FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Howick Small Business Loans
Let me know how you can avail the Howick Small Business Loans
Howick unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from an traditional company loan?
You can apply to your Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and the money could be in your account within 24 hours. Traditional company loans refer to an annual rate of interest as well as other fees and charges. The company loan is a cash-based loan which means you know ahead of time the total amount payable including any fees, charges or charges. This is then broken down into a daily or weekly payment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company use, including managing cash flows, company improvements, advertising, to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
Concerning Larger Howick Business Loans
What is the Larger Howick Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your situation.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to have been operating for a minimum of 3 years and have an annual turnover of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be used for?
A Business Loan of a larger size can be used to fund almost any company need, including company renovations, purchase of inventory or new equipment, 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 necessary to access funding over $150,000. It is usually in the form of a charge on assets, which could also include registration in the PPSR or the registration of a caveat.
A director’s or personal ensure is a promise to repay credit that is generally in nature rather than stipulating security over an asset. The person signing the guarantee is personally responsible if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including goods or assets). The PPSR allows prioritisation over property that is personal to be assigned depending on the date that a security interest has been registered.
Caveats are legal document that is filed to provide notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for an enterprise loan that is greater than $250,000, we may offer a preliminary pre-approval to help ease the process. We might be able to get this done without a credit check, and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves answering a couple of financial health checks. It’s neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to a full credit assessment and any offer that you may receive may be based on different conditions.
Application process
Can I be eligible for funding?
You may apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for the unsecured loan $5K – $100K) or three years of 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 a dedicated company lending specialist will call you to assist you.
For a loan of up to $100,000, you’ll require ID details (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Details for application including credit consent twelve month bank accounts, the IRD statements as well as the two most recent years’ financial statements, as well as 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 to $100K) we usually provide an answer within one hour, provided you apply during quality business timings and permit us to utilise the bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statement, we’ll provide a decision within 1 company day.
For the Larger Business Loan ($100K or more) we may be capable of provide you with pre-approval conditional to your application in around 6 hours. Once you have 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 particular circumstances of each application. Certain offers have been approved within 24 hours.
The fastest way is to ensure you apply during standard company hours. Also, allow us to use our advanced bank verification system to instantly check your bank’s information online. If you choose to upload documents from your account accounts, it may take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer within one hour if you make your application at standard business times and allow us to use the advanced bank verification system to instantly verify your bank details online. If you choose to submit copies of your bank statements we can provide the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be able to offer the conditional pre-approval within 6 hours. Once you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Certain transactions have received approval in just 24 hours.
The quickest method is to make sure you apply during normal business hours. You can also allow us to use our sophisticated bank verification link to instantly verify your bank account information online. If you send us copies of your bank statements it takes a bit longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a particular amount, we look at a variety of factors in order to assess how much we can lend you well-being that is your business and the amount of payments your company can afford. The amount you receive from your loan will depend on the particular circumstances that are unique to your business.
If you apply for a particular amount, we look at a range of variables to assess the health of the company as well as the amount of payments your business is able to afford. The total amount of the loan will be determined by the particular circumstances for your business.
Fees & repayments
What is the cost for a business loan?
When you request our business credit, we’ll assess the risk profile that you have for your business and offer you with a customised offer including the amount of loan, the term and interest rates. This business loan is an upfront priced loan which means you be aware of the total amount you will have to pay, including charges, interest rates or fees.
What determines the amount I pay?
The interest rates on company loans rates vary due to factors such as the amount that is borrowed, what company assets the funds are used to purchase and the sector the business operates in, how long the business has been in operation and what percentage of the company has sufficient cash flow to cover the loan, and also the overall well-being or creditworthiness of the business.
What are the cost?
There aren’t any hidden charges with our business loans, and you’ll know precisely how much you’ll be required to pay, and when, starting from the first day. There’s no compounding interest, and the loan comes with no additional fees (as long as you are able to make your payments on time).
We do not charge an application fee. You can apply for a loan no cost upfront or the obligation to take action.
The Origination Fee covers the expenses involved in establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan in advance?
You can repay the entire amount of the loan at any point in time.
If you do decide to take this route, please speak to our friendly company credit professionals. The professionals will provide you with repayment details along with an early payout estimate. This will be calculated as the sum of the remaining principal amount and accrued interest to the time of early payout and 1.5 percent of the principal amount remaining as well as any outstanding fees.
How do repayments work?
To ensure you do not miss payment dates and to align with your cash flow cycle we provide repayments either daily or weekly. They are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing the ways we gather, use, exchange and secure your information, is of huge importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to security for our customers and security. We make use of an advanced banking verification system to immediately verify your bank account information online. This allows us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an company owner utilises an asset that they own to get the loan. The asset can be an asset belonging to the personal, like the family home or an business asset such as a truck or piece or equipment.
The majority of banks, not just the banks with the biggest size, prefer to guarantee loans against assets. If you have trouble paying back the loan, your assets could be transferred to the lender. In essence, it’s an opportunity to secure new funding taking advantage of the value of what you already own.
Are I need security for an business loan?
For loans of up to $150,000, it is not necessary to secure assets in advance to gain access to the funds however, we require a personal guarantee. need an individual guarantee. If you adhere to the loan terms (as stipulated in your loan contract document), asset security is not needed. For loans over $150K generally, there is personal guarantee and security is provided in the form of an asset charge.