FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Cockle Bay Small Business Loans
Let me know more about Cockle Bay Small Business Loans
Cockle Bay unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from a traditional company loan?
You can apply to get this Small Business Loan in under 10 minutes online or over the phone. You’ll get an answer within the same day and have the funds in your account in 24 hours. Traditional company loans refer to an annual interest rate plus other fees and charges. The business loan is a pre-paid loan so you will know in advance the total amount payable including any fees, charges or charges. This is then broken down into a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company reason, such as control of cash flow company remodeling, marketing, to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal purposes.
About Larger Cockle Bay Business Loans
What is the Larger Cockle Bay Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan of this size, your business needs to have been operating for a minimum of 3 years and have an annual turnover of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can I use the funds for?
A large company loan can be used to fund almost any business purpose including business remodeling, buying new equipment or inventory for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. It’s in the form of a charge over assets, and may include registering this on the PPSR or registering as a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is generally based rather than defining security over an asset. The person who is 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 contains security interests granted to individuals who own personal property (including items or assets). The PPSR gives priority over personal property to be assigned according to the date a security interest has been registered.
The caveat can be described as a formal form of document to offer the legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting larger company loans that exceeds $250,000 it’s possible to offer an initial pre-approval to ease the process. We might be able to get this done without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes the answer to a series of financial well-being checks. It is not an offer of credit or guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer that you may receive may have different conditions.
The application process
Are I eligible for funding?
You can apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Complete the online form in few minutes and a dedicated company expert in lending will contact you to help you.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Application details including credit consent, 12 months of bank statements, IRD statement Last 2 years’ finalised financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we can often offer a response in one hour if you apply in quality company timings and you allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statements we can offer an answer in as little as 1 company day.
For the Larger Business Loan ($100K and up) we might be in a position to offer the conditional pre-approval within about six hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Certain transactions have received approval within 24 hours.
The quickest way to apply can be ensure you apply during standard business hours. You can also let us use the advance bank verification to instantly verify your bank account information online. If you choose to send us copies of your bank accounts, it takes a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K to $100K) we can often offer an answer within an hour – provided you apply in normal business hours and you allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you opt to send us copies of your bank statements, we’ll be able to offer the decision within an business day.
For Larger Business Loans ($100K and up) we could be able to provide you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Certain offers have been approved within just 24 hours.
The fastest method for you to apply is ensure you apply during standard business hours. Also, let us use the advanced bank verification system link to verify your bank information online. If you opt to send us the copies of bank statements it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a certain amount we consider a variety of variables in order to assess your well-being that is your business as well as the amount of payments your company is able to afford. The total amount of your loan will depend on the particular circumstances of your company.
When you apply for a certain amount, we look at a range of variables to determine how much we can lend you such as health for your company and the level of repayments your company can support. The amount you receive from your loan will be contingent on the particular circumstances for your business.
Fees & repayments
How much do you charge for an business loan?
When you apply for one of our company credit, we will assess the risk profile of your company and provide you with a tailored offer including the amount of the loan, the duration and the interest rates. This company loan is a loan that is priced upfront and you’ll be aware of the total amount payable including any charges, interest rates or fees.
What determines the rate that I will be charged?
Interest rates for company loans rates depend on a variety of factors like the amount of money borrowed, the business assets the funds are used to purchase and the sector the business is in, how long the business has been operating and whether the business has enough cash flow to pay for the loan, and also the general health and creditworthiness of the business.
What are the fees?
There are no hidden costs with our business loans. You’ll know precisely how much it is that you need to pay and when, starting from day one. There’s not any compounding interest and the loan comes with no additional fees (as long as you make your payments on time).
We don’t charge an Application Fee. You are able to make an application for loans with with no upfront cost or any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay off the loan in advance?
You can repay the entire amount of the loan early at any time.
If you are deciding to do this please call our helpful company loan specialists. The experts will offer you with details on repayment and an early payment figure. The figure will be calculated as the total of the remaining principal amount and accrued interest to the time of the early payout, plus 1.5 percent of the principal balance plus any outstanding fees.
What are the repayment methods?
To ensure you do not miss payment dates and to align with your cash flow general, we provide repayments either daily or weekly. These are automatically withdrawn from your designated business account.
Security & privacy
Will my data be secure?
Security of your data, and being transparent about the ways we gather the information we collect, use, share and protect your information, is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We make use of an advanced bank verification system that allows you to immediately verify the bank account details online. This allows us to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a business owner utilises the assets they have to obtain a loan. The asset could be an individual property, such as the family home, or it could be a business asset such as a vehicle or piece of equipment.
The vast majority of the lenders not just the largest banks, are inclined to secure loans against assets. If you have trouble paying back the loan, then your asset may be taken over by the lender. In essence, it’s the process of securing additional financing using the worth of the asset you already own.
Are I require security for an business loan?
For loans that exceed $150K, no asset security is required prior to the loan’s access However, we do require the personal guarantee. As long as you follow your loan obligations (as stated in the loan contract) and you are able to meet your obligations, asset security is not required. For loans of over $150,000 typically, you will need the option of a personal ensure and security is provided in the form of an asset charge.