FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Camborne Small Business Loans
Tell me more about Camborne Small Business Loans
Camborne unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
How is how is the Unsecured Loan different from the traditional company loan?
The application to get this Small Business Loan in under 10 minutes online or over the phone. You’ll get an answer within the same day and funds may be in your account in 24 hours. Traditional company loans are based on an annual rate of interest plus other fees and charges. This business loan is an upfront priced loan therefore you’ll be aware in advance of the total amount payable including the interest, fees and charges. Then, it is broken down into either weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company need, such as managing cash flows, business remodeling, marketing to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal reasons.
About larger Camborne Business Loans
What is the Larger Camborne Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed up to 36 months. Repayments are weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to be trading for at least 3 years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funding for?
A Larger Business Loan can be used to fund almost any company need, including company renovations, purchase of inventory or new equipment, as general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required for accessing funds over $150,000. It’s as a result of an charge over assets, which could also be registered with the PPSR or registering a caveat.
A personal or director’s guarantee is a guarantee to pay off a credit line that is general in nature, rather than specifying the security of a specific asset. The person signing the guarantee is personally liable if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including goods or assets). The PPSR grants priority over personal property to be assigned according to the date a security interest has been registered.
An affidavit is an official document lodged to provide notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re seeking the Larger Business Loan of $250,000 or more, we may offer an initial pre-approval that will help ease the process. It is possible to do 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 the answer to a series of financial health questions. It is neither an offer nor a guarantee of funds. Unconditional approval is subject to an extensive credit evaluation and any offer you might receive could have different terms.
The application process
Do I qualify for funds?
You are eligible to apply for an company 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)
- you must prove at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Just complete the online application in just a few minutes, and an experienced company expert in lending will call you to guide you through the process.
For a loan of up to $100,000, you’ll require the right identification documents (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent and 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, plus interim current financial year financials as well as Aged Payables and Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K or more) We can usually offer an answer within an hour, provided you make your application at standard business times and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your bank statements , we will be able to offer the decision in as little as one company day.
If you are applying for a Larger Business Loan ($100K or more) we may be likely to offer you with a conditional pre-approval in about six hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some deals have been approved within the space of 24 hours.
The quickest method would be to make sure you apply during normal company hours. You can also let us use the advanced bank verification system link to instantly verify your bank account information online. If you opt to upload copies of your bank statements it may take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we usually offer an answer within an hour – as long as you submit your request at standard business times and permit us to use the advanced bank verification system link to instantly verify your bank’s information online. If you opt to send us copies of your bank statements we can offer a decision within an business day.
If you are applying for Larger Business Loans ($100K or more) we might be capable of provide you with pre-approval conditional to your application within about six 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. Certain offers have been approved within just 24 hours.
The fastest way is to make sure you apply during normal business hours. You can also let us use the advance bank verification to instantly verify your bank information online. If you opt to send us the copies of bank statements it takes a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a certain amount we look at a variety of aspects that determine the health of the company and the amount of payments your company can support. The total amount of your loan will depend on the particular circumstances of your company.
When you apply for a particular amount, we look at a range of aspects to assess how much we can lend you such as well-being that is your business and the extent of repayments your business is able to afford. The total amount of the loan will be determined by the specifics that are unique to your business.
Fees & repayments
How much should you charge for a business loan?
When you make an application for the business financing, we’ll assess the risk profile of your business and offer an individualised offer including the amount of the loan, the duration and interest rates. This business loan is an upfront priced loan therefore you will know in advance the total amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I am charged?
Interest rates for business loans rates differ based on various factors like the amount of money of money borrowed, the business assets the money are used to purchase and the sector the business is in, how long the business is in operation and in the event that the business has sufficient cash flow to cover the loan, and overall health or creditworthiness of the company.
What are the cost?
There are no hidden costs with our company loans, and you’ll know precisely how much it is that you need to pay and when, starting from the day you sign up. There’s not any 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 get a cash loan with with no upfront cost or obligation to proceed.
The Origination Fee is the cost associated with establishing and managing the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can decide to repay the entire amount of the loan early at any time.
If you decide to take this route, please talk to one of our helpful business loans experts. The experts will provide you with repayment details and an early payout figure. The figure will be calculated as the total of the remaining principal amount and the accrued interest up to the time of early payout and 1.5% of the remaining principal plus any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss payment dates and to align with your cash flow general, we provide payments that are either daily or weekly. They will be automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being clear about how we collect, use, exchange and safeguard your data, is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our customers and privacy. We make use of an advanced bank verification system to instantly verify the bank account details online, allowing us to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the company owner uses an asset that they own to make the funds for a loan. The asset may be a personal asset like the family home, or a company asset such as a vehicle or piece or equipment.
The vast majority of lenders, even the banks with the biggest size, prefer to make loans secured by an asset. If you have trouble paying back the loan, the asset could be sold by the lender. In essence, it’s the process of securing new financing using the value of what you already own.
Do I need security to secure a business loan?
For loans of up to $150K, the requirement for asset security is not required prior to the loan’s access However, we require a personal guarantee. require an individual guarantee. In the event that you fulfill your loan obligations (as stipulated in your loan contract document), asset security is not needed. For loans that exceed $150K, generally, you can get the option of a personal guarantee and security is provided in the form of charges on assets.