FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Chapel Hill Small Business Loans
Tell me what you think of the Chapel Hill Small Business Loans
Chapel Hill unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from a traditional company loan?
The application to get the Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and have the funds in your account in 24 hours. Traditional business loans are based on an annual interest rate together with additional fees and charges. This business loan is a pre-paid loan therefore you’ll know ahead of time the total amount due, which includes any fees, charges or charges. This is then divided into a daily or weekly installment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company purpose including cash flow management, company improvements, advertising to purchase inventory, new equipment, or as general working capital and so much more. The loan is not available for personal purposes.
About Larger Chapel Hill Business Loans
What is the Larger Chapel Hill Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range from $100,000 to $500,000 over a fixed term for up to 36 months. The repayments are made weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been operating for at least three years and have an annual turnover of at least $700K. 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 minimum 12 months of business.
What can I use the funds for?
A larger business loan is a great option for almost every company purpose including company renovations, purchase of 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 a secured loan?
Asset security is needed for funding of more than $150,000. It is usually as a result of an charge against assets, and may be registered on the PPSR or filing a caveat.
A director’s or personal ensure is a commitment to repay credit that is generally based rather than specifying security over an asset. The person who signs the ensure is personally accountable if the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including goods or assets). The PPSR gives preference over private property assigned in accordance with the date on which a security interest has been registered.
Caveats are legal form of document to provide an official notice of a claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan that is greater than $250,000 we may be able to provide an initial pre-approval in order to simplify the process. We could be able to get this done without a credit verification and within 6 hours of the initial application. The pre-approval process is based on a preliminary assessment which includes you answering some financial well-being checks. This is not an offer or guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer that you receive could be subject to different conditions.
Application process
Do I have the right to receive funds?
You may apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $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 loan specialist will call you to guide you through the process.
For a loan of up to $100,000, you’ll need the right identification documents (valid Driver’s License), an active NZBN/IRD, and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater 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, plus interim financials from the current financial year including Aged Payables, Aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer within one hour – as long as you apply within quality business times and you allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your banking statements , we are able to offer an answer within just an business day.
For Larger Business Loans ($100K up to $500,000) we may be able to provide you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Certain offers have been approved in 24 hours.
The most effective method for you to apply is make sure you apply during normal company hours, and let us use the modern bank verification link to check your bank’s information online. If you choose to send us documents from your account statement, it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K and up) We can usually offer an answer within an hour – provided you submit your request within standard business times and allow us to use the bank verification system link to instantly verify your bank information online. If you want to send us copies of your bank statements, we are able to provide the decision within one business day.
For Larger Business Loans ($100K up to $500,000) we might be in a position to offer you with pre-approval conditional to your application within about 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the 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 fastest way for you to apply is ensure you apply during standard business hours, and allow us to use the modern bank verification to confirm your bank details online. If you decide to send us copies of your bank accounts, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a certain amount, we look at a variety of aspects in order to assess your health for your company and the level of repayments your business can support. The total amount of your loan will be contingent on the specific circumstances of your business.
If you apply for a set amount, we look at a range of variables to determine the well-being that is your business and the amount of repayments that your company can afford. The amount you receive from your loan will be contingent on the specifics for your company.
Fees & repayments
How much do you charge for a business loan?
If you decide to apply for one of our business loan, we’ll assess the risk profile of your company and offer you with a customised offer that includes the amount of loan, the term and the interest rates. It is a company loan is an upfront cost loan therefore you will be aware in advance of the total amount due, which includes any charges or interest.
What determines the rate that I’m charged?
Business loan interest rates differ based on various factors like the amount of money borrowed, what company assets the money are used to purchase in addition to the industry that the business is operating in, how long the company has been operating and in the event that the company has enough cash flow to pay for the loan, and the overall well-being and creditworthiness of the business.
What are the costs?
There aren’t any hidden charges with our business loans, and you’ll know precisely what you need to pay and at what time, from the first day. There’s no compounding and no extra fees (as long as you are able to make your payments on time).
We do not charge an Application Fee. You are able to get a cash loan with no cost upfront or obligation to proceed.
The Origination Fee covers the costs associated with establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan early?
You may choose to pay back the entire amount of the loan at any point in time.
If you are deciding to take this route, please speak to our friendly company credit specialists. They will provide you with the details of your repayment and an early payment figure. This will be calculated as the total of the principal remaining plus any accrued interest as of the time of early payment, plus 1.5% of the remaining principal plus any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss due dates and also to be in line your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically withdrawn from your company account.
Security & privacy
Will my data be secure?
Security of your data, and being clear about the ways we gather the information we collect, use, share and safeguard your data, is crucial 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 and other data. Our funders are ISO 27001 qualified for our dedication to customer security and privacy. We employ a highly sophisticated bank verification system to instantly verify your bank account information online, allowing us to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a company owner makes use of an asset that they own to obtain the funding. The asset may be a personal asset like the family home, or an business asset such as a vehicle as well as a piece of machine.
The vast majority of lending institutions, even the big banks, tend to guarantee loans against an asset. If you’re having trouble paying back the loan then the asset might be sold by the lender. In essence it’s a way of securing new financing by using the worth of the asset you already have.
What do I require security to get a business loan?
Up to $150,000 in loans the requirement for asset security is not required in advance to gain access to the funds, however we do require a personal guarantee. If you adhere to the terms of your loan (as specified in your loan contract), asset security is not required. If you take out loans in excess of $150K generally, there is personal ensure and security in the form of a charge over assets.