FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Clear Mountain Small Business Loans
Let me know how you can avail the Clear Mountain Small Business Loans
Clear Mountain unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from an ordinary business loan?
It is imaginable to apply to get the Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and funds may be on your account within 24 hours. Traditional company loans are based on an interest rate per annum as well as other fees and charges. We offer a business loan is an upfront priced loan and you’ll know ahead of time the amount you will have to pay, including any interest, fees or charges. Then, it is divided into weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for almost every company need, such as control of cash flow company improvements, advertising to purchase inventory, new equipment, as general working capital and so much more. The loan cannot be used for personal use.
About Larger Clear Mountain Business Loans
What is the Larger Clear Mountain Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your company needs to be operating for at least three years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funds be used for?
A larger business loan can be used for nearly all business use, including business improvements, purchasing inventory or new equipment as well as for general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. This can be done as a result of an charge over assets, and could include registering this with the PPSR or the registration of as a caveat.
A director’s or personal ensure is a guarantee to repay credit that is generally in nature rather than stipulating security over an asset. The person signing the ensure is personally liable if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated 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 preference over private property assigned according to the date the security interest that is registered.
The caveat can be described as a formal document lodged to offer an official notice of a claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan of more than $250K we can offer an initial pre-approval to simplify the process. We may be able to apply for this without credit checks and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves the answer to a series of financial well-being checks. It’s not an offer of credit or guarantee of credit. Unconditional approval is subject to a full credit assessment and any offer you may receive may be on different terms.
Application process
Do I qualify for funds?
You can apply for a 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 you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form within a couple minutes, and a dedicated business expert in lending will contact you to guide you.
To be eligible for up to $100,000 you’ll need the right identification documents (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Details of the application, including credit consent twelve months bank statement, an IRD statement as well as the two most recent years’ financial statements, and interim current financial year financials including Aged Payables, Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we typically provide an answer within one hour – as long as you apply in standard company time and let us utilise the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statement, we’ll offer a decision within one business day.
For Larger Business Loans ($100K and up) we may be likely to provide you with pre-approval conditional to your application in around 6 hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this can be quicker based upon the circumstances for each application. Some deals have been approved within less than 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours, and allow us to use the modern bank verification to confirm your bank details online. If you upload the copies of bank statements , it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) we typically provide a response in one hour if you submit your request in normal business time and permit us to use the bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statements, we are able to provide a decision within the span of one business day.
For the Larger Business Loans ($100K up to $500,000) we may be capable of provide you with conditional pre-approval in about six hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however it could be faster based upon the circumstances for each application. Some transactions have received approval in just 24 hours.
The most efficient method is to ensure you apply during normal business hours and let us use the advance bank verification link to instantly verify your bank information online. If you send us documents from your account statement, it may take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you submit an application for a certain amount we take into consideration a range of factors for determining the health of your business and the amount of the repayments your business can support. The amount you receive from your loan will depend on the specific circumstances for your business.
When you submit an application for a certain amount, we will consider a number of variables to assess the well-being of your business and the amount of repayments your business can afford. The total amount of the loan will be determined by the specific circumstances of your business.
Fees & repayments
What is the cost for an company loan?
If you decide to make an application for the business loan, we’ll assess the risk assessment for your business and provide you with a customised offer, including the amount of loan, the term and interest rates. It is a business loan is an upfront cost loan and you’ll know in advance the total amount due, which includes any costs, fees, or interest rates.
What is the basis for the rate I am charged?
Business loan interest rates vary due to factors such as the amount that is of money borrowed, the company assets the funds will be used for and the sector the company operates in, the long the business has been running as well as whether the company has enough cash flow to pay for the loan, and general health or financial standing of the business.
What are the cost?
There are no hidden costs with our business loans, and you’ll know exactly how much you’ll need to pay and when, right from the very first day. There’s no compounding interest and no extra fees (as as long as you pay your payments punctually).
We don’t charge an Application Fee. You can get a cash loan with no upfront cost or commitment to apply.
The Origination Fee covers the expenses involved with establishing 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% of the loan amount.
Can I pay out the loan in advance?
You can decide to repay the entire amount of your loan early at any time.
If you do decide to do this please call our helpful company credit professionals. We will provide you with the details of your repayment and an early payout figure. This will be calculated as the total of the principal amount remaining and accrued interest to the time of early payout in addition to 1.5 percent of the principal amount remaining and any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss payments and to work your cash flow cycle we offer repayments either weekly or daily. These are automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and being clear about the ways we gather information, use it, and exchange it, as well as safeguard your data, is crucial and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We make use of an advanced bank verification system to instantly verify your bank account information online. This allows us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the company owner borrows from an asset they own to obtain the loan. The asset can be an individual property, such as the family home, or an business asset such as a truck as well as a piece of machine.
The vast majority of the lenders including the major banks, prefer to secure loans against assets. If you are having difficulty paying back the loan, your assets could be transferred to the lender. In essence, it is an opportunity to secure new financing using the value of what you already have.
What do I require security to secure a business loan?
For loans up to $150K no asset security is required prior to the loan’s access however, we require a personal guarantee. need the personal guarantee. As long as you follow your loan commitments (as stipulated in your loan contract) the security of assets will never be needed. If you take out loans in excess of $150,000 generally there is an individual guarantee and security is provided in the form of an asset charge.