FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Clevedon Small Business Loans
Tell me how you can avail the Clevedon Small Business Loans
Clevedon unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What is how is the Unsecured Loan different from an ordinary business loan?
It is possible to apply to this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get a same day response and the money could be available in just 24 hours. Traditional company loans have an interest rate per annum along with other charges and fees. This company loan is a pre-paid loan therefore you’ll know in advance the total amount payable including any fees, interest or charges. This is then broken down into either a daily or weekly payment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company use, including cash flow management, business remodels and marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used to fund personal expenses.
About the Larger Clevedon Business Loans
What is the Larger Clevedon Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan of this size the business needs to have been in operation for at least 3 years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can the funds be used for?
A Business Loan of a larger size can be used for nearly any company need, including company improvements, purchasing new equipment or inventory as well as for general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. It is usually by way of charge over assets, and could include registration through the PPSR or registering as a caveat.
A director’s or personal ensure is a promise to pay back a loan that is general in nature, rather than specifying the security of a specific asset. The person signing the ensure is personally accountable if the business lender is not able to pay back 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 which are registered with respect to personal property (including the assets or goods). The PPSR permits priority over personal property to be granted according to the date a registration of a security interest.
An affidavit is an official document that is filed to provide notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking larger business loans of more than $250K we may be able to provide a preliminary pre-approval to help simplify the process. It is possible to apply for this without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves you answering a few financial well-being checks. It is not an offer or guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer that you might receive could have different conditions.
Application process
Do I have the right to receive funds?
You may be eligible for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application within a few minutes and a dedicated company credit specialist will contact you to assist you.
For a loan of up to $100,000, you’ll require the right identification documents (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll 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: Information on the application including credit consent and 12 months of bank statements, IRD statement Last 2 years’ finalised financial statements, and interim financials for the current financial year such as age-related payables and aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K or more) We can usually offer an answer in just one hour if you make your application within quality company time and allow us to utilise the bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statements , we are able to provide an answer within just an business day.
For the Larger Business Loan ($100K up to $500,000) we may be able to provide the conditional pre-approval within six hours. Once you have signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however this can be quicker based upon the circumstances for each application. Certain agreements have been approved within just 24 hours.
The quickest method can be ensure you apply during standard business hours. Also, allow us to use the advanced bank verification system link to confirm your bank details online. If you upload duplicates of your banking statements it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we can often offer a response in one hour if you apply during standard business hours and permit us to use the advanced bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statements, we’ll be able to offer an answer within an business day.
For Larger Business Loans ($100K and up) we could be capable of offer the conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval document, you will require to wait about 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some agreements have been approved within just 24 hours.
The most effective method is to ensure you apply during normal business hours. You can also let us use the modern bank verification link to instantly check your bank’s information online. If you opt to upload copies of your bank accounts, it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a specific amount we look at a variety of factors to determine what is the well-being for your company and the extent of the repayments your company can afford. The total amount of the loan will be determined by the specific circumstances of your company.
When you submit an application for a specific amount we will consider a number of variables to assess the well-being for your business and the level of the repayments your company can afford. The total amount of your loan will depend on the particular circumstances the business.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to apply for one of our business financing, we’ll assess the risk profile the company and provide an individualised offer including the loan amount, the terms and interest rates. It is a business loan is an upfront-priced loan so you will be aware of the total amount you will have to pay, including charges, interest rates or fees.
What is the factor that determines the price I will be charged?
The interest rates on business loans rates depend on several factors like the amount of money that is borrowed, what business assets the money are used to purchase as well as the field the business operates in, the long the company has been running for, what percentage of the company has sufficient cash flow to cover the loan, and the overall health and creditworthiness of the company.
What are the fees?
There aren’t any hidden charges for our company loans, and you’ll know precisely how much it is that you need to pay, and when, right from the very first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments in time).
We don’t charge an application fee. You are able to get a cash loan without any upfront costs or commitment to apply.
The Origination Fee covers the expenses involved with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I repay the loan in advance?
You can choose to repay the total amount of your loan in full at any time.
If you choose to take this route, please talk to one of our helpful business lending professionals. They’ll offer you with details on repayment and an early payout figure. This will be calculated as the total of the principal balance plus any accrued interest as of the date of early payout and 1.5% of the remaining principal plus any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss repayments and to fit in your cash flow schedule, we provide payments that are either daily or weekly. They will be automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing the ways we gather information, use it, and exchange it, as well as safeguard your data, is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our customers and privacy. We use an advanced bank verification system that allows you to immediately verify the bank account details online so we can provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an company owner makes use of an asset they own to make a loan. The asset may be an individual property, such as the family home or an company asset such as a truck or other piece of machinery.
The vast majority of the lenders not just the big banks, tend to secure loans against an asset. If you’re struggling to pay back the loan, the asset could be offered for sale by the lender. In essence, it’s the process of securing new financing taking advantage of the value of what you already own.
Should I need security to get a company loan?
For loans up to $150,000 the requirement for asset security is not required in advance to gain access to the funds however, we require a personal guarantee. need a personal guarantee. If you adhere to your loan obligations (as stipulated in the loan contract) the security of assets will never be required. For loans of over $150K generally, there is personal guarantee and security in the form of a charge over assets.