FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Chermside Small Business Loans
Let me know how you are able to avail the Chermside Small Business Loans
Chermside unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from the traditional company loan?
Apply to get this Small Business Loan in under 10 minutes over the phone, receive an instant response and have the funds on your account within 24 hours. Traditional company loans have an annual interest rate along with other charges and fees. The company loan is a loan that is priced upfront which means you know in advance the total amount to be paid, including any interest, fees or charges. Then, it is broken down into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business need, such as control of cash flow company improvements, advertising to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal purposes.
About larger Chermside Business Loans
What is the Larger Chermside Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been trading for at least 3 years, and have an annual income of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as 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 used for?
A Larger Business Loan can be used to fund almost every business use, including business remodeling, buying equipment or inventory, as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. This is by way of charge against assets, and may be registered on the PPSR or making a caveat.
A director’s or personal ensure is a promise to pay back a loan that is generally based rather than stipulating the security for a particular asset. The person who is signing the ensure is personally accountable if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register 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 grants priority over personal property to be granted according to the date the security interest was registered.
A caveat is a legal document that is filed to offer notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for the Larger Business Loan of $250,000 or more it is possible to offer an initial pre-approval in order to simplify the process. We could be able to get this done without credit checks and within 6 hours of the initial application. The pre-approval process is based on a preliminary assessment which includes you answering a few financial well-being questions. It’s not an offer or guarantee of financing. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you are offered could be on different conditions.
Application process
Are I eligible for funding?
You can apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, 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 three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Just complete the online application within a few minutes and an experienced business lending specialist will call you to assist you.
To apply for up $100,000, you’ll require ID details (valid Driver’s License) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details for application including credit consent as well as 12 months of bank statements, IRD statement, last 2 years finalised financial statements, and interim financial statements for the current year, Aged Payables and Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we can often provide an answer within one hour if you submit your request in standard company time and allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statements we can offer the decision within just one business day.
For Larger Business Loans ($100K to $500K) we might be capable of provide you with conditional pre-approval in around six hours. After you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval in the space of 24 hours.
The quickest way to apply would be to ensure you apply during normal company hours. You can also allow us to use our modern bank verification link to verify your bank information online. If you opt to send us copies of your bank statements it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we usually offer a response in one hour – as long as you apply during normal business times and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statements, we will be able to provide the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be capable of provide the conditional pre-approval in around six hours. Once you have signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this can be faster depending on the circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The fastest method is to ensure you apply during normal business hours. You can also let us use the advanced bank verification system link to confirm your bank details online. If you send us documents from your account accounts, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 and $500,000. When you make an application for a certain amount we take into consideration a range of factors in order to assess the well-being for your company and the amount of payments your business can support. The total amount of your loan will depend on the particular circumstances of your company.
When you submit an application for a certain amount, we take into consideration a variety of elements to determine how much we can lend you such as health for your business and the amount of payments your company will be able to support. The total amount of your loan will be contingent on the specifics the business.
Fees & repayments
How much should you charge for an business loan?
When you make an application for our company loan, we will assess the risk profile for your business and provide you with a customised offer including the amount of loan, the term and the interest rates. The business loan is an upfront cost loan and you’ll know in advance the total amount to be paid, including any charges or interest.
What determines the amount I pay?
Business loan interest rates depend on several factors like the amount of money that is borrowed, what company assets the funds are used to purchase, the industry the company is in, how long the company is in operation and how long the business has sufficient cash flow to support the loan, as well as the overall health or financial standing of the company.
What are the costs?
There aren’t any hidden costs with our business loans, and you’ll know exactly how much you need to pay and when, from the first day. There’s no compounding and no additional fees (as as long as you pay your payments in time).
We do not charge an application fee. You are able to get a cash loan with no cost upfront or obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay out the loan in advance?
You may choose to pay back the total amount of your loan early at any time.
If you choose to do this please talk to one of our helpful business loans experts. They will offer you with repayment details as well as an early payout amount. This is calculated as the total of the principal remaining plus any accrued interest as of the time of the 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 due dates and also to be in line with your cash flow general, we provide payments that are either weekly or daily. They will be automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
Protecting your information, and being transparent about how we collect information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We make use of an advanced bank verification system link to immediately verify the bank account details online so we can offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when a business owner utilises an asset they own to get a loan. The asset can be either an individual asset, such as the family home, or an business property like a truck or other piece of machinery.
The majority of the lenders even the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan, your asset may be offered for sale by the lender. In essence it’s an opportunity to secure additional financing making use of the value of what you already own.
Do I need security to secure an business loan?
For loans that exceed $150,000, no asset security is required prior to the loan’s access, however we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan commitments (as stipulated in the loan contract), asset security is not required. If you take out loans in excess of $150K generally, you can get personal guarantee and security in the form of a charge over assets.