FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Mornington Small Business Loans
Let me know more about Mornington Small Business Loans
Mornington unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from an ordinary business loan?
The application to this Small Business Loan in under 10 minutes online or on the phone. You’ll receive an instant response and the funds could be on your account within 24 hours. Traditional business loans reference an annual interest rate together with additional fees and charges. This business loan is a loan that is priced upfront so you will know in advance the total amount due, which includes any interest, fees or charges. This is then broken down into either a daily or weekly repayment figure.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any company reason, such as managing cash flows, company improvements, advertising to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used to fund personal expenses.
About larger Mornington Business Loans
What is the Larger Mornington Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. The repayments are made weekly or fortnightly to work with the flow of cash.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size, your business needs to be operating for a minimum of 3 years and generate an annual revenue of $700K. Your business must belong to 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 to demonstrate at least 12 months of trading.
What can I use the funds for?
A large company loan can be used for nearly every business reason, such as business renovations, purchase of equipment or inventory or as 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 to access funding over $150,000. It’s by way of charge over assets, which could also include registering this in the PPSR or registering a caveat.
A personal or director’s guarantee is a guarantee to pay back a loan that is general in nature rather than specifying the security of a specific asset. The person signing the guarantee is personally liable in the event that the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR gives priority over personal property to be granted depending on the date that a security interest has been registered.
Caveats are legal document that is filed to provide the public notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for larger company loans that is greater than $250K, we may offer an initial pre-approval to make the process. It is possible to get this done 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 questions. It’s not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer that you might receive could have different terms.
Application process
Can I be eligible for funding?
You can apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application within a few minutes and a dedicated company loan specialist will be in touch to assist you.
To be eligible for up to $100,000, you’ll require ID details (valid Driver’s License), an active NZBN/IRD, and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent and 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we usually provide an answer within an hour – as long as you submit your request within standard business time and let us make use of the advanced bank verification system link to instantly verify your bank information online. If you opt to submit copies of your bank statement, we’ll provide the decision within just the span of one company day.
For Larger Business Loans ($100K to $500K) we may be likely to provide the conditional pre-approval within about 6 hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based upon the circumstances for each application. Some offers have been approved within just 24 hours.
The quickest method can be ensure you apply during normal business hours and permit us to use the modern bank verification to confirm your bank details online. If you choose to upload documents from your account statements it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K and up) We can usually provide an answer within one hour – as long as you apply in standard business time and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statements, we will be able to provide an answer in as little as an business day.
For the Larger Business Loans ($100K and up) We may be capable of provide the conditional pre-approval within six hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Some offers have been approved within just 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours and let us use the sophisticated bank verification link to instantly confirm your bank details online. If you send us documents from your account statements it can 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 particular amount, we will consider a number of variables for determining the health of the company as well as the amount of the repayments your business is able to afford. The total amount of your loan will be contingent on the specifics the company.
When you make an application for a set amount, we take into consideration a variety of aspects to determine how much we can lend you such as health that is your business and the amount of repayments that your business can support. The amount you receive from your loan will be determined by the specific circumstances of your company.
Fees & repayments
What is the cost for an company loan?
When you apply for the business loan, we’ll assess the risk assessment the business and provide you with a customised offer including loan amount, term and interest rates. This business loan is a loan that is priced upfront so you will know the exact amount to be paid, including any charges or interest.
What is the factor that determines the price I’m charged?
Interest rates for business loans rates depend on a variety of factors including the amount of money borrowed, the business assets the money are used to purchase and the sector the business operates in, the long the company has been running as well as whether the company has sufficient cash flow to cover the loan, and general well-being as well as creditworthiness business.
What are the charges?
There aren’t any hidden charges with our business loans. You’ll know precisely how much you be required to pay, and when, starting from the very first day. There’s no compounding and the loan comes with no additional fees (as as you make your payments in time).
We do not charge an Application Fee. You are able to apply for a loan with no upfront cost or commitment to apply.
The Origination Fee is the cost associated with the setting up and management of the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I pay off the loan in advance?
You may choose to pay back the entire amount of the advance loan at any time.
If you choose to take this route, please talk to one of our helpful business loan specialists. The professionals will offer you with repayment details and an early payout figure. The figure will be calculated as the total of the principal balance and the accrued interest up to the time of early payout, plus 1.5% of the principal remaining as well as any outstanding fees.
How do repayments work?
To ensure that you don’t miss repayments and to fit in with your cash flow cycle we offer repayments either daily or weekly. They are automatically deducted from your company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being clear about how we collect information, use it, and exchange it, as well as secure your information, is of huge importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their security. We utilise a sophisticated banking verification system to immediately verify the bank account details online to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when the business owner borrows from the assets they have to secure the funds for a loan. The asset could be a personal asset like the family home or a company asset like a truck or other piece of machinery.
The majority of lenders, even the major banks, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan then your asset may be offered for sale by the lender. In essence, it is a way of securing new funding using the value of what you already own.
Are I need security for a business loan?
For loans of up to $150K, there is no requirement for asset security prior to the loan’s access However, we require a personal guarantee. need an individual guarantee. So long as you comply with your loan commitments (as stipulated in your loan contract) Asset security is not required. For loans over $150,000 typically, you will need the option of a personal ensure and security is provided in the form of the charge of assets.