FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Arch Hill Small Business Loans
Tell me more about Arch Hill Small Business Loans
Arch Hill unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What makes what makes the Unsecured Loan different from a traditional company loan?
It is possible to apply for the Small Business Loan in under 10 minutes online or over the phone. You’ll get an instant response and funds may be on your account within 24 hours. Traditional company loans refer to an interest rate per annum along with other charges and fees. Our business loan is an upfront priced loan therefore you’ll know in advance the total amount payable including any fees, interest or charges. This is then divided into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business use, including cash flow management, business improvements, advertising for purchasing inventory or new equipment, for general working capital, and much more. The loan cannot be used for personal use.
About Larger Arch Hill Business Loans
What is the Larger Arch Hill 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 term fixed that can last up to 36 months. The repayments are made weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount, your company needs to be in operation for at least 3 years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funding be utilised?
A Business Loan of a larger size can be used for nearly every business purpose including business renovations, to purchase new equipment or inventory as well as for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed to access funding over $150,000. This can be done as a result of an charge over assets, and may include registration in the PPSR or the registration of a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is general in nature rather than stipulating security over a particular asset. The person who signs the guarantee is personally liable if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including the assets or goods). The PPSR permits prioritisation over property that is personal to be granted according to the date a registration of a security interest.
An affidavit is an official document that is filed to offer an official notice of a claim to property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan of $250,000 or more, we may offer an initial pre-approval in order to make the process. We might be able to apply for this without a credit check and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes the answer to a series of financial health checks. It’s in no way an offer, nor is it a guarantee of credit. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you receive could be subject to different conditions.
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 at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application within a couple minutes, and an experienced business loan specialist will be in touch to assist you.
To apply for up to $100,000 you’ll require proof of identity (valid Driver’s License) along with an NZBN/IRD that is valid and at least six months of bank statements.
For larger loan sizes, you’ll also need:
$100K-$250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Application details including credit consent and 12 months of bank records, IRD statements and the last two years’ finalised financial statements, in addition to interim financial statements for the current year such as age-related payables and aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) We can usually provide an answer within an hour, provided you make your application at quality company times and you allow us to utilise the bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statements , we are able to provide the decision in just an business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we could be capable of offer the conditional pre-approval in about 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Certain deals have been approved in the space of 24 hours.
The quickest way to apply can be make sure you apply during normal company hours. You can also let us use the advanced bank verification system to confirm your bank details online. If you send us documents from your account statements it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) we can often provide an answer in just one hour – as long as you make your application at standard business time and let us make use of the advanced bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statement, we’ll offer the decision within 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be likely to provide you with a conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval, the turnaround time is 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 just 24 hours.
The fastest method can be ensure you apply during standard business hours, and permit us to use the modern bank verification to instantly verify your bank information online. If you opt to upload copies of your bank statements, it takes a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you submit an application for a certain amount we look at a variety of variables to determine the health for your business and the extent of repayments that your business can support. The amount you receive from your loan will be contingent on the specific circumstances that are unique to your company.
When you make an application for a specific amount we will consider a number of variables to assess the well-being that is your company as well as the amount of payments your company can afford. The total amount of your loan will be determined by the particulars the company.
Fees & repayments
How do you charge for a company loan?
When you apply for one of our company credit, we’ll assess the risk assessment of your business and offer you with a tailored offer including the amount of loan, the term and the interest rates. It is a company loan is an upfront priced loan so you will know the exact amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I will be charged?
Interest rates for business loans rates depend on several factors including the amount that is borrowed, what business assets the money are used to purchase and the sector the company operates in, how long the business has been in operation, what percentage of the company has enough cash flow to support the loan, as well as the overall health as well as creditworthiness business.
What are the fees?
There are no hidden costs with our business loans, and you’ll be aware of the amount you need to pay and at what time, from the very first day. There’s not any compounding interest and the loan comes with no additional fees (as long as you make your payments in time).
We do not charge an Application Fee. You can request a credit loan with without any upfront costs or any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay out the loan early?
You may choose to pay back the entire amount of the loan in full at any time.
If you do decide to take this route, please speak to our friendly business loans professionals. They’ll offer you with details on repayment and an early payment figure. This is calculated as the total of the principal balance and any accrued interest at the time of the early payout and 1.5% of the principal amount remaining as well as any outstanding fees.
How do repayments work?
To ensure that you don’t miss payments and to work with your cash flow standard, we offer repayments either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Security of your data, and making it clear how we collect, use, exchange and ensure the security of your information is of huge importance and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We employ an exceptionally sophisticated banking verification system to immediately verify your bank account details online. This allows us to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the company owner utilises assets they own to get the loan. The asset could be an asset belonging to the personal, like the family home, or it could be a business asset such as a vehicle as well as a piece of machine.
The majority of lenders, even the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan then your assets could be taken over by the lender. In essence, it’s the process of securing additional financing making use of the value of what you already own.
What do I need security to secure an company loan?
For loans up to $150K the requirement for asset security is not required upfront to access the money but we require a personal guarantee. need an individual guarantee. So long as you comply with the loan terms (as specified in your loan contract) the security of assets will never be required. For loans over $150K generally, you are able to get an individual guarantee and security in the form a charge over assets.