FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Clendon Park Small Business Loans
Let me know more about Clendon Park Small Business Loans
Clendon Park unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from an ordinary company loan?
You can apply to your Small Business Loan in under 10 minutes online or by phone. You will receive an instant response and have the funds available in just 24 hours. Traditional company loans have an interest rate per annum along with other charges and fees. Our business loan is a cash-based loan therefore you’ll know ahead of time the total amount to be paid, including any fees, interest or charges. This is then divided into weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company need, such as managing cash flows, company improvements, advertising for purchasing inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal reasons.
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 growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to be in operation for at least 3 years, and have an annual income of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and 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 funding be utilised?
A Larger Business Loan can be used for almost all business purpose including business renovations, purchase of equipment or inventory for general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. It’s in the form of a charge on assets, and may include registering this in the PPSR or making a caveat.
A director’s or personal ensure is a promise to pay back a loan that is general in nature, rather than stating the security for a particular asset. The person signing the ensure is personally liable in the event that the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR permits the priority of personal property assigned according to the date the registration of a security interest.
The caveat can be described as a formal document that is filed to offer the legal claim to property.
What is a pre-approval without Credit Check?
When you’re applying for larger business loans that exceeds $250,000 we may be able to provide an initial pre-approval in order to make the process. We could be able to get this done without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves the answer to a series of financial well-being questions. This is not an offer or guarantee of finance. Acceptance without condition is subject to an extensive credit evaluation and any offer that you may receive may be subject to different conditions.
Are I eligible for funding?
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 you to qualify for 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 easy. Just complete the online application in just a few minutes, and a dedicated company credit specialist will be in touch to assist you.
To be eligible for up to $100,000, you’ll require proof of identity (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, and interim current financial year financials including Aged Payables, Aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) We can usually provide a response in one hour, provided you apply in quality business time and permit us to utilise the bank verification system link to instantly verify your bank details online. If you decide to send us copies of your bank statements , we will be able to offer a decision in just the span of one company day.
If you are applying for a Larger Business Loan ($100K or more) we might be capable of provide you with pre-approval conditional to your application in around 6 hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the specifics of each application. Certain offers have been approved within the space of 24 hours.
The most efficient method would be to make sure you apply during normal company hours, and allow us to use the advanced bank verification system link to check your bank’s information online. If you decide to upload duplicates of your banking statements it may take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer within an hour – provided you apply at normal business times and let us make use of the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statement, we’ll provide the decision in as little as one business day.
For the Larger Business Loans ($100K up to $500,000) we might be able to provide you with conditional pre-approval in around 6 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 specifics of each application. Some deals have been approved in less than 24 hours.
The fastest method can be ensure you apply during standard business hours. You can also let us use the advanced bank verification system link to instantly confirm your bank details online. If you choose to upload the copies of bank statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a certain amount, we take into consideration a range of variables for determining what is the well-being of the company and the extent of the repayments your company can support. The total amount of the loan will be determined by the specific circumstances for your company.
When you submit an application for a set amount, we take into consideration a variety of factors to assess your health of the company and the amount of the repayments your company will be able to support. The total amount of your loan will be contingent on the specific circumstances the business.
Fees & repayments
How much should you charge for a business loan?
If you decide to apply for our business loans, we will assess the risk profile of your company and offer you with a customised proposal that includes the amount of loan, the term and interest rates. A business loan is a loan that is priced upfront and you’ll be aware in advance of the total amount to be paid, including any charges or interest.
What determines the amount I pay?
Interest rates for business loans rates vary due to factors including the amount borrowed, what company assets the funds are used to purchase, the industry the business is in, how long the company has been running and how long the company has enough cash flow to support the loan, as well as the general health and creditworthiness of the company.
What are the costs?
There are no hidden costs for our business loans, and you’ll be aware of the amount you’ll be required to pay and when, starting from the day you sign up. There’s not any compounding interest and no extra fees (as long as you make your payments on time).
We do not charge an Application Fee. You are able to make an application for loans with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated in establishing and managing the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay out the loan earlier?
You can choose to repay all of your loan early at any time.
If you do decide to do this please contact our helpful company loans experts. The specialists will offer you with the details of your repayment and an early payout figure. It will be calculated using the sum of the principal amount remaining and accrued interest to the time of early payout plus 1.5 percent of the principal balance as well as 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. These are automatically withdrawn from your business account.
Security & privacy
Will my data be secure?
Security of your data, and knowing how we collect the information we collect, use, share and ensure the security of your information is crucial and is a crucial 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 techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to protecting the security of customers and security. We utilise a sophisticated bank verification system link to instantly verify the bank account details online. This allows us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the business owner makes use of assets they own to get the loan. The asset can be an individual asset, such as the family home or it could be a company asset such as a vehicle as well as a piece of machine.
The majority of the lenders including the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan then the asset could be sold by the lender. In essence, it’s means of securing new financing using the value of what you already own.
Are I need security to secure an company loan?
For loans up to $150K it is not necessary to secure assets before you can access the money but we do need a personal guarantee. So long as you comply with your loan commitments (as specified in your loan contract document) Asset security is not needed. For loans over $150,000 generally, there is personal guarantee and security is provided in the form of an asset charge.