FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Mission Heights Small Business Loans
Tell me more about Mission Heights Small Business Loans
Mission Heights unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from an traditional company loan?
It is possible to apply to the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an answer within the same day and the funds could be available in just 24 hours. Traditional business loans have an interest rate per annum along with other charges and fees. Our business loan is an upfront priced loan therefore you’ll know ahead of time the total amount to be paid, including the interest, fees and charges. Then, it is divided into weekly or daily amount to be paid back.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any company need, such as control of cash flow business remodels and marketing to purchase inventory, new equipment, to fund general working capital and much more. The loan is not available for personal reasons.
About larger Mission Heights Business Loans
What is the Larger Mission Heights Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount the business needs to be trading for at least 3 years and generate an annual revenue of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funding for?
A larger company loan is a great option for almost every business use, including company renovations, purchase of new equipment or inventory or as general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed to access funding over $150,000. It’s by way of charge over assets, and may include the registration of this in the PPSR or the registration of a caveat.
A personal or director’s guarantee is a commitment to pay off a credit line that is general in nature, rather than specifying security over an asset. The person who is signing the ensure is personally accountable if the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including objects or assets). The PPSR allows the priority of personal property assigned depending on the date that a security interest has been registered.
An affidavit is an official document filed to provide an official notice of a claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for the Larger Business Loan of more than $250K it’s possible to offer a preliminary pre-approval to help make the process. We may be able to make this decision without a credit check and within 6 hours of your initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial well-being checks. It is in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you may receive may have different terms.
Application process
Do I have the right to receive funds?
You can apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Complete the online form in few minutes and an experienced business lending specialist will be in touch to help you.
For a loan of up to $100,000, you’ll need the right identification documents (valid Driver’s Licence), an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent twelve months bank statement, an IRD statement, last 2 years finalised financial statements, in addition to interim financial statements for the current year including Aged Payables, Aged Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we typically provide a response in one hour, provided you apply at quality business time and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your banking statements , we will be able to provide a decision within 1 company day.
For Larger Business Loans ($100K and up) we could be likely to provide you with pre-approval conditional to your application in around 6 hours. Once you have signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however this can be quicker based upon the circumstances for each application. Some agreements have been approved in less than 24 hours.
The fastest way can be ensure you apply during standard company hours. Also, let us use the modern bank verification to instantly verify your bank information online. If you choose to send us duplicates of your banking statement, it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) We can usually offer an answer within an hour if you submit your request at normal business time and you allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your bank statement, we’ll provide the decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be able to provide you with pre-approval conditional to your application within about 6 hours. Once you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Certain deals have been approved within just 24 hours.
The fastest method can be ensure you apply during standard business hours and allow us to use our sophisticated bank verification link to instantly verify your bank account information online. If you decide to upload copies of your bank accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a certain amount we take into consideration a range of variables for determining how much we can lend you health for your business and the extent of the repayments your business will be able to support. The total amount of your loan will depend on the specifics the business.
When you apply for a particular amount, we look at a range of factors to assess your well-being for your business and the extent of repayments that your business is able to afford. The total amount of your loan will be determined by the particular circumstances that are unique to your company.
Fees & repayments
How do you charge for a business loan?
When you request one of our business loan, we will assess the risk profile for your company and provide an individualised offer that includes loan amount, term and the interest rates. The business loan is an upfront priced loan which means you be aware of the total amount payable including any charges, interest rates or fees.
What determines the rate that I will be charged?
Interest rates for business loans rates depend on several variables like the amount to be of money borrowed, the business assets the funds are used to purchase and the sector the company is in, how long the company has been running for, whether the business has enough cash flow to fund the loan, and general health as well as creditworthiness business.
What are the fees?
There aren’t any hidden costs with our business loans, and you’ll know precisely how much you be required to pay, and at what time, 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 don’t charge an Application Fee. You can make an application for loans without any upfront costs or any obligation to sign up.
The Origination Fee is the cost associated with 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 percent of the amount of the loan.
Can I pay off the loan earlier?
You may choose to pay back the entire amount of your loan in full at any time.
If you choose to do this please speak to our friendly business lending specialists. They’ll provide you with repayment details and an early payment figure. The figure will be calculated as the sum of the remaining principal amount plus any accrued interest as of the time of early payment and 1.5% of the principal balance and any outstanding fees.
How do repayments work?
In order to help you avoid missing repayments and to fit in with your cash flow cycle we provide payments that are either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being transparent about the ways we gather the information we collect, use, share and protect your information, is of paramount importance and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to customer security and security. We make use of an advanced bank verification system that allows you to instantly verify your bank account information online, allowing us to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the company owner utilises assets they own to secure the loan. The asset can be either an individual asset, such as the family home, or it could be a company asset like a truck as well as a piece of machine.
The vast majority of lenders, not just the banks with the biggest size, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan then the asset could be taken over by the lender. In essence it’s an opportunity to secure additional financing using the value of what you already own.
What do I require security to get a business loan?
For loans that exceed $150K, it is not necessary to secure assets upfront to access the money However, we require a personal guarantee. require the personal guarantee. As long as you follow the loan terms (as stated in the loan contract) Asset security will never be required. For loans that exceed $150K, typically, you will need an individual ensure and security in the form of the charge of assets.