FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Coolaroo Small Business Loans
Tell me more about Coolaroo Small Business Loans
Coolaroo unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from an traditional company loan?
You can apply to get the Small Business Loan in under 10 minutes online or over the phone. You’ll get an instant response and the money could be in your account in 24 hours. Traditional company loans reference an interest rate per annum as well as other fees and charges. Our company loan is a pre-paid loan which means you know in advance the amount you will have to pay, including the interest, fees and charges. Then, it is divided into a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company purpose including the management of cash flow, business remodeling, marketing, to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available to fund personal expenses.
About Larger Coolaroo Business Loans
What is the Larger Coolaroo Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is calculated at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to have been operating for a minimum of 3 years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funds be used for?
A large business loan can be used for almost all business need, including business renovations, to purchase new equipment or inventory, as 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 necessary to obtain funding above $150,000. It is usually in the form of a charge over assets, and may include the registration of this in the PPSR or filing a caveat.
A personal or director’s ensure is a promise to repay credit that is general in nature rather than defining security over a particular asset. The person signing the ensure is personally liable in the event that the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR grants the priority of personal property assigned depending on the date that a security interest has been registered.
An affidavit is an official form of document to provide notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re requesting larger business loans that exceeds $250,000 we may be able to provide an initial pre-approval in order to smooth out the process. We could be able to make this decision without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial well-being checks. This is not an offer of credit or guarantee of credit. Unconditional approval is subject to a full credit assessment and any offer you may receive may be on different conditions.
The application process
Are I eligible for funding?
You may be eligible for an company 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 trade (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a couple minutes, and an experienced company loan specialist will call you to guide you through the process.
For a loan of up to $100,000 you’ll require proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we can often provide an answer within one hour – as long as you submit your request during standard company time and let us utilise the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statements , we are able to offer an answer in just an business day.
For the Larger Business Loan ($100K or more) we may be able to provide you with a conditional pre-approval within 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending on the specifics of each application. Some offers have been approved within the space of 24 hours.
The most effective method can be make sure you apply during standard company hours and let us use the advanced bank verification system link to instantly check your bank’s information online. If you opt to upload copies of your bank statement, it takes a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K or more) we usually provide an answer within one hour – provided you submit your request within standard business time and let us utilise the advanced bank verification system link to immediately verify your bank account information online. If you want to submit copies of your bank statements we can offer an answer in as little as an business day.
If you are applying for Larger Business Loans ($100K or more) we might be able to offer you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Some agreements have been approved within the space of 24 hours.
The most effective method can be ensure you apply during standard business hours. You can also let us use the advance bank verification link to check your bank’s information online. If you upload duplicates of your banking accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a certain amount, we consider a variety of factors for determining your well-being of the business and the extent of the repayments your business is able to afford. The amount you receive from your loan will be contingent on the particular circumstances that are unique to your company.
When you make an application for a certain amount, we will consider a number of variables to assess how much we can lend you such as health that is your business and the amount of repayments your company is able to afford. The amount you receive from your loan will be determined by the specifics of your business.
Fees & repayments
How much should you charge for a company loan?
When you make an application for one of our business financing, we will assess the risk assessment of your business and offer an individualised offer including the amount of the loan, the duration and the interest rates. It is a company loan is an upfront-priced loan so you will be aware of the total amount you will have to pay, including charges or interest.
What is the basis for the rate I pay?
Business loan interest rates vary due to factors like the amount of money borrowed, what company assets the money are used to purchase in addition to the industry that the company is operating in, how long the company has been operating and how long the company has enough cash flow to cover the loan, as well as the overall health or creditworthiness of the business.
What are the charges?
There are no hidden costs with our company loans, and you’ll know exactly how much you need to pay and when, from day one. There’s not any compounding interest and no extra fees (as as long as you pay your payments on time).
We do not charge an application fee. You are able to make an application for loans without any upfront costs or commitment to apply.
The Origination Fee covers the expenses involved with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay out the loan early?
You can repay the entire amount of the advance loan at any time.
If you do decide to take this route, please contact our helpful business credit experts. The professionals will provide you with details for repayment and an early payment figure. It will be calculated using the sum of the principal amount remaining plus any accrued interest as of the time of early payment in addition to 1.5% of the principal amount remaining and any outstanding fees.
How do you make repayments work?
To make sure you do not miss payments and to work your cash flow schedule, we offer repayments that are either weekly or daily. They are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being clear about the ways we gather information, use it, and exchange it, as well as safeguard your data, is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their privacy. We employ a highly sophisticated bank verification system to immediately verify your bank account information online to provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the company owner makes use of an asset that they own to obtain a loan. The asset may be an individual property, such as the family home, or an company property like a truck or piece or equipment.
The majority of the lenders including the major banks, prefer to secure loans against assets. If you are having difficulty paying back the loan, your assets could be sold by the lender. In essence, it is the process of securing new financing by taking advantage of the value of what you already own.
Are I need 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 require an individual guarantee. If you adhere to the terms of your loan (as stipulated in your loan contract document) the security of assets is not needed. For loans that exceed $150K, generally, there is a personal ensure and security that is in the form a charge over assets.