FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Panmure Small Business Loans
Let me know about the Panmure Small Business Loans
Panmure unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from an ordinary business loan?
The application to this Small Business Loan in under 10 minutes online or over the phone, receive an instant response and the funds could be in your account within 24 hours. Traditional business loans are based on an interest rate per annum plus other fees and charges. This business loan is a loan that is priced upfront and you’ll be aware of the total amount due, which includes any fees, interest or charges. Then, it is broken down into either a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost every business use, including control of cash flow company remodels and marketing for purchasing inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal use.
About Larger Panmure Business Loans
What is the Larger Panmure Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of up to 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount the business needs to have been trading for at least 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can I use the funding for?
A large business loan can be used for nearly every company purpose including company remodeling, buying new equipment or inventory or as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. It’s by way of charge over assets, and could be registered through the PPSR or registering as a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is generally based rather than specifying the security for a particular asset. The person who is signing the guarantee is personally liable in the event that 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 contains security interests registered in respect of personal property (including objects or assets). The PPSR allows the priority of personal property granted according to the date a registration of a security interest.
The caveat can be described as a formal document filed to offer notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for an enterprise loan that exceeds $250,000 we can offer an initial pre-approval that will help make the process. It is possible to get this done without credit checks and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial well-being checks. It is neither an offer nor a guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer you may receive may have different terms.
Application process
Do I qualify for funds?
You are eligible to apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form in just a few minutes, and an experienced company lending specialist will contact you to help you.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence), a valid NZBN/IRD and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Application details including credit consent and 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, plus 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 can usually offer an answer within an hour if you make your application at standard business hours and allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statements we can offer the decision within just an business day.
For the Larger Business Loan ($100K or more) we might be likely to provide you with a conditional pre-approval within six hours. After you’ve signed your pre-approval form, it will take about 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Some deals have been approved within the space of 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours. Also, allow us to use the modern bank verification to instantly verify your bank information online. If you choose to upload duplicates of your banking statements it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we usually provide an answer within an hour – as long as you apply within standard business hours and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statements, we will be able to offer an answer in just 1 business day.
For the Larger Business Loans ($100K and up) We may be in a position to offer the conditional pre-approval within about 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Certain agreements have been approved in 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours. Also, let us use the modern bank verification link to confirm your bank details online. If you send us documents from your account statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a certain amount, we will consider a number of factors for determining how much we can lend you health that is your business and the amount of repayments your company can afford. The amount you receive from the loan will be determined by the particular circumstances for your company.
When you apply for a set amount, we take into consideration a variety of factors to assess the health for your business and the amount of repayments your business can support. The total amount of your loan will depend on the particulars that are unique to your company.
Fees & repayments
How much should you charge for the cost of a company loan?
When you make an application for one of our business loan, we’ll assess the risk profile of your business and provide you with a tailored offer including loan amount, term and the interest rates. This company loan is an upfront priced loan which means you be aware in advance of the total 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 company loans rates depend on several variables like the amount to be borrowed, what business assets the funds will be used for as well as the field the company is operating in, how long the business has been operating as well as in the event that the business has sufficient cash flow to fund the loan, and the general well-being as well as creditworthiness company.
What are the charges?
There are no hidden fees with our business loans. You’ll know exactly how much you 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 as you make your payments on time).
We do not charge an Application Fee. You are able to get a cash loan with with no upfront cost or the obligation to take action.
The Origination Fee covers the costs associated in establishing and managing the loan. The only way to pay this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay out the loan early?
You can repay the total amount of your loan in full at any time.
If you decide to do this please talk to one of our helpful company credit specialists. The professionals will offer you with the details of your repayment and an early payment figure. This will be calculated as the total of the principal amount remaining and accrued interest to the time of the early payout and 1.5 percent of the principal balance as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing repayments and to fit in your cash flow cycle we provide payments that are either daily or weekly. They are automatically deducted from your company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as making it clear the ways we gather the information we collect, use, share and protect your information, is crucial and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their security. We use an advanced bank verification system link to instantly verify your bank account details online to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where the company owner makes use of assets they own to secure the funds for a loan. The asset may be an individual asset, such as the family home, or a business asset such as a truck as well as a piece of machine.
The vast majority of lenders, not just the banks with the biggest size, prefer to secure loans against an asset. If you have trouble paying back the loan, your assets could be sold by the lender. In essence, it is the process of securing new funding making use of the value of what you already own.
Do I need security to get a business loan?
Up to $150,000 in loans the requirement for asset security is not required before you are able to access the money but we require a personal guarantee. need the personal guarantee. As long as you follow the terms of your loan (as stated in your loan contract document) Asset security will never be required. For loans over $150,000 generally there is the option of a personal ensure and security that is in the form the charge of assets.