FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Chandlers Hill Small Business Loans
Let me know how you are able to avail the Chandlers Hill Small Business Loans
Chandlers Hill unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from a traditional business loan?
You can apply for your Small Business Loan in under 10 minutes over the phone, receive an answer within the same day and the funds could be in your account in 24 hours. Traditional business loans have an annual interest rate together with additional fees and charges. We offer a company loan is a pre-paid loan therefore you’ll know ahead of time the total amount payable including any fees, interest or charges. Then, it is broken down into either a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company use, including the management of cash flow, business renovations, marketing to purchase inventory, new equipment, or as general working capital and so much more. The loan is not available for personal reasons.
About Larger Chandlers Hill Business Loans
What is the Larger Chandlers Hill Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your company needs to be operating for a minimum of 3 years with an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funds be utilised?
A larger company loan can be used to fund almost all company use, including business improvements, purchasing new equipment or inventory or as general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This can be done as a result of an charge over assets and can include registering this on the PPSR or registering as a caveat.
A personal or director’s guarantee is a promise to pay back a loan that is generally in nature rather than stipulating security over an asset. The person who is signing the guarantee is personally liable if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been that are registered for personal property (including the assets or goods). The PPSR allows priority over personal property to be assigned in accordance with the date on which a security interest has been registered.
Caveats are legal document filed to offer notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting the Larger Business Loan that is greater than $250K we may be able to provide an initial pre-approval that will help make the process. We might be able to apply for this without credit checks and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial well-being questions. It’s in no way an offer, nor is it a guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer that you are offered could be based on different conditions.
Application process
Do I qualify for funds?
You are eligible to apply for a 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)
- can demonstrate at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form in few minutes and an experienced company loan specialist will be in touch to help you.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s Licence) and a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details for application including credit consent twelve months of bank statements, IRD statements, last 2 years finalised financial statements, as well as interim financials from the current financial year as well as Aged Payables and Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we can often offer an answer in just one hour – as long as you apply in standard business timings and permit us to use the advanced bank verification system link to instantly verify your bank’s information online. If you opt to submit copies of your bank statements , we’ll be able to provide the decision in as little as 1 company day.
For the Larger Business Loan ($100K and up) we could be likely to offer you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Some transactions have received approval within the space of 24 hours.
The most efficient method can be ensure you apply during standard company hours, and permit us to use the advance bank verification to instantly confirm your bank details online. If you send us the copies of bank statement, it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) we typically provide a response in one hour, provided you make your application in normal business timings and allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you want to submit copies of your bank statements we can provide an answer in just an business day.
For the Larger Business Loans ($100K or more) we could be able to provide you with conditional pre-approval within about six hours. Once you’ve signed your pre-approval form, it will take between 2 and 3 days for the 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 fastest method would be to make sure you apply during normal business hours. Also, permit us to use the advance bank verification to instantly verify your bank information online. If you choose to upload copies of your bank statement, it can 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 take into consideration a range of elements to determine the health for your business and the amount of the repayments your business will be able to support. The total amount of the loan will be determined by the specifics the business.
When you submit an application for a set amount, we look at a range of variables to determine your health of your business and the extent of the repayments your business is able to afford. The amount you receive from the loan will be determined by the particulars the business.
Fees & repayments
How much do you charge for an company loan?
If you decide to request business loans with us business loans, we will assess the risk profile that you have for your company and offer you with a customised offer including the loan amount, the terms and the interest rates. The business loan is an upfront cost loan and you’ll know in advance the total amount due, which includes any charges or interest.
What is the factor that determines the price I will be charged?
Interest rates for company loans rates differ based on various factors such as the amount that is borrowed, the business assets the funds are used to purchase in addition to the industry that the business is in, how long the business has been in operation and what percentage of the company has enough cash flow to pay for the loan, and also the overall health and creditworthiness of the business.
What are the cost?
There aren’t any hidden costs for our business loans, and you’ll be aware of the amount it is that you need to pay, and at what time, from day one. There’s no compounding interest and no additional fees (as long as you make your payments in time).
We do not charge an application fee. You are able to request a credit loan with no upfront cost or obligation to proceed.
The Origination Fee is the cost associated with setting up and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay out the loan early?
You can decide to repay the entire amount of the loan in full at any time.
If you decide to take this route, please talk to one of our helpful company loan experts. We will offer you with repayment details as well as an early payout amount. This will be calculated as the total of the principal amount remaining plus any accrued interest as of the time of early payment, plus 1.5% of the principal balance plus any outstanding fees.
What are the repayment methods?
To ensure you do not miss due dates and also to be in line your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from your company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear how we collect data, process, exchange and secure your information, is crucial and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to protecting the security of customers and privacy. We use an advanced bank verification system link to immediately verify your bank account information online, allowing us to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an business owner makes use of the assets they have to make the funding. The asset can be 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 lenders, not just the largest banks, are inclined to guarantee loans against assets. If you have trouble paying back the loan, your assets could be transferred to the lender. In essence, it is a way of securing new funding making use of the value of what you already own.
What do I require security to secure a company loan?
For loans up to $150,000 there is no requirement for asset security upfront to access the money However, we do need the personal guarantee. So long as you comply with your loan obligations (as stated in the loan contract) and you are able to meet your obligations, asset security will never be needed. For loans that exceed $150K, generally there is a personal guarantee and security that is in the form an asset charge.