FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Cannons Creek Small Business Loans
Tell me about the Cannons Creek Small Business Loans
Cannons Creek unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What makes this Unsecured Loan different from the traditional business loan?
It is possible to apply for the Small Business Loan in under 10 minutes online or on the phone. You’ll receive an immediate response, and funds may be in your account in 24 hours. Traditional company loans refer to an annual rate of interest as well as other fees and charges. The business loan is an upfront priced loan so you will be aware in advance of the total amount payable including any fees, charges or charges. Then, it is divided into weekly or daily payment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for almost any business need, such as managing cash flows, business remodeling, marketing, to purchase inventory or new equipment, as general working capital and much more. The loan is not available for personal reasons.
Concerning Larger Cannons Creek Business Loans
What is the Larger Cannons Creek Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range between $100,000 and $500,000 over a fixed term up to 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a credit in this amount the business needs to be trading for at least 3 years and have an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funds be used for?
A Business Loan of a larger size can be used for nearly all business need, including company improvements, purchasing equipment or inventory for general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. It’s by way of charge over assets and can be registered with the PPSR or filing a caveat.
A director’s or personal guarantee is a promise to repay credit that is generally based rather than defining security over an asset. The person signing the ensure is personally liable in the event that the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including objects or assets). The PPSR gives prioritisation over property that is personal to be assigned according to the date a security interest that is 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 without Credit Check?
If you’re applying for larger business loans of more than $250K we may be able to provide an initial pre-approval in order to make the process. We may be able to do this without a credit check and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves the answer to a series of financial well-being checks. This is neither an offer nor a guarantee of financing. The approval of a conditional loan is subject to a full credit assessment and any offer that you might receive could be subject to different terms.
Do I qualify for funds?
You may apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for a 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 fill out the online application in few minutes and an experienced company credit specialist will contact you to assist you.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Details for application including credit consent as well as 12 months of bank records, IRD statement and the last two years’ finalised financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we can often provide an answer within an hour if you make your application at quality company times and you allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statements we can provide the decision in as little as 1 business day.
For the Larger Business Loan ($100K and up) we might be in a position to provide you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, it could be faster based on the circumstances of each application. Certain agreements have been approved in just 24 hours.
The most efficient method for you to apply is ensure you apply during standard company hours. Also, let us use the advanced bank verification system to verify your bank account information online. If you opt to upload documents from your account statements it will take a little longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) we usually provide an answer within one hour, provided you make your application in standard business hours and let us make use of the advanced bank verification system to instantly verify your bank details online. If you choose to send us copies of your bank statements, we’ll be able to offer the decision in just the span of one business day.
For the Larger Business Loans ($100K or more) we might be capable of offer you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be faster depending on the particular circumstances of each application. Certain offers have been approved in the space of 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours. Also, let us use the modern bank verification link to verify your bank information online. If you decide to send us duplicates of your banking statements, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a certain amount, we consider a variety of variables to determine your health for your business and the amount of payments your company can afford. The amount you receive from the loan will be determined by the particular circumstances the business.
If you apply for a specific amount we look at a range of elements to assess your health of the business as well as the amount of payments your company can support. The total amount of your loan will be contingent on the specifics the company.
Fees & repayments
How much do you charge for a company loan?
When you apply for our company loans, we will assess the risk profile of your company and provide you with a customised offer, including the amount of loan, the term and interest rates. The business loan is an upfront-priced loan which means you know the exact amount payable including any interest rates, fees or charges.
What is the factor that determines the price I’m charged?
Business loan interest rates depend on a variety of factors such as the amount that is of money borrowed, the company assets the money will be used for as well as the field the business is operating in, how long the business has been operating as well as what percentage of the business has enough cash flow to cover the loan, as well as the general well-being or financial standing of the company.
What are the cost?
There are no hidden fees with our company loans. You’ll know precisely how much you’ll be required to pay, and at what time, from the very first day. There’s no compounding interest, and the loan comes with 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 with absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the expenses involved with setting up and managing the loan. This is only a fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay off the loan early?
You may choose to pay back all of your loan at any point in time.
If you are deciding to do this please talk to one of our helpful company loans specialists. We will offer you with repayment details along with an early payout estimate. The figure will be calculated as the sum of the principal balance and the accrued interest up to the time of the early payout in addition to 1.5% of the principal balance and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in with your cash flow cycle we offer repayments either weekly or daily. They will be automatically deducted from your business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing how we collect the information we collect, use, share and safeguard your data, is of paramount importance and an integral aspect 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 sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We utilise a sophisticated banking verification system to instantly verify the bank account details online. This allows us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
The term “asset-based” refers to borrowing where a business owner uses assets they own to obtain the loan. The asset could be an asset belonging to the personal, like the family home, or it could be a company asset such as a vehicle or piece or equipment.
The majority of the lenders not just the largest banks, are inclined to guarantee loans against assets. If you’re struggling to pay back the loan then the asset might be sold by the lender. In essence it’s means of securing new financing by taking advantage of the value of what you already have.
Are I need security to get an company loan?
For loans of up to $150K, it is not necessary to secure assets before you can access the money however, we do need an individual guarantee. As long as you follow your loan commitments (as specified in your loan contract document) Asset security is not required. For loans that exceed $150K, generally there is a personal guarantee and security is provided in the form of an asset charge.