FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Clendon Park Small Business Loans
Tell me about the Clendon Park Small Business Loans
Clendon Park unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
How is what makes the Unsecured Loan different from an traditional business loan?
The application to get the Small Business Loan in under 10 minutes on the phone. You’ll receive an immediate response, and the money could be in your account in 24 hours. Traditional company loans refer to an interest rate per annum as well as other fees and charges. This company loan is an upfront priced loan therefore you’ll know ahead of time the amount you will have to pay, including any fees, charges or charges. This is then broken down into either weekly or daily payment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for nearly every business purpose including cash flow management, company renovations, marketing, to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available for personal use.
About Larger Clendon Park Business Loans
What is the Larger Clendon Park Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to have been trading for at least 3 years, and have an annual income of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funding be used for?
A Larger Business Loan can be used for nearly all company use, including company renovations, to purchase new equipment or inventory, as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. This can be done in the form of a charge over assets, and may be registered with the PPSR or the registration of a caveat.
A director’s or personal ensure is a guarantee to repay credit that is general in nature, rather than specifying security over an asset. The person who signs the guarantee is personally liable in the event that the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including items or assets). The PPSR allows the priority of personal property assigned in accordance with the date on which a security interest was registered.
An affidavit is an official document filed to provide the legal claim against a property.
What is a pre-approval without Credit Check?
If you’re requesting the Larger Business Loan of more than $250,000 it’s possible to offer an initial pre-approval to ease the process. We could be able to get this done without a credit check and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves the answer to a series of financial well-being questions. It’s not an offer or guarantee of credit. A conditional approval is subject a full credit assessment and any offer you receive could be subject to different terms.
Application process
Can I be eligible for funding?
You may 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)
- can demonstrate at least 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application within a few minutes and an experienced company credit specialist will be in touch to help you.
To apply for up to $100,000, you’ll need the right identification documents (valid Driver’s Licence), a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Application details including credit consent as well as 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, and interim current financial year financials such as age-related payables and aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we usually provide an answer in just one hour if you apply during standard company hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statements we can provide a decision in as little as the span of one company day.
For the Larger Business Loan ($100K to $500K) we may be able to offer you with pre-approval conditional to your application in about six hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Some transactions have received approval in less than 24 hours.
The fastest way would be to ensure you apply during normal company hours and let us use the advance bank verification to confirm your bank details online. If you decide to upload copies of your bank statements it may take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we typically offer an answer within one hour, provided you apply in standard business hours and let us use the bank verification system to immediately verify your bank account information online. If you want to upload copies of your bank statements, we’ll be able to provide a decision within one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be able to provide you with pre-approval conditional to your application within about six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this can be faster depending on the circumstances of each application. Some deals have been approved within just 24 hours.
The fastest method would be to ensure you apply during normal business hours. You can also let us use the sophisticated bank verification link to confirm your bank details online. If you choose to upload documents from your account statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you make an application for a certain amount, we look at a variety of variables to determine what is the health that is your business and the level of payments your business will be able to support. The amount you receive from your loan will depend on the specifics the company.
When you submit an application for a set amount, we take into consideration a variety of variables to determine your well-being for your business and the extent of payments your company can afford. The total amount of your loan will be contingent on the particular circumstances the company.
Fees & repayments
How much do you charge for an company loan?
If you decide to request our company loan, we will assess the risk assessment the business and offer an individualised proposal that includes the loan amount, the terms and interest rates. This business loan is an upfront priced loan so you will be aware of the total amount payable including any interest rates, fees or charges.
What is the basis for the rate I’m charged?
Interest rates for business loans rates vary due to factors like the amount of money that is borrowed, what business assets the funds will be used for and the sector the business is operating in, how long the company has been running and how long the company has sufficient cash flow to cover the loan, as well as the overall well-being or financial standing of the company.
What are the costs?
There are no hidden fees with our company loans, and you’ll know exactly how much you’ll be required to pay and at what time, from the very first day. There’s no compounding interest and there are no additional charges (as as long as you pay your payments in time).
We do not charge an application fee. You are able to apply for a loan with no cost upfront or any obligation to sign up.
The Origination Fee includes the expenses associated with establishing and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay out the loan in advance?
You may choose to pay back the entire amount of your loan at any point in time.
If you choose to do this please talk to one of our helpful business credit specialists. The professionals will offer you with details for repayment and an early payout figure. This is calculated as the sum of the principal remaining and the accrued interest up to the date of early payout, plus 1.5% of the principal balance plus any outstanding fees.
What is the process for repayments?
To help you avoid missing due dates and also to be in line with your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from your designated company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being clear about how we collect, use, exchange and secure your information, is of paramount importance and an integral 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 standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to security for our customers and security. We use an advanced bank verification system that allows you to immediately verify your bank account information online to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the business owner uses assets they own to make the funding. The asset can be either an asset belonging to the personal, like the family home, or it could be a business asset such as a truck or piece or equipment.
The majority of the lenders including the big banks, tend to make loans secured by an asset. If you’re struggling to pay back the loan then your assets could be taken over by the lender. In essence, it is a way of securing new funding using the value of what you already own.
What do I need security to secure a business loan?
For loans up to $150K the requirement for asset security is not required prior to the loan’s access but we require a personal guarantee. require a personal guarantee. So long as you comply with the terms of your loan (as specified in the loan contract) Asset security is not needed. If you take out loans in excess of $150,000 generally there is personal guarantee and security in the form an asset charge.