personal guarantee and security in the form charges on assets.