FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Clagiraba Small Business Loans
Let me know about the Clagiraba Small Business Loans
Clagiraba unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from an ordinary company loan?
You can apply to get the Small Business Loan in under 10 minutes on the phone. You’ll receive an immediate response, and the funds could be on your account within 24 hours. Traditional company loans are based on an interest rate per annum along with other charges and fees. Our business loan is a cash-based loan therefore you’ll be aware of the total amount to be paid, including the interest, fees and charges. This is then broken down into either weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business need, such as managing cash flows, company renovations, marketing to purchase inventory, new equipment, as general working capital and much more. The loan cannot be used for personal use.
About Larger Clagiraba Business Loans
What is the Larger Clagiraba Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount the company needs to be in operation for at least 3 years, and have an annual income of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funding for?
A Larger Business Loan can be used to fund almost any company use, including business renovations, to purchase new equipment or inventory or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. It’s as a result of an charge over assets, which could also include registering this on the PPSR or making as a caveat.
A director’s or personal guarantee is a promise to repay a loan which is generally based rather than defining security over an asset. The person who signs the ensure is personally liable in the event that the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including the assets or goods). The PPSR permits prioritisation over property that is personal to be granted according to the date the security interest has been registered.
An affidavit is an official form of document to offer the legal claim to a property.
What is a pre-approval without Credit Check?
If you’re requesting larger company loans that exceeds $250K, we may offer an initial pre-approval that will help smooth out the process. We might be able to apply for this without a credit check, and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes answering a couple of financial health checks. It’s not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer you might receive could be based on different conditions.
The application process
Can I be eligible for funding?
You may apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application within a few minutes and an experienced business expert in lending will contact you to assist you.
To apply for up $100,000, you’ll need the right identification documents (valid Driver’s License) as well as an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll also require:
$100K – $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Information on the application including credit consent and 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we usually offer a response in one hour – as long as you submit your request during quality company times and allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statements , we will be able to offer the decision in as little as the span of one business day.
If you are applying for a Larger Business Loan ($100K or more) we may be capable of offer you with conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this may be quicker depending on the specifics of each application. Some transactions have received approval within the space of 24 hours.
The most efficient method would be to make sure you apply during normal company hours. Also, allow us to use the advanced bank verification system to verify your bank information online. If you choose to upload copies of your bank statements , it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we can often provide an answer in just one hour – provided you apply in standard business hours and permit us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your banking statements we can offer the decision in just an business day.
For Larger Business Loans ($100K to $500K) we might be capable of provide you with conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Some deals have been approved in just 24 hours.
The fastest method for you to apply is make sure you apply during normal business hours. You can also let us use the sophisticated bank verification to check your bank’s information online. If you upload the copies of bank statements, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a particular amount, we take into consideration a range of aspects that determine how much we can lend you well-being that is your company and the level of repayments your business can afford. The total amount of your loan will be contingent on the specifics for your business.
If you apply for a particular amount, we will consider a number of aspects to assess your well-being that is your business as well as the amount of repayments your business can afford. The amount you receive from your loan will be contingent on the specific circumstances of your company.
Fees & repayments
How much do you charge for a business loan?
When you apply for the company credit, we will assess the risk assessment of your business and provide an individualised proposal that includes the loan amount, the terms and interest rates. A company loan is an upfront priced loan which means you be aware in advance of the total amount you will have to pay, including interest rates, fees or charges.
What is the factor that determines the price I pay?
Business loan interest rates depend on several variables like the amount to be borrowed, the company assets the funds are used to purchase in addition to the industry that the business is in, how long the company has been in operation, whether the company has sufficient cash flow to pay for the loan, and overall health or creditworthiness of the company.
What are the costs?
There aren’t any hidden charges with our business loans. You’ll know precisely what you be required to pay, and when, right from the first day. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments on time).
We don’t charge an application fee. You are able to make an application for loans absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the costs associated with setting up and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can choose to repay all of your loan at any point in time.
If you are deciding to do this please contact our helpful business loans specialists. The experts will offer you with the details of your repayment and an early payment figure. This is calculated as the total of the principal balance plus any accrued interest as of the date of early payout, plus 1.5% of the remaining principal as well as any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss payments and to work with your cash flow routine, we offer repayments either weekly or daily. These are automatically withdrawn from your business account.
Security & privacy
Will my information be protected?
Protecting your information, and being clear about how we collect the information we collect, use, share and protect your information, is vital and is an essential 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 personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our customers as well as their privacy. We use an advanced bank verification system that allows you to immediately verify your bank account information online. This allows us to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where the business owner utilises the assets they have to obtain the loan. The asset can be an individual property, such as the family home or a business property like a truck or other piece of machinery.
The vast majority of lenders, including the big banks, tend to secure loans against an asset. If you are having difficulty paying back the loan, then your assets could be transferred to the lender. In essence it is a way of securing new financing using the value of what you already have.
What do I require security to secure an company loan?
For loans that exceed $150,000, it is not necessary to secure assets before you can access the money, however we do require an individual guarantee. So long as you comply with the terms of your loan (as specified in the loan contract) the security of assets will never be needed. For loans of over $150,000 generally there is a personal ensure and security is provided in the form of an asset charge.