FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Castle Cove Small Business Loans
Tell me what you think of the Castle Cove Small Business Loans
Castle Cove unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from an traditional company loan?
You can apply to get this Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and the money could be in your account in 24 hours. Traditional business loans refer to an interest rate per annum together with additional fees and charges. Our business loan is a cash-based loan and you’ll be aware in advance of the total amount payable including the interest, fees and charges. Then, it is broken down into a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company reason, such as the management of cash flow, company renovations, marketing to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available for personal purposes.
About larger Castle Cove Business Loans
What is the Larger Castle Cove Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which 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 in this amount the company needs to have been operating for a minimum of 3 years and generate an annual revenue of $700K. You must 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 demonstrate at minimum 12 months of continuous trading.
What can the funds be used for?
A Business Loan of a larger size is a great option for almost every business purpose including business renovations, to purchase inventory or new equipment or as general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. It’s in the form of a charge against assets, which could also include the registration of this through the PPSR or the registration of a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is generally in nature rather than defining security over an asset. The person who signs the guarantee is personally liable in the event that the company the borrower fails 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 that are registered for personal property (including goods or assets). The PPSR permits the priority of personal property granted according to the date a security interest was registered.
A caveat is a legal form of document to offer an official notice of a claim to property.
What exactly is a preapproval without Credit Check?
If you’re seeking the Larger Business Loan of more than $250K we may be able to provide a preliminary pre-approval to help ease the process. We could be able to do this without a credit check and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes answering a couple of financial health checks. It’s in no way an offer, nor is it a guarantee of funds. The approval of a conditional loan is subject to a full credit assessment and any offer that you are offered could be based on different terms.
The application process
Can I be eligible for funding?
You are eligible to apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form in few minutes and an experienced business credit specialist will contact you to assist you.
To be eligible for up to $100,000 you’ll require proof of identity (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent, 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, in addition to interim current financial year financials, Aged Payables and Aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K or more) we can often provide an answer in just one hour, provided you make your application within quality business time and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statements , we are able to offer the decision within 1 business day.
For Larger Business Loans ($100K up to $500,000) we might be able to provide you with conditional pre-approval in about 6 hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Some deals have been approved within 24 hours.
The quickest way to apply is to ensure you apply during normal company hours. Also, allow us to use our advanced bank verification system to verify your bank account information online. If you send us the copies of bank statements it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K or more) we can often provide an answer within an hour, provided you make your application in standard business timings and allow us to use the bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statements, we’ll be able to offer a decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be in a position to offer you with conditional pre-approval within about six hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, this can be faster depending on the circumstances of each application. Certain agreements have been approved within 24 hours.
The quickest method can be ensure you apply during standard business hours, and permit us to use the modern bank verification link to instantly verify your bank information online. If you choose to send us copies of your bank accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a certain amount we take into consideration a range of elements for determining your well-being of your business and the amount of repayments that your business will be able to support. The total amount of your loan will depend on the specific circumstances that are unique to your company.
When you make an application for a particular amount, we take into consideration a variety of aspects to assess your health of the business as well as the amount of the repayments your company will be able to support. The amount you receive from your loan will depend on the specifics of your business.
Fees & repayments
How much do you charge for the cost of a company loan?
When you apply for one of our business financing, we will assess the risk assessment that you have for your business and provide an individualised offer including the amount of loan, the term and interest rates. It is a company loan is an upfront cost loan and you’ll be aware of the total amount payable including any costs, fees, or interest rates.
What is the basis for the rate I am charged?
Interest rates for company loans rates differ based on various variables like the amount to be borrowed, what company assets the funds are used to purchase, the industry the business operates in, the long the business has been operating and in the event that the business has sufficient cash flow to fund the loan, as well as the general well-being as well as creditworthiness business.
What are the charges?
There are no hidden costs with our company loans. You’ll know exactly how much you’ll be required to pay, and when, from day one. There’s not any compounding interest and there are no additional charges (as as long as you pay your payments in time).
We don’t charge an Application Fee. You are able to make an application for loans with no cost upfront or obligation to proceed.
The Origination Fee is the cost associated with setting up and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I repay the loan in advance?
You can repay the entire amount of the loan early at any time.
If you choose to take this route, please contact our helpful company credit specialists. They’ll offer you with details for repayment along with an early payout estimate. It will be calculated using the sum of the principal balance and the accrued interest up to the time of early payout, plus 1.5 percent of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in with your cash flow routine, we provide repayments either daily or weekly. They are automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being transparent about how we collect information, use it, and exchange it, as well as secure 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 use industry recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to customer security and privacy. We employ an exceptionally sophisticated bank verification system link to immediately confirm your bank account information online to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when a business owner borrows from the assets they have to make a loan. The asset could be an individual property, such as the family home, or a company property like a truck as well as a piece of machine.
The vast majority of lenders, not just the largest banks, are inclined to secure loans against an asset. If you have trouble paying back the loan then the asset might be taken over by the lender. In essence, it is means of securing new financing by using the worth of the asset you already own.
Should I need security to secure an business loan?
For loans up to $150K it is not necessary to secure assets in advance to gain access to the funds, however we require a personal guarantee. require a personal guarantee. In the event that you fulfill your loan commitments (as detailed in the loan contract) Asset security is not needed. For loans that exceed $150,000, typically, you will need personal ensure and security that is in the form an asset charge.