FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Canning Mills Small Business Loans
Tell me how you are able to avail the Canning Mills Small Business Loans
Canning Mills unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
How is the Unsecured Loan different from an traditional business loan?
The application for your Small Business Loan in under 10 minutes online or on the phone. You’ll receive an immediate response, and the funds could be available in just 24 hours. Traditional company loans have an interest rate per annum along with other charges and fees. The business loan is a pre-paid loan therefore you’ll know ahead of time the total amount payable including any fees, charges or charges. Then, it is broken down into a daily or weekly amount to be paid back.
What can the Small Business Loan be used for?
The Small Business Loan can be used for almost any business purpose including control of cash flow business renovations, marketing for purchasing inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal use.
Concerning Larger Canning Mills Business Loans
What is the Larger Canning Mills 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 over a fixed term that can last up to 36 months. The repayments are made weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to have been trading for at least 3 years and have an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funds for?
A Larger Business Loan can be used to fund almost every business purpose including company remodeling, buying inventory or new equipment as well as for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. This can be done by way of charge on assets, and may include the registration of this in the PPSR or the registration of a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is generally in nature rather than defining security over an asset. The person signing the guarantee is personally liable in the event that the company creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests that are registered for personal property (including objects or assets). The PPSR grants the priority of personal property granted according to the date the registration of a security interest.
A caveat is a legal document that is filed to provide the legal claim to a property.
What is a pre-approval without Credit Check?
If you’re requesting the Larger Business Loan that is greater than $250,000 we may be able to provide a preliminary pre-approval to help smooth out the process. We might be able to do this without a credit verification and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial health questions. It is in no way an offer, nor is it a guarantee of financing. Unconditional approval is subject to an extensive credit evaluation and any offer that you receive could have different conditions.
Application process
Do I have the right to receive funds?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application within a few minutes and a dedicated business loan specialist will be in touch to guide you.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent and 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we typically offer an answer in just one hour, provided you submit your request in quality business time and permit us to utilise the bank verification system to immediately verify your bank account information online. If you decide to upload copies of your banking statements , we are able to offer a decision in just one business day.
For the Larger Business Loan ($100K to $500K) we could be in a position to provide you with pre-approval conditional to your application in about six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending on the particular circumstances of each application. Certain offers have been approved in 24 hours.
The most efficient method for you to apply is make sure you apply during standard company hours. Also, allow us to use our advanced bank verification system link to verify your bank account information online. If you choose to send us the copies of bank statements , it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer within an hour – as long as you make your application in normal business timings and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your banking statement, we’ll offer the decision in as little as the span of one business day.
For Larger Business Loans ($100K or more) we could be capable of offer you with a conditional pre-approval within 6 hours. Once you have signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Certain deals have been approved in less than 24 hours.
The most efficient method for you to apply is ensure you apply during standard business hours. You can also let us use the advanced bank verification system to instantly verify your bank information online. If you choose to send us the copies of bank accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. If you apply for a particular amount, we take into consideration a range of factors that determine the well-being that is your company and the level of repayments that your business can support. The amount you receive from the loan will be determined by the specific circumstances the company.
When you make an application for a specific amount we consider a variety of elements to determine your health of the business and the level of the repayments your business will be able to support. The amount you receive from your loan will be determined by the specifics of your business.
Fees & repayments
What is the cost for the cost of a company loan?
When you request business loans with us business loan, we’ll assess the risk assessment of your company and provide you with a customised offer including the loan amount, the terms and the interest rates. This company loan is an upfront priced loan so you will know the exact amount you will have to pay, including costs, fees, or interest rates.
What determines the rate that I am charged?
Interest rates for company loans rates differ based on various factors such as the amount that is of money borrowed, the company assets the money will be used for as well as the field the business is in, how long the company is in operation, what percentage of the company has sufficient cash flow to fund the loan, as well as the overall well-being and creditworthiness of the business.
What are the fees?
There aren’t any hidden charges for our company loans, and you’ll know precisely what you need to pay and at what time, from day one. There’s no compounding interest and no extra fees (as as long as you pay your payments punctually).
We do not charge an Application Fee. You are able to make an application for loans with no cost upfront or the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay off the loan in advance?
You can choose to repay the total amount of your loan early at any time.
If you do decide to pursue this option, please talk to one of our helpful company loan experts. We will provide you with details on repayment as well as an early payout amount. This will be calculated as the sum of the principal balance and the accrued interest up to the time of the early payout plus 1.5% of the principal remaining and any fees that remain unpaid.
What is the process for repayments?
To ensure you do not miss repayments and to fit in your cash flow cycle we provide repayments either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear how we collect data, process, exchange and protect your information, is vital and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We utilise a sophisticated bank verification system to immediately confirm your bank account information online to provide rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the company owner makes use of assets they own to get the funding. The asset can be an asset belonging to the personal, like the family home or an company property like a truck as well as a piece of machine.
The vast majority of lenders, including the major banks, prefer to secure loans against assets. If you’re having trouble paying back the loan then the asset might be transferred to the lender. In essence it is the process of securing new financing by taking advantage of the value of what you already own.
Do I need security to get an business loan?
For loans up to $150,000 it is not necessary to secure assets prior to the loan’s access however, we require a personal guarantee. need an individual guarantee. So long as you comply with your loan obligations (as stated in the loan contract), asset security will never be required. For loans of over $150K generally there is the option of a personal guarantee and security in the form the charge of assets.