FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Clarendon Small Business Loans
Tell me how you are able to avail the Clarendon Small Business Loans
Clarendon unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What is this Unsecured Loan different from the traditional business loan?
You can apply to the Small Business Loan in under 10 minutes on the phone. You’ll receive an answer within the same day and have the funds available in just 24 hours. Traditional company loans are based on an annual interest rate along with other charges and fees. We offer a company loan is a loan that is priced upfront therefore you’ll know in advance the total amount due, which includes any interest, fees or charges. Then, it is divided into a daily or weekly amount to be paid back.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business purpose including managing cash flows, company remodeling, marketing for purchasing inventory or new equipment, to fund general working capital, and much more. The loan cannot be used to fund personal expenses.
About Larger Clarendon Business Loans
What is the Larger Clarendon Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed up to 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your company needs to have been operating for a minimum of 3 years and have an annual turnover of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funding be utilised?
A Business Loan of a larger size can be used for nearly all company purpose including business remodeling, buying inventory or new equipment or as general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. It’s by way of charge over assets, and could be registered in the PPSR or making as a caveat.
A personal or director’s ensure is a commitment to repay credit that is general in nature, rather than stating the security of a specific asset. The person signing the guarantee is personally accountable if the company the borrower fails 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 registered in respect of personal property (including objects or assets). The PPSR allows the priority of personal property granted in accordance with the date on which a registration of a security interest.
The caveat can be described as a formal document lodged to provide an official notice of a claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan that is greater than $250K, we may offer a preliminary pre-approval to help make the process. We may be able to apply for this without a credit check and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering some financial health checks. This is neither an offer nor a guarantee of funds. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you might receive could be based on different terms.
The application process
Can I be eligible for funding?
You can apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Just fill out the online application in just a few minutes, and an experienced business loan specialist will contact you to guide you through the process.
To apply for up $100,000 you’ll need identification details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details for application including credit consent twelve months bank statement, an IRD statements, last 2 years finalised financial statements, in addition to interim financial statements for the current year such as age-related payables and aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) We can usually provide an answer within one hour, provided you apply during quality business times and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you choose to send us copies of your bank statements we can provide the decision within just the span of one business day.
For the Larger Business Loan ($100K and up) we could be capable of provide you with conditional pre-approval within about six hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Certain transactions have received approval within 24 hours.
The quickest method is to make sure you apply during standard company hours, and let us use the modern bank verification link to instantly verify your bank account information online. If you opt to send us copies of your bank statements , it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) we typically offer an answer within an hour, provided you apply during standard business timings and permit us to use the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statements, we’ll be able to provide an answer in just 1 business day.
For Larger Business Loans ($100K and up) we may be able to provide you with conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this may be quicker depending upon the circumstances for each application. Certain offers have been approved within just 24 hours.
The most efficient method can be ensure you apply during normal business hours, and let us use the modern bank verification to instantly confirm your bank details online. If you opt to upload duplicates of your banking statements, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. If you apply for a certain amount, we take into consideration a range of factors to determine your health that is your company and the level of the repayments your company can afford. The total amount of the loan will be determined by the particular circumstances the business.
If you apply for a particular amount, we look at a range of factors to determine the health for your business and the level of payments your company is able to afford. The amount you receive from your loan will be contingent on the particulars for your company.
Fees & repayments
What is the cost for the cost of a company loan?
If you decide to make an application for the business financing, we’ll assess the risk assessment that you have for your company and offer you with a tailored offer including the amount of the loan, the duration and the interest rates. The business loan is an upfront priced loan which means you know the exact amount payable including any costs, fees, or interest rates.
What determines the rate that I am charged?
Interest rates for company loans rates depend on several variables like the amount to be borrowed, what company assets the money are used to purchase in addition to the industry that the business is operating in, how long the business is in operation for, how long the company has sufficient cash flow to pay for the loan, as well as the overall health or creditworthiness of the business.
What are the cost?
There are no hidden fees with our company loans, and you’ll know exactly how much it is that you need to pay and at what time, from the day you sign up. There’s no compounding interest and no extra fees (as as long as you pay your payments on time).
We don’t charge an application fee. You are able to request a credit loan absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I repay the loan early?
You can repay the entire amount of the loan in full at any time.
If you are deciding to take this route, please call our helpful company lending experts. They will offer you with repayment details and an early payout figure. The figure will be calculated as the sum of the remaining principal amount plus any accrued interest as of the time of early payout, plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
To make sure you do not miss repayments and to fit in with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically deducted from your company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being clear about the ways we gather the information we collect, use, share and safeguard your data, is of huge importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We use an advanced bank verification system link to instantly verify the bank account details online to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the company owner utilises assets they own to get the funds for a loan. The asset could be a personal asset like the family home, or a business asset such as a truck or other piece of machinery.
The majority of lenders, even the big banks, tend to guarantee loans against an asset. If you have trouble paying back the loan then your asset may be taken over by the lender. In essence it’s a way of securing new financing by using the value of what you already have.
Should I require security to secure a company loan?
For loans of up to $150,000, no asset security is required prior to the loan’s access however, we require a personal guarantee. need the personal guarantee. In the event that you fulfill your loan commitments (as stated in your loan contract document) Asset security will never be required. For loans of over $150K generally there is an individual ensure and security that is in the form charges on assets.