FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Lower Hutt Small Business Loans
Tell me how you can avail the Lower Hutt Small Business Loans
Lower Hutt unsecured loans offers amounts of 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 is this Unsecured Loan different from a traditional business loan?
Apply for your Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an answer within the same day and the funds could be in your account in 24 hours. Traditional business loans reference an interest rate per annum as well as other fees and charges. We offer a company loan is a cash-based loan so you will know ahead of time the total amount due, which includes any fees, interest 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?
A Small Business Loan can be used for almost any company use, including control of cash flow business improvements, advertising to purchase inventory, new equipment, as general working capital and so much more. The loan cannot be used for personal reasons.
About larger Lower Hutt Business Loans
What is the Larger Lower Hutt Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size the company needs to be operating for a minimum of 3 years, and have an annual income of at least $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funds be used for?
A large business loan can be used for almost all business purpose including company remodeling, buying new equipment or inventory 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 needed to access funding over $150,000. This can be done in the form of a charge against assets, and may be registered with the PPSR or the registration of a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally based rather than stipulating security over a particular asset. The person who is signing the guarantee is personally responsible if the business lender is not able 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 objects or assets). The PPSR allows prioritisation over property that is personal to be granted according to the date the registration of a security interest.
Caveats are legal document filed to provide the legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking a Larger Business Loan that is greater than $250,000, we may offer a preliminary pre-approval to help ease the process. It is possible to apply for this without a credit check and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves answering a couple of financial health checks. It is neither an offer nor a guarantee of finance. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you receive could be subject to different terms.
Application process
Can I be eligible for funding?
You can apply for an 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 worth of trade (for for the 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 fast and easy. Just complete the online application within a couple minutes, and a dedicated company credit specialist will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Information on the application including credit consent and 12 months bank statement, an IRD statement, last 2 years finalised financial statements, and interim current financial year financials such as age-related payables and aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we typically provide an answer in just one hour – as long as you make your application within standard business times and you allow us to utilise the bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statements , we are able to offer an answer within just one business day.
For Larger Business Loans ($100K and up) we might be capable of offer you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this may be quicker depending on the circumstances of each application. Some offers have been approved within less than 24 hours.
The quickest method is to make sure you apply during standard business hours. You can also allow us to use the advance bank verification to check your bank’s information online. If you decide to send us copies of your bank statement, it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) We can usually offer an answer within one hour – provided you apply within standard business time and you allow us to use the bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statement, we’ll provide the decision in just 1 business day.
For Larger Business Loans ($100K and up) we might be in a position to offer you with pre-approval conditional to your application in about six hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Some deals have been approved in less than 24 hours.
The fastest method for you to apply is ensure you apply during standard business hours. You can also allow us to use the sophisticated bank verification to instantly check your bank’s information online. If you opt to upload duplicates of your banking statement, it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a specific amount we will consider a number of factors to determine your health of the company and the level of repayments your company will be able to support. The total amount of your loan will be contingent on the specific circumstances for your business.
When you apply for a particular amount, we consider a variety of aspects to assess how much we can lend you such as health of the business and the amount of the repayments your company will be able to support. The total amount of your loan will depend on the particular circumstances the company.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to request one of our business credit, we will assess the risk profile for your company and offer an individualised offer, including loan amount, term and interest rates. It is a company loan is an upfront priced loan therefore you will be aware of the total amount due, which includes any costs, fees, or interest rates.
What determines the amount I am charged?
Interest rates for company loans rates differ based on various factors including the amount of money borrowed, the business assets the money are used to purchase and the sector the company operates in, the long the company is in operation and how long the company has sufficient cash flow to fund the loan, and the general health or financial standing of the company.
What are the fees?
There aren’t any hidden charges for our company loans. You’ll know precisely how much you’ll be required to pay, and when, starting from the first day. There’s no compounding and there are no additional charges (as long as you are able to make your payments on time).
We do not charge an application fee. You are able to get a cash loan no cost upfront or the obligation to take action.
The Origination Fee covers the expenses involved with establishing and managing the loan. This is only a 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 earlier?
You can choose to repay the entire amount of your loan early at any time.
If you choose to do this please speak to our friendly business lending experts. They will offer you with details on repayment along with an early payout estimate. This is calculated as the total of the principal remaining and any accrued interest at the time of the early payout plus 1.5 percent of the remaining principal and any outstanding fees.
How do repayments work?
To ensure you do not miss repayments and to fit in with your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as making it clear how we collect the information we collect, use, share and ensure the security of your information is of paramount importance and is an essential aspect of our relationship with 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 dedication to protecting the security of clients and privacy. We utilise a sophisticated banking verification system to instantly confirm your bank account information online so we can provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when a business owner utilises an asset that they own to make the funds for a loan. The asset can be an individual property, such as the family home or an business property like a truck as well as a piece of machine.
The vast majority of banks, not just the major banks, prefer to guarantee loans against assets. If you’re struggling to pay back the loan then the asset could be taken over by the lender. In essence, it’s the process of securing new financing making use of the value of what you already own.
What do I need security to secure an business loan?
For loans of up to $150,000, no asset security is required in advance to gain access to the funds but we do require an individual guarantee. So long as you comply with the terms of your loan (as specified in the loan contract) the security of assets will never be needed. For loans over $150,000 generally there is personal ensure and security that is in the form the charge of assets.