FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The New Zealand Small Business Loans
Tell me more about New Zealand Small Business Loans
New Zealand unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from an traditional company loan?
You can apply to get your Small Business Loan in under 10 minutes on the phone. You’ll receive a same day response and funds may be on your account within 24 hours. Traditional business loans refer to an annual rate of interest along with other charges and fees. The business loan is a loan that is priced upfront so you will be aware in advance of the total amount payable including any fees, charges or charges. This is then broken down into either weekly or daily payment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business reason, such as managing cash flows, company remodels and marketing to purchase inventory or new equipment, or as general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger New Zealand Business Loans
What is the Larger New Zealand Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the company needs to be trading for at least 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funding for?
A Larger Business Loan can be used for almost any company need, including business remodeling, buying equipment or inventory, as general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. It’s in the form of a charge on assets, and may include registration on the PPSR or filing a caveat.
A director’s or personal ensure is a promise to repay credit that is generally based rather than defining the security of a specific asset. The person signing the guarantee is personally responsible if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR allows prioritisation over property that is personal to be granted according to the date the security interest that is registered.
An affidavit is an official form of document to offer notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking an enterprise loan of $250,000 or more it is possible to offer a preliminary pre-approval to help make the process. We may be able to make this decision 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 health questions. It’s in no way an offer, nor is it a guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer that you are offered could be subject to different terms.
Application process
Are I eligible for funding?
You may apply for a business 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)
- can demonstrate at least 6 months of trading (for a 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 simple. Just complete the online application within a few minutes and an experienced company credit specialist will be in touch to assist you.
To apply for up to $100,000, you’ll require identification details (valid Driver’s License), a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we typically offer an answer in just one hour, provided you apply during quality company timings and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your bank statements we can offer a decision in just the span of one business day.
For Larger Business Loans ($100K to $500K) we could be likely to provide you with a conditional pre-approval within 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 specifics of each application. Certain deals have been approved in 24 hours.
The quickest way to apply can be ensure you apply during standard business hours. You can also allow us to use the modern bank verification to instantly check your bank’s information online. If you upload copies of your bank accounts, 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 within an hour if you make your application at standard business hours and permit us to make use of the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your bank statement, we’ll provide an answer in just an business day.
For Larger Business Loans ($100K to $500K) we could be in a position to provide you with pre-approval conditional to your application within six hours. Once you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this could be shorter based upon the circumstances for each application. Some deals have been approved within less than 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours, and let us use the advance bank verification to instantly verify your bank account information online. If you choose to send us duplicates of your banking statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a certain amount, we consider a variety of factors to determine the health of the business and the level of the repayments your company can support. The amount you receive from the loan will be determined by the specifics the business.
When you make an application for a particular amount, we look at a range of elements to assess the health of your business as well as the amount of repayments your company can support. The total amount of your loan will be contingent on the specifics for your business.
Fees & repayments
How much do you charge for an business loan?
When you request our business financing, we’ll assess the risk profile that you have for your company and offer an individualised proposal that includes 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 due, which includes any charges or interest.
What determines the rate that I am charged?
Business loan interest rates vary due to variables like the amount to be that is borrowed, what company assets the money are used to purchase, the industry the company is operating in, how long the business has been in operation for, what percentage of the company has sufficient cash flow to cover the loan, as well as the general well-being or financial standing of the company.
What are the charges?
There are no hidden fees with our business loans. You’ll be aware of the amount you need to pay and when, right from the first day. There’s no compounding interest and no additional fees (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You can get a cash loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay off the loan earlier?
You can decide to repay the entire amount of your loan at any point in time.
If you do decide to do this please speak to our friendly business loan specialists. They will provide you with the details of your repayment as well as an early payout amount. It will be calculated using the sum of the principal remaining and accrued interest to the time of the early payout in addition to 1.5% of the remaining principal plus any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss repayments and to fit in with your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being clear about how we collect information, use it, and exchange it, as well as safeguard your data, is crucial and is an essential part 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 sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We use an advanced bank verification system to instantly verify the bank account details online, allowing us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where a business owner utilises an asset that they own to secure the funding. The asset may be an individual property, such as the family home, or an company asset like a truck or piece of equipment.
The vast majority of banks, not just the banks with the biggest size, prefer to secure loans against an asset. If you’re struggling to pay back the loan then the asset could be taken over by the lender. In essence, it is the process of securing new financing by taking advantage of the value of what you already have.
Do I require security for an business loan?
For loans that exceed $150K, the requirement for asset security is not required prior to the loan’s access, however we require a personal guarantee. require a personal guarantee. If you adhere to the loan terms (as stated in your loan contract document) Asset security will never be required. For loans that exceed $150,000, generally there is an individual guarantee and security is provided in the form of an asset charge.
