FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Meadowbank Small Business Loans
Tell me how you can avail the Meadowbank Small Business Loans
Meadowbank unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from the traditional business loan?
You can apply to this Small Business Loan in under 10 minutes online or on the phone. You’ll receive an instant response and have the funds on your account within 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. We offer a business loan is a loan that is priced upfront which means you be aware of the total amount payable including any fees, charges or charges. This is then broken down into either weekly or daily payment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company reason, such as cash flow management, business remodeling, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan cannot be used for personal reasons.
About Larger Meadowbank Business Loans
What is the Larger Meadowbank Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to have been operating for at least three years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A large business loan can be used to fund almost every business reason, such as business remodeling, buying new equipment or inventory as well as for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is required for accessing funds over $150,000. It’s as a result of an charge over assets, which could also include registering this through the PPSR or making as a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is general in nature rather than stipulating the security of a specific asset. The person who signs the guarantee is personally accountable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR permits the priority of personal property assigned according to the date a security interest has been registered.
A caveat is a legal document filed to offer the public notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re seeking larger business loans that exceeds $250,000 we may be able to provide an initial pre-approval in order to smooth out the process. It is possible to apply for this without a credit check and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering some financial health checks. It’s neither an offer nor a guarantee of finance. Acceptance without condition is subject to a full credit assessment and any offer you receive could be subject to different conditions.
The application process
Can I be eligible for funding?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a few minutes and an experienced business expert in lending will be in touch to assist you.
To apply for up $100,000, you’ll need identification details (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Application details including credit consent and 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, in addition to interim current financial year financials, Aged Payables and Aged Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within one hour – as long as you make your application within quality company timings and let us use the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statement, we’ll offer an answer in as little as the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we may be capable of provide the conditional pre-approval within about six hours. After you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this could be shorter based on the specifics of each application. Some agreements have been approved in less than 24 hours.
The quickest way to apply is to ensure you apply during normal company hours and let us use the modern bank verification link to instantly check your bank’s information online. If you upload documents from your account statements it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) we can often provide an answer in just one hour – provided you apply within standard business hours and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statements we can offer the decision in just the span of one business day.
For the Larger Business Loans ($100K up to $500,000) we might be likely to offer you with conditional pre-approval within about six hours. Once you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this could be shorter based on the circumstances of each application. Certain transactions have received approval within the space of 24 hours.
The quickest method would be to ensure you apply during normal business hours. Also, allow us to use the modern bank verification link to instantly verify your bank information online. If you choose to send us the copies of bank statement, it may take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a certain amount, we consider a variety of factors that determine how much we can lend you health that is your business as well as the amount of the repayments your company can support. The amount you receive from the loan will be determined by the specific circumstances that are unique to your company.
If you apply for a set amount, we will consider a number of elements to determine how much we can lend you such as health of your business as well as the amount of the repayments your company is able to afford. The amount you receive from your loan will depend on the specifics for your business.
Fees & repayments
How do you charge for an company loan?
When you request the business credit, we’ll assess the risk assessment that you have for your company and offer an individualised offer including the amount of the loan, the duration and interest rates. This business loan is an upfront-priced loan so you will know in advance the total amount payable including any charges or interest.
What is the basis for the rate I pay?
The interest rates on company loans rates differ based on various factors like the amount of money borrowed, what company assets the funds are used to purchase as well as the field the company operates in, the long the business has been running and how long the business has enough cash flow to cover the loan, as well as the overall health or creditworthiness of the business.
What are the cost?
There are no hidden costs for our company loans. You’ll be aware of the amount it is that you need to pay, and when, from day one. There’s no compounding and no additional fees (as long as you make your payments in time).
We do not charge an application fee. You are able to apply for a loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee is the cost associated with setting up and managing the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I pay off the loan earlier?
You can choose to repay the total amount of your loan in full at any time.
If you are deciding to take this route, please talk to one of our helpful company loans experts. We will offer you with the details of your repayment along with an early payout estimate. It will be calculated using the total of the principal remaining and the accrued interest up to the time of the early payout and 1.5% of the remaining principal 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 cycle we offer repayments either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being clear about the ways we gather data, process, exchange and safeguard your data, is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to protecting the security of clients and security. We utilise a sophisticated banking verification system to immediately verify your bank account details online so we can provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where a company owner borrows from an asset they own to get the funding. The asset could be a personal asset like the family home or a business property like a truck or piece or equipment.
The majority of lenders, not just the largest banks, are inclined to make loans secured by assets. If you have trouble paying back the loan, then your asset may be transferred to the lender. In essence it’s an opportunity to secure new financing using the value of what you already have.
Are I need security for a business loan?
For loans up to $150K the requirement for asset security is not required prior to the loan’s access but we require a personal guarantee. require the personal guarantee. In the event that you fulfill your loan obligations (as detailed in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans over $150,000 generally there is a personal ensure and security is provided in the form of charges on assets.