FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Connolly Small Business Loans
Tell me what you think of the Connolly Small Business Loans
Connolly unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
What makes how is the Unsecured Loan different from a traditional business loan?
You can apply to the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get a same day response and the money could be in your account within 24 hours. Traditional business loans have an annual rate of interest along with other charges and fees. Our business loan is an upfront priced loan so you will know in advance the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into either a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every business purpose including the management of cash flow, company improvements, advertising, to purchase inventory or new equipment, for general working capital, and much more. The loan cannot be used for personal use.
Concerning Larger Connolly Business Loans
What is the Larger Connolly Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range between $100,000 and $500,000 over a fixed term with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percentage 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 operating for a minimum of 3 years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can the funding be used for?
A Business Loan of a larger size can be used to fund almost every company use, including company renovations, purchase of new equipment or inventory, as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. This can be done as a result of an charge against assets, and could include registering this with the PPSR or registering a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is generally based rather than stating security over a particular asset. The person who signs the ensure is personally responsible if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including the assets or goods). The PPSR grants the priority of personal property granted according to the date the security interest was registered.
An affidavit is an official document filed to provide an official notice of a claim on a property.
What is a pre-approval without Credit Check?
If you’re requesting larger company loans of more than $250K we may be able to provide a preliminary pre-approval to help simplify the process. We could be able to do this without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial well-being questions. This is neither an offer nor a guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer that you receive could be on different conditions.
Application process
Do I qualify for 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 own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (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 easy. Just fill out the online application within a few minutes and an experienced company lending specialist will contact you to guide you.
To apply for up $100,000, you’ll need the right identification documents (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Details of application, 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, 12 months of bank records, IRD statements and the last two years’ finalised financial statements, as well as interim financial statements for the current year such as age-related payables and aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K or more) we usually provide a response in one hour if you make your application in quality business time and let us use the advanced bank verification system link to instantly verify your bank details online. If you opt to submit copies of your bank statement, we’ll offer the decision within just an business day.
For Larger Business Loans ($100K to $500K) we may be likely to offer you with a conditional pre-approval within about 6 hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be quicker based upon the circumstances for each application. Some agreements have been approved within just 24 hours.
The quickest way to apply would be to make sure you apply during standard business hours and let us use the advanced bank verification system link to verify your bank information online. If you opt to send us the copies of bank statements , it takes a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically offer an answer within one hour if you make your application during normal business times and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statements, we are able to provide a decision within an business day.
For Larger Business Loans ($100K and up) we may be able to offer you with a conditional pre-approval in around six hours. Once you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this could be shorter based on the specifics of each application. Certain offers have been approved within less than 24 hours.
The fastest method is to make sure you apply during normal business hours. You can also allow us to use our advanced bank verification system link to instantly confirm your bank details online. If you send us duplicates of your banking statements it will take a little longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. If you apply for a certain amount we take into consideration a range of aspects that determine the health of the business and the extent of repayments that your company is able to afford. The total amount of your loan will be contingent on the specific circumstances that are unique to your business.
When you apply for a set amount, we look at a range of variables to assess your health of your company and the level of repayments that your business is able to afford. The total amount of your loan will be determined by the specifics of your company.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to apply for business loans with us company loan, we’ll assess the risk assessment of your business and offer you with a tailored offer including the loan amount, the terms and interest rates. A business loan is an upfront priced loan and you’ll know in advance the total amount you will have to pay, including interest rates, fees or charges.
What determines the amount I will be charged?
The interest rates on business loans rates depend on several factors including the amount of money borrowed, the company assets the funds are used to purchase, the industry the company operates in, how long the business has been running for, in the event that the company has sufficient cash flow to pay for the loan, as well as the general health and creditworthiness of the business.
What are the fees?
There aren’t any hidden costs for our business loans, and you’ll know precisely what you’ll need to pay, and when, right from the day you sign up. There’s not any compounding interest and there are no additional charges (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 obligation to proceed.
The Origination Fee covers the expenses involved with setting up and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan in advance?
You can decide to repay the entire amount of your loan early at any time.
If you do decide to take this route, please call our helpful company loans professionals. The professionals will offer you with repayment details and an early payment figure. It will be calculated using the total of the principal balance and any accrued interest at the time of the early payout in addition to 1.5% of the principal amount remaining as well as any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss repayments and to fit in your cash flow cycle we provide payments that are either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being clear about how we collect information, use it, and exchange it, as well as secure your information, is vital and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to protecting the security of customers and security. We use an advanced bank verification system to instantly verify your bank account details online. This allows us to offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when the business owner utilises an asset they own to make the funds for a loan. The asset could be an individual asset, such as the family home, or an business asset like a truck or other piece of machinery.
The majority of banks, not just the largest banks, are inclined to make loans secured by an asset. If you are having difficulty paying back the loan, your assets could be sold by the lender. In essence it is a way of securing new financing by using the value of what you already have.
Should I need security to secure an company loan?
For loans that exceed $150,000, it is not necessary to secure assets upfront to access the money however, we do need an individual guarantee. If you adhere to the terms of your loan (as specified in your loan contract), asset security will never be required. For loans of over $150,000 generally there is an individual guarantee and security in the form of charges on assets.