FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Caringbah Small Business Loans
Let me know more about Caringbah Small Business Loans
Caringbah unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from a traditional business loan?
Apply to the Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and funds may be available in just 24 hours. Traditional company loans reference an annual interest rate as well as other fees and charges. Our business loan is a cash-based loan and you’ll be aware in advance of the total amount payable including any fees, charges or charges. Then, it is broken down into weekly or daily installment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for almost every business use, including the management of cash flow, company remodels and marketing to purchase inventory, new equipment, or as general working capital and so much more. The loan cannot be used for personal purposes.
Concerning Larger Caringbah Business Loans
What is the Larger Caringbah Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size the business needs to be operating for a minimum of 3 years and have an annual turnover of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funds for?
A Larger Business Loan can be used to fund almost every business use, including company improvements, purchasing new equipment or inventory for general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. This is in the form of a charge over assets, which could also include registration through the PPSR or registering a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally based rather than stating the security for a particular asset. The person signing the ensure is personally responsible if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR grants priority over personal property to be granted according to the date a security interest was registered.
The caveat can be described as a formal document lodged to offer an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for larger company loans that exceeds $250,000, we may offer an initial pre-approval to smooth out the process. We may be able to do this without a credit check and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes the answer to a series of financial well-being questions. This is not an offer or guarantee of finance. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you may receive may be on different conditions.
Application process
Do I qualify for funds?
You can apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application within a few minutes and an experienced business expert in lending will be in touch to help you.
For a loan of up to $100,000, you’ll require proof of identity (valid Driver’s License) as well as a valid NZBN/IRD and at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Application details including credit consent as well as 12 months of bank statements, IRD statement, last 2 years finalised financial statements, plus interim current financial year financials including Aged Payables, Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K and up) we can often provide an answer within one hour if you make your application within standard company hours and let us make use of the advanced bank verification system link to instantly verify your bank details online. If you opt to send us copies of your bank statement, we’ll provide the decision within the span of one business day.
For Larger Business Loans ($100K and up) we could be in a position to provide you with a conditional pre-approval in about 6 hours. Once you have signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, it could be faster based on the specifics of each application. Some offers have been approved in less than 24 hours.
The quickest way to apply would be to ensure you apply during standard business hours, and allow us to use the modern bank verification to verify your bank information online. If you choose to send us duplicates of your banking accounts, it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) we typically provide a response in one hour – as long as you apply during standard business time and let us use the advanced bank verification system to instantly verify your bank information online. If you decide to send us copies of your bank statements, we are able to provide the decision in as little as the span of one business day.
For the Larger Business Loans ($100K to $500K) we could be in a position to offer you with conditional pre-approval within about 6 hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this could be shorter based on the particular circumstances of each application. Some transactions have received approval in the space of 24 hours.
The quickest method would be to ensure you apply during normal business hours. You can also let us use the advanced bank verification system link to instantly verify your bank information online. If you send us the copies of bank accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a specific amount we look at a variety of elements for determining how much we can lend you well-being of your company and the extent of the repayments your company is able to afford. The total amount of your loan will depend on the specific circumstances the company.
When you make an application for a set amount, we will consider a number of factors to determine how much we can lend you such as health that is your company and the level of the repayments your company can afford. The total amount of the loan will be determined by the specific circumstances for your business.
Fees & repayments
How much do you charge for a company loan?
When you apply for business loans with us company loans, we will assess the risk assessment the business and provide you with a customised proposal that includes the loan amount, the terms and interest rates. It is a company loan is an upfront-priced loan therefore you will be aware of the total amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I’m charged?
The interest rates on business loans rates differ based on various factors including the amount of money borrowed, the company assets the money are used to purchase in addition to the industry that the company is in, how long the company has been operating and whether the company has enough cash flow to cover the loan, and the overall well-being as well as creditworthiness business.
What are the cost?
There aren’t any hidden charges with our business loans. You’ll know precisely what it is that you need to pay and at what time, from day one. There’s no compounding and no additional fees (as long as you are able to make your payments on time).
We do not charge an application fee. You are able to apply for a loan with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I repay the loan in advance?
You can repay the entire amount of the loan early at any time.
If you choose to take this route, please speak to our friendly business lending experts. We will provide you with repayment details and an early payment figure. This will be calculated as the sum of the principal amount remaining and the accrued interest up to the time of early payment plus 1.5 percent of the principal balance as well as any outstanding fees.
What are the repayment methods?
To make sure you do not miss payment dates and to align your cash flow cycle we offer repayments either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being transparent about the ways we gather the information we collect, use, share and protect your information, is of huge importance and an integral part 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 protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to protecting the security of customers and privacy. We utilise a sophisticated banking verification system to immediately verify the bank account details online to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when a company owner makes use of an asset that they own to secure a loan. The asset can be either an individual asset, such as the family home or a company property like a truck or piece or equipment.
The vast majority of lenders, not just the banks with the biggest size, prefer to make loans secured by assets. If you’re having trouble paying back the loan, your asset may be taken over by the lender. In essence it’s the process of securing additional financing using the worth of the asset you already own.
Do I require security for a company loan?
For loans that exceed $150,000, there is no requirement for asset security in advance to gain access to the funds however, we require a personal guarantee. need the personal guarantee. If you adhere to the loan terms (as detailed in your loan contract document), asset security will never be required. If you take out loans in excess of $150,000 generally, there is an individual ensure and security that is in the form charges on assets.