FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Caufield Small Business Loans
Let me know more about Caufield Small Business Loans
Caufield unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from the traditional business loan?
The application to get this Small Business Loan in under 10 minutes by phone. You will receive a same day response and the money could be in your account within 24 hours. Traditional business loans reference an annual interest rate plus other fees and charges. This business loan is a loan that is priced upfront so you will be aware in advance of the total amount payable including any interest, fees or charges. This is then broken down into weekly or daily installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for almost every company reason, such as the management of cash flow, company improvements, advertising, to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used to fund personal expenses.
About the Larger Caufield Business Loans
What is the Larger Caufield Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of for up to 36 months. Repayments are weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the business needs to be trading for at least 3 years with an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funding for?
A large business loan can be used for nearly any company reason, such as business renovations, purchase of new equipment or inventory as well as for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. It’s as a result of an charge against assets and can include registering this in the PPSR or making as a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is general in nature rather than stipulating the security of a specific asset. The person who signs the ensure is personally accountable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR allows priority over personal property to be assigned depending on the date that a security interest has been registered.
An affidavit is an official document that is filed to provide the public notice of a legal claim to a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan that is greater than $250,000 we may be able to provide an initial pre-approval to smooth out the process. We might be able to make this decision without a credit check, and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial well-being questions. It is neither an offer nor a guarantee of financing. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you may receive may be on different conditions.
Application process
Can I be eligible for funding?
You can apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Complete the online form in just a few minutes, and a dedicated business expert in lending will be in touch to guide you through the process.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s License), an NZBN/IRD that is valid and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K to $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Information on the application including credit consent, 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K or more) We can usually provide an answer within an hour – as long as you make your application during quality company timings and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your banking statement, we’ll provide a decision within just 1 company day.
If you are applying for a Larger Business Loan ($100K or more) we may be capable of provide you with a conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, it could be faster based on the particular circumstances of each application. Some deals have been approved within less than 24 hours.
The most effective method can be ensure you apply during standard business hours. Also, permit us to use the advance bank verification link to instantly verify your bank account information online. If you choose to upload duplicates of your banking accounts, it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) we typically provide a response in one hour if you submit your request at normal business timings and you allow us to use the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your banking statements we can offer an answer in as little as the span of one business day.
For Larger Business Loans ($100K and up) we could be in a position to offer the conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however it could be faster based on the specifics of each application. Some transactions have received approval in the space of 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours and allow us to use the sophisticated bank verification link to verify your bank information online. If you upload the copies of bank statements, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a specific amount we consider a variety of factors in order to assess what is the well-being for your business and the extent of payments your company will be able to support. The total amount of your loan will depend on the specifics that are unique to your business.
If you apply for a set amount, we consider a variety of variables to determine how much we can lend you such as well-being of the business and the level of payments your business will be able to support. The amount you receive from your loan will be contingent on the particulars for your business.
Fees & repayments
How much do you charge for an company loan?
If you decide to apply for our business loan, we’ll assess the risk profile the company and provide an individualised offer that includes the loan amount, the terms and the interest rates. The business loan is an upfront priced loan therefore you will be aware of the total amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I pay?
Interest rates for business loans rates differ based on various factors like the amount of money borrowed, the company assets the money are used to purchase as well as the field the business is operating in, how long the business has been in operation for, in the event that the company has enough cash flow to support the loan, and also the general health as well as creditworthiness company.
What are the fees?
There aren’t any hidden costs for our company loans. You’ll be aware of the amount you’ll be required to pay and when, from the day you sign up. There’s no compounding and the loan comes with no additional fees (as long as you make your payments in time).
We do not charge an Application Fee. You can request a credit loan no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated with the setting up and management of the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I repay the loan earlier?
You can repay the entire amount of the loan at any point in time.
If you are deciding to do this please contact our helpful business loans specialists. The experts will provide you with details for repayment along with an early payout estimate. It will be calculated using the total of the remaining principal amount and the accrued interest up to the time of early payout, plus 1.5 percent of the principal remaining and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payments and to work with your cash flow routine, we provide repayments either weekly or daily. They will be automatically deducted from your designated company 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 vital and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to protecting the security of clients and security. We make use of an advanced bank verification system link to immediately verify your bank account details online. This allows us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a company owner makes use of an asset that they own to get the funds for a loan. The asset can be a personal asset like the family home or an company asset like a truck or piece or equipment.
The vast majority of lenders, including the largest banks, are inclined to make loans secured by assets. If you’re having trouble paying back the loan, the asset might be taken over by the lender. In essence, it’s means of securing new financing using the worth of the asset you already own.
Do I require security for a company loan?
For loans that exceed $150K, the requirement for asset security is not required prior to the loan’s access However, we do need a personal guarantee. If you adhere to your loan commitments (as stipulated in the loan contract) and you are able to meet your obligations, asset security is not required. For loans over $150K generally, you are able to get personal guarantee and security is provided in the form of the charge of assets.