FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Carine Small Business Loans
Tell me more about Carine Small Business Loans
Carine unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from an traditional company loan?
The application to the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an immediate response, and the funds could be in your account in 24 hours. Traditional company loans reference an annual interest rate plus other fees and charges. This company loan is a cash-based loan and you’ll be aware of the total amount payable including the interest, fees and charges. Then, it is broken down into either a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business need, such as managing cash flows, company remodeling, marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal use.
Concerning Larger Carine Business Loans
What is the Larger Carine 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 that can last up to 36 months. Repayments are either weekly or fortnightly to work with you cashflow.
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% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount the business needs to have been operating for a minimum of 3 years and have an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funds be utilised?
A large business loan can be used for nearly any business use, including company renovations, to purchase new equipment or inventory, 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 required to obtain funding above $150,000. It is usually by way of charge against assets and can include registration in the PPSR or the registration of a caveat.
A director’s or personal ensure is a promise to pay back a loan that is general in nature rather than stipulating security over a particular asset. The person signing the guarantee is personally liable in the event that the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR permits priority over personal property to be assigned in accordance with the date on which a security interest has been registered.
A caveat is a legal document that is filed to offer the public notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan that exceeds $250K it’s possible to offer an initial pre-approval to make the process. We could be able to make this decision without a credit check, and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial health checks. It’s not an offer of credit or guarantee of financing. A conditional approval is subject an assessment of your creditworthiness and any offer you might receive could have different terms.
Application process
Are I eligible for funding?
You may be eligible 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)
- can demonstrate at least 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application within a few minutes and a dedicated business loan specialist will call you to assist you.
For a loan of up to $100,000, you’ll require proof of identity (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Information on the application including credit consent as well as 12 months of bank statements, IRD statements, last 2 years finalised financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer within an hour, provided you submit your request within quality business timings and permit us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statements , we will be able to offer the decision within an business day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to offer you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Some agreements have been approved in less than 24 hours.
The quickest way to apply would be to ensure you apply during normal company hours and allow us to use the advanced bank verification system link to instantly check your bank’s information online. If you choose to upload the copies of bank statements , it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) We can usually provide a response in one hour – as long as you apply within standard business time and let us use the advanced bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statements, we’ll be able to offer an answer in as little as an business day.
For Larger Business Loans ($100K or more) we might be likely to provide you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Some agreements have been approved within less than 24 hours.
The fastest method is to ensure you apply during standard business hours. Also, let us use the advance bank verification to verify your bank account information online. If you choose to send us duplicates of your banking statements it will take a little longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. If you apply for a specific amount we will consider a number of elements that determine your health for your business and the extent of the repayments your company will be able to support. The amount you receive from the loan will be determined by the particular circumstances for your company.
When you make an application for a particular amount, we will consider a number of factors to assess your health that is your business as well as the amount of payments your business can afford. The total amount of the loan will be determined by the particulars that are unique to your company.
Fees & repayments
How do you charge for the cost of a business loan?
When you apply for the business loan, we will assess the risk assessment the business and provide you with a customised offer that includes the loan amount, the terms and the interest rates. The company loan is a loan that is priced upfront therefore you will be aware of the total amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I’m charged?
Interest rates for company loans rates vary due to factors including the amount borrowed, the company assets the funds are used to purchase and the sector the business is in, how long the business is in operation, what percentage of the business has enough cash flow to cover the loan, and the overall health and creditworthiness of the business.
What are the charges?
There are no hidden costs for our company loans. You’ll be aware of the amount you’ll need to pay, and when, from the very first day. There’s no compounding and no extra fees (as as long as you pay your payments on time).
We do not charge an application fee. You can apply for a loan without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved with the setting up and management of the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay out the loan in advance?
You can decide to repay the entire amount of your loan early at any time.
If you are deciding to take this route, please contact our helpful business credit specialists. We will provide you with details on repayment as well as an early payout amount. This will be calculated as the total of the principal amount remaining and accrued interest to the time of early payment in addition to 1.5% of the principal remaining as well as any outstanding fees.
How do you make repayments work?
To ensure you do not miss due dates and also to be in line with your cash flow general, we provide repayments either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Security of your data, and knowing how we collect data, process, exchange and safeguard your data, is crucial and is an essential element 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 information and our funders are ISO 27001 certified for our dedication to security for our clients and privacy. We utilise a sophisticated bank verification system to immediately verify your bank account information online, allowing us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a company owner borrows from assets they own to obtain the funding. The asset can be either an individual property, such as the family home or an company asset like a truck or piece of equipment.
The majority of lending institutions, even the big banks, tend to make loans secured by assets. If you are having difficulty paying back the loan, the asset might be taken over by the lender. In essence it is the process of securing new funding taking advantage of the value of what you already own.
Should I require security for an business loan?
For loans up to $150,000 it is not necessary to secure assets before you can access the money but we do require an individual guarantee. As long as you follow your loan commitments (as detailed in the loan contract), asset security will never be needed. For loans that exceed $150,000, generally, you can get a personal guarantee and security is provided in the form of a charge over assets.