FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Clayfield Small Business Loans
Let me know how you are able to avail the Clayfield Small Business Loans
Clayfield 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, which are either daily or weekly.
What makes the Unsecured Loan different from the traditional company loan?
Apply to the Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and the funds could be in your account within 24 hours. Traditional business loans are based on an annual rate of interest as well as other fees and charges. Our company loan is a cash-based loan so you will be aware in advance of the total amount to be paid, including any fees, charges or charges. This is then broken down into weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business purpose including managing cash flows, company renovations, marketing to purchase inventory or new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
About Larger Clayfield Business Loans
What is the Larger Clayfield Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size, your company needs to have been operating for at least three years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A Business Loan of a larger size can be used for almost any business need, including business renovations, to purchase equipment or inventory or as general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. It’s by way of charge on assets, and could be registered through the PPSR or the registration of as a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is general in nature, rather than stating the security for a particular asset. The person signing the guarantee is personally accountable if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including objects or assets). The PPSR gives priority over personal property to be assigned according to the date a security interest has been registered.
The caveat can be described as a formal document that is filed to offer the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking larger company loans of $250K or more we may be able to provide a preliminary pre-approval to help smooth out the process. It is possible to get this done without a credit check and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes answering a couple of financial health questions. This is not an offer or guarantee of financing. A conditional approval is subject a full credit assessment and any offer you may receive may be on different terms.
The application process
Do I qualify for funds?
You may be eligible for a business 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)
- must show at least six months of trading (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and simple. Complete the online form within a couple minutes, and an experienced company credit specialist will call you to guide you through the process.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s License), an NZBN/IRD that is valid and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 months of bank statements, IRD statements, last 2 years finalised financial statements, as well as interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within an hour if you submit your request during standard business timings and permit us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statements , we are able to provide a decision in as little as one business day.
For the Larger Business Loan ($100K or more) we could be likely to offer you with conditional pre-approval within 6 hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this could be shorter based on the particular circumstances of each application. Some agreements have been approved within less than 24 hours.
The quickest way to apply for you to apply is make sure you apply during standard company hours and allow us to use our advance bank verification link to check your bank’s information online. If you decide to send us the copies of bank statements , it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) we usually offer an answer within an hour if you make your application during standard business times and you allow us to use the bank verification system to instantly verify your bank details online. If you choose to send us copies of your bank statement, we’ll offer an answer within the span of one business day.
For Larger Business Loans ($100K up to $500,000) We may be able to provide the conditional pre-approval within six hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Some transactions have received approval within just 24 hours.
The fastest method is to ensure you apply during normal business hours and permit us to use the advanced bank verification system link to verify your bank information online. If you decide to upload the copies of bank statements it can take a bit longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a certain amount, we will consider a number of elements in order to assess your health of the company and the extent of payments your company can afford. The amount you receive from your loan will depend on the particular circumstances that are unique to your company.
When you submit an application for a set amount, we consider a variety of factors to assess your well-being that is your company as well as the amount of the repayments your business can afford. The amount you receive from the loan will be determined by the particulars for your company.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to make an application for our company financing, we’ll assess the risk profile the company and provide you with a customised offer, including the amount of loan, the term and the interest rates. The business loan is a loan that is priced upfront which means you know the exact amount you will have to pay, including charges or interest.
What is the factor that determines the price I am charged?
The interest rates on company loans rates depend on a variety of variables like the amount to be borrowed, what business assets the funds are used to purchase, the industry the business operates in, how long the business has been operating as well as whether the business has sufficient cash flow to cover the loan, as well as the overall well-being and creditworthiness of the business.
What are the charges?
There are no hidden fees for our business loans. You’ll be aware of the amount it is that you be required to pay, and at what time, from the very first day. There’s no compounding and the loan comes with no additional fees (as long as you make your payments in time).
We don’t charge an application fee. You can request a credit loan with without any upfront costs or the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan earlier?
You can choose to repay the entire amount of your loan at any point in time.
If you choose to take this route, please contact our helpful company lending professionals. The professionals will provide you with the details of your repayment and an early payout figure. This will be calculated as the total of the principal amount remaining and accrued interest to the time of early payment, plus 1.5 percent of the principal remaining and any outstanding fees.
How do repayments work?
To help you avoid missing payments and to work your cash flow schedule, we provide payments that are either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my data be secure?
Protecting your information, and knowing how we collect the information we collect, use, share and ensure the security of your information is crucial and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to protecting the security of clients and security. We employ a highly sophisticated bank verification system link to instantly verify your bank account information online. This allows us to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the business owner makes use of an asset they own to secure a loan. The asset may be a personal asset like the family home or a business asset like a truck or piece of equipment.
The majority of lending institutions, even the banks with the biggest size, prefer to guarantee loans against assets. If you are having difficulty paying back the loan, your asset may be offered for sale by the lender. In essence it is means of securing new financing using the worth of the asset you already have.
Should I require security for an business loan?
For loans up to $150K the requirement for asset security is not required prior to the loan’s access, however we require a personal guarantee. need the personal guarantee. So long as you comply with the terms of your loan (as stipulated in your loan contract) Asset security will never be required. If you take out loans in excess of $150K generally, you can get personal ensure and security in the form a charge over assets.