FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Clyde North Small Business Loans
Let me know more about Clyde North Small Business Loans
Clyde North unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What makes what makes the Unsecured Loan different from an traditional company loan?
Apply to the Small Business Loan in under 10 minutes online or on the phone. You’ll receive a same day response and the money could be in your account in 24 hours. Traditional company loans reference 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 amount you will have to pay, including any fees, interest 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?
The Small Business Loan can be used to fulfill almost any company use, including cash flow management, business improvements, advertising to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal use.
Concerning Larger Clyde North Business Loans
What is the Larger Clyde North Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are scheduled weekly or fortnightly depending on you cashflow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to have been operating for a minimum of 3 years with an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funding be utilised?
A larger company loan can be used to fund almost all business reason, such as business renovations, purchase of new equipment or inventory for general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. It’s by way of charge against assets, and may include the registration of this with the PPSR or registering as a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is general in nature rather than stipulating security over a particular asset. The person signing the ensure is personally responsible if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR gives preference over private property granted depending on the date that a security interest that is registered.
Caveats are legal document that is filed to offer the legal claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan of $250,000 or more it is possible to offer an initial pre-approval to make the process. We could be able to do this without a credit verification and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes answering a couple of financial health checks. It is not an offer of credit or guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you receive could be on different terms.
Application process
Can I be eligible for funding?
You may be eligible for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (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 trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a couple minutes, and an experienced company expert in lending will be in touch to guide you through the process.
To apply for up $100,000, you’ll require ID details (valid Driver’s License) and an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, as well as interim current financial year financials including Aged Payables, Aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we usually provide a response in one hour – as long as you make your application during quality business hours and allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your bank statements , we are able to provide a decision within one company day.
For the Larger Business Loan ($100K and up) we might be capable of provide the conditional pre-approval in about 6 hours. Once you have signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this may be quicker depending upon the circumstances for each application. Certain deals have been approved within just 24 hours.
The fastest way for you to apply is ensure you apply during normal company hours. Also, permit us to use the modern bank verification link to instantly verify your bank account information online. If you choose to upload the copies of bank statement, it can take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) We can usually offer an answer within an hour if you apply at standard business hours and permit us to make use of the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statements we can offer an answer in as little as 1 business day.
For the Larger Business Loans ($100K or more) we could be capable of provide you with a conditional pre-approval within about six hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Some deals have been approved within less than 24 hours.
The most efficient method for you to apply is ensure you apply during standard business hours. You can also permit us to use the advance bank verification to verify your bank account information online. If you opt to upload documents from your account statements it can take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a certain amount, we will consider a number of elements for determining the health of your business as well as the amount of payments your business can support. The total amount of the loan will be determined by the particular circumstances the business.
When you submit an application for a specific amount we take into consideration a variety of elements to determine the well-being of your company and the level of payments your company can support. The total amount of your loan will depend on the specifics the business.
Fees & repayments
How do you charge for a company loan?
If you decide to make an application for our company financing, we’ll assess the risk assessment the company and provide an individualised offer including the amount of loan, the term and interest rates. A company loan is an upfront priced loan therefore you will be aware of the total amount payable including any costs, fees, or interest rates.
What is the basis for the rate I will be charged?
Interest rates for company loans rates vary due to factors such as the amount that is borrowed, the business assets the funds are used to purchase as well as the field the company is in, how long the company is in operation for, what percentage of the company has enough cash flow to pay for the loan, and also the overall well-being as well as creditworthiness business.
What are the cost?
There aren’t any hidden charges with our business loans. You’ll know exactly how much it is that you be required to pay and when, right 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 don’t charge an Application Fee. You can apply for a loan with without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved with the setting up and management of the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay off the loan early?
You can repay the total amount of your advance loan at any time.
If you choose to take this route, please contact our helpful company credit professionals. We will provide you with details for repayment as well as an early payout amount. This is calculated as the sum of the principal remaining and any accrued interest at the time of early payout plus 1.5% of the principal balance and any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss payments and to work with your cash flow general, we offer repayments that are either weekly or daily. These are automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being clear about the ways we gather data, process, exchange and secure your information, is of huge importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We employ an exceptionally sophisticated bank verification system link to instantly verify the bank account details online, allowing us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an business owner makes use of assets they own to obtain the funds for a loan. The asset could be an asset belonging to the personal, like the family home or a business asset like a truck as well as a piece of machine.
The majority of lenders, not just the big banks, tend to secure loans against an asset. If you’re having trouble paying back the loan, your assets could be sold by the lender. In essence, it’s an opportunity to secure additional financing using the worth of the asset you already have.
Do I require security to get a company loan?
For loans up to $150,000 no asset security is required before you can access the money but we do require an individual guarantee. In the event that you fulfill the terms of your loan (as stipulated in your loan contract) Asset security is not needed. If you take out loans in excess of $150,000 generally there is an individual guarantee and security is provided in the form of charges on assets.