FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Collingwood Small Business Loans
Let me know how you are able to avail the Collingwood Small Business Loans
Collingwood unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
How is the Unsecured Loan different from an ordinary business loan?
Apply to the Small Business Loan in under 10 minutes via the internet or over the phone, receive a same day response and the money could be in your account within 24 hours. Traditional company loans have an annual interest rate along with other charges and fees. We offer a company loan is a loan that is priced upfront which means you be aware in advance of the total amount payable including any interest, fees or charges. This is then broken down into a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every company use, including control of cash flow company improvements, advertising to purchase inventory, new equipment, for general working capital, and much more. The loan cannot be used for personal reasons.
About the Larger Collingwood Business Loans
What is the Larger Collingwood Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the business needs to have been trading for at least 3 years and generate an annual revenue of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funds for?
A Larger Business Loan is a great option for almost any business need, including business improvements, purchasing inventory or new equipment or as general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. It’s by way of charge over assets, and could include registration on the PPSR or making as a caveat.
A personal or director’s guarantee is a promise to repay credit that is generally in nature rather than stipulating security over an asset. The person signing the guarantee is personally responsible if the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including the assets or goods). The PPSR permits preference over private property assigned depending on the date that a registration of a security interest.
The caveat can be described as a formal document lodged to offer the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan that exceeds $250K, we may offer an initial pre-approval in order to simplify the process. We may be able to get this done without a credit check, and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering a few financial well-being questions. This is not an offer of credit or guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer you receive could be subject to different conditions.
The application process
Do I qualify for funds?
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 business (with a valid NZBN/IRD)
- you must demonstrate at minimum 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 fast and easy. Simply complete the online form within a couple minutes, and a dedicated business credit specialist will call you to assist you.
To be eligible for up to $100,000, you’ll require the right identification documents (valid Driver’s License) along with a valid NZBN/IRD and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll also require:
$100K-$250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent, 12 months of bank statements, IRD statements, last 2 years finalised financial statements, plus interim current financial year financials such as age-related payables and aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within an hour, provided you submit your request at quality business timings and allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your bank statements , we are able to offer a decision in as little as the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to offer you with pre-approval conditional to your application within about six hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this could be shorter based on the circumstances of each application. Some offers have been approved in the space of 24 hours.
The quickest method can be ensure you apply during standard company hours. Also, permit us to use the advance bank verification link to verify your bank account information online. If you choose to send us copies of your bank accounts, it takes a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K to $100K) we usually offer an answer within one hour – provided you submit your request within standard business timings and permit us to use the bank verification system link to instantly verify your bank’s information online. If you decide to submit copies of your bank statements, we will be able to offer an answer in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be capable of provide you with conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, this can be faster depending on the particular circumstances of each application. Certain deals have been approved within the space of 24 hours.
The most efficient method would be to ensure you apply during normal business hours and allow us to use our sophisticated bank verification link to instantly verify your bank account information online. If you upload duplicates of your banking statements, it can take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a particular amount, we look at a variety of factors to determine what is the health of the business as well as the amount of the repayments your company can support. The amount you receive from your loan will be contingent on the specific circumstances for your business.
When you apply for a specific amount we look at a range of elements to determine your health for your business and the level of repayments your company is able to afford. The total amount of your loan will be contingent on the particular circumstances of your business.
Fees & repayments
What is the cost for the cost of a company loan?
If you decide to apply for one of our company loans, we’ll assess the risk assessment that you have for your company and offer you with a tailored proposal that includes the amount of loan, the term and interest rates. This business loan is an upfront-priced loan therefore you will know the exact amount to be paid, including any charges or interest.
What determines the rate that I will be charged?
Business loan interest rates depend on a variety of factors including the amount borrowed, what company assets the funds are used to purchase, the industry the company is operating in, how long the business has been in operation for, how long the company has enough cash flow to support the loan, and the overall well-being as well as creditworthiness business.
What are the fees?
There aren’t any hidden charges with our business loans, and you’ll know precisely how much you’ll need to pay and when, starting from day one. There’s no compounding and the loan comes with no additional fees (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You are able to request a credit loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses associated with setting up and managing the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan earlier?
You may choose to pay back the total amount of your advance loan at any time.
If you decide to pursue this option, please talk to one of our helpful company loans experts. We will offer you with the details of your repayment along with an early payout estimate. This will be calculated as the sum of the remaining principal amount and accrued interest to the date of early payout plus 1.5 percent of the principal remaining as well as any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss payment dates and to align your cash flow schedule, we offer repayments that are either weekly or daily. These are automatically deducted from your nominated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being clear about the ways we gather, use, exchange and ensure the security of your information is of paramount importance 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 techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We use an advanced bank verification system link to immediately confirm your bank account information online so we can provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a company owner uses an asset they own to secure the funds for a loan. The asset can be either an asset belonging to the personal, like the family home, or it could be a company asset such as a truck or other piece of machinery.
The vast majority of banks, not just the banks with the biggest size, prefer to guarantee loans against an asset. If you’re struggling to pay back the loan then your asset may be sold by the lender. In essence it is an opportunity to secure additional financing making use of the value of what you already own.
Do I require security for an company loan?
For loans of up to $150,000, it is not necessary to secure assets in advance to gain access to the funds but we do need a personal guarantee. As long as you follow your loan commitments (as stipulated in your loan contract document), asset security will never be needed. If you take out loans in excess of $150,000 generally, there is an individual guarantee and security in the form a charge over assets.