FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Chambers Flat Small Business Loans
Let me know what you think of the Chambers Flat Small Business Loans
Chambers Flat unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from a traditional company loan?
The application to your Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get a same day response and the money could be in your account in 24 hours. Traditional company loans have an annual rate of interest along with other charges and fees. Our business loan is a pre-paid loan therefore you’ll be aware of the amount you will have to pay, including any fees, interest or charges. Then, it is divided into weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any company need, such as the management of cash flow, company renovations, marketing, to purchase inventory or new equipment, or as general working capital and much more. The loan is not available for personal reasons.
About Larger Chambers Flat Business Loans
What is the Larger Chambers Flat Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the business needs to have been operating for at least three years, and have an annual income of at least $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funding be used for?
A large business loan can be used to fund almost every business purpose including company improvements, purchasing equipment or inventory for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. This can be done by taking a charge against assets, which could also be registered in the PPSR or making a caveat.
A personal or director’s ensure is a promise to repay credit that is generally based rather than specifying the security for a particular asset. The person who is signing the ensure is personally liable if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including goods or assets). The PPSR gives the priority of personal property assigned in accordance with the date on which a security interest that is registered.
A caveat is a legal form of document to offer an official notice of a claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for an enterprise loan that exceeds $250,000 we may be able to provide an initial pre-approval in order to ease the process. We may be able to make this decision without credit checks and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial well-being checks. It’s neither an offer nor a guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you might receive could have different conditions.
The application process
Do I qualify for funds?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (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 simple and simple. Simply complete the online form within a few minutes and an experienced business loan specialist will be in touch to assist you.
To be eligible 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 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details for application including credit consent twelve months bank statement, an IRD statement as well as the two most recent years’ financial statements, and interim financials from the current financial year such as age-related payables and aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we usually provide an answer within an hour if you submit your request at quality business hours and allow us to utilise the bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statements , we are able to offer an answer within just the span of one company day.
For Larger Business Loans ($100K and up) we might be likely to offer you with pre-approval conditional to your application in about 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Certain deals have been approved within just 24 hours.
The most effective method for you to apply is make sure you apply during standard business hours. Also, permit us to use the advanced bank verification system link to verify your bank account information online. If you opt to upload documents from your account accounts, it takes a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we usually offer an answer in just one hour – provided you apply at standard business hours and allow us to use the advanced bank verification system to instantly verify your bank details online. If you opt to submit copies of your bank statements, we are able to offer the decision in just the span of one business day.
For Larger Business Loans ($100K and up) we could be able to provide the conditional pre-approval in about six hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending on the circumstances of each application. Some deals have been approved within 24 hours.
The quickest method is to ensure you apply during normal business hours, and allow us to use our modern bank verification to confirm your bank details online. If you decide to send us duplicates of your banking statements, it will take a little longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a certain amount we take into consideration a range of elements that determine the well-being for your business and the amount of repayments that your company can afford. The amount you receive from your loan will be contingent on the specifics the company.
When you submit an application for a particular amount, we take into consideration a variety of factors to determine your health of the company as well as the amount of repayments that your business can support. The amount you receive from your loan will be determined by the particulars for your business.
Fees & repayments
How much should you charge for an company loan?
If you decide to apply for one of our company financing, we will assess the risk profile for your business and offer you with a customised proposal that includes the amount of loan, the term and the interest rates. This business loan is an upfront priced loan therefore you will be aware of the total amount due, which includes any charges or interest.
What determines the rate that I will be charged?
The interest rates on company loans rates depend on a variety of variables like the amount to be of money borrowed, the company assets the funds are used to purchase, the industry the business operates in, how long the business is in operation as well as what percentage of the company has sufficient cash flow to cover the loan, and the general health or financial standing of the business.
What are the costs?
There are no hidden fees for our company loans, and you’ll be aware of the amount it is that you need to pay and when, right from the first day. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments in time).
We do not charge an Application Fee. You are able to apply for a loan with no upfront cost or obligation to proceed.
The Origination Fee is the cost associated with establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I repay the loan in advance?
You can repay all of your loan at any point in time.
If you choose to pursue this option, please contact our helpful business loans specialists. The specialists will offer you with details on repayment along with an early payout estimate. The figure will be calculated as the sum of the remaining principal amount and any accrued interest at the date of early payout plus 1.5% of the principal balance and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payments and to work with your cash flow cycle we provide payments that are either weekly or daily. They will be automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
Security of your data, and being upfront about the ways we gather, use, exchange and safeguard your data, is of huge importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard 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 clients as well as their security. We make use of an advanced bank verification system that allows you to instantly verify your bank account details online, allowing us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a company owner utilises an asset they own to secure the funding. The asset may be an individual property, such as the family home, or a company property like a truck or piece of equipment.
The majority of lenders, even the major banks, prefer to secure loans against assets. If you are having difficulty paying back the loan, then the asset might be transferred to the lender. In essence it is an opportunity to secure additional financing using the worth of the asset you already own.
Are I need security for an company loan?
For loans that exceed $150,000, no asset security is required in advance to gain access to the funds but we do need an individual guarantee. So long as you comply with your loan obligations (as stipulated in your loan contract), asset security is not needed. For loans over $150,000 typically, you will need personal ensure and security in the form of an asset charge.