FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Highbury Small Business Loans
Let me know what you think of the Highbury Small Business Loans
Highbury unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What makes this Unsecured Loan different from a traditional business loan?
The application for this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get a same day response and have the funds in your account in 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. Our business loan is a cash-based loan and you’ll know ahead of time the total amount due, which includes any fees, interest or charges. Then, it is broken down into weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company purpose including the management of cash flow, business improvements, advertising, to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal reasons.
About larger Highbury Business Loans
What is the Larger Highbury Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term that can last up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the business needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old 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 Business Loan of a larger size can be used for almost every business reason, such as business improvements, purchasing new equipment or inventory, as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. This can be done in the form of a charge over assets and can be registered with the PPSR or filing as a caveat.
A personal or director’s ensure is a promise to repay a loan which is general in nature rather than defining security over a particular asset. The person who is signing the ensure is personally liable in the event that the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It records security interests that have been that are registered for personal property (including items or assets). The PPSR allows prioritisation over property that is personal to be assigned according to the date a security interest that is registered.
An affidavit is an official form of document to provide notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan of more than $250,000 we can offer a preliminary pre-approval to help make the process. It is possible to get this done without a credit check, and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes you answering a few financial well-being checks. It is not an offer of credit or guarantee of credit. Unconditional approval is subject to a full credit assessment and any offer that you receive could be based on different terms.
Application process
Do I have the right to receive funds?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application within a few minutes and a dedicated business credit specialist will call you to help you.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s License) along with an active NZBN/IRD, and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent as well as 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we usually offer a response in one hour – as long as you apply within quality company time and allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you decide to send us copies of your bank statements we can provide an answer in as little as an business day.
For Larger Business Loans ($100K up to $500,000) we might be in a position to provide you with a conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this can be quicker based upon the circumstances for each application. Some agreements have been approved within 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours. You can also allow us to use the advance bank verification to instantly check your bank’s information online. If you upload copies of your bank statements , it may take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer in just one hour if you apply within normal business times and let us make use of the advanced bank verification system to immediately verify your bank account information online. If you opt to send us copies of your bank statements we can offer a decision in just the span of one business day.
For Larger Business Loans ($100K or more) we may be able to offer the conditional pre-approval in around 6 hours. Once you have signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval in just 24 hours.
The most effective method for you to apply is make sure you apply during normal business hours. Also, allow us to use our advanced bank verification system to verify your bank information online. If you upload documents from your account statements it may 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 certain amount we consider a variety of elements in order to assess how much we can lend you health of your company and the extent of repayments your company can afford. The total amount of your loan will depend on the particular circumstances for your business.
If you apply for a particular amount, we look at a range of aspects to determine the health for your business as well as the amount of payments your company can support. The amount you receive from the loan will be determined by the particular circumstances the business.
Fees & repayments
How much should you charge for an company loan?
When you request one of our business credit, we’ll assess the risk assessment for your business and provide an individualised offer, including the amount of loan, the term and the interest rates. It is a company loan is an upfront-priced loan so you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What determines the amount I will be charged?
Interest rates for business loans rates vary due to variables like the amount to be borrowed, the company assets the money are used to purchase as well as the field the business operates in, how long the business has been in operation and how long the company has sufficient cash flow to fund the loan, and overall well-being as well as creditworthiness company.
What are the charges?
There are no hidden fees with our company loans, and you’ll know precisely how much it is that you need to pay, and at what time, from day one. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We do not charge an application fee. You are able to make an application for loans without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can choose to repay the entire amount of the loan at any point in time.
If you choose to pursue this option, please call our helpful company lending experts. The specialists will provide you with details for repayment along with an early payout estimate. This is calculated as the total of the principal remaining and any accrued interest at the date of early payout plus 1.5 percent of the principal remaining plus any outstanding fees.
How do you make repayments work?
To help you avoid missing due dates and also to be in line your cash flow schedule, we provide repayments either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my data be secure?
Security of your data, and being upfront about how we collect data, process, exchange and protect your information, is of huge importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to security for our customers and privacy. We use an advanced bank verification system that allows you to immediately verify the bank account details online, allowing us to provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the company owner uses assets they own to make the loan. The asset may be an asset belonging to the personal, like the family home or an business asset such as a vehicle or piece or equipment.
The vast majority of banks, even the major banks, prefer to make loans secured by an asset. If you have trouble paying back the loan, the asset might be sold by the lender. In essence it is the process of securing additional financing using the worth of the asset you already own.
Do I require security to get a company loan?
For loans up to $150,000 the requirement for asset security is not required in advance to gain access to the funds, however we do need a personal guarantee. As long as you follow your loan commitments (as detailed in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150K generally, you are able to get a personal guarantee and security that is in the form a charge over assets.