FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Cannons Creek Small Business Loans
Tell me what you think of the Cannons Creek Small Business Loans
Cannons Creek unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
How is the Unsecured Loan different from the traditional business loan?
It is imaginable to apply for this Small Business Loan in under 10 minutes by phone. You will receive an instant response and funds may be in your account in 24 hours. Traditional business loans have an annual interest rate as well as other fees and charges. This business loan is a loan that is priced upfront therefore you’ll know in advance the total amount due, which includes any interest, fees or charges. This is then divided into a daily or weekly repayment figure.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company need, such as cash flow management, company remodels and marketing to purchase inventory, new equipment, for general working capital and so much more. The loan is not available for personal use.
About Larger Cannons Creek Business Loans
What is the Larger Cannons Creek Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to be in operation for at least 3 years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funds for?
A Business Loan of a larger size can be used for almost any business purpose including business remodeling, buying equipment or inventory or as 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 necessary for funding of more than $150,000. This is by way of charge over assets, and may be registered on the PPSR or making as a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is generally in nature rather than defining the security for a particular asset. The person who is signing the guarantee is personally accountable if the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It records security interests that have been that are registered for personal property (including goods or assets). The PPSR permits the priority of personal property assigned according to the date the security interest was registered.
A caveat is a legal document that is filed to provide notice of a legal claim to property.
What is a pre-approval minus Credit Check?
When you’re applying for an enterprise loan of more than $250K, we may offer an initial pre-approval to smooth out the process. We may be able to make this decision without credit checks and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial health questions. This is in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to an assessment of your creditworthiness and any offer you receive could be based on different terms.
Application process
Are I eligible for funding?
You are eligible to apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for the unsecured loan $5K – $100K) or three years of trading (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 few minutes and an experienced business loan specialist will be in touch to help you.
For a loan of up to $100,000, you’ll require proof of identity (valid Driver’s License) as well as an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Details for application including credit consent and 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, in addition to interim financials for the current financial year including Aged Payables, Aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we can often provide a response in one hour – as long as you make your application within standard business times and you allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to send us copies of your bank statements , we are able to offer a decision within 1 business day.
For Larger Business Loans ($100K and up) we might be able to provide you with a conditional pre-approval in around 6 hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Certain transactions have received approval within the space of 24 hours.
The fastest way for you to apply is make sure you apply during normal company hours and allow us to use the modern bank verification to instantly check your bank’s information online. If you decide to upload copies of your bank statements , it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) we can often offer a response in one hour – provided you make your application in standard business timings and allow us to utilise the advanced bank verification system link 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 in just the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be in a position to provide the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Some agreements have been approved within the space of 24 hours.
The fastest method can be ensure you apply during standard business hours. You can also allow us to use the advanced bank verification system link to instantly verify your bank information online. If you decide to upload duplicates of your banking statements, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a specific amount we take into consideration a range of factors in order to assess your well-being of your company as well as the amount of repayments that your business can support. The total amount of your loan will depend on the specific circumstances the company.
If you apply for a specific amount we take into consideration a variety of variables to assess your well-being for your business as well as the amount of the repayments your business is able to afford. The total amount of your loan will be determined by the specifics the business.
Fees & repayments
How do you charge for an business loan?
If you decide to request business loans with us company loan, we’ll assess the risk assessment the business and provide you with a customised offer including the loan amount, the terms and interest rates. It is a business loan is an upfront priced loan therefore you will be aware of the total amount you will have to pay, including interest rates, fees or charges.
What determines the amount I will be charged?
Interest rates for business loans rates depend on a variety of factors including the amount of money borrowed, the business assets the money are used to purchase, the industry the company is operating in, how long the business has been operating and whether the business has enough cash flow to support the loan, and also the general health as well as creditworthiness business.
What are the fees?
There are no hidden fees for our business loans. You’ll know precisely what it is that you need to pay and when, starting from the day you sign up. There’s no compounding interest and no extra fees (as as long as you pay your payments on time).
We do not charge an application fee. You can make an application for loans with no cost upfront or the obligation to take action.
The Origination Fee is the cost associated in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I repay the loan earlier?
You may choose to pay back the entire amount of your loan at any point in time.
If you are deciding to do this please call our helpful business credit specialists. They will provide you with details for repayment and an early payout figure. It will be calculated using the total of the principal balance plus any accrued interest as of the date of early payout plus 1.5% of the remaining principal as well as any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payment dates and to align your cash flow schedule, we offer repayments either weekly or daily. They will be automatically deducted from your business account.
Security & privacy
Will my information be secure?
Protecting your information, and knowing the ways we gather, use, exchange and ensure the security of your information is crucial 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 standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our dedication to security for our customers and privacy. We make use of an advanced bank verification system to immediately verify your bank account information online so we can provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the business owner borrows from an asset they own to obtain the funding. The asset may be a personal asset like the family home or an business asset like a truck as well as a piece of machine.
The vast majority of lenders, not just the big banks, tend to secure loans against an asset. If you’re struggling to pay back the loan, your asset may be sold by the lender. In essence, it’s means of securing new funding using the worth of the asset you already have.
Should I require security to get an company loan?
For loans that exceed $150K, the requirement for asset security is not required prior to the loan’s access however, we require a personal guarantee. require a personal guarantee. As long as you follow the terms of your loan (as stipulated in your loan contract) the security of assets will never be needed. For loans over $150K typically, you will need an individual ensure and security in the form an asset charge.