FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Capel South Small Business Loans
Let me know what you think of the Capel South Small Business Loans
Capel South unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from the traditional company loan?
You can apply to get this Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and the money could be in your account within 24 hours. Traditional company loans reference an annual interest rate together with additional fees and charges. This company loan is a pre-paid loan so you will know in advance the total amount due, which includes any fees, interest or charges. This is then divided into a daily or weekly installment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly any business reason, such as the management of cash flow, company renovations, marketing, to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available to fund personal expenses.
About larger Capel South Business Loans
What is the Larger Capel South Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the company needs to be operating for a minimum of 3 years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can I use the funding for?
A Larger Business Loan can be used for nearly any business need, including company renovations, to purchase inventory or new equipment for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. It’s as a result of an charge against assets, and could include registering this on 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 defining security over an asset. The person who signs the guarantee is personally responsible if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including goods or assets). The PPSR grants the priority of personal property assigned depending on the date that a security interest has been registered.
A caveat is a legal document lodged to provide an official notice of a claim against a property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan of more than $250,000 we can offer an initial pre-approval that will help ease the process. We might be able to get this done without a credit check, and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves answering a couple of financial well-being questions. It’s not an offer or guarantee of credit. Unconditional approval is subject to a full credit assessment and any offer you might receive could be based on different terms.
The application process
Do I have the right to receive funds?
You can apply 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 worth of trade (for you to qualify for 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 simple. Just complete the online application within a couple minutes, and a dedicated company expert in lending will call you to help you.
For a loan of up to $100,000, you’ll need ID details (valid Driver’s License) and an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll also require:
$100K-$250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Application details including credit consent twelve months bank statement, an IRD statements as well as the two most recent years’ financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) We can usually provide an answer within one hour, provided you apply in standard company hours and allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statements , we are able to provide the decision within one company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be capable of provide you with pre-approval conditional to your application within six hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Some agreements have been approved in less than 24 hours.
The most efficient method for you to apply is ensure you apply during normal company hours and let us use the modern bank verification to verify your bank information online. If you opt to upload duplicates of your banking statements it can take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer within one hour – as long as you apply during normal business time and let us utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to send us copies of your bank statements, we will be able to offer a decision in just 1 business day.
For the Larger Business Loans ($100K to $500K) We may be able to provide the conditional pre-approval in about 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Certain agreements have been approved in less than 24 hours.
The fastest method can be make sure you apply during normal business hours, and allow us to use the modern bank verification link to verify your bank information online. If you decide to send us duplicates of your banking statements it will take a little longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of elements in order to assess your 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 particular circumstances that are unique to your business.
When you apply for a set amount, we look at a range of variables to determine the well-being that is your business and the level of the repayments your company will be able to support. The total amount of the loan will be determined by the particular circumstances for your business.
Fees & repayments
What is the cost for an company loan?
If you decide to make an application for our company credit, we will assess the risk profile of your company and offer you with a tailored proposal that includes loan amount, term and the interest rates. This company loan is a loan that is priced upfront therefore you will know in advance the total amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I pay?
Interest rates for company loans rates depend on a variety of factors including the amount borrowed, what business assets the funds are used to purchase as well as the field the business operates in, how long the business is in operation and how long the company has enough cash flow to cover the loan, and the general well-being or financial standing of the business.
What are the fees?
There aren’t any hidden costs with our company loans, and you’ll know exactly how much you’ll need to pay, and when, from the very first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments punctually).
We do not charge an application fee. You are able to apply for a loan with no upfront cost or any obligation to sign up.
The Origination Fee covers the expenses involved with establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I repay the loan early?
You may choose to pay back all of your loan early at any time.
If you choose to do this please contact our helpful company loans professionals. They will provide you with repayment details along with an early payout estimate. It will be calculated using the sum of the principal balance plus any accrued interest as of the time of the early payout and 1.5 percent of the principal balance plus any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payment dates and to align your cash flow cycle we provide repayments either daily or weekly. These are automatically withdrawn from your designated company account.
Security & privacy
Will my information be secure?
Security of your data, and being clear about how we collect, use, exchange and protect your information, is of huge importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their privacy. We utilise a sophisticated bank verification system to instantly verify the bank account details online, allowing us to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an business owner borrows from the assets they have to secure the funding. The asset may be an asset belonging to the personal, like the family home, or it could be a business asset such as a truck as well as a piece of machine.
The vast majority of the lenders including the major banks, prefer to guarantee loans against assets. If you have trouble paying back the loan then your asset may be offered for sale by the lender. In essence it’s a way of securing new funding taking advantage of the value of what you already have.
Should I require security for an business loan?
For loans up to $150,000 it is not necessary to secure assets in advance to gain access to the funds but we do require a personal guarantee. So long as you comply with your loan obligations (as detailed in the loan contract) the security of assets will never be required. If you take out loans in excess of $150K typically, you will need a personal ensure and security is provided in the form of charges on assets.