FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Petone Small Business Loans
Tell me more about Petone Small Business Loans
Petone unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from the traditional company loan?
Apply to get your Small Business Loan in under 10 minutes over the phone, receive an instant response and have the funds available in just 24 hours. Traditional company loans are based on an annual rate of interest plus other fees and charges. We offer a company loan is a pre-paid loan therefore you’ll be aware in advance of the total amount due, which includes any fees, charges or charges. This is then broken down into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any business reason, such as the management of cash flow, company remodeling, marketing for purchasing inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal reasons.
About Larger Petone Business Loans
What is the Larger Petone Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size the business needs to be operating for at least three years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be utilised?
A Business Loan of a larger size can be used for almost all company reason, such as company renovations, purchase of inventory or new equipment or as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. It is usually in the form of a charge over assets and can be registered in the PPSR or the registration of a caveat.
A director’s or personal guarantee is a promise 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 responsible if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including items or assets). The PPSR permits prioritisation over property that is personal to be granted according to the date a security interest was registered.
An affidavit is an official document that is filed to provide the public notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re requesting an enterprise loan of more than $250,000 we may be able to provide a preliminary pre-approval to help simplify the process. We could be able to make this decision without credit checks and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves you answering some financial well-being checks. It is neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you may receive may be subject to different conditions.
The application process
Are I eligible for funding?
You can apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application in just a few minutes, and a dedicated company credit specialist will contact you to guide you.
To apply for up to $100,000, you’ll need ID details (valid Driver’s License) and a valid NZBN/IRD as well as at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K – $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent and 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we usually provide an answer within an hour, provided you make your application during standard company times and let us utilise the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your banking statements , we’ll be able to provide an answer within 1 company day.
If you are applying for a Larger Business Loan ($100K or more) we might be capable of 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 the space of 24 hours.
The most effective method would be to ensure you apply during normal company hours. Also, allow us to use the modern bank verification to instantly check your bank’s information online. If you opt to upload copies of your bank statement, it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within one hour if you submit your request within normal business time and permit us to use the advanced bank verification system link to instantly verify your bank’s information online. If you choose to submit copies of your bank statements, we are able to offer the decision within an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be capable of offer you with conditional pre-approval in about six hours. Once you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending on the particular circumstances of each application. Certain deals have been approved in the space of 24 hours.
The most effective method for you to apply is make sure you apply during normal business hours. Also, let us use the advanced bank verification system link to verify your bank information online. If you choose to send us documents from your account statement, it will take a little longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a certain amount we consider a variety of aspects that determine what is the health for your business and the amount of the repayments your company will be able to support. The total amount of your loan will be contingent on the particular circumstances of your business.
When you make an application for a set amount, we take into consideration a variety of elements to determine your well-being for your company and the amount of the repayments your business can support. The total amount of your loan will depend on the specifics the business.
Fees & repayments
How much should you charge for a business loan?
When you make an application for one of our company financing, we’ll assess the risk profile for your business and offer you with a tailored offer, including the loan amount, the terms and interest rates. It is a company loan is a loan that is priced upfront which means you know in advance the total amount you will have to pay, including costs, fees, or interest rates.
What determines the amount I pay?
Business loan interest rates depend on a variety of factors including the amount borrowed, the business assets the funds are used to purchase in addition to the industry that the business is operating in, how long the company is in operation as well as in the event that the business has enough cash flow to pay for the loan, and also the overall health as well as creditworthiness company.
What are the cost?
There are no hidden costs with our company loans. You’ll be aware of the amount it is that you be required to pay and at what time, from the day you sign up. There’s no compounding interest and no extra fees (as long as you make your payments in time).
We do not charge an application fee. You are able to get a cash loan with no cost upfront or commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I repay the loan early?
You may choose to pay back all of your loan in full at any time.
If you are deciding to take this route, please call our helpful company credit professionals. They will offer you with details for repayment and an early payment figure. The figure will be calculated as the total of the principal balance and the accrued interest up to the date of early payout and 1.5 percent of the principal balance and any outstanding fees.
How do you make repayments work?
To help you avoid missing payments and to work with your cash flow routine, we offer repayments that are either daily or weekly. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as knowing how we collect, use, exchange and protect your information, is of paramount importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We employ an exceptionally sophisticated banking verification system to immediately verify your bank account details online, allowing us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the business owner makes use of the assets they have to obtain the loan. The asset can be an individual asset, such as the family home or it could be a company asset such as a vehicle as well as a piece of machine.
The majority of lending institutions, not just the banks with the biggest size, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, then your assets could be taken over by the lender. In essence it is a way of securing new financing by using the worth of the asset you already own.
Should I require security to get an company loan?
For loans up to $150,000 it is not necessary to secure assets prior to the loan’s access but we do require a personal guarantee. As long as you follow your loan obligations (as specified in your loan contract), asset security is not required. For loans that exceed $150,000, typically, you will need a personal guarantee and security in the form of the charge of assets.