FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Clyde North Small Business Loans
Tell me more about Clyde North Small Business Loans
Clyde North unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from the traditional company loan?
Apply for your Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and the money could be available in just 24 hours. Traditional business loans refer to an annual rate of interest as well as other fees and charges. Our 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. Then, it is divided into a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business reason, such as cash flow management, business renovations, marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal purposes.
About larger Clyde North Business Loans
What is the Larger Clyde North Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of for up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the company needs to have been operating for at least three years with an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 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 the funding be used for?
A larger business loan is a great option for almost every business need, including company remodeling, buying new equipment or inventory as well as for general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. This is as a result of an charge against assets, which could also include the registration of this with the PPSR or making a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is generally in nature rather than defining security over a particular asset. The person who is signing the ensure is personally liable if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including goods or assets). The PPSR permits priority over personal property to be assigned according to the date the security interest that is registered.
Caveats are legal document that is filed to provide an official notice of a claim to property.
What is a pre-approval that does not require Credit Check?
If you’re applying for a Larger Business Loan of $250,000 or more we may be able to provide a preliminary pre-approval to help simplify the process. We could be able to make this decision without a credit check, and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes the answer to a series of financial health checks. It’s neither an offer nor a guarantee of funds. A conditional approval is subject an extensive credit evaluation and any offer that you may receive may be based on different terms.
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 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (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. Simply complete the online form in just a few minutes, and a dedicated company expert in lending will be in touch to help you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s License) and an NZBN/IRD that is valid and at least six months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Details for application including credit consent as well as 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, as well as interim financials from the current financial year including Aged Payables, Aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we typically offer an answer in just one hour, provided you make your application during standard business times and allow us to utilise the bank verification system link to instantly verify your bank’s information online. If you want to send us copies of your bank statements , we are able to offer an answer within an business day.
For Larger Business Loans ($100K to $500K) we may be capable of offer you with conditional pre-approval in around six hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this can be quicker based on the specifics of each application. Some agreements have been approved within the space of 24 hours.
The quickest method would be to ensure you apply during standard company hours and permit us to use the modern bank verification link to instantly verify your bank account information online. If you decide to upload copies of your bank statements , it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) We can usually offer an answer within an hour – as long as you submit your request in standard business time and allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you opt to send us copies of your bank statements, we will be able to provide a decision within the span of one business day.
For Larger Business Loans ($100K and up) We may be capable of offer the conditional pre-approval within about 6 hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval. However, it could be faster based on the specifics of each application. Some offers have been approved within the space of 24 hours.
The most efficient method can be make sure you apply during normal business hours. Also, allow us to use our advance bank verification to verify your bank account information online. If you send us documents from your account statement, it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a particular amount, we will consider a number of factors in order to assess your well-being of your company and the amount of repayments that your business can support. The amount you receive from the loan will be determined by the particular circumstances the business.
If you apply for a particular amount, we will consider a number of variables to assess the health for your business as well as the amount of repayments your company can support. The total amount of your loan will be contingent on the specifics that are unique to your business.
Fees & repayments
How much do you charge for an business loan?
When you apply for business loans with us business credit, we’ll assess the risk assessment the company and offer you with a customised offer including loan amount, term and the interest rates. This company loan is an upfront cost loan which means you know the exact amount payable including any costs, fees, or interest rates.
What is the factor that determines the price I pay?
Business loan interest rates differ based on various variables like the amount to be borrowed, the business assets the money are used to purchase and the sector the business operates in, how long the company has been running for, what percentage of the business has enough cash flow to cover the loan, and general health and creditworthiness of the business.
What are the costs?
There aren’t any hidden charges for our business loans. You’ll know precisely what it is that you need to pay and at what time, from the day you sign up. There’s no compounding interest, and no additional fees (as as you make your payments in time).
We don’t charge an Application Fee. You are able to get a cash loan without any upfront costs or commitment to apply.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan in advance?
You can decide to repay the entire amount of your loan early at any time.
If you decide to pursue this option, please contact our helpful business credit professionals. They’ll provide you with repayment details and an early payout figure. This is calculated as the total of the principal balance and accrued interest to the time of the early payout and 1.5 percent of the principal remaining and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing repayments and to fit in your cash flow cycle we provide repayments either weekly or daily. These are automatically deducted from your business account.
Security & privacy
Will my data be secure?
Protecting your information, and knowing how we collect information, use it, and exchange it, as well as safeguard your data, is of huge importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We use an advanced banking verification system to instantly verify your bank account details online, allowing us 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 an asset that they own to get the loan. The asset may be an individual asset, such as the family home or it could be a business asset like a truck or piece or equipment.
The majority of lending institutions, including the major banks, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan then the asset might be transferred to the lender. In essence, it’s means of securing additional financing using the worth of the asset you already have.
Should I need security to get an company loan?
For loans of up to $150K, it is not necessary to secure assets before you are able to access the money however, we require a personal guarantee. need the personal guarantee. As long as you follow the loan terms (as stated in the loan contract), asset security will never be needed. If you take out loans in excess of $150,000 generally, you can get a personal guarantee and security that is in the form a charge over assets.