FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Clovelly Small Business Loans
Tell me more about Clovelly Small Business Loans
Clovelly unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from the traditional business loan?
Apply to get the Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and the money could be in your account within 24 hours. Traditional company loans reference an interest rate per annum as well as other fees and charges. This business loan is a pre-paid loan and you’ll know in advance the total amount payable including the interest, fees and charges. This is then broken down into either a daily or weekly amount to be paid back.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every business need, such as the management of cash flow, business renovations, marketing, to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used for personal reasons.
About larger Clovelly Business Loans
What is the Larger Clovelly 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 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly depending on your cash flow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan of this size the business needs to have been operating for at least three years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can the funds be used for?
A large business loan can be used for nearly all company use, including business renovations, purchase of inventory or new equipment as well as for general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. This is by way of charge on assets, and may include registration through the PPSR or registering as a caveat.
A personal or director’s guarantee is a commitment to pay back a loan that is generally based rather than defining security over a particular asset. The person who is signing the guarantee is personally liable in the event that the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including objects or assets). The PPSR gives prioritisation over property that is personal to be granted in accordance with the date on which a security interest has been registered.
A caveat is a legal document lodged to offer an official notice of a claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for an enterprise loan of $250K or more we can offer an initial pre-approval that will help smooth out the process. It is possible to apply for this without credit checks and within 6 hours of the initial application. This pre-approval is made based on an initial evaluation that involves you answering a few financial health checks. This is neither an offer nor a guarantee of funds. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you are offered could be subject to different conditions.
Application process
Do I have the right to receive funds?
You can apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and easy. Just complete the online application within a couple minutes, and an experienced business credit specialist will call you to help you.
To be eligible for up to $100,000, you’ll require proof of identity (valid Driver’s License) and an NZBN/IRD that is valid and at least six months worth of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Application details including credit consent as well as 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, plus interim financials for the current financial year as well as Aged Payables and Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we typically provide a response in one hour – as long as you make your application within standard company times and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your bank statements , we are able to offer a decision within one company day.
For Larger Business Loans ($100K or more) we might be capable of provide you with pre-approval conditional to your application in about 6 hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this may be quicker depending on the specifics of each application. Some deals have been approved in less than 24 hours.
The most efficient method can be ensure you apply during standard business hours. Also, allow us to use our advance bank verification link to instantly verify your bank information online. If you decide to send us copies of your bank statement, it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K and up) We can usually provide an answer within one hour – as long as you apply during normal business time and let us use the bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statement, we’ll offer an answer in just an business day.
If you are applying 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, the turnaround time is around 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Certain agreements have been approved in the space of 24 hours.
The most effective method is to make sure you apply during standard business hours. You can also allow us to use the advanced bank verification system to verify your bank information online. If you choose to send us copies of your bank statements, it may take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a particular amount, we look at a variety of factors to determine your health for your company and the extent of repayments that your company can afford. The amount you receive from the loan will be determined by the specifics for your company.
If you apply for a particular amount, we look at a range of variables to determine the well-being of the company and the amount of the repayments your business can support. The total amount of the loan will be determined by the particular circumstances of your company.
Fees & repayments
What is the cost for a company loan?
If you decide to make an application for one of our business financing, we will assess the risk assessment that you have for your business and provide you with a customised offer including the amount of the loan, the duration and the interest rates. It is a business loan is an upfront-priced loan so you will be aware of the total amount to be paid, including any charges, interest rates or fees.
What is the basis for the rate I will be charged?
Business loan interest rates differ based on various variables like the amount to be that is borrowed, what company assets the money will be used for, the industry the business operates in, how long the business has been running and how long the business has sufficient cash flow to pay for the loan, and also the overall well-being as well as creditworthiness company.
What are the cost?
There aren’t any hidden costs with our company loans, and you’ll know precisely what it is that you need to pay and at what time, from the day you sign up. There’s no compounding interest and there are no additional charges (as long as you make your payments punctually).
We don’t charge an Application Fee. You are able to apply for a loan no cost upfront or obligation to proceed.
The Origination Fee covers the costs associated with establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan early?
You can repay the entire amount of the loan early at any time.
If you are deciding to pursue this option, please talk to one of our helpful business credit professionals. They’ll provide you with the details of your repayment as well as an early payout amount. The figure will be calculated as the total of the remaining principal amount plus any accrued interest as of the date of early payout, plus 1.5% of the remaining principal and any fees that remain unpaid.
What is the process for repayments?
To help you avoid missing payments and to work with your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as knowing how we collect data, process, exchange and safeguard your data, 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 use industry recognised encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We utilise a sophisticated bank verification system link to immediately verify your bank account details online to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where an business owner uses the assets they have to secure a loan. The asset may be an individual property, such as the family home or 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 make loans secured by assets. If you’re having trouble paying back the loan, then the asset might be sold by the lender. In essence, it’s an opportunity to secure additional financing using the worth of the asset you already have.
Are I need security to get a business loan?
For loans of up to $150,000, the requirement for asset security is not required upfront to access the money however, we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan commitments (as stated in your loan contract document), asset security will never be needed. For loans of over $150,000 generally, there is a personal guarantee and security in the form an asset charge.