FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Crafers West Small Business Loans
Let me know what you think of the Crafers West Small Business Loans
Crafers West unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What is what makes the Unsecured Loan different from the traditional company loan?
The application to get your Small Business Loan in under 10 minutes via the internet or by phone. You will receive a same day response and the money could be in your account within 24 hours. Traditional company loans reference an interest rate per annum along with other charges and fees. This business loan is a pre-paid loan and you’ll be aware in advance of the total amount to be paid, including any fees, interest or charges. This is then divided into a daily or weekly installment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company reason, such as the management of cash flow, business remodels and marketing to purchase inventory, new equipment, as general working capital, and much more. The loan cannot be used for personal use.
Concerning Larger Crafers West Business Loans
What is the Larger Crafers West Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed up to 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount the business needs to have been operating for a minimum of 3 years and generate an annual revenue of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funding for?
A larger company loan can be used for almost every company use, including business improvements, purchasing equipment or inventory as well as for general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. This can be done as a result of an charge against assets and can be registered on the PPSR or registering a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is generally based rather than defining the security of a specific asset. The person who is signing the ensure is personally liable in the event that the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests registered in respect of personal property (including the assets or goods). The PPSR permits preference over private property granted depending on the date that a registration of a security interest.
An affidavit is an official document that is filed to provide notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for a Larger Business Loan of $250K or more we can offer an initial pre-approval in order to ease the process. It is possible to apply for this without credit checks and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves the answer to a series of financial health checks. It’s neither an offer nor a guarantee of finance. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you may receive may be subject to different conditions.
Application process
Do I qualify for funds?
You may be eligible for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for the unsecured loan $5K – $100K) or three years of trade (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 few minutes and an experienced business loan specialist will be in touch to guide you.
To apply for up $100,000, you’ll require the right identification documents (valid Driver’s Licence), a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll also require:
$100K-$250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Information on the application including credit consent twelve months bank statement, an IRD statement as well as the two most recent years’ financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K or more) We can usually offer a response in one hour if you submit your request during standard business times and let us make use of 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 the decision within an company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be in a position to provide the conditional pre-approval within about 6 hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Some offers have been approved in just 24 hours.
The most efficient method can be ensure you apply during standard company hours and permit us to use the advance bank verification link to instantly verify your bank account information online. If you opt to upload copies of your bank statements , it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) We can usually offer a response in one hour if you apply within normal business timings and let us use the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your bank statements, we will be able to provide an answer in just 1 business day.
If you are applying for Larger Business Loans ($100K and up) we might be in a position to provide you with a conditional pre-approval in around six hours. Once you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be faster depending upon the circumstances for each application. Some offers have been approved within 24 hours.
The most effective method is to ensure you apply during normal business hours and let us use the sophisticated bank verification to verify your bank information online. If you upload duplicates of your banking statements, it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you submit an application for a certain amount we will consider a number of aspects for determining what is the well-being of the company and the level of the repayments your company will be able to support. The amount you receive from your loan will depend on the particular circumstances for your business.
If you apply for a particular amount, we take into consideration a variety of aspects to assess how much we can lend you such as well-being of your company and the level of payments your company can support. The amount you receive from your loan will depend on the specifics for your business.
Fees & repayments
How do you charge for an business loan?
If you decide to request the business loan, we’ll assess the risk assessment that you have for your company and provide you with a customised offer including the amount of loan, the term and the interest rates. The business loan is a loan that is priced upfront so you will know the exact amount payable including any charges or interest.
What determines the rate that I am charged?
The interest rates on company loans rates depend on several variables like the amount to be borrowed, what company assets the funds are used to purchase as well as the field the business is in, how long the business has been in operation for, how long the business has sufficient cash flow to support the loan, and general health or financial standing of the business.
What are the charges?
There are no hidden costs with our company loans. You’ll know exactly how much it is that you be required to pay, and at what time, from the very first day. There’s no compounding interest, and no extra fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You can make an application for loans with no cost upfront or obligation to proceed.
The Origination Fee covers the expenses involved in establishing and managing the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay out the loan early?
You can choose to repay the total amount of your loan at any point in time.
If you decide to pursue this option, please speak to our friendly business loans professionals. We will offer you with repayment details and an early payment figure. This will be calculated as the sum of the principal balance and any accrued interest at the time of the early payout, plus 1.5 percent of the remaining principal plus any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss payment dates and to align with your cash flow cycle we offer repayments either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my data be protected?
Protecting your information, and being transparent about how we collect data, process, exchange and ensure the security of your information is of huge importance and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their privacy. We employ a highly sophisticated banking verification system to immediately verify your bank account information online so we can offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where a company owner utilises an asset they own to secure a loan. The asset could be an asset belonging to the personal, like the family home, or a business property like a truck as well as a piece of machine.
The vast majority of banks, even the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan then your asset may be offered for sale by the lender. In essence it’s the process of securing new funding using the value of what you already have.
Are I need security to get a business loan?
For loans that exceed $150,000, it is not necessary to secure assets before you are able to access the money, however we do require an individual guarantee. So long as you comply with your loan obligations (as stipulated in your loan contract document) Asset security will never be required. For loans of over $150,000 generally there is a personal ensure and security in the form of the charge of assets.