FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Churchlands Small Business Loans
Let me know about the Churchlands Small Business Loans
Churchlands unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What is what makes the Unsecured Loan different from an ordinary company loan?
You can apply to the Small Business Loan in under 10 minutes via the internet or by phone. You will receive a same day response and have the funds in your account within 24 hours. Traditional company loans refer to an annual rate of interest plus other fees and charges. This business loan is a cash-based loan therefore you’ll be aware in advance of the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into either a daily or weekly repayment figure.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company reason, such as cash flow management, business remodeling, marketing to purchase inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Churchlands Business Loans
What is the Larger Churchlands Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range from $100,000 to $500,000 with a term fixed for up to 36 months. The repayments are made weekly or fortnightly, depending on your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan that is this large, your company needs to be trading for at least 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funding for?
A large company loan is a great option for almost every company reason, such as company renovations, to purchase inventory or new equipment for general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. It’s by way of charge over assets, and may be registered on the PPSR or filing a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is generally in nature rather than stipulating security over a particular asset. The person signing the guarantee is personally accountable if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including items or assets). The PPSR gives priority over personal property to be assigned according to the date the security interest has been registered.
The caveat can be described as a formal document that is filed to provide notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan of more than $250K we may be able to provide an initial pre-approval that will help smooth out the process. We could be able to make this decision without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial evaluation that involves the answer to a series of financial health checks. It’s not an offer of credit or guarantee of credit. The approval of a conditional loan is subject to a full credit assessment and any offer you are offered could have different conditions.
Application process
Are I eligible for funding?
You can apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a couple minutes, and an experienced company lending specialist will call you to guide you through the process.
For a loan of up to $100,000, you’ll require proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as 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 approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Information on the application including credit consent and 12 months of bank statements, IRD statement, last 2 years finalised financial statements, plus interim financials for the current financial year, Aged Payables and Aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within an hour if you submit your request in standard company times and permit us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statement, we’ll provide the decision in as little as the span of one company day.
For the Larger Business Loan ($100K or more) we might be capable of provide you with a conditional pre-approval in about six hours. Once you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this could be shorter based on the specifics of each application. Certain deals have been approved in the space of 24 hours.
The quickest way to apply can be ensure you apply during normal company hours and permit us to use the modern bank verification to instantly check your bank’s information online. If you decide to upload the copies of bank statement, it can take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) we typically offer a response in one hour – provided you apply within normal business hours and allow us to use the advanced bank verification system to immediately verify your bank account information online. If you want to send us copies of your bank statement, we’ll provide a decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be likely to offer the conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this can be faster depending on the particular circumstances of each application. Some agreements have been approved within the space of 24 hours.
The most efficient method for you to apply is ensure you apply during standard business hours. Also, allow us to use the sophisticated bank verification link to verify your bank information online. If you opt to upload the copies of bank statements it will take a little longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a particular amount, we take into consideration a range of factors to determine what is the health of the company and the extent of the repayments your company will be able to support. The amount you receive from your loan will be contingent on the specific circumstances for your company.
When you submit an application for a specific amount we consider a variety of aspects to assess how much we can lend you such as well-being of your company as well as the amount of repayments your company will be able to support. The amount you receive from the loan will be determined by the particular circumstances for your company.
Fees & repayments
How do you charge for an company loan?
If you decide to make an application for one of our business loan, we’ll assess the risk assessment that you have for your business and provide you with a tailored offer, including the loan amount, the terms and the interest rates. It is a business loan is an upfront cost loan therefore you will know the exact amount due, which includes any charges, interest rates or fees.
What determines the rate that I am charged?
Interest rates for company loans rates vary due to factors including the amount borrowed, the company assets the money will be used for in addition to the industry that the company 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 the overall well-being as well as creditworthiness company.
What are the charges?
There are no hidden costs for our company loans, and you’ll know precisely what you’ll be required to pay, and at what time, from day one. There’s not any compounding interest and no additional fees (as as long as you pay your payments punctually).
We do not charge an Application Fee. You can apply for a loan with without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with setting up and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay out the loan earlier?
You can decide to repay the total amount of your loan in full at any time.
If you do decide to do this please speak to our friendly company loan experts. The specialists will provide you with details on repayment as well as an early payout amount. The figure will be calculated as the total of the principal amount remaining and any accrued interest at the time of the early payout and 1.5 percent of the principal balance plus any outstanding fees.
How do repayments work?
In order to help you avoid missing payments and to work your cash flow schedule, we provide payments that are either daily or weekly. They are automatically deducted from your business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and knowing how we collect, use, exchange and secure your information, is of paramount importance and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to security for our customers and privacy. We utilise a sophisticated banking verification system to immediately verify your bank account information online. This allows us to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the business owner makes use of an asset that they own to make the funds for a loan. The asset could be a personal asset like the family home or it could be a company asset such as a truck or other piece of machinery.
The majority of lending institutions, including the banks with the biggest size, prefer to guarantee loans against assets. If you are having difficulty paying back the loan then your assets could be transferred to the lender. In essence, it’s the process of securing new financing using the worth of the asset you already have.
Are I require security to get an company loan?
Up to $150,000 in loans there is no requirement for asset security prior to the loan’s access but we require a personal guarantee. need the personal guarantee. As long as you follow the loan terms (as specified in the loan contract) Asset security will never be required. If you take out loans in excess of $150,000 typically, you will need an individual ensure and security in the form of charges on assets.