FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Mission Bay Small Business Loans
Let me know how you can avail the Mission Bay Small Business Loans
Mission Bay unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from the traditional business loan?
Apply to the Small Business Loan in under 10 minutes online or on the phone. You’ll receive an immediate response, and have the funds on your account within 24 hours. Traditional business loans refer to an annual rate of interest plus other fees and charges. The company loan is a cash-based loan so you will be aware in advance of the total amount to be paid, including any fees, charges or charges. This is then divided into weekly or daily payment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business reason, such as managing cash flows, company renovations, 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 Mission Bay Business Loans
What is the Larger Mission Bay Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee which 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, your business needs to have been operating for at least three years and generate an annual revenue of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funding be utilised?
A large business loan is a great option for almost every business reason, such as 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 for accessing funds over $150,000. It’s as a result of an charge against assets and can be registered on the PPSR or the registration of a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is general in nature rather than defining security over a particular asset. The person who signs the ensure 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 reflects security interests granted to individuals who own personal property (including objects or assets). The PPSR allows preference over private property assigned according to the date a security interest has been registered.
A caveat is a legal document filed to offer the public notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re applying for the Larger Business Loan that exceeds $250,000 we may be able to provide an initial pre-approval that will help simplify the process. It is possible to make this decision without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering some financial health questions. It is not an offer of credit or guarantee of funds. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you are offered could be on different conditions.
The application process
Can I be eligible for funding?
You may be eligible for a 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)
- you must demonstrate at minimum 6 months worth of trade (for a 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 in just a few minutes, and an experienced business lending specialist will be in touch to guide you.
To be eligible for up to $100,000, you’ll need the right identification documents (valid Driver’s Licence) as well as a valid NZBN/IRD and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Details for application including credit consent as well as 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, as well as interim financials from the current financial year, Aged Payables and Aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we typically offer an answer within an hour, provided you submit your request within quality business hours and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your banking statement, we’ll offer an answer within an company day.
If you are applying for a Larger Business Loan ($100K or more) we could be able to offer you with pre-approval conditional to your application in around six hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this could be shorter based on the specifics of each application. Some transactions have received approval in just 24 hours.
The quickest method would be to ensure you apply during normal business hours, and allow us to use the advanced bank verification system to instantly check your bank’s information online. If you decide to send us the copies of bank accounts, it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer within an hour – as long as you submit your request in normal business hours and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statements, we are able to provide the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be in a position to provide the conditional pre-approval in around six hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this may be quicker depending on the circumstances of each application. Certain offers have been approved in just 24 hours.
The fastest method is to ensure you apply during standard business hours. Also, allow us to use our advance bank verification to instantly verify your bank information online. If you choose to send us copies of your bank statements it takes a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a certain amount we will consider a number of factors for determining the health of your company and the amount of repayments that your business will be able to support. The total amount of your loan will be contingent on the particular circumstances for your company.
When you apply for a specific amount we consider a variety of variables to determine the well-being of the business and the extent of repayments that your company is able to afford. The total amount of your loan will be contingent on the specific circumstances for your business.
Fees & repayments
How much should you charge for an business loan?
If you decide to request one of our business loan, we will assess the risk profile that you have for your company and provide an individualised proposal that includes the loan amount, the terms and the interest rates. A company loan is an upfront priced loan and you’ll know the exact amount to be paid, including any costs, fees, or interest rates.
What is the factor that determines the price I pay?
Interest rates for business loans rates differ based on various variables like the amount to be that is borrowed, what company assets the funds are used to purchase, the industry the company is operating in, how long the business is in operation and what percentage of the company has sufficient cash flow to cover the loan, as well as the general health and creditworthiness of the business.
What are the charges?
There are no hidden fees with our business loans. You’ll know exactly how much you’ll need to pay and when, from day one. There’s not any compounding interest and 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 is the cost associated in establishing and managing the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay off the loan early?
You may choose to pay back all of your advance loan at any time.
If you decide to pursue this option, please speak to our friendly business credit specialists. We will provide you with details for repayment along with an early payout estimate. This will be calculated as the sum of the principal balance and the accrued interest up to the time of early payout plus 1.5% of the principal balance as well as any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss due dates and also to be in line with your cash flow cycle we offer repayments that are either weekly or daily. They will be automatically deducted from your nominated business account.
Security & privacy
Will my information be secure?
Security of your data, and making it clear how we collect data, process, exchange and protect your information, is of paramount importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their security. We make use of an advanced bank verification system that allows you to immediately verify your bank account information online. This allows us to provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a company owner makes use of an asset they own to get a loan. The asset can be a personal asset like the family home or it could be a business asset such as a vehicle or other piece of machinery.
The vast majority of the lenders even the banks with the biggest size, prefer to make loans secured by assets. If you’re having trouble paying back the loan then your assets could be transferred to the lender. In essence it is the process of securing new financing using the value of what you already own.
Should I need security for an business loan?
Up to $150,000 in loans the requirement for asset security is not required in advance to gain access to the funds however, we do need an individual guarantee. In the event that you fulfill the loan terms (as detailed in the loan contract) and you are able to meet your obligations, asset security will never be needed. For loans of over $150,000 generally, there is the option of a personal ensure and security in the form an asset charge.