FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Croydon Small Business Loans
Tell me about the Croydon Small Business Loans
Croydon unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What makes how is the Unsecured Loan different from an traditional company loan?
The application to get the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive a same day response and have the funds available in just 24 hours. Traditional business loans have an interest rate per annum together with additional fees and charges. Our company loan is a loan that is priced upfront and you’ll know in advance the total amount to be paid, including any interest, fees or charges. This is then broken down into either weekly or daily repayment figure.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every company need, such as the management of cash flow, company improvements, advertising, to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Concerning Larger Croydon Business Loans
What is the Larger Croydon Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to have been operating for at least three years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funds for?
A larger company loan is a great option for almost every business reason, such as business improvements, purchasing inventory or new equipment or as general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It’s by way of charge against assets, and could be registered through the PPSR or making a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is generally in nature rather than stipulating the security of a specific asset. The person who signs the guarantee is personally liable if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It reflects security interests that are registered for personal property (including objects or assets). The PPSR permits preference over private property assigned in accordance with the date on which a security interest has been registered.
A caveat is a legal form of document to offer the public notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re applying for larger company loans of more than $250K we can offer an initial pre-approval that will help make the process. We could be able to do this without a credit verification and within 6 hours of the initial application. This pre-approval is based on a preliminary assessment which includes you answering a few financial well-being checks. It’s not an offer of credit or guarantee of credit. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you are offered could be subject to different conditions.
The application process
Do I qualify for funds?
You may be eligible for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Complete the online form in few minutes and an experienced business lending specialist will contact you to guide you.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s License) along with a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll also need:
$100K to $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent twelve months of bank statements, IRD statements Last 2 years’ finalised financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we typically offer an answer within one hour if you apply within standard business hours and allow us to use the advanced bank verification system link to instantly verify your bank details online. If you opt to send us copies of your bank statements , we will be able to provide a decision in just 1 company day.
For the Larger Business Loan ($100K to $500K) we could be likely to provide you with pre-approval conditional to your application in about 6 hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Some agreements have been approved within the space of 24 hours.
The most effective method is to make sure you apply during standard business hours. Also, allow us to use the advanced bank verification system to instantly check your bank’s information online. If you opt to send us copies of your bank statements it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K to $100K) We can usually offer an answer within one hour, provided you make your application during standard business timings and let us make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statements, we will be able to offer a decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K and up) we might be likely to offer you with a conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, it could be faster based on the particular circumstances of each application. Certain deals have been approved within less than 24 hours.
The quickest method can be ensure you apply during normal business hours. You can also allow us to use our advanced bank verification system link to verify your bank account information online. If you decide to send us documents from your account accounts, it can take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a specific amount we consider a variety of variables in order to assess how much we can lend you well-being for your company and the extent of repayments that your company can support. The amount you receive from your loan will depend on the particular circumstances for your business.
When you apply for a particular amount, we look at a range of factors to determine your well-being of the business and the amount of payments your company can afford. The total amount of your loan will depend on the particulars that are unique to your company.
Fees & repayments
How do you charge for an company loan?
When you apply for our company credit, we will assess the risk assessment of your company and offer you with a tailored offer including the amount of loan, the term and the interest rates. This business loan is an upfront cost loan so you will be aware of the total amount due, which includes any charges or interest.
What is the factor that determines the price I am charged?
Interest rates for business loans rates vary due to variables like the amount to be borrowed, the business assets the money will be used for and the sector the business operates in, the long the business has been in operation as well as what percentage of the company has sufficient cash flow to pay for the loan, as well as the general well-being or creditworthiness of the company.
What are the costs?
There aren’t any hidden charges for our business loans, and you’ll know precisely how much you need to pay, and when, right from the very first day. There’s no compounding interest and no additional fees (as long as you make your payments on time).
We do not charge an Application Fee. You can get a cash loan with no cost upfront or any obligation to sign up.
The Origination Fee covers the expenses involved with setting up and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay off the loan early?
You may choose to pay back the total amount of your loan early at any time.
If you decide to take this route, please talk to one of our helpful company loans specialists. They will provide you with details for repayment and an early payout figure. This is calculated as the sum of the remaining principal amount and any accrued interest at the time of early payment and 1.5% of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
In order to help you avoid missing repayments and to fit in with your cash flow general, we provide repayments either daily or weekly. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being transparent about how we collect the information we collect, use, share and ensure the security of your information is of huge importance and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to customer security and security. We make use of an advanced bank verification system that allows you to immediately verify the bank account details online to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where the company owner uses assets they own to make a loan. The asset could be a personal asset like the family home, or it could be a company asset such as a truck as well as a piece of machine.
The vast majority of lending institutions, including the largest banks, are inclined to make loans secured by assets. If you’re having trouble paying back the loan then the asset could be transferred to the lender. In essence, it’s an opportunity to secure additional financing making use of the value of what you already have.
What do I require security for a company loan?
For loans of up to $150K, the requirement for asset security is not required prior to the loan’s access however, we require a personal guarantee. require the personal guarantee. So long as you comply with the terms of your loan (as specified in your loan contract) and you are able to meet your obligations, asset security is not required. For loans over $150K generally, you can get a personal ensure and security in the form of the charge of assets.