FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Ponsonby Small Business Loans
Tell me about the Ponsonby Small Business Loans
Ponsonby unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from the traditional company loan?
It is imaginable to apply to get the Small Business Loan in under 10 minutes by phone. You will receive a same day response and the money could be in your account in 24 hours. Traditional business loans have an annual interest rate together with additional fees and charges. We offer a business loan is a loan that is priced upfront and you’ll know ahead of time the total amount to be paid, including any fees, charges or charges. This is then broken down into either a daily or weekly installment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business use, including managing cash flows, business improvements, advertising to purchase inventory, new equipment, or as general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger Ponsonby Business Loans
What is the Larger Ponsonby Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are either weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a credit in this amount the company needs to be operating for at least three years, and have an annual income of $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 business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can I use the funding for?
A larger business loan can be used for almost any company need, including business renovations, purchase of inventory or new equipment for general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. This is by way of charge against assets and can include registration on the PPSR or making as a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is general in nature rather than stating security over a particular asset. The person who is signing the ensure is personally liable in the event that the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including items or assets). The PPSR grants the priority of personal property assigned depending on the date that a security interest has been registered.
An affidavit is an official form of document to offer the public notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for larger company loans that is greater than $250K it is possible to offer a preliminary pre-approval to help simplify the process. It is possible to make this decision without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial health questions. This is neither an offer nor a guarantee of financing. The approval of a conditional loan is subject to a full credit assessment and any offer that you may receive may be on different terms.
Application process
Can I be eligible for funding?
You may be eligible 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 prove at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form within a couple minutes, and an experienced company credit specialist will contact you to assist you.
To be eligible 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.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent, 12 months of bank records, IRD statement, last 2 years finalised financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we usually offer an answer within an hour – as long as you make your application during quality company times and let us use the advanced bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statements , we are able to offer a decision in just an business day.
For the Larger Business Loan ($100K up to $500,000) we might be in a position to provide the conditional pre-approval within 6 hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this can be quicker based on the circumstances of each application. Some agreements have been approved in 24 hours.
The quickest method would be to make sure you apply during standard business hours. Also, let us use the advance bank verification to verify your bank information online. If you choose to upload duplicates of your banking accounts, it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) we can often provide a response in one hour, provided you make your application during normal business times and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your banking statements, we will be able to offer an answer in just 1 business day.
For Larger Business Loans ($100K to $500K) we may be in a position to offer the conditional pre-approval within six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based on the specifics of each application. Certain deals have been approved within 24 hours.
The fastest way can be ensure you apply during normal business hours. Also, permit us to use the sophisticated bank verification to verify your bank information online. If you choose to send us duplicates of your banking statements it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a certain amount we consider a variety of aspects that determine how much we can lend you well-being of the company and the amount of repayments your business will be able to support. The total amount of your loan will depend on the specifics that are unique to your company.
When you make an application for a particular amount, we consider a variety of factors to assess your well-being of the business and the amount of payments your business will be able to support. The total amount of your loan will be contingent on the specifics that are unique to your company.
Fees & repayments
How much do you charge for a company loan?
When you apply for the company financing, we will assess the risk profile for your business and provide you with a tailored offer that includes loan amount, term and the interest rates. The business loan is a loan that is priced upfront which means you know in advance the total amount you will have to pay, including charges or interest.
What is the basis for the rate I’m charged?
Business loan interest rates depend on a variety of factors like the amount of money borrowed, what company assets the funds will be used for and the sector the business operates in, how long the business has been operating, what percentage of the company has enough cash flow to fund the loan, and the general well-being and creditworthiness of the company.
What are the costs?
There aren’t any hidden charges with our company loans. You’ll know precisely what it is that you be required to pay, and when, right from the first day. There’s no compounding and the loan comes with no additional fees (as long as you make your payments on time).
We don’t charge an application fee. You are able to request a credit loan without any upfront costs or obligation to proceed.
The Origination Fee covers the costs associated with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay out the loan in advance?
You can choose to repay the total amount of your advance loan at any time.
If you do decide to do this please talk to one of our helpful business credit experts. The specialists will provide you with the details of your repayment and an early payment figure. This is calculated as the total of the principal amount remaining and accrued interest to the time of the early payout, plus 1.5 percent of the principal balance plus any outstanding fees.
What are the repayment methods?
To help you avoid missing payment dates and to align with your cash flow routine, we offer repayments either daily or weekly. These are automatically withdrawn from your company account.
Security & privacy
Will my data be secure?
Security of your data, and knowing the ways we gather information, use it, and exchange it, as well as secure your information, is of paramount importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive 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 use an advanced bank verification system that allows you to instantly verify your bank account information online to provide rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an business owner uses an asset they own to secure the funding. The asset can be an asset belonging to the personal, like the family home or a company property like a truck as well as a piece of machine.
The majority of lending institutions, not just the major banks, prefer to guarantee loans against assets. If you are having difficulty paying back the loan, then the asset might be offered for sale by the lender. In essence, it is the process of securing additional financing using the worth of the asset you already own.
What do I require security to get an company loan?
For loans that exceed $150K, the requirement for asset security is not required before you can access the money but we do require a personal guarantee. If you adhere to your loan obligations (as stipulated in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans of over $150,000 generally, there is personal ensure and security that is in the form the charge of assets.