FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Clapham Small Business Loans
Let me know more about Clapham Small Business Loans
Clapham unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
How is the Unsecured Loan different from an traditional company loan?
It is possible to apply to get this Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and funds may be in your account within 24 hours. Traditional business loans reference an annual interest rate together with additional fees and charges. The company loan is a loan that is priced upfront so you will know ahead of time the total amount due, which includes any interest, fees or charges. Then, it is broken down into a daily or weekly installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company purpose including managing cash flows, business remodels and marketing, to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal use.
About the Larger Clapham Business Loans
What is the Larger Clapham Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are either weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large the business needs to be trading for at least 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can the funds be used for?
A larger business loan can be used to fund almost every company need, including company renovations, purchase of equipment or inventory as well as for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. This can be done by way of charge over assets and can be registered with the PPSR or the registration of a caveat.
A personal or director’s guarantee is a commitment to repay credit that is general in nature rather than stipulating the security for a particular asset. The person who is signing the guarantee is personally accountable if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including items or assets). The PPSR grants priority over personal property to be assigned depending on the date that a security interest that is registered.
An affidavit is an official document that is filed to provide the legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan of $250,000 or more it’s possible to offer an initial pre-approval to smooth out the process. We may be able to get this done without credit checks and within six hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering some financial health checks. It’s neither an offer nor a guarantee of finance. Acceptance without condition is subject to a full credit assessment and any offer you are offered could be subject to different conditions.
The application process
Are I eligible for funding?
You may apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form within a few minutes and a dedicated company loan specialist will be in touch to guide you.
To be eligible for up to $100,000 you’ll need identification details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K-$250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent twelve months bank statement, an IRD statements as well as the two most recent years’ financial statements, plus interim financials for the current financial year including Aged Payables, Aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we usually provide an answer in just one hour, provided you make your application during quality business time and let us utilise the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your bank statements we can provide an answer in as little as the span of one company day.
If you are applying for a Larger Business Loan ($100K and up) we may be likely to provide you with pre-approval conditional to your application within about six hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Some transactions have received approval in the space of 24 hours.
The quickest method can be ensure you apply during normal business hours. You can also permit us to use the advance bank verification to confirm your bank details online. If you choose to upload documents from your account statement, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) we can often provide a response in one hour, provided you make your application in normal business timings and let us use the advanced bank verification system link to instantly verify your bank’s information online. If you want to submit copies of your bank statements, we’ll be able to offer a decision in just one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be capable of provide you with pre-approval conditional to your application in about 6 hours. Once you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based on the circumstances of each application. Some agreements have been approved in the space of 24 hours.
The fastest method for you to apply is make sure you apply during normal business hours, and permit us to use the advanced bank verification system to instantly check your bank’s information online. If you send us copies of your bank statement, it will take a little longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a particular amount, we look at a variety of aspects in order to assess what is the well-being for your business and the extent of repayments that your company will be able to support. The total amount of your loan will depend on the specifics of your business.
If you apply for a certain amount, we will consider a number of factors to determine the health of the business and the extent of the repayments your business will be able to support. The amount you receive from your loan will be determined by the specific circumstances that are unique to your company.
Fees & repayments
What is the cost for the cost of a business loan?
When you request one of our company loans, we will assess the risk profile that you have for your company and offer you with a customised offer, including loan amount, term and the interest rates. It is a company loan is a loan that is priced upfront therefore you will be aware of the total amount due, which includes any charges, interest rates or fees.
What determines the rate that I pay?
Interest rates for business loans rates depend on a variety of factors such as the amount that is that is borrowed, what company assets the money are used to purchase and the sector the company operates in, how long the business is in operation, in the event that the business has sufficient cash flow to support the loan, and overall well-being as well as creditworthiness business.
What are the costs?
There aren’t any hidden charges with our business loans, and you’ll be aware of the amount you’ll be required to pay, and at what time, from the day you sign up. There’s not any compounding interest and there are no additional charges (as long as you make your payments on time).
We do not charge an Application Fee. You can request a credit loan no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated with setting up and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I repay the loan early?
You may choose to pay back the entire amount of the loan at any point in time.
If you do decide to take this route, please call our helpful company credit specialists. The professionals will offer you with repayment details along with an early payout estimate. The figure will be calculated as the total of the principal amount remaining plus any accrued interest as of the date of early payout, plus 1.5% of the principal remaining plus any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payments and to work your cash flow cycle we offer repayments either daily or weekly. They will be automatically deducted from your designated 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 ensure the security of 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 utilise industry-recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to customer security and privacy. We make use of an advanced bank verification system link to instantly verify your bank account information online. This allows us to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an business owner borrows from assets they own to make the funds for a loan. The asset may be an asset belonging to the personal, like the family home, or it could be a business asset like a truck or piece or equipment.
The majority of banks, including the major banks, prefer to secure loans against an asset. If you’re struggling to pay back the loan, your assets could be transferred to the lender. In essence, it’s an opportunity to secure new financing by taking advantage of the value of what you already own.
Do I need security to secure an business loan?
For loans up to $150K it is not necessary to secure assets in advance to gain access to the funds but we require a personal guarantee. require a personal guarantee. So long as you comply with your loan obligations (as detailed in your loan contract document) Asset security is not needed. For loans of over $150K typically, you will need personal ensure and security is provided in the form of the charge of assets.