FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Collingwood Small Business Loans
Tell me how you can avail the Collingwood Small Business Loans
Collingwood unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from the traditional business loan?
It is imaginable to apply to get the Small Business Loan in under 10 minutes on the phone. You’ll receive an immediate response, and have the funds available in just 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. The company loan is a cash-based loan and you’ll be aware in advance of the total amount payable including any fees, interest or charges. This is then divided into weekly or daily installment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for almost every business use, including the management of cash flow, company renovations, marketing to purchase inventory, new equipment, or as general working capital and so much more. The loan cannot be used for personal use.
About Larger Collingwood Business Loans
What is the Larger Collingwood Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are scheduled weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount, your company needs to have been operating for a minimum of 3 years with an annual turnover of at least $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can the funding be used for?
A Larger Business Loan can be used for nearly any company reason, such as business renovations, purchase of new equipment or inventory or as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. This is by way of charge against assets and can include registration on the PPSR or making as a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is general in nature, rather than stipulating security over a particular asset. The person signing the guarantee is personally accountable if the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including objects or assets). The PPSR grants the priority of personal property granted in accordance with the date on which a registration of a security interest.
An affidavit is an official document filed to provide the public notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re requesting larger business loans that is greater than $250,000, we may offer a preliminary pre-approval to help ease the process. We may be able to apply for this without a credit check, and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes you answering a few financial health checks. This is in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you are offered could be subject to different conditions.
Application process
Do I qualify for funds?
You can apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for you to qualify for 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 fast and simple. Simply complete the online form within a couple minutes, and an experienced business expert in lending will contact you to assist you.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s Licence) and an active NZBN/IRD, and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent twelve months bank statement, an IRD statements and the last two years’ finalised financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) we usually offer an answer in just one hour if you apply within standard business times and let us use the advanced bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statements , we are able to provide a decision within 1 company day.
For the Larger Business Loan ($100K to $500K) we could be likely to provide the conditional pre-approval within about six hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this can be quicker based on the particular circumstances of each application. Some agreements have been approved within just 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours. You can also allow us to use the advance bank verification to instantly verify your bank account information online. If you decide to send us documents from your account accounts, it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) We can usually offer a response in one hour – provided you make your application during normal business hours and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to send us copies of your bank statements we can provide a decision in just one business day.
For Larger Business Loans ($100K up to $500,000) We may be in a position to provide you with conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval. However, this can be faster depending on the particular circumstances of each application. Some transactions have received approval in just 24 hours.
The quickest method can be make sure you apply during standard business hours. Also, let us use the sophisticated bank verification link to verify your bank information online. If you decide to send us copies of your bank statement, it may take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a particular amount, we look at a variety of variables to determine the well-being for your company as well as the amount of repayments that your business can afford. The total amount of your loan will depend on the specific circumstances of your company.
When you apply for a specific amount we will consider a number of elements to assess your well-being of the company and the amount of repayments your company can support. The amount you receive from your loan will be determined by the specific circumstances for your business.
Fees & repayments
How do you charge for an business loan?
If you decide to make an application for one of our business financing, we will assess the risk assessment the business and provide an individualised offer, including the amount of loan, the term and interest rates. This company loan is an upfront cost loan so you will be aware in advance of the total amount to be paid, including any charges, interest rates or fees.
What is the basis for the rate I am charged?
The interest rates on company loans rates differ based on various factors including the amount that is borrowed, what company assets the money will be used for in addition to the industry that the business is operating in, how long the company has been running as well as in the event that the company has enough cash flow to support the loan, and overall well-being as well as creditworthiness company.
What are the costs?
There aren’t any hidden costs with our business loans, and you’ll know exactly how much it is that you need to pay, and when, from the day you sign up. There’s no compounding interest and there are no additional charges (as as long as you pay your payments punctually).
We do not charge an Application Fee. You can request a credit loan with with no upfront cost or any obligation to sign up.
The Origination Fee is the cost associated with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay off the loan in advance?
You may choose to pay back the total amount of your advance loan at any time.
If you choose to do this please talk to one of our helpful business credit experts. They’ll offer you with details on repayment and an early payment figure. This will be calculated as the sum of the principal amount remaining and any accrued interest at the date of early payout plus 1.5 percent of the principal balance and any outstanding fees.
How do repayments work?
To make sure that you don’t miss payments and to work with your cash flow general, we provide repayments either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear the ways we gather, use, exchange and safeguard your data, is of paramount importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to customer security and security. We employ a highly sophisticated bank verification system to instantly verify your bank account information online to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the business owner borrows from the assets they have to obtain the loan. The asset may be an asset belonging to the personal, like the family home, or it could be a company asset such as a truck as well as a piece of machine.
The majority of lenders, including the big banks, tend to make loans secured by assets. If you’re having trouble paying back the loan, then the asset might be taken over by the lender. In essence, it’s the process of securing new funding making use of the value of what you already have.
Do I need security for a company loan?
For loans up to $150K no asset security is required prior to the loan’s access but we require a personal guarantee. require the personal guarantee. If you adhere to your loan obligations (as stated in your loan contract) Asset security is not required. For loans of over $150,000 generally there is personal guarantee and security in the form the charge of assets.