FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The New Zealand Small Business Loans
Let me know more about New Zealand Small Business Loans
New Zealand unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from a traditional business loan?
It is imaginable to apply to get your Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and funds may be in your account within 24 hours. Traditional company loans refer to an annual rate of interest along with other charges and fees. We offer a company loan is an upfront priced loan and you’ll be aware in advance of the total amount payable including the interest, fees and charges. This is then broken down into either a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business use, including control of cash flow business remodeling, marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan cannot be used for personal use.
Concerning Larger New Zealand Business Loans
What is the Larger New Zealand Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the company needs to have been trading for at least 3 years, and have an annual income of at least $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funds be used for?
A Business Loan of a larger size can be used for almost all business use, including company renovations, purchase of inventory or new equipment or as general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. This is as a result of an charge over assets, and may include registering this in the PPSR or making a caveat.
A director’s or personal ensure is a promise to pay off a credit line that is generally in nature rather than defining security over a particular asset. The person who signs the ensure is personally responsible if the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It contains security interests that are registered for personal property (including the assets or goods). The PPSR grants priority over personal property to be assigned in accordance with the date on which a security interest that is registered.
Caveats are legal form of document to provide notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
When you’re applying for larger company loans of $250,000 or more we can offer an initial pre-approval in order to smooth out the process. We may be able to get this done without a credit check and within six hours of your initial application. This pre-approval is made based on an initial assessment, which involves you answering some financial health checks. This is in no way an offer, nor is it a guarantee of credit. A conditional approval is subject an exhaustive credit evaluation, and any offer you might receive could be subject to different conditions.
Application process
Can I be eligible for funding?
You can apply for an company 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)
- must show at least six months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Just complete the online application in few minutes and a dedicated company loan specialist will contact you to assist you.
To be eligible for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence), a valid NZBN/IRD and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Information on the application including credit consent twelve months of bank statements, IRD statement, last 2 years finalised financial statements, in addition to 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 to $100K) we typically provide a response in one hour if you apply in quality business times and allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your bank statements we can offer an answer in just an business day.
If you are applying for a Larger Business Loan ($100K or more) we might be likely to offer you with pre-approval conditional to your application within 6 hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however it could be faster based on the circumstances of each application. Some deals have been approved within just 24 hours.
The quickest way to apply can be ensure you apply during standard business hours and allow us to use our modern bank verification link to instantly check your bank’s information online. If you decide to upload duplicates of your banking accounts, it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we usually provide a response in one hour – provided you submit your request within normal business timings and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your banking statements we can offer a decision within one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be able to offer you with a conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved within 24 hours.
The quickest method would be to ensure you apply during normal business hours. You can also allow us to use our advanced bank verification system link to verify your bank information online. If you decide to send us copies of your bank statements, it may take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you make an application for a certain amount we consider a variety of elements in order to assess what is the well-being that is your company as well as the amount of the repayments your company will be able to support. The total amount of your loan will depend on the particular circumstances of your company.
When you apply for a certain amount, we look at a range of elements to determine your health of the company and the level of repayments that your company will be able to support. The total amount of the loan will be determined by the particular circumstances that are unique to your company.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to apply for one of our business financing, we’ll assess the risk assessment the company and offer an individualised proposal that includes the amount of the loan, the duration and interest rates. A business loan is an upfront cost loan and you’ll know in advance the total amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I will be charged?
The interest rates on business loans rates depend on a variety of factors such as the amount that is borrowed, the company assets the money will be used for and the sector the company operates in, the long the business has been operating and whether the business has sufficient cash flow to fund the loan, and also the general well-being or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges with our business loans. You’ll know precisely what it is that you be required to pay and at what time, from the day you sign up. There’s no compounding and the loan comes with no additional fees (as long as you are able to make your payments on time).
We do not charge an application fee. You can request a credit loan with no upfront cost or obligation to proceed.
The Origination Fee covers the costs associated with establishing and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay out the loan in advance?
You can decide to repay the entire amount of the loan in full at any time.
If you do decide to do this please call our helpful company loans experts. They’ll provide you with details on repayment and an early payout figure. This is calculated as the sum of the principal remaining and the accrued interest up to the date of early payout in addition to 1.5% of the remaining principal and any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payments and to work with your cash flow cycle we offer repayments either daily or weekly. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being transparent about the ways we gather data, process, exchange and safeguard your data, is of paramount importance and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to the security of our customers as well as their privacy. We utilise a sophisticated bank verification system that allows you to immediately verify the bank account details online to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when an business owner borrows from assets they own to secure the loan. The asset can be a personal asset like the family home or an business property like a truck as well as a piece of machine.
The majority of banks, even the major banks, prefer to secure loans against an asset. If you are having difficulty paying back the loan, then the asset could be sold by the lender. In essence, it’s means of securing new financing taking advantage of the value of what you already own.
Do I require security for an business loan?
For loans of up to $150K, the requirement for asset security is not required in advance to gain access to the funds However, we do need the personal guarantee. So long as you comply with your loan commitments (as stipulated in your loan contract document) Asset security is not required. If you take out loans in excess of $150K typically, you will need personal guarantee and security that is in the form an asset charge.