FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Chermside West Small Business Loans
Tell me what you think of the Chermside West Small Business Loans
Chermside West unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from a traditional business loan?
You can apply to get this Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and funds may be available in just 24 hours. Traditional company loans reference an annual interest rate together with additional fees and charges. The company loan is a loan that is priced upfront so you will know in advance the total amount due, which includes any fees, interest or charges. This is then broken down into weekly or daily payment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost any company purpose including control of cash flow business renovations, marketing to purchase inventory, new equipment, as general working capital and much more. The loan is not available for personal purposes.
About larger Chermside West Business Loans
What is the Larger Chermside West Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan of this size the company needs to be trading for at least 3 years and have an annual turnover of at least $700K. It is necessary to 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 of proving at minimum 12 months of continuous trading.
How can the funds be used for?
A larger business loan can be used for almost any business purpose including company improvements, purchasing 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 requires security?
Asset security is required to access funding over $150,000. This can be done by taking a charge on assets, and could be registered in the PPSR or making a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is general in nature rather than stating the security for a particular asset. The person signing the guarantee is personally responsible if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including goods or assets). The PPSR gives the priority of personal property granted according to the date a registration of a security interest.
A caveat is a legal document filed to offer the legal claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking larger company loans of $250,000 or more we can offer an initial pre-approval in order to ease the process. It is possible to make this decision without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering some financial well-being checks. It is in no way an offer, nor is it a guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you are offered could have different terms.
The application process
Do I qualify for funds?
You can apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application within a couple minutes, and a dedicated business loan specialist will be in touch to guide you through the process.
To apply for up to $100,000 you’ll need ID details (valid Driver’s Licence) and a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll also require:
$100K – $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Details for application including credit consent and 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, and interim financials from the current financial year, Aged Payables and Aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we can often provide an answer within one hour, provided you make your application within standard business timings and allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you choose to submit copies of your bank statements , we will be able to offer an answer in just an business day.
If you are applying for a Larger Business Loan ($100K or more) we may be likely to offer the conditional pre-approval in around 6 hours. After you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Some deals have been approved within just 24 hours.
The quickest way to apply would be to make sure you apply during normal business hours and allow us to use the advanced bank verification system link to confirm your bank details online. If you choose to send us duplicates of your banking statements it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we usually offer an answer within one hour if you apply at normal business time and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your banking statements, we will be able to provide the decision within 1 business day.
If you are applying for Larger Business Loans ($100K or more) we could be in a position to provide you with a conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending upon the circumstances for each application. Some deals have been approved within the space of 24 hours.
The fastest method for you to apply is make sure you apply during standard business hours. You can also allow us to use the advanced bank verification system link to verify your bank account information online. If you decide to upload duplicates of your banking statements it may take a bit longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a particular amount, we will consider a number of variables for determining what is the well-being of your company and the extent of the repayments your company can support. The amount you receive from the loan will be determined by the particular circumstances the company.
When you submit an application for a particular amount, we consider a variety of aspects to assess your well-being of your company and the extent of payments your business will be able to support. The amount you receive from the loan will be determined by the specific circumstances that are unique to your company.
Fees & repayments
What is the cost for an business loan?
If you decide to request the business loan, we’ll assess the risk profile that you have for your business and provide an individualised proposal that includes the amount of the loan, the duration and the interest rates. This business loan is an upfront-priced loan which means you be aware in advance of the total amount payable including any charges or interest.
What determines the rate that I am charged?
The interest rates on company loans rates differ based on various variables like the amount to be of money borrowed, the business assets the money are used to purchase in addition to the industry that the company is in, how long the business has been in operation for, what percentage of the business has enough cash flow to fund the loan, as well as the general health or creditworthiness of the business.
What are the costs?
There are no hidden costs with our company loans, and you’ll be aware of the amount you be required to pay, and when, starting from the first day. There’s not any compounding interest and no extra fees (as as you make your payments on time).
We do not charge an application fee. You can apply for a loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the expenses involved in establishing 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.
Do I have the option of paying off the loan earlier?
You can repay the entire amount of your advance loan at any time.
If you choose to take this route, please call our helpful company credit professionals. They’ll offer you with the details of your repayment and an early payment figure. It will be calculated using the sum of the principal remaining and the accrued interest up to the time of early payment plus 1.5 percent of the principal amount remaining and any outstanding fees.
What are the repayment methods?
To help you avoid missing payment dates and to align with your cash flow general, we offer repayments either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being clear about how we collect data, process, exchange and protect your information, is vital and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to security for our customers and privacy. We use an advanced bank verification system link to instantly verify the bank account details online to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an business owner uses assets they own to make the funds for a loan. The asset can be either an individual asset, such as the family home, or a company asset such as a truck or piece or equipment.
The vast majority of banks, not just the largest banks, are inclined to make loans secured by an asset. If you’re struggling to pay back the loan then the asset could be offered for sale by the lender. In essence it’s a way of securing additional financing using the value of what you already own.
Do I need security to get a business loan?
For loans up to $150,000 the requirement for asset security is not required in advance to gain access to the funds, however we do require an individual guarantee. In the event that you fulfill the loan terms (as stated in your loan contract document) Asset security is not required. For loans that exceed $150,000, generally there is a personal ensure and security is provided in the form of the charge of assets.