FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Chapel Hill Small Business Loans
Let me know about the Chapel Hill Small Business Loans
Chapel Hill unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from the traditional business loan?
Apply to this Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and the funds could be in your account within 24 hours. Traditional business loans refer to an annual rate of interest along with other charges and fees. Our company loan is a pre-paid loan and you’ll be aware of the amount you will have to pay, including the interest, fees and charges. Then, it is divided into weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for almost any company purpose including the management of cash flow, business remodels and marketing, to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal use.
About the Larger Chapel Hill Business Loans
What is the Larger Chapel Hill Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are scheduled 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% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a credit in this amount the business needs to have been operating for a minimum of 3 years and generate an annual revenue of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can I use the funding for?
A Larger Business Loan can be used for nearly every business reason, such as business remodeling, buying new equipment or inventory, as general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. This is by taking a charge over assets, which could also include registering this with the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a commitment to pay back a loan that is general in nature, rather than stipulating the security for a particular asset. The person who is signing the ensure is personally responsible if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including the assets or goods). The PPSR gives priority over personal property to be granted according to the date a security interest has been registered.
Caveats are legal document lodged to provide the legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan that exceeds $250K it is possible to offer an initial pre-approval in order to make the process. It is possible to make this decision without a credit check and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves the answer to a series of financial health checks. It is not an offer of credit or guarantee of funds. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you may receive may have different conditions.
The application process
Can I be eligible for funding?
You may apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for you to qualify for 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 simple and easy. Simply complete the online form within a couple minutes, and an experienced company loan specialist will be in touch to guide you.
To be eligible for up to $100,000 you’ll require identification details (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Application details including credit consent, 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we usually offer an answer within one hour if you apply during standard business hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you opt to submit copies of your bank statement, we’ll provide a decision within just the span of one company day.
For Larger Business Loans ($100K to $500K) we may be able to offer you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, it could be faster based on the particular circumstances of each application. Some transactions have received approval in just 24 hours.
The fastest way would be to make sure you apply during normal company hours. Also, allow us to use our modern bank verification link to instantly verify your bank account information online. If you choose to upload copies of your bank statements it may take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer in just one hour, provided you submit your request within normal business timings and allow us to use the advanced bank verification system to instantly verify your bank information online. If you want to submit copies of your bank statement, we’ll provide a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be able to offer you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Certain transactions have received approval in the space of 24 hours.
The most effective method can be ensure you apply during standard business hours and allow us to use the sophisticated bank verification link to instantly verify your bank account information online. If you send us the copies of bank statements it will take a little longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a specific amount we take into consideration a range of factors that determine what is the well-being of the company as well as the amount of repayments that your company is able to afford. The total amount of the loan will be determined by the specific circumstances for your company.
When you submit an application for a particular amount, we will consider a number of factors to assess your health that is your company as well as the amount of payments your company will be able to support. The total amount of the loan will be determined by the particulars for your company.
Fees & repayments
What is the cost for the cost of a business loan?
When you apply for business loans with us business financing, we’ll assess the risk profile the company and offer an individualised offer, including the amount of the loan, the duration and interest rates. The company loan is a loan that is priced upfront so you will be aware of the total amount you will have to pay, including charges or interest.
What is the factor that determines the price I pay?
Interest rates for company loans rates vary due to variables like the amount to be borrowed, what business assets the funds are used to purchase as well as the field the business is operating in, how long the business has been operating and in the event that the company has enough cash flow to fund the loan, and also the overall well-being or financial standing of the company.
What are the charges?
There are no hidden costs for our business loans, and you’ll know precisely what it is that you be required to pay, and when, starting from day one. There’s not any compounding interest and no extra fees (as as long as you pay your payments on time).
We don’t charge an Application Fee. You can make an application for loans with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay off the loan in advance?
You may choose to pay back the entire amount of the loan in full at any time.
If you choose to pursue this option, please contact our helpful company loans 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 principal remaining and accrued interest to the time of early payout plus 1.5% of the remaining principal and any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss due dates and also to be in line with your cash flow routine, we provide repayments either daily or weekly. They are automatically deducted from your company account.
Security & privacy
Will my data be protected?
Protecting your information, and being clear about how we collect, use, exchange and ensure the security of your information is of huge importance and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to customer security and privacy. We employ a highly sophisticated bank verification system to instantly verify your bank account information online. This allows us to offer rapid 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 can be either an individual property, such as the family home or an business property like a truck as well as a piece of machine.
The vast majority of lenders, including the big banks, tend to make loans secured by assets. If you’re struggling to pay back the loan then the asset might be taken over by the lender. In essence, it is a way of securing new funding making use of the value of what you already have.
Do I need security for an business loan?
For loans up to $150K the requirement for asset security is not required in advance to gain access to the funds However, we do require the personal guarantee. So long as you comply with the loan terms (as detailed in your loan contract) the security of assets will never be needed. For loans of over $150,000 generally, there is a personal guarantee and security in the form the charge of assets.