FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Croydon Small Business Loans
Let me know more about Croydon Small Business Loans
Croydon unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
What makes how is the Unsecured Loan different from an ordinary company loan?
You can apply to get your Small Business Loan in under 10 minutes on the internet or by phone. You will receive an immediate response, and have the funds in your account in 24 hours. Traditional business loans have an interest rate per annum along with other charges and fees. We offer a business loan is a loan that is priced upfront so you will be aware of the total amount payable including any fees, interest or charges. This is then broken down into either 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 for nearly any company need, such as cash flow management, business remodels and marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal use.
About the Larger Croydon Business Loans
What is the Larger Croydon Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are either weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount the business needs to be in operation for at least 3 years and have an annual turnover of $700K. It is necessary to 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 of proving at minimum 12 months of business.
How can the funds be utilised?
A larger business loan can be used for almost every business need, including company remodeling, buying new equipment or inventory as well as for 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 required for accessing funds over $150,000. It’s by taking a charge against assets, which could also include registration through the PPSR or the registration of a caveat.
A director’s or personal ensure is a promise to pay off a credit line that is generally in nature rather than defining the security of a specific asset. The person who signs the guarantee is personally liable if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including items or assets). The PPSR grants the priority of personal property assigned according to the date the security interest was registered.
Caveats are legal document filed to provide the legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re applying for a Larger Business Loan of more than $250K, we may offer an initial pre-approval that will help make the process. We could be able to do this without credit checks and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes answering a couple of financial well-being questions. It is not an offer of credit or guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you receive could be based on different conditions.
Application process
Are I eligible for funding?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a couple minutes, and an experienced business expert in lending will be in touch to help you.
To be eligible for up to $100,000, you’ll require the right identification documents (valid Driver’s License), a valid NZBN/IRD as well as at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent as well as 12 months of bank statements, IRD statement, last 2 years finalised financial statements, plus interim financials from the current financial year such as age-related payables and aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we usually provide a response in one hour if you apply in quality business hours and allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statement, we’ll offer a decision in as little as 1 company day.
If you are applying for a Larger Business Loan ($100K to $500K) we could be in a position to provide you with conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this may be quicker depending on the circumstances of each application. Certain offers have been approved within just 24 hours.
The most effective method would be to make sure you apply during normal company hours. You can also permit us to use the advance bank verification to confirm your bank details online. If you choose to send us the copies of bank statements , it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K and up) we can often offer an answer within one hour – provided you apply at standard business timings and let us make use of the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your banking statements we can provide an answer in as little as the span of one business day.
For Larger Business Loans ($100K and up) we may be able to offer you with pre-approval conditional to your application within six hours. After you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Some deals have been approved in the space of 24 hours.
The fastest method is to ensure you apply during normal business hours, and let us use the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your bank statements it can take a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a certain amount we will consider a number of factors for determining the health for your company and the level of payments your business can afford. The total amount of your loan will be contingent on the specifics the company.
When you make an application for a certain amount, we look at a range of factors to determine how much we can lend you such as well-being of the company and the extent of payments your business can support. The amount you receive from your loan will depend on the specific circumstances for your company.
Fees & repayments
What is the cost for a business loan?
If you decide to make an application for our company financing, we will assess the risk assessment for your business and provide you with a tailored proposal that includes loan amount, term and the interest rates. This company loan is an upfront cost loan so you will know in advance the total amount due, which includes any interest rates, fees or charges.
What is the factor that determines the price I’m charged?
The interest rates on business loans rates depend on several factors including the amount that is borrowed, what business assets the money are used to purchase, the industry the company operates in, how long the company is in operation, what percentage of the business has sufficient cash flow to fund the loan, and also the overall health as well as creditworthiness company.
What are the cost?
There aren’t any hidden charges for our business loans, and you’ll be aware of the amount you be required to pay, and when, from the day you sign up. There’s no compounding and no additional fees (as long as you make your payments punctually).
We don’t charge an Application Fee. You are able to make an application for loans with absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the expenses involved in establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan in advance?
You can repay the entire amount of your advance loan at any time.
If you do decide to take this route, please call our helpful business credit professionals. They’ll offer you with repayment details and an early payment figure. The figure will be calculated as the sum of the principal amount remaining and the accrued interest up to the time of early payment, plus 1.5 percent of the principal remaining as well as any outstanding fees.
How do repayments work?
To make sure that you don’t miss repayments and to fit in with your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and knowing how we collect data, process, exchange and secure your information, is of paramount importance and is a crucial part 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 qualified for our commitment to security for our customers and privacy. We use an advanced bank verification system link to immediately verify your bank account details online. This allows us to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the business owner uses an asset that they own to make a loan. The asset can be either an asset belonging to the personal, like the family home or a business asset such as a truck or other piece of machinery.
The vast majority of lending institutions, including the major banks, prefer to secure loans against an asset. If you’re struggling to pay back the loan then the asset might be taken over by the lender. In essence it’s means of securing new financing taking advantage of the value of what you already own.
Do I require security for an business loan?
For loans of up to $150,000, no asset security is required in advance to gain access to the funds however, we do require the personal guarantee. As long as you follow your loan obligations (as specified in the loan contract) and you are able to meet your obligations, asset security is not required. For loans over $150,000 typically, you will need the option of a personal guarantee and security in the form of charges on assets.