FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Chelmer Small Business Loans
Tell me how you can avail the Chelmer Small Business Loans
Chelmer unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
What is what makes the Unsecured Loan different from an traditional business loan?
Apply to your Small Business Loan in under 10 minutes online or on the phone. You’ll receive a same day response and funds may be in your account in 24 hours. Traditional company loans reference an annual rate of interest as well as other fees and charges. Our business loan is a cash-based loan therefore you’ll know ahead of time the total amount due, which includes any interest, fees or charges. Then, it is broken down into either 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 to fulfill almost any company need, such as control of cash flow company renovations, marketing to purchase inventory, new equipment, for general working capital, and much more. The loan cannot be used for personal purposes.
About larger Chelmer Business Loans
What is the Larger Chelmer Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. The repayments are made weekly or fortnightly, depending on your situation.
How’s the Origination Fee calculated?
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?
In order to be eligible for a loan in this amount, your company needs to be operating for at least three years with 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, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funding be utilised?
A Business Loan of a larger size can be used for almost all company reason, such as business renovations, purchase of equipment or inventory as well as for general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. It is usually as a result of an charge over assets, which could also include the registration of this through the PPSR or making as a caveat.
A director’s or personal ensure is a promise to pay back a loan that is generally in nature rather than specifying security over an asset. The person signing the guarantee is personally responsible if the business the borrower fails to re-pay 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 the assets or goods). The PPSR allows priority over personal property to be assigned according to the date the security interest that is registered.
Caveats are legal document that is filed to provide the legal claim on a property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan of $250,000 or more it’s possible to offer an initial pre-approval to ease 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 you answering some financial well-being questions. This is in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you might receive could have different conditions.
Application process
Are I eligible for funding?
You are eligible to apply for a business 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)
- must show at least six months of trading (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application within a couple minutes, and a dedicated business expert in lending will contact you to guide you through the process.
To apply for up to $100,000 you’ll need ID details (valid Driver’s Licence), an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Details for application including credit consent and 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, in addition to interim financial statements for the current year as well as Aged Payables and Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we can often offer a response in one hour – as long as you submit your request in quality business hours and permit us to utilise the bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements , we are able to provide the decision in just the span of one business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be in a position to offer you with a conditional pre-approval in around six hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this could be shorter based on the particular circumstances of each application. Certain deals have been approved within just 24 hours.
The most effective method is to make sure you apply during normal company hours. Also, let us use the advance bank verification to instantly confirm your bank details online. If you upload documents from your account statement, it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) we typically provide a response in one hour – as long as you apply in normal business times and permit us to use the advanced bank verification system link to instantly verify your bank’s information online. If you want to send us copies of your bank statements, we are able to provide a decision in as little as one business day.
If you are applying for Larger Business Loans ($100K or more) we might be in a position to offer the conditional pre-approval in about six hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be faster depending on the circumstances of each application. Some transactions have received approval in 24 hours.
The quickest method is to ensure you apply during standard business hours. Also, allow us to use the advanced bank verification system to instantly verify your bank information online. If you choose to upload documents from your account statement, it takes a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a particular amount, we consider a variety of elements in order to assess how much we can lend you health of the business and the extent of repayments that your company is able to afford. The amount you receive from your loan will be contingent on the specific circumstances of your company.
When you apply for a particular amount, we take into consideration a variety of elements to assess how much we can lend you such as well-being of the company and the amount of the repayments your business is able to afford. The total amount of your loan will be determined by the specifics for your business.
Fees & repayments
How do you charge for the cost of a company loan?
When you request the company credit, we will assess the risk assessment the business and provide you with a tailored offer, including loan amount, term and the interest rates. It is a company loan is an upfront priced loan so you will be aware of the total amount payable including any charges, interest rates or fees.
What determines the rate that I’m charged?
The interest rates on company loans rates depend on a variety of factors such as the amount that is borrowed, what business assets the money will be used for as well as the field the company is in, how long the company has been operating and how long the business has sufficient cash flow to support the loan, and also the general well-being or financial standing of the company.
What are the cost?
There are no hidden costs with our business loans, and you’ll know precisely how much you need to pay, and when, starting from the very first day. There’s no compounding interest and no extra fees (as as long as you pay your payments on time).
We don’t charge an Application Fee. You are able to make an application for loans without any upfront costs 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. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay off the loan early?
You can decide to repay the entire amount of your loan at any point in time.
If you decide to take this route, please speak to our friendly company loan experts. They’ll provide you with details for repayment and an early payout figure. This will be calculated as the sum of the principal balance plus any accrued interest as of the time of early payment, plus 1.5 percent of the principal remaining plus any outstanding fees.
How do you make repayments work?
To help you avoid missing due dates and also to be in line your cash flow cycle we provide repayments either daily or weekly. They are automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Protecting your information, and knowing how we collect data, process, exchange and secure your information, is of huge importance and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We use an advanced banking verification system to immediately confirm your bank account information online. This allows us to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an business owner borrows from an asset that they own to obtain the funding. The asset can be either an individual asset, such as the family home, or an business asset such as a truck or piece or equipment.
The majority of lenders, including the largest banks, are inclined to make loans secured by assets. If you are having difficulty paying back the loan, then the asset might be transferred to the lender. In essence, it’s an opportunity to secure additional financing using the value of what you already own.
Should I need security for an business loan?
For loans that exceed $150,000, no asset security is required prior to the loan’s access however, we do need the personal guarantee. As long as you follow your loan obligations (as detailed in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans that exceed $150K, generally there is the option of a personal guarantee and security that is in the form the charge of assets.