FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Colebee Small Business Loans
Let me know about the Colebee Small Business Loans
Colebee unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from an ordinary company loan?
You can apply for this Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an answer within the same day and the money could be on your account within 24 hours. Traditional business loans are based on an annual interest rate as well as other fees and charges. We offer a business loan is a pre-paid loan and you’ll know in advance the total amount to be paid, including any interest, fees or charges. This is then divided into a daily or weekly installment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company purpose including the management of cash flow, business improvements, advertising for purchasing inventory or new equipment, for general working capital and so much more. The loan is not available to fund personal expenses.
About Larger Colebee Business Loans
What is the Larger Colebee 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 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly depending on your cash flow.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the business needs to be in operation for at least 3 years and generate an annual revenue of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
What can I use the funds for?
A Larger Business Loan can be used for almost all company need, including company remodeling, buying new equipment or inventory, as 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 needed to access funding over $150,000. This can be done as a result of an charge over assets, and could include registering this on the PPSR or registering a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally in nature rather than stating security over a particular asset. The person signing the ensure is personally liable in the event that the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR gives preference over private property granted according to the date a registration of a security interest.
An affidavit is an official document lodged to provide the legal claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for the Larger Business Loan of more than $250,000 we can offer an initial pre-approval in order to make the process. We may be able to make this decision without a credit check and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves answering a couple of financial well-being questions. This is in no way an offer, nor is it a guarantee of financing. A conditional approval is subject an assessment of your creditworthiness and any offer that you are offered could be subject to different conditions.
The application process
Do I qualify for funds?
You may apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (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 application process is simple and simple. Just fill out the online application within a couple minutes, and an experienced business credit specialist will contact you to help you.
To be eligible for up to $100,000, you’ll require the right identification documents (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Details for application including credit consent and 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within one hour if you make your application during standard business hours and let us 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 banking statements we can provide the decision in as little as an company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be in a position to provide you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this could be shorter based on the specifics of each application. Some deals 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 advanced bank verification system to instantly confirm your bank details online. If you decide to upload documents from your account statement, it takes a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) We can usually offer a response in one hour – as long as you apply at standard business timings and you allow us to use the bank verification system to instantly verify your bank details online. If you decide to send us copies of your bank statements we can provide an answer in as little as one business day.
If you are applying for Larger Business Loans ($100K and up) we may be in a position to offer you with pre-approval conditional to your application within about six hours. Once 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 transactions have received approval in just 24 hours.
The fastest way can be ensure you apply during normal business hours. Also, permit us to use the modern bank verification link to confirm your bank details online. If you send us duplicates of your banking statements it takes a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you submit an application for a particular amount, we will consider a number of factors to determine the health of your company as well as the amount of repayments that your company can afford. The amount you receive from the loan will be determined by the particular circumstances the company.
If you apply for a particular amount, we consider a variety of variables to determine your well-being of the business and the amount of repayments that your company will be able to support. The total amount of the loan will be determined by the particular circumstances for your company.
Fees & repayments
How do you charge for an company loan?
When you make an application for our business loan, we will assess the risk profile for your company and offer you with a tailored offer that includes the loan amount, the terms and the interest rates. It is a company loan is an upfront-priced loan therefore you will know the exact amount payable including any charges or interest.
What is the factor that determines the price I am charged?
Business loan interest rates vary due to variables like the amount to be borrowed, the business assets the money are used to purchase, the industry the company is in, how long the business has been running and in the event that the company has enough cash flow to support the loan, as well as the general well-being or creditworthiness of the business.
What are the costs?
There are no hidden fees with our business loans, and you’ll be aware of the amount it is that you need to pay and when, from day one. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You can make an application for loans no cost upfront or any obligation to sign up.
The Origination Fee covers the expenses involved with establishing and managing the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Do I have the option of paying off the loan in advance?
You can choose to repay the total amount of your advance loan at any time.
If you do decide to take this route, please talk to one of our helpful company loan experts. They will offer you with details for repayment and an early payment figure. It will be calculated using the sum of the principal remaining and the accrued interest up to the time of the early payout, plus 1.5 percent of the principal balance plus any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss repayments and to fit in your cash flow schedule, we offer repayments that are either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be secure?
Protecting your information, and knowing the ways we gather information, use it, and exchange it, as well as ensure the security of your information is crucial and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to customer security and security. We employ an exceptionally sophisticated bank verification system that allows you to immediately confirm your bank account information online to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the business owner makes use of an asset that they own to obtain a loan. The asset could be an individual asset, such as the family home or a company asset such as a truck or other piece of machinery.
The vast majority of lending institutions, even the major banks, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, the asset could be taken over by the lender. In essence, it is an opportunity to secure additional financing using the worth of the asset you already own.
Are I require security for a company loan?
For loans up to $150,000 there is no requirement for asset security upfront to access the money, however we do need the personal guarantee. In the event that you fulfill your loan commitments (as specified in your loan contract document), asset security is not needed. For loans of over $150,000 generally, you can get personal guarantee and security in the form charges on assets.