FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Corinda Small Business Loans
Let me know about the Corinda Small Business Loans
Corinda unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
How is this Unsecured Loan different from the traditional business loan?
You can apply for this Small Business Loan in under 10 minutes online or on the phone. You’ll receive an instant response and the money could be in your account in 24 hours. Traditional company loans are based on an annual rate of interest along with other charges and fees. The business loan is a cash-based loan and you’ll be aware in advance of the total amount due, which includes any fees, interest or charges. This is then broken down into weekly or daily installment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company need, such as control of cash flow company remodels and marketing for purchasing inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
About larger Corinda Business Loans
What is the Larger Corinda Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are scheduled weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to have been trading for at least 3 years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funds be utilised?
A large company loan can be used for almost any company purpose including company improvements, purchasing equipment or inventory or as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. It is usually in the form of a charge on assets, which could also include registration in the PPSR or the registration of a caveat.
A personal or director’s ensure is a promise to pay back a loan that is generally based rather than stating security over an asset. The person signing the guarantee is personally accountable if the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including the assets or goods). The PPSR permits preference over private property granted according to the date the security interest has been registered.
An affidavit is an official document lodged to provide the legal claim on a property.
What exactly is a preapproval without Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250K, we may offer an initial pre-approval to make the process. We could be able to apply for this without credit checks and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes answering a couple of financial well-being questions. It is not an offer or guarantee of credit. A conditional approval is subject a full credit assessment and any offer that you may receive may be subject to different terms.
Application process
Do I qualify for funds?
You may apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and simple. Just complete the online application in just a few minutes, and an experienced company expert in lending will be in touch to guide you.
To apply for up to $100,000, you’ll require identification details (valid Driver’s Licence) along with an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K-$250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details of the application, including credit consent, 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, plus interim current financial year financials including Aged Payables, Aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within an hour, provided you make your application at standard business time and permit us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statements , we will be able to offer a decision within 1 company day.
For Larger Business Loans ($100K or more) we may be likely to offer you with a conditional pre-approval in around six hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this can be quicker based on the circumstances of each application. Some agreements have been approved in 24 hours.
The most efficient method for you to apply is ensure you apply during normal company hours. Also, let us use the advanced bank verification system link to verify your bank information online. If you opt to upload documents from your account accounts, it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we can often provide an answer within an hour – as long as you apply at normal business timings and allow us to use the bank verification system to instantly verify your bank’s information online. If you want to submit copies of your bank statements, we are able to offer the decision in just one business day.
If you are applying for Larger Business Loans ($100K and up) We may be capable of offer you with pre-approval conditional to your application in around six hours. After you’ve signed the pre-approval document, you will need to wait 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 make sure you apply during normal business hours, and permit us to use the modern bank verification link to instantly confirm your bank details online. If you opt to upload documents from your account accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a particular amount, we consider a variety of variables for determining how much we can lend you health that is your business and the extent of repayments that your company can afford. The total amount of your loan will depend on the specific circumstances the business.
When you submit an application for a particular amount, we consider a variety of elements to assess the well-being of the business and the extent of the repayments your company can afford. The total amount of your loan will be contingent on the specific circumstances the company.
Fees & repayments
How much should you charge for an business loan?
If you decide to make an application for business loans with us company financing, we will assess the risk profile for your company and provide you with a tailored offer including loan amount, term and the interest rates. A business loan is an upfront-priced loan and you’ll be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What is the basis for the rate I’m charged?
Interest rates for business loans rates depend on several factors including the amount borrowed, the company assets the funds are used to purchase and the sector the business is operating in, how long the company has been in operation as well as in the event that the company has enough cash flow to support the loan, as well as the general health or creditworthiness of the business.
What are the charges?
There aren’t any hidden costs for our business loans. You’ll know exactly how much you need to pay, and when, starting from day one. There’s no compounding interest, and no additional fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You are able to request a credit loan no cost upfront or any obligation to sign up.
The Origination Fee covers the expenses involved with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan in advance?
You can repay the entire amount of the advance loan at any time.
If you choose to pursue this option, please speak to our friendly company credit specialists. They will offer you with the details of your repayment and an early payment figure. This is calculated as the total of the principal remaining plus any accrued interest as of the date of early payout and 1.5% of the principal remaining plus any outstanding fees.
What is the process for repayments?
To make sure you do not miss due dates and also to be in line with your cash flow routine, we offer repayments either weekly or daily. They will be automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Security of your data, and being upfront about the ways we gather the information we collect, use, share and secure your information, is crucial and a vital 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 protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to security for our clients and privacy. We make use of an advanced bank verification system that allows you to instantly verify the bank account details online, allowing us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the company owner uses the assets they have to make the loan. The asset can be a personal asset like the family home, or an company asset such as a truck as well as a piece of machine.
The vast majority of lenders, not just the banks with the biggest size, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, then your asset may be offered for sale by the lender. In essence it’s an opportunity to secure new funding taking advantage of the value of what you already own.
What do I require security to get an business loan?
For loans of up to $150,000, it is not necessary to secure assets prior to the loan’s access, however we do require an individual guarantee. If you adhere to the loan terms (as stated in the loan contract) Asset security is not required. For loans over $150K generally, there is an individual guarantee and security that is in the form the charge of assets.