FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Concord Small Business Loans
Let me know how you can avail the Concord Small Business Loans
Concord unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from an traditional company loan?
Apply for the Small Business Loan in under 10 minutes online or by phone. You will receive an answer within the same day and the funds could be on your account within 24 hours. Traditional company loans reference an interest rate per annum plus other fees and charges. This company loan is a loan that is priced upfront so you will know ahead of time the total amount due, which includes the interest, fees and charges. This is then broken down into either a daily or weekly amount to be paid back.
What can 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 control of cash flow business improvements, advertising to purchase inventory or new equipment, as general working capital, and much more. The loan is not available to fund personal expenses.
About the Larger Concord Business Loans
What is the Larger Concord Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. The repayments are made weekly or fortnightly depending on your situation.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is determined at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size, your company needs to have been operating for at least three years and have an annual turnover of $700K. Your company 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 of proving at the least 12 months of operating.
How can the funding be utilised?
A Business Loan of a larger size can be used to fund almost every business reason, such as business remodeling, buying equipment or inventory or as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. This can be done by taking a charge against assets and can include the registration of this on the PPSR or making a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is general in nature rather than defining security over a particular asset. The person who is signing the guarantee is personally responsible if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests that are registered for personal property (including goods or assets). The PPSR grants preference over private property assigned depending on the date that a security interest has been registered.
The caveat can be described as a formal form of document to offer the legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re requesting larger business loans that is greater than $250,000, we may offer a preliminary pre-approval to help smooth out the process. We may be able to get this done without a credit check, and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering some financial health checks. This is in no way an offer, nor is it a guarantee of financing. Acceptance without condition is subject to an extensive credit evaluation and any offer that you receive could be on different conditions.
The application process
Are I eligible for funding?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (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 fast and easy. Just fill out the online application in just a few minutes, and an experienced business lending specialist will call you to help you.
To apply for up to $100,000, you’ll need proof of identity (valid Driver’s Licence) along with a valid NZBN/IRD and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K-$250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent twelve months bank statement, an IRD statements as well as the two most recent years’ financial statements, as well as interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) We can usually offer an answer within one hour – as long as you submit your request within quality company times and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your bank statements we can offer a decision in just one company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be likely to provide you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this may be quicker depending on the circumstances of each application. Certain agreements have been approved within less than 24 hours.
The fastest way would be to ensure you apply during normal business hours. Also, permit us to use the modern bank verification link to instantly verify your bank account information online. If you send us documents from your account statements , it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we can often offer an answer within an hour – provided you apply at normal business time and let us use the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statements, we are able to offer an answer in just an business day.
For the Larger Business Loans ($100K to $500K) we might be likely to provide you with a conditional pre-approval in around six hours. Once you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, this can be faster depending upon the circumstances for each application. Some deals have been approved in less than 24 hours.
The fastest way is to make sure you apply during standard business hours and allow us to use the sophisticated bank verification to check your bank’s information online. If you choose to send us duplicates of your banking statements it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a specific amount we consider a variety of variables to determine your health of your business as well as the amount of the repayments your company is able to afford. The amount you receive from your loan will be contingent on the particular circumstances of your business.
When you apply for a particular amount, we take into consideration a variety of variables to assess your health for your company as well as the amount of the repayments your company is able to afford. The total amount of your loan will depend on the particular circumstances the business.
Fees & repayments
How much should you charge for an company loan?
If you decide to make an application for the company loan, we’ll assess the risk assessment that you have for your business and offer you with a customised proposal that includes the amount of loan, the term and interest rates. It is a business loan is an upfront-priced loan and you’ll know the exact amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I pay?
Interest rates for company loans rates depend on a variety of variables like the amount to be borrowed, the business assets the money will be used for, the industry the business operates in, how long the business is in operation for, what percentage of the company has sufficient cash flow to support the loan, and the overall health and creditworthiness of the business.
What are the fees?
There are no hidden costs for our company loans, and you’ll know precisely what you be required to pay, and when, from day one. There’s not any compounding interest and the loan comes with no additional fees (as as long as you pay your payments in time).
We do not charge an application fee. You are able to get a cash loan with no upfront cost or any obligation to sign up.
The Origination Fee covers the expenses involved in establishing and managing the loan. The only way to pay 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 choose to repay the entire amount of your loan at any point in time.
If you are deciding to take this route, please contact our helpful business loan experts. The professionals will offer you with details on repayment and an early payment figure. This will be calculated as the total of the principal amount remaining plus any accrued interest as of the time of the early payout and 1.5 percent of the principal balance and any outstanding fees.
What are the repayment methods?
To help you avoid missing payments and to work with your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my information be secure?
Security of your data, and making it clear how we collect, use, exchange and secure your information, is vital and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to customer security and privacy. We make use of an advanced bank verification system to instantly verify your bank account details online. This allows us to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner utilises an asset that they own to obtain the funding. The asset can be either an individual asset, such as the family home, or a business asset like a truck or piece of equipment.
The majority of banks, even the banks with the biggest size, prefer to secure loans against an asset. If you’re having trouble paying back the loan then the asset might be sold by the lender. In essence, it is a way of securing new funding taking advantage of the value of what you already have.
What do I need security for an business loan?
For loans up to $150K there is no requirement for asset security upfront to access the money however, we do require an individual guarantee. In the event that you fulfill your loan commitments (as detailed in your loan contract document), asset security will never be required. For loans that exceed $150K, generally, there is the option of a personal guarantee and security that is in the form an asset charge.