FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Auckland Small Business Loans
Let me know more about Auckland Small Business Loans
Auckland unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from an ordinary company loan?
You can apply to your Small Business Loan in under 10 minutes over the phone, receive an answer within the same day and the money could be on your account within 24 hours. Traditional company loans are based on an annual rate of interest plus other fees and charges. This business loan is an upfront priced loan therefore you’ll know in advance the total amount due, which includes the interest, fees and charges. This is then divided into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company reason, such as cash flow management, company renovations, marketing, to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used to fund personal expenses.
Concerning Larger Auckland Business Loans
What is the Larger Auckland 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 fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to be operating for at least three years with an annual turnover of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funding be utilised?
A large business loan can be used for nearly every business use, including company improvements, purchasing inventory or new equipment as well as for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. It is usually by way of charge against assets, and could include registration in the PPSR or making as a caveat.
A director’s or personal ensure is a promise to repay credit that is generally in nature rather than specifying security over a particular asset. The person signing the guarantee is personally accountable if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including items or assets). The PPSR allows preference over private property assigned according to the date the security interest was registered.
Caveats are legal document filed to provide an official notice of a claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for a Larger Business Loan of $250K or more we may be able to provide an initial pre-approval in order to ease the process. We could be able to do this without a credit verification and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes the answer to a series of financial well-being checks. It is neither an offer nor a guarantee of financing. A conditional approval is subject an exhaustive credit evaluation, and any offer that you might receive could be based on different terms.
Application process
Do I have the right to receive funds?
You can apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a few minutes and an experienced business expert in lending will be in touch to guide you through the process.
To apply for up $100,000 you’ll need ID details (valid Driver’s Licence) and an NZBN/IRD that is valid and 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 loan above $150K).
$250K to $500K: Information on the application including credit consent and 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, in addition to interim financials from the current financial year, Aged Payables and Aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within one hour, provided you submit your request in quality company time and let us utilise the bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your banking statements , we are able to offer the decision in just 1 business day.
For the Larger Business Loan ($100K or more) we may be in a position to offer you with a conditional pre-approval within six hours. After you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this can be quicker based on the circumstances of each application. Certain deals have been approved in just 24 hours.
The quickest method can be ensure you apply during standard business hours. You can also permit us to use the advanced bank verification system link to instantly confirm your bank details online. If you opt to send us copies of your bank accounts, it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) we usually provide an answer within one hour – provided you apply at normal business time and you allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you opt to submit copies of your bank statements, we will be able to offer a decision within 1 business day.
For the Larger Business Loans ($100K to $500K) we could be able to offer 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 may be quicker depending on the specifics of each application. Certain transactions have received approval in 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours. Also, allow us to use the advance bank verification link to check your bank’s information online. If you opt to upload the copies of bank statements it will take a little longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a specific amount we look at a variety of factors in order to assess the health of your company and the level of repayments your business is able to afford. The amount you receive from the loan will be determined by the specifics of your business.
If you apply for a certain amount, we will consider a number of factors to assess how much we can lend you such as well-being of your company and the level of repayments that your business can afford. The total amount of the loan will be determined by the specific circumstances the business.
Fees & repayments
How much do you charge for the cost of a business loan?
When you make an application for business loans with us business credit, we will assess the risk assessment the company and offer you with a tailored proposal that includes the loan amount, the terms and the interest rates. The business loan is a loan that is priced upfront so you will know the exact amount due, which includes any charges or interest.
What is the basis for the rate I will be charged?
Business loan interest rates differ based on various factors like the amount of money of money borrowed, the company assets the money are used to purchase, the industry the company is in, how long the company has been in operation for, in the event that the business has enough cash flow to fund the loan, and overall health or financial standing of the company.
What are the costs?
There aren’t any hidden charges for our company loans. You’ll know exactly how much it is that you need to pay, and when, from the day you sign up. There’s no compounding and no extra fees (as as long as you pay your payments in time).
We do not charge an Application Fee. You are able to get a cash loan without any upfront costs or commitment to apply.
The Origination Fee covers the expenses involved with the setting up and management of the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan earlier?
You can decide to repay all of your advance loan at any time.
If you do decide to do this please talk to one of our helpful business credit professionals. They’ll offer you with the details of your repayment along with an early payout estimate. The figure will be calculated as the total of the principal balance and any accrued interest at the time of early payment and 1.5 percent of the principal remaining as well as any outstanding fees.
How do repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear how we collect, use, exchange and secure your information, is of paramount importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We employ an exceptionally sophisticated bank verification system link to instantly confirm your bank account information online, allowing us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where the company owner uses assets they own to secure the funding. The asset could be an asset belonging to the personal, like the family home, or a business asset such as a truck as well as a piece of machine.
The majority of banks, not just the largest banks, are inclined to secure loans against assets. If you are having difficulty paying back the loan, then your asset may be offered for sale by the lender. In essence, it is the process of securing new financing using the value of what you already have.
Are I require security to get a company loan?
Up to $150,000 in loans there is no requirement for asset security upfront to access the money but we do require an individual guarantee. If you adhere to your loan commitments (as specified in your loan contract document) the security of assets is not required. If you take out loans in excess of $150,000 generally, you can get personal ensure and security is provided in the form of an asset charge.