FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Clevedon Small Business Loans
Tell me about the Clevedon Small Business Loans
Clevedon unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from the traditional company loan?
It is possible to apply to this Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and funds may be in your account within 24 hours. Traditional company loans refer to an annual interest rate as well as other fees and charges. Our company loan is a loan that is priced upfront therefore you’ll know ahead of time the total amount to be paid, including the interest, fees and charges. This is then broken down into a daily or weekly payment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company purpose including the management of cash flow, company remodeling, marketing, to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal use.
About Larger Clevedon Business Loans
What is the Larger Clevedon Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term that can last up to 36 months. The repayments are made weekly or fortnightly to work with your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the business needs to have been in operation for at least 3 years, and have an annual income of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
What can I use the funds for?
A large business loan can be used to fund almost every company purpose including business renovations, to purchase equipment or inventory for 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 accessing funds over $150,000. It’s as a result of an charge over assets, which could also be registered through the PPSR or filing as a caveat.
A director’s or personal ensure is a promise to repay a loan which is general in nature rather than stipulating the security of a specific asset. The person who signs the ensure is personally responsible if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including objects or assets). The PPSR gives preference over private property granted in accordance with the date on which a security interest has been registered.
A caveat is a legal document that is filed to provide the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan of $250K or more we may be able to provide an initial pre-approval that will help make the process. We might be able to make this decision without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial evaluation that involves answering a couple of financial health checks. This is in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you receive could be based on different conditions.
The application process
Are I eligible for funding?
You are eligible to apply for an business 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)
- must show at least six months of trading (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Complete the online form in just a few minutes, and a dedicated company lending specialist will call you to guide you.
For a loan of up to $100,000, you’ll require ID details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent and 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, plus interim financials for the current financial year, Aged Payables and Aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we typically offer an answer in just one hour, provided you apply during quality business times and permit us to utilise the bank verification system link to instantly verify your bank’s information online. If you opt to send us copies of your bank statements , we’ll be able to provide the decision within just one business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be in a position to provide you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this may be quicker depending upon the circumstances for each application. Certain deals have been approved in 24 hours.
The quickest method can be make sure you apply during normal business hours. You can also allow us to use our advanced bank verification system to instantly verify your bank account information online. If you opt to send us the copies of bank statement, it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we can often offer an answer in just one hour, provided you submit your request in normal business timings and let us make use of the advanced bank verification system to instantly verify your bank details online. If you choose to submit copies of your bank statements we can offer the decision within 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be in a position to provide the conditional pre-approval within about six hours. Once you’ve signed your 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 particular circumstances of each application. Some offers have been approved in 24 hours.
The fastest way would be to ensure you apply during standard business hours and permit us to use the advanced bank verification system to verify your bank account information online. If you choose to upload documents from your account statement, it will take a little longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a specific amount we look at a variety of elements that determine the well-being of the company and the amount of the repayments your business can afford. The total amount of your loan will depend on the specifics of your company.
When you submit an application for a specific amount we consider a variety of variables to determine how much we can lend you such as well-being that is your company and the amount of the repayments your business will be able to support. The amount you receive from the loan will be determined by the specifics of your company.
Fees & repayments
How much do you charge for the cost of a business loan?
When you apply for one of our company financing, we will assess the risk profile for your business and provide an individualised offer including loan amount, term and the interest rates. The business loan is an upfront-priced loan so you will know in advance the total amount payable including any charges or interest.
What is the basis for the rate I am charged?
The interest rates on business loans rates vary due to factors such as the amount that is borrowed, what business assets the funds will be used for and the sector the company operates in, the long the company is in operation for, how long the business has enough cash flow to pay for the loan, and also the overall well-being as well as creditworthiness business.
What are the cost?
There are no hidden costs with our business loans. You’ll be aware of the amount you’ll need to pay, and when, starting from day one. There’s no compounding interest and there are no additional charges (as long as you make your payments punctually).
We don’t charge an Application Fee. You are able to request a credit loan with with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved with establishing and managing the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay off the loan in advance?
You can choose to repay the entire amount of your loan early at any time.
If you decide to do this please call our helpful business loans specialists. We will offer you with details for repayment along with an early payout estimate. It will be calculated using the total of the principal remaining and the accrued interest up to the time of early payout in addition to 1.5 percent of the remaining principal as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing payment dates and to align your cash flow cycle we provide repayments either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being clear about the ways we gather data, process, exchange and safeguard your data, is of huge importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to security for our customers and privacy. We make use of an advanced banking verification system to instantly verify the bank account details online. This allows us to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an company owner makes use of an asset they own to secure the loan. The asset may be an individual asset, such as the family home, or a company asset such as a vehicle or piece or equipment.
The majority of lending institutions, including the big banks, tend to make loans secured by an asset. If you are having difficulty paying back the loan then your assets could be sold by the lender. In essence it is means of securing new financing by taking advantage of the value of what you already own.
What do I need security for an business loan?
Up to $150,000 in loans there is no requirement for asset security before you can access the money, however we require a personal guarantee. need a personal guarantee. So long as you comply with your loan obligations (as detailed in your loan contract document), asset security is not required. If you take out loans in excess of $150K typically, you will need an individual guarantee and security is provided in the form of charges on assets.