FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Petone Small Business Loans
Tell me what you think of the Petone Small Business Loans
Petone unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from an ordinary business loan?
Apply to get this Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and have the funds in your account in 24 hours. Traditional business loans reference an annual rate of interest plus other fees and charges. The company loan is a loan that is priced upfront which means you be aware of the amount you will have to pay, including the interest, fees and charges. This is then broken down into weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business need, such as the management of cash flow, company improvements, advertising for purchasing inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal use.
About Larger Petone Business Loans
What is the Larger Petone Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range between $100,000 and $500,000 over a fixed term with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan in this amount the business needs to be operating for at least three years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funding for?
A large business loan can be used for nearly any business purpose including company improvements, purchasing 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 is secured?
Asset security is needed to access funding over $150,000. This can be done by taking a charge against assets, and may include the registration of this through the PPSR or the registration of a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is general in nature, rather than specifying security over an asset. The person signing the guarantee is personally liable if the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including items or assets). The PPSR allows the priority of personal property granted according to the date a security interest has been registered.
The caveat can be described as a formal document filed to offer notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re applying for larger business loans of more than $250K it’s possible to offer an initial pre-approval in order to simplify the process. We could be able to make this decision without a credit verification and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes you answering a few financial well-being questions. It’s in no way an offer, nor is it a guarantee of finance. A conditional approval is subject an exhaustive credit evaluation, and any offer you might receive could have different conditions.
Application process
Do I qualify for funds?
You may apply for a business 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 of trading (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Just complete the online application within a couple minutes, and an experienced business expert in lending will be in touch to assist you.
To apply for up $100,000, you’ll require proof of identity (valid Driver’s Licence) and an active NZBN/IRD, and at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent twelve months of bank records, IRD statement, last 2 years finalised financial statements, plus interim financial statements for the current year including Aged Payables, Aged Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we usually offer an answer in just one hour, provided you submit your request at standard business time and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to send us copies of your bank statement, we’ll provide the decision in just the span of one business day.
For the Larger Business Loan ($100K to $500K) we may be capable of provide the conditional pre-approval in about six hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Some offers have been approved in 24 hours.
The most efficient method for you to apply is ensure you apply during standard company hours, and let us use the advance bank verification link to instantly confirm your bank details online. If you choose to upload copies of your bank statements it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer within an hour, provided you apply at normal business timings and you allow us to use the bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements, we are able to provide an answer in as little as one business day.
For the Larger Business Loans ($100K to $500K) we may be likely to provide you with a conditional pre-approval within about six hours. Once you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Certain deals have been approved in 24 hours.
The quickest method is to make sure you apply during standard business hours. Also, let us use the sophisticated bank verification to instantly check your bank’s information online. If you upload duplicates of your banking statements it takes a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a certain amount we will consider a number of elements that determine the well-being of the business as well as the amount of repayments your company can support. The total amount of your loan will be contingent on the specifics of your business.
If you apply for a specific amount we look at a range of elements to assess how much we can lend you such as well-being for your business as well as the amount of repayments your company can afford. The amount you receive from your loan will be determined by the particulars for your business.
Fees & repayments
How much do you charge for a company loan?
If you decide to make an application for our company 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 the interest rates. The business loan is a loan that is priced upfront which means you be aware of the total amount you will have to pay, including interest rates, fees or charges.
What is the basis for the rate I’m charged?
The interest rates on company loans rates vary due to factors including the amount of money borrowed, the business assets the money are used to purchase as well as the field the business operates in, the long the business has been in operation, what percentage of the business has enough cash flow to pay for the loan, as well as the general health or creditworthiness of the company.
What are the charges?
There aren’t any hidden charges with our business loans, and you’ll know precisely what you’ll need to pay and when, from the day you sign up. There’s no compounding interest, and no additional fees (as as long as you pay your payments in time).
We don’t charge an application fee. You are able to make an application for loans with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee includes the expenses associated with the setting up and management of the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I repay the loan early?
You can choose to repay all of your advance loan at any time.
If you do decide to do this please call our helpful business loans specialists. They will offer you with the details of your repayment as well as an early payout amount. This is calculated as the total of the principal amount remaining and any accrued interest at the time of early payment, plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss due dates and also to be in line your cash flow schedule, we provide repayments either daily or weekly. They are automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Security of your data, and making it clear the ways we gather the information we collect, use, share and ensure the security of your information is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to protecting the security of customers and privacy. We use an advanced banking verification system to immediately verify the bank account details online to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a business owner makes use of an asset that they own to obtain the funding. The asset could be an asset belonging to the personal, like the family home, or it could be a company asset like a truck or piece or equipment.
The majority of lenders, including the big banks, tend to make loans secured by assets. If you have trouble paying back the loan, then the asset might be transferred to the lender. In essence it is means of securing new funding using the value of what you already have.
Do I need security to get a company loan?
For loans that exceed $150K, it is not necessary to secure assets in advance to gain access to the funds, however we do need the personal guarantee. As long as you follow the terms of your loan (as stated in your loan contract document), asset security is not needed. For loans over $150,000 generally, there is the option of a personal guarantee and security in the form of charges on assets.