FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Chatswood Small Business Loans
Let me know more about Chatswood Small Business Loans
Chatswood unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What is what makes the Unsecured Loan different from an ordinary business loan?
Apply for the Small Business Loan in under 10 minutes on the internet or by phone. You will receive an answer within the same day and have the funds available in just 24 hours. Traditional company loans are based on an interest rate per annum along with other charges and fees. This company loan is a pre-paid loan and you’ll be aware of the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into either a daily or weekly payment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every business purpose including cash flow management, business renovations, marketing to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available to fund personal expenses.
About the Larger Chatswood Business Loans
What is the Larger Chatswood Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are either weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to have been operating for a minimum of 3 years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funds be utilised?
A Larger Business Loan can be used to fund almost every company need, including business renovations, purchase of inventory or new equipment for general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $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 as a caveat.
A director’s or personal ensure is a commitment to repay credit that is general in nature, rather than stating the security of a specific asset. The person who signs the guarantee is personally liable if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests that are registered for personal property (including goods or assets). The PPSR allows prioritisation over property that is personal to be assigned according to the date a registration of a security interest.
The caveat can be described as a formal document lodged to provide the public notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
When you’re applying for an enterprise loan of $250K or more it’s possible to offer an initial pre-approval that will help make the process. We might be able to make this decision without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering some financial health questions. It’s neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you receive could be on different terms.
Application process
Do I qualify for funds?
You can apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for a 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. Simply complete the online form within a few minutes and an experienced business lending specialist will be in touch to guide you.
For a loan of up to $100,000 you’ll need identification details (valid Driver’s License) and a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent, 12 months of bank records, IRD statements and the last two years’ finalised financial statements, in addition to interim financials for the current financial year including Aged Payables, Aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we typically provide an answer in just one hour – as long as you submit your request within standard company times and you allow 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 statement, we’ll offer an answer in as little as 1 business day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to offer you with a conditional pre-approval in around six hours. After you’ve signed your pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Certain transactions have received approval within just 24 hours.
The quickest way to apply would be to ensure you apply during standard company hours, and allow us to use our advanced bank verification system link to instantly verify your bank account information online. If you opt to upload documents from your account accounts, it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer within an hour, provided you apply in normal business hours and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statements, we are able to offer a decision in as little as an business day.
For the Larger Business Loans ($100K or more) we might be likely to provide you with pre-approval conditional to your application in around six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending on the specifics of each application. Some deals have been approved within less than 24 hours.
The fastest method would be to make sure you apply during normal business hours. You can also allow us to use the modern bank verification link to check your bank’s information online. If you choose to send us copies of your bank statement, it may take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you make an application for a specific amount we take into consideration a range of variables in order to assess the well-being that is your business and the amount of repayments your company can support. The amount you receive from your loan will depend on the specifics the business.
When you submit an application for a specific amount we consider a variety of elements to determine your health of the company and the extent of repayments that your company can afford. The total amount of your loan will depend on the specific circumstances for your business.
Fees & repayments
How much do you charge for the cost of a company loan?
When you apply for one of our company financing, we’ll assess the risk profile of your business and offer an individualised offer, including the amount of the loan, the duration and interest rates. It is a business loan is an upfront priced loan therefore you will know in advance the total amount you will have to pay, including charges or interest.
What determines the rate that I will be charged?
Business loan interest rates vary due to factors including the amount that is borrowed, what business assets the money will be used for and the sector the company operates in, how long the business has been operating and in the event that the business has sufficient cash flow to pay for the loan, and also the general well-being or financial standing of the business.
What are the costs?
There are no hidden fees for our company loans, and you’ll know exactly how much you be required to pay, and when, from the day you sign up. There’s no 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 can get a cash loan with with no upfront cost or any obligation to sign up.
The Origination Fee includes the expenses associated with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan in advance?
You can repay the entire amount of your loan at any point in time.
If you are deciding to pursue this option, please talk to one of our helpful business loans specialists. They will provide you with the details of your repayment as well as an early payout amount. This is calculated as the total of the remaining principal amount and any accrued interest at the time of the early payout in addition to 1.5% of the principal balance plus any outstanding fees.
How do repayments work?
To ensure you do not miss payment dates and to align your cash flow schedule, we offer repayments that are either daily or weekly. They are automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about the ways we gather information, use it, and exchange it, as well as protect your information, is vital and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to the security of our customers as well as their privacy. We make use of an advanced bank verification system link to immediately verify your bank account information online, allowing us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an company owner uses the assets they have to secure the loan. The asset can be either a personal asset like the family home, or it could be a business asset like a truck as well as a piece of machine.
The majority of banks, including the banks with the biggest size, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, then your asset may be offered for sale by the lender. In essence it is means of securing new financing by using the value of what you already have.
Are I need security for an company loan?
Up to $150,000 in loans it is not necessary to secure assets before you are able to access the money However, we require a personal guarantee. need an individual guarantee. So long as you comply with your loan obligations (as stipulated in the loan contract) Asset security is not needed. For loans over $150,000 typically, you will need a personal ensure and security in the form an asset charge.