FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Cottesloe Small Business Loans
Tell me about the Cottesloe Small Business Loans
Cottesloe unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
What makes this Unsecured Loan different from an traditional business loan?
Apply to get your Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and funds may be in your account within 24 hours. Traditional business loans are based on an annual rate of interest together with additional fees and charges. Our business loan is an upfront priced loan so you will know in advance the amount you will have to pay, including any interest, fees or charges. This is then broken down into either weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for almost any company need, such as the management of cash flow, company remodeling, marketing, to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal purposes.
About larger Cottesloe Business Loans
What is the Larger Cottesloe Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large, your company needs to have been operating for a minimum of 3 years, and have an annual income of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funds be utilised?
A large company loan can be used to fund almost all business purpose including company remodeling, buying equipment or inventory or as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. This can be done by taking a charge over assets and can include registration in the PPSR or filing a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally in nature rather than stating security over an asset. The person who is signing the ensure is personally responsible if the company creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests registered in respect of personal property (including the assets or goods). The PPSR allows the priority of personal property assigned depending on the date that a security interest was registered.
Caveats are legal document that is filed to provide an official notice of a claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking a Larger Business Loan of $250K or more, we may offer an initial pre-approval in order to smooth out the process. It is possible to make this decision without a credit check, and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes the answer to a series of financial well-being checks. This is neither an offer nor a guarantee of finance. Acceptance without condition is subject to an extensive credit evaluation and any offer that you are offered could have different conditions.
The application process
Do I qualify for funds?
You may apply for a business 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)
- must show at least six months’ worth of transactions (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application in just a few minutes, and an experienced company expert in lending will be in touch to guide you through the process.
For a loan of up to $100,000, you’ll need proof of identity (valid Driver’s License) along with an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details for application including credit consent and 12 months of bank records, IRD statement and the last two years’ finalised financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables Summary.
How fast will I get 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 standard business time and allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statements we can offer the decision within just 1 business day.
If you are applying for a Larger Business Loan ($100K and up) we may be able to provide the conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Certain deals have been approved within less than 24 hours.
The quickest way to apply would be to ensure you apply during normal business hours. You can also permit us to use the advance bank verification to verify your bank account information online. If you decide to send us documents from your account accounts, it can take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) We can usually offer a response in one hour, provided you make your application during standard business time and permit us to use the bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your banking statement, we’ll provide an answer in just an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be capable of offer you with pre-approval conditional to your application within six hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this can be faster depending on the specifics of each application. Some agreements have been approved in 24 hours.
The fastest way would be to ensure you apply during standard business hours. You can also allow us to use our advance bank verification to confirm your bank details online. If you send us documents from your account statement, it will take a little longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you submit an application for a specific amount we consider a variety of elements that determine how much we can lend you well-being for your company and the level of repayments your business is able to afford. The amount you receive from the loan will be determined by the particular circumstances for your business.
When you submit an application for a specific amount we will consider a number of variables to assess the health of the business as well as the amount of repayments your business can support. The amount you receive from your loan will be contingent on the specifics of your business.
Fees & repayments
How do you charge for an company loan?
If you decide to request one of our business financing, we’ll assess the risk assessment that you have for your company and provide you with a customised offer, including loan amount, term and the interest rates. The company loan is an upfront cost loan therefore you will be aware of the total amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I am charged?
Business loan interest rates differ based on various factors like the amount of money borrowed, what company assets the funds will be used for, the industry the company operates in, how long the business is in operation, whether the business has sufficient cash flow to support the loan, and the overall health as well as creditworthiness business.
What are the costs?
There are no hidden costs for our company loans. You’ll be aware of the amount you need to pay and when, from the day you sign up. There’s no compounding interest and no extra fees (as as you make your payments punctually).
We do not charge an Application Fee. You are able to get a cash loan no cost upfront or obligation to proceed.
The Origination Fee is the cost 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 percent of the amount of loan.
Can I pay off the loan in advance?
You can choose to repay all of your loan early at any time.
If you do decide to pursue this option, please contact our helpful business credit professionals. They’ll provide you with repayment details and an early payment figure. The figure will be calculated as the sum of the principal amount remaining plus any accrued interest as of the time of the early payout plus 1.5% of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss repayments and to fit in your cash flow schedule, we provide payments that are either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as knowing how we collect the information we collect, use, share and protect your information, is of paramount importance and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of clients and privacy. We employ an exceptionally sophisticated banking verification system to immediately verify the bank account details online, allowing us to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an business owner uses the assets they have to secure the funds for a loan. The asset can be an individual asset, such as the family home, or a company asset like a truck or piece or equipment.
The vast majority of lending institutions, including the banks with the biggest size, prefer to secure loans against an asset. If you have trouble paying back the loan then the asset might be sold by the lender. In essence, it is an opportunity to secure additional financing using the value of what you already own.
What do I need security to secure a company loan?
For loans up to $150,000 it is not necessary to secure assets upfront to access the money, however we do require the personal guarantee. In the event that you fulfill the terms of your loan (as stipulated in your loan contract) Asset security is not needed. For loans of over $150K typically, you will need the option of a personal guarantee and security in the form of charges on assets.