FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Clarence Gardens Small Business Loans
Let me know more about Clarence Gardens Small Business Loans
Clarence Gardens unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What is how is the Unsecured Loan different from the traditional company loan?
The application for this Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an answer within the same day and the funds could be in your account in 24 hours. Traditional company loans are based on an annual rate of interest as well as other fees and charges. This company loan is an upfront priced loan so you will know ahead of time the total amount to be paid, including any fees, charges or charges. This is then divided into a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business purpose including managing cash flows, business improvements, advertising for purchasing inventory or new equipment, for general working capital and much more. The loan is not available to fund personal expenses.
About Larger Clarence Gardens Business Loans
What is the Larger Clarence Gardens Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of that can last up to 36 months. The repayments are made weekly or fortnightly to work with you cashflow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan of this size, your business needs to be operating for at least three years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can the funds be used for?
A large business loan can be used to fund almost all company reason, such as business remodeling, buying new equipment or inventory for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. It is usually by way of charge over assets, and may include registering this in the PPSR or registering as a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is generally based rather than stipulating the security for a particular asset. The person signing the ensure is personally liable if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR gives priority over personal property to be granted depending on the date that a security interest has been registered.
An affidavit is an official document that is filed to provide notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking the Larger Business Loan of more than $250,000, we may offer a preliminary pre-approval to help ease the process. We may be able to do this without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves you answering some financial well-being questions. It is in no way an offer, nor is it a guarantee of credit. A conditional approval is subject a full credit assessment and any offer you receive could be on different conditions.
Application process
Do I qualify for funds?
You may apply for an company 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)
- must show at least six months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application in just a few minutes, and a dedicated business loan specialist will be in touch to help you.
For a loan of up to $100,000, you’ll require ID details (valid Driver’s License) and a valid NZBN/IRD as well as at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Details for application including credit consent and 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, and interim financials from the current financial year, Aged Payables and Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we usually provide an answer in just one hour if you make your application during quality business time and allow us to use the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your bank statements , we will be able to provide an answer in as little as 1 business day.
For Larger Business Loans ($100K to $500K) we may be likely to provide you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Certain transactions have received approval within just 24 hours.
The quickest way to apply would be to ensure you apply during normal business hours and permit us to use the advance bank verification link to confirm your bank details online. If you decide to send us duplicates of your banking accounts, it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K or more) we usually provide an answer within one hour if you apply at normal business hours and allow us to use the bank verification system to immediately verify your bank account information online. If you decide to upload copies of your bank statements we can offer the decision in just an business day.
If you are applying for Larger Business Loans ($100K or more) we could be likely to provide you with pre-approval conditional to your application in around six hours. Once you’ve signed your pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this can be faster depending on the particular circumstances of each application. Certain agreements have been approved in 24 hours.
The fastest method is to ensure you apply during normal business hours, and let us use the advance bank verification link to confirm your bank details online. If you send us copies of your bank statements, it can take a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a certain amount we take into consideration a range of variables in order to assess what is the health of the company and the amount of payments your company is able to afford. The total amount of your loan will be contingent on the particular circumstances the company.
When you make an application for a certain amount, we consider a variety of factors to determine the health for your company and the extent of the repayments your business can afford. The amount you receive from your loan will be contingent on the particular circumstances for your company.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to apply for one of our business loan, we’ll assess the risk assessment that you have for your business and offer you with a customised proposal that includes the amount of the loan, the duration and interest rates. The business loan is a loan that is priced upfront and you’ll be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What is the factor that determines the price I will be charged?
The interest rates on company loans rates depend on a variety of variables like the amount to be that is borrowed, what business assets the money are used to purchase as well as the field the business operates in, how long the business has been running, whether the business has enough cash flow to cover the loan, and overall health or financial standing of the business.
What are the cost?
There aren’t any hidden costs with our business loans. You’ll know exactly how much you’ll need to pay and when, starting from the first day. There’s no compounding and the loan comes with no additional fees (as as you make your payments on time).
We don’t charge an Application Fee. You can apply for a loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5% of the loan amount.
Do I have the option of paying off the loan in advance?
You can decide to repay all of your loan at any point in time.
If you are deciding to do this please contact our helpful company lending professionals. The professionals will provide you with details for repayment and an early payment figure. This is calculated as the total of the principal balance plus any accrued interest as of the date of early payout plus 1.5 percent of the principal balance as well as any outstanding fees.
How do repayments work?
To ensure that you don’t miss payments and to work with your cash flow cycle we offer repayments either weekly or daily. These are automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being clear about the ways we gather, use, exchange and protect your information, is of paramount importance and is an essential 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 as well as financial data. Our funders are ISO 27001 qualified for our commitment to customer security and privacy. We use an advanced bank verification system to immediately confirm your bank account information online to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when the business owner uses the assets they have to get the loan. The asset could be an asset belonging to the personal, like the family home, or it could be a company asset like a truck or piece or equipment.
The vast majority of banks, even the major banks, prefer to guarantee loans against assets. If you are having difficulty paying back the loan, then your asset may be sold by the lender. In essence it’s an opportunity to secure new financing by taking advantage of the value of what you already have.
What do I need security to secure a company loan?
Up to $150K in loans the requirement for asset security is not required prior to the loan’s access However, we require a personal guarantee. need the personal guarantee. As long as you follow the terms of your loan (as detailed in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans of over $150K generally, you can get an individual guarantee and security in the form of charges on assets.