FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Casuarina Small Business Loans
Let me know more about Casuarina Small Business Loans
Casuarina unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What makes how is the Unsecured Loan different from an ordinary company loan?
Apply to this Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and funds may be on your account within 24 hours. Traditional business loans refer to an interest rate per annum together with additional fees and charges. Our company loan is a pre-paid loan which means you be aware of the amount you will have to pay, including any interest, fees or charges. This is then divided into a daily or weekly installment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business purpose including the management of cash flow, business renovations, marketing for purchasing inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal reasons.
Concerning Larger Casuarina Business Loans
What is the Larger Casuarina Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed for up to 36 months. The repayments are made weekly or fortnightly to work with your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan of this size the business needs to have been trading for at least 3 years, and have an annual income of $700K. You must be 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 to prove at minimum 12 months of business.
What can I use the funds for?
A Business Loan of a larger size can be used to fund almost every business use, including business remodeling, buying equipment or inventory, as general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed to obtain funding above $150,000. This can be done in the form of a charge against assets, and could include registering this through the PPSR or filing as a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is generally based rather than specifying security over a particular asset. The person who signs the guarantee is personally responsible if the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It records security interests that have been registered in respect of personal property (including goods or assets). The PPSR grants preference over private property assigned according to the date a security interest has been registered.
Caveats are legal document filed to provide the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking a Larger Business Loan of more than $250K it is possible to offer an initial pre-approval to simplify the process. We could be able to apply for this without a credit verification and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering a few financial well-being questions. It is not an offer of credit or guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer that you receive could be subject to different conditions.
Application process
Do I have the right to receive funds?
You may be eligible for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for for the unsecured loan $5K – $100K) or 3 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 in few minutes and a dedicated company expert in lending will call you to help you.
To apply for up to $100,000 you’ll need ID details (valid Driver’s License) as well as an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K-$250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details for application including credit consent, 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, and interim current financial year financials such as age-related payables and aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) we typically provide an answer within one hour – as long as you make your application at quality company hours and you allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your bank statements , we will be able to offer an answer in just an company day.
For the Larger Business Loan ($100K or more) we may be in a position to provide you with conditional pre-approval within about 6 hours. After you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Some offers have been approved in less than 24 hours.
The fastest way for you to apply is make sure you apply during standard company hours and allow us to use our advance bank verification link to instantly confirm your bank details online. If you upload duplicates of your banking statement, it may take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) we can often provide an answer within one hour if you make your application during normal business time and permit us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your banking statements, we are able to provide a decision in just one business day.
If you are applying for Larger Business Loans ($100K or more) we may be in a position to offer the conditional pre-approval in about 6 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 upon the circumstances for each application. Certain agreements have been approved within the space of 24 hours.
The fastest way would be to make sure you apply during standard business hours, and let us use the modern bank verification link to verify your bank account information online. If you choose to send us documents from your account statements it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a specific amount we consider a variety of elements for determining what is the well-being for your business and the amount of payments your business is able to afford. The total amount of your loan will depend on the specifics of your business.
When you make an application for a specific amount we consider a variety of aspects to determine your well-being for your business as well as the amount of repayments your business is able to afford. The amount you receive from your loan will be determined by the specific circumstances of your business.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to apply for the company loan, we will assess the risk assessment for your business and provide an individualised proposal that includes the loan amount, the terms and the interest rates. 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 is the basis for the rate I am charged?
The interest rates on business loans rates depend on several factors including the amount borrowed, what company assets the money will be used for in addition to the industry that the company is operating in, how long the business is in operation for, how long the business has sufficient cash flow to pay for the loan, and general health as well as creditworthiness company.
What are the charges?
There are no hidden costs for our company loans. You’ll know exactly how much you’ll be required to pay, and when, right from the very first day. There’s no compounding interest and there are no additional charges (as as you make your payments in time).
We do not charge an Application Fee. You are able to make an application for loans no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated with establishing and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan earlier?
You can choose to repay the entire amount of your loan at any point in time.
If you choose to take this route, please contact our helpful company credit experts. We will offer you with details on repayment and an early payment figure. It will be calculated using the sum of the principal remaining and accrued interest to the time of early payout, plus 1.5% of the principal amount remaining as well as any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payments and to work your cash flow cycle we offer repayments either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear how we collect data, process, exchange and secure your information, is of huge importance and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to security for our customers and security. We utilise a sophisticated bank verification system that allows you to instantly 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)?
An asset-based loan is when a company owner borrows from an asset that they own to obtain the funding. The asset can be either a personal asset like the family home or a company asset such as a vehicle or piece or equipment.
The majority of the lenders including the largest banks, are inclined to guarantee loans against assets. If you’re struggling to pay back the loan, the asset could be sold by the lender. In essence, it’s an opportunity to secure new financing using the worth of the asset you already have.
What do I need security for an business loan?
For loans up to $150K the requirement for asset security is not required in advance to gain access to the funds However, we require a personal guarantee. require an individual guarantee. So long as you comply with the loan terms (as specified in your loan contract document) Asset security will never be needed. If you take out loans in excess of $150,000 generally, you can get the option of a personal guarantee and security is provided in the form of an asset charge.