FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Clouston Park Small Business Loans
Let me know more about Clouston Park Small Business Loans
Clouston Park unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from an traditional business loan?
The application to get your Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and have the funds in your account in 24 hours. Traditional business loans refer to an annual interest rate as well as other fees and charges. The company loan is a cash-based loan so you will know in advance the amount you will have to pay, including the interest, fees and charges. This is then broken down into either a daily or weekly repayment figure.
What could the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company reason, such as managing cash flows, company remodeling, marketing to purchase inventory, new equipment, as general working capital, and much more. The loan is not available to fund personal expenses.
About larger Clouston Park Business Loans
What is the Larger Clouston Park Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan of this size the business needs to have been operating for a minimum of 3 years with an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funding be used for?
A larger business loan can be used for almost any business use, including business improvements, purchasing equipment or inventory or as general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. It is usually as a result of an charge against assets and can be registered in the PPSR or registering as a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally based rather than stating the security of a specific asset. The person signing the guarantee is personally accountable if the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It contains security interests registered in respect of personal property (including objects or assets). The PPSR allows priority over personal property to be granted depending on the date that a security interest was registered.
Caveats are legal document lodged to provide notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re applying for a Larger Business Loan that is greater than $250,000 it is possible to offer a preliminary pre-approval to help simplify the process. We might be able to do this without a credit check, and within six hours of your initial application. This pre-approval is based on an initial assessment that includes the answer to a series of financial well-being questions. This is in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to an assessment of your creditworthiness and any offer you might receive could have different conditions.
The application process
Are I eligible for funding?
You can apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of trading (for you to qualify for 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 easy. Complete the online form in few minutes and a dedicated business loan specialist will call you to guide you through the process.
To apply for up to $100,000, you’ll require identification details (valid Driver’s Licence) and a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Information on the application including credit consent, 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, as well as interim financials from the current financial year, Aged Payables and Aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we can often offer an answer within an hour – as long as you apply in standard company time and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your bank statements , we are able to offer a decision within 1 company day.
If you are applying for a Larger Business Loan ($100K or more) we could be capable of provide the conditional pre-approval in around 6 hours. After you’ve signed your pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this may be quicker depending on the specifics of each application. Some deals have been approved within just 24 hours.
The fastest way is to make sure you apply during standard company hours. You can also allow us to use the advance bank verification link to instantly check your bank’s information online. If you opt to upload copies of your bank accounts, it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we typically provide an answer within an hour if you make your application in normal business hours and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements, we will be able to offer the decision within an business day.
For the Larger Business Loans ($100K or more) we may be likely to offer you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Certain agreements have been approved within less than 24 hours.
The fastest way is to ensure you apply during standard business hours and let us use the sophisticated bank verification to confirm your bank details online. If you choose to upload the copies of bank statements, it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a specific amount we will consider a number of factors that determine the well-being of your company and the amount of payments your company is able to afford. The amount you receive from your loan will be contingent on the specifics for your company.
When you submit an application for a certain amount, we will consider a number of elements to determine how much we can lend you such as health of the business as well as the amount of repayments that your company can afford. The total amount of your loan will be contingent on the specifics for your business.
Fees & repayments
How do you charge for an business loan?
If you decide to make an application for the company financing, we’ll assess the risk assessment that you have for your business and offer you with a customised offer including loan amount, term and the interest rates. A company loan is an upfront cost loan so you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I pay?
Business loan interest rates differ based on various variables like the amount to be of money borrowed, the company assets the funds will be used for and the sector the company is operating in, how long the company is in operation as well as whether the business has enough cash flow to pay for the loan, and also the general well-being or financial standing of the business.
What are the cost?
There are no hidden costs for our business loans, and you’ll know precisely what you need to pay and when, from the day you sign up. There’s no 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 expenses involved in establishing and managing the loan. This is only a 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 earlier?
You can decide to repay all of your loan in full at any time.
If you do decide to take this route, please speak to our friendly business loans experts. We will offer you with details on repayment and an early payout figure. It will be calculated using the sum of the principal remaining and any accrued interest at the time of early payout and 1.5 percent of the principal balance and any outstanding fees.
What is the process for repayments?
To ensure you do not miss payment dates and to align with your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my data be secure?
Security of your data, and knowing the ways we gather data, process, exchange and safeguard your data, is crucial and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We employ an exceptionally sophisticated bank verification system to immediately verify your bank account details online. This allows us to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an company owner makes use of assets they own to make the loan. The asset can be either an individual asset, such as the family home or an business asset such as a vehicle or other piece of machinery.
The vast majority of banks, even the largest banks, are inclined to make loans secured by 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 is a way of securing new funding taking advantage of the value of what you already have.
Should I need security for a company loan?
For loans of up to $150,000, the requirement for asset security is not required prior to the loan’s access However, we do need a personal guarantee. In the event that you fulfill the loan terms (as stipulated in your loan contract document) Asset security will never be needed. For loans that exceed $150,000, generally, you can get personal guarantee and security in the form the charge of assets.