FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Carbrook Small Business Loans
Let me know how you are able to avail the Carbrook Small Business Loans
Carbrook unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from an ordinary company loan?
Apply to your Small Business Loan in under 10 minutes over the phone. You’ll get an instant response and funds may be in your account in 24 hours. Traditional business loans are based on an annual interest rate together with additional fees and charges. We offer a business loan is an upfront priced loan therefore you’ll know in advance the amount you will have to pay, including the interest, fees and charges. This is then broken down into a daily or weekly amount to be paid back.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company need, such as managing cash flows, business remodeling, marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available to fund personal expenses.
Concerning Larger Carbrook Business Loans
What is the Larger Carbrook 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 with a term fixed that can last up to 36 months. The repayments are made weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee determined?
It is crucial to note that 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 that is this large, your company needs to be in operation for at least 3 years and generate an annual revenue of $700,000. The applicant must also be 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 to demonstrate at least 12 months of trading.
What can the funding be used for?
A Larger Business Loan can be used for nearly every business purpose including company renovations, purchase of inventory or new equipment as well as for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. It is usually in the form of a charge against assets and can include registration in the PPSR or registering a caveat.
A personal or director’s guarantee is a promise to pay back a loan that is generally based rather than stating the security of a specific asset. The person signing the ensure is personally liable in the event that the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including goods or assets). The PPSR gives priority over personal property to be assigned according to the date the security interest has been registered.
Caveats are legal document lodged to offer the legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for an enterprise loan that exceeds $250K, we may offer an initial pre-approval to make the process. We might be able to do this without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves the answer to a series of financial health checks. It is neither an offer nor a guarantee of financing. A conditional approval is subject an exhaustive credit evaluation, and any offer you might receive could be on different terms.
Application process
Are I eligible for funding?
You are eligible to apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application in just a few minutes, and a dedicated company loan specialist will call you to guide you through the process.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details of the application, including credit consent, 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, in addition to interim financials from the current financial year as well as Aged Payables and Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer in just one hour, provided you apply within quality business timings and you allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your bank statements , we’ll be able to provide an answer within just 1 company day.
For the Larger Business Loan ($100K to $500K) we could be likely to offer you with conditional pre-approval in around six hours. After you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval. However, this can be quicker based on the specifics of each application. Some agreements have been approved in less than 24 hours.
The quickest method is to make sure you apply during standard business hours, and let us use the advance bank verification link to instantly check your bank’s information online. If you decide to send us duplicates of your banking statements , it will take a little longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) we can often offer a response in one hour, provided you submit your request during standard business timings and permit us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your bank statements, we are able to offer a decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be able to offer you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this could be shorter based upon the circumstances for each application. Certain agreements have been approved within less than 24 hours.
The fastest method can be make sure you apply during standard business hours, and permit us to use the advanced bank verification system link to instantly confirm your bank details online. If you send us copies of your bank statement, it can take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a particular amount, we will consider a number of variables for determining how much we can lend you health for your company as well as the amount of repayments your company can afford. The total amount of the loan will be determined by the specifics that are unique to your company.
When you submit an application for a set amount, we take into consideration a variety of elements to determine how much we can lend you such as well-being that is your company and the amount of repayments that your company is able to afford. The amount you receive from your loan will be contingent on the specific circumstances for your business.
Fees & repayments
What is the cost for a business loan?
If you decide to make an application for our company loan, we will assess the risk profile the business and offer an individualised offer including the amount of the loan, the duration and interest rates. It is a company loan is an upfront priced loan therefore you will be aware of the total amount to be paid, including any charges, interest rates or fees.
What determines the amount I am charged?
The interest rates on business loans rates vary due to factors such as the amount that is borrowed, what company assets the money are used to purchase in addition to the industry that the company operates in, the long the business has been in operation, whether the company has sufficient cash flow to cover the loan, as well as the general well-being and creditworthiness of the business.
What are the fees?
There aren’t any hidden costs for our business loans, and you’ll know precisely how much you need to pay, and at what time, from the very first day. There’s no compounding interest, and the loan comes with no additional fees (as long as you are able to make your payments on time).
We don’t charge an Application Fee. You are able to request a credit loan with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated with setting up and managing the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I repay the loan earlier?
You can decide to repay all of your loan early at any time.
If you do decide to pursue this option, please call our helpful business loans experts. They will offer you with the details of your repayment and an early payment figure. This is calculated as the sum of the remaining principal amount and the accrued interest up to the time of early payout plus 1.5% of the principal remaining plus any outstanding fees.
What are the repayment methods?
To ensure you do not miss payment dates and to align your cash flow cycle we offer repayments that are either daily or weekly. They are automatically deducted from your business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being upfront about the ways we gather, use, exchange and ensure the security of your information is of huge importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to security for our customers and security. We utilise a sophisticated bank verification system to instantly confirm your bank account information online to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a business owner makes use of assets they own to obtain the funds for a loan. The asset could be an asset belonging to the personal, like the family home, or a business asset such as a vehicle as well as a piece of machine.
The vast majority of banks, even the major banks, prefer to make loans secured by assets. If you are having difficulty paying back the loan then the asset could be taken over by the lender. In essence, it is means of securing additional financing taking advantage of the value of what you already have.
Do I need security to secure a business loan?
For loans of up to $150,000, the requirement for asset security is not required in advance to gain access to the funds, however we do need the personal guarantee. In the event that you fulfill your loan commitments (as stated in your loan contract) Asset security will never be needed. If you take out loans in excess of $150,000 typically, you will need an individual ensure and security is provided in the form of a charge over assets.