FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Chatswood Small Business Loans
Let me know how you can avail the Chatswood Small Business Loans
Chatswood unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from a traditional business loan?
You can apply to get your Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get a same day response and the funds could be available in just 24 hours. Traditional company loans refer to an interest rate per annum along with other charges and fees. The business loan is a pre-paid loan which means you be aware of the total amount to be paid, including any fees, interest or charges. Then, it is broken down into a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for almost any company use, including the management of cash flow, business remodeling, marketing to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal use.
About Larger Chatswood Business Loans
What is the Larger Chatswood Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan that is this large, your company needs to have been operating for at least three years, and have an annual income of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can the funding be used for?
A Business Loan of a larger size can be used to fund almost any company purpose including company improvements, purchasing new equipment or inventory as well as for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. This can be done in the form of a charge over assets and can be registered with the PPSR or registering a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is general in nature, rather than stating the security for a particular asset. The person who is signing the ensure is personally liable in the event that the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including the assets or goods). The PPSR grants the priority of personal property granted according to the date the security interest was registered.
The caveat can be described as a formal document filed to offer the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re seeking an enterprise loan of more than $250,000 we may be able to provide a preliminary pre-approval to help ease the process. We might be able to apply for this without a credit check, and within six hours of your initial application. This pre-approval is made based on an initial assessment, which involves the answer to a series of financial health questions. It is in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you are offered could be on different conditions.
The application process
Do I have the right to receive funds?
You are eligible to apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and simple. Just fill out the online application within a few minutes and a dedicated company expert in lending will contact you to help you.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, 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 loan above $150K).
$250K – $500K: Details for application including credit consent as well as 12 months of bank records, IRD statement and the last two years’ finalised financial statements, plus interim financials from the current financial year as well as Aged Payables and Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we can often provide an answer within one hour if you submit your request in standard business hours and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you want to send us copies of your bank statement, we’ll offer an answer in as little as the span of one company day.
If you are applying for a Larger Business Loan ($100K and up) we may be in a position to provide you with conditional pre-approval within six hours. After you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval. However, it could be faster based on the circumstances of each application. Some deals have been approved within 24 hours.
The fastest way is to ensure you apply during standard business hours. Also, permit us to use the advance bank verification to instantly confirm your bank details online. If you choose to upload the copies of bank statements it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K or more) we typically provide an answer within an hour – as long as you apply in standard business timings and permit us to use the bank verification system link to instantly verify your bank details online. If you decide to upload copies of your banking statements, we are able to provide an answer within an business day.
For the Larger Business Loans ($100K up to $500,000) we might be likely to offer you with pre-approval conditional to your application within about 6 hours. Once you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some offers have been approved within the space of 24 hours.
The most efficient method would be to make sure you apply during normal business hours. Also, allow us to use the advanced bank verification system link to instantly check your bank’s information online. If you opt to upload copies of your bank statements it may take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a certain amount, we look at a variety of factors to determine your health of the business and the level of repayments that your company can support. The amount you receive from the loan will be determined by the specific circumstances that are unique to your business.
When you apply for a set amount, we will consider a number of variables to assess how much we can lend you such as well-being of the business and the amount of the repayments your company is able to afford. The amount you receive from your loan will depend on the particular circumstances for your company.
Fees & repayments
How much should you charge for a business loan?
When you make an application for business loans with us company credit, we’ll assess the risk profile that you have for your company and offer an individualised offer that includes the loan amount, the terms and interest rates. It is a company loan is a loan that is priced upfront so you will be aware of the total amount payable including any interest rates, fees or charges.
What determines the amount I will be charged?
The interest rates on business loans rates differ based on various factors like the amount of money of money borrowed, the company assets the funds will be used for and the sector the company is in, how long the company has been operating, what percentage of the business has enough cash flow to cover the loan, and overall well-being as well as creditworthiness company.
What are the charges?
There aren’t any hidden charges with our business loans. You’ll know exactly how much you be required to pay and when, starting from the day you sign up. There’s no compounding and no additional fees (as long as you are able to make your payments in time).
We don’t charge an application fee. You can get a cash loan no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan in advance?
You may choose to pay back the entire amount of the loan at any point in time.
If you decide to do this please speak to our friendly business lending experts. They will offer you with details on repayment and an early payment figure. This is calculated as the total of the principal balance and any accrued interest at the date of early payout in addition to 1.5% of the principal balance and any fees that remain unpaid.
How do you make repayments work?
To ensure that you don’t miss due dates and also to be in line with your cash flow general, we offer repayments that are either daily or weekly. They are automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing how we collect, use, exchange and ensure the security of your information is of huge importance and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to customer security and security. We use an advanced banking verification system to immediately verify your bank account information online. This allows us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where an business owner makes use of assets they own to make a loan. The asset can be an asset belonging to the personal, like the family home, or a company asset like a truck or other piece of machinery.
The vast majority of the lenders even the banks with the biggest size, prefer to guarantee loans against assets. If you have trouble paying back the loan, then the asset could be transferred to the lender. In essence, it’s means of securing new financing by using the value of what you already own.
Should I require security to secure an company loan?
For loans of up to $150,000, there is no requirement for asset security before you are able to access the money however, we do require a personal guarantee. As long as you follow your loan commitments (as specified in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150K generally, there is an individual guarantee and security in the form of charges on assets.