FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Colonel Light Gardens Small Business Loans
Tell me more about Colonel Light Gardens Small Business Loans
Colonel Light Gardens unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
What is what makes the Unsecured Loan different from an traditional company loan?
You can apply to the Small Business Loan in under 10 minutes on the internet or by phone. You will receive an answer within the same day and funds may be in your account in 24 hours. Traditional business loans have an interest rate per annum as well as other fees and charges. The business loan is a pre-paid loan therefore you’ll be aware in advance of the total amount to be paid, including any fees, interest or charges. This is then broken down into a daily or weekly amount to be paid back.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every company purpose including control of cash flow business renovations, marketing for purchasing inventory or new equipment, or as general working capital and much more. The loan is not available for personal use.
About the Larger Colonel Light Gardens Business Loans
What is the Larger Colonel Light Gardens Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. The repayments are made weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to have been in operation for at least 3 years, and have an annual income of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can the funding be used for?
A large company loan can be used for nearly every business use, including business remodeling, buying new equipment or inventory, as general working capital, and much more. The loan is not available to fund personal expenses.
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 against assets, and could include the registration of this on 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 general in nature, rather than stipulating the security of a specific asset. The person signing the guarantee is personally responsible if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be granted according to the date the security interest was registered.
The caveat can be described as a formal document that is filed to offer an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan of more than $250K we may be able to provide a preliminary pre-approval to help smooth out the process. We may 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 evaluation that involves answering a couple of financial health questions. It is neither an offer nor a guarantee of credit. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you receive could be subject to different terms.
The application process
Are I eligible for funding?
You may apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and simple. Just fill out the online application in few minutes and an experienced business lending specialist will call you to assist you.
To be eligible for up to $100,000 you’ll require ID details (valid Driver’s Licence) and a valid NZBN/IRD and at least six months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent, 12 months of bank records, IRD statements and the last two years’ finalised financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we typically provide a response in one hour if you apply in standard company hours and allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statement, we’ll provide a decision in just an business day.
For the Larger Business Loan ($100K and up) we may be capable of provide you with a conditional pre-approval in about six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Some transactions have received approval in less than 24 hours.
The most effective method can be ensure you apply during standard business hours, and allow us to use the advanced bank verification system to instantly check your bank’s information online. If you decide to upload copies of your bank accounts, it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) we usually provide an answer within one hour – as long as you apply during normal business times and let us use the bank verification system to immediately verify your bank account information online. If you choose to send us copies of your bank statements, we will be able to offer a decision within the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be able to offer you with a conditional pre-approval within six hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Some agreements have been approved within the space of 24 hours.
The quickest method would be to ensure you apply during standard business hours and allow us to use our advanced bank verification system link to verify your bank information online. If you decide to send us duplicates of your banking statements it can take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you submit an application for a specific amount we consider a variety of aspects in order to assess how much we can lend you health that is your company and the extent of payments your company will be able to support. The total amount of your loan will depend on the particular circumstances that are unique to your company.
If you apply for a specific amount we take into consideration a variety of factors to assess how much we can lend you such as health of the company as well as the amount of payments your business can support. The amount you receive from the loan will be determined by the particular circumstances the business.
Fees & repayments
How much should you charge for a business loan?
When you make an application for business loans with us business financing, we’ll assess the risk assessment the company and offer an individualised offer that includes the amount of loan, the term and the interest rates. This company loan is an upfront priced loan and you’ll be aware of the total amount to be paid, including any charges or interest.
What determines the amount I pay?
Interest rates for business loans rates depend on several variables like the amount to be borrowed, the business assets the funds are used to purchase and the sector the business operates in, how long the business is in operation as well as what percentage of the company has sufficient cash flow to cover the loan, and the general health and creditworthiness of the business.
What are the fees?
There are no hidden fees for our company loans, and you’ll know precisely how much you’ll be required to pay and when, starting from the very first day. There’s no compounding interest, and there are no additional charges (as as you make your payments on time).
We do not charge an application fee. You can request a credit loan absolutely no upfront cost and no obligation to proceed.
The Origination Fee is the cost associated with establishing and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan earlier?
You can choose to repay the entire amount of the loan at any point in time.
If you do decide to do this please speak to our friendly company credit experts. They’ll offer you with details for repayment and an early payment figure. This is calculated as the sum of the principal amount remaining and accrued interest to the time of early payout and 1.5% of the principal balance plus any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss due dates and also to be in line your cash flow cycle we offer repayments either weekly or daily. These are automatically withdrawn from your company account.
Security & privacy
Will my information be secure?
Security of your data, and being clear about the ways we gather the information we collect, use, share and secure your information, is of paramount 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 personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to customer security and security. We utilise a sophisticated bank verification system that allows you to instantly confirm your bank account information online, allowing us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a business owner utilises an asset that they own to make the funding. The asset can be either an asset belonging to the personal, like the family home or an business asset like a truck as well as a piece of machine.
The majority of the lenders even the largest banks, are inclined to secure loans against an asset. If you have trouble paying back the loan, your assets could be sold by the lender. In essence, it’s the process of securing additional financing using the value of what you already have.
What do I require security to get a company 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 an individual guarantee. As long as you follow the loan terms (as detailed in the loan contract) the security of assets will never be required. For loans of over $150K generally, you are able to get a personal ensure and security in the form a charge over assets.