FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Pukerua Bay Small Business Loans
Let me know more about Pukerua Bay Small Business Loans
Pukerua Bay unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
How is this Unsecured Loan different from an traditional business loan?
The application for your Small Business Loan in under 10 minutes over the phone, receive an immediate response, and funds may be in your account in 24 hours. Traditional business loans refer to an interest rate per annum as well as other fees and charges. Our company loan is a pre-paid loan so you will know ahead of time the total amount to be paid, including any fees, interest or charges. This is then divided into a daily or weekly repayment figure.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for almost any business purpose including the management of cash flow, company improvements, advertising to purchase inventory or new equipment, or as general working capital, and much more. The loan cannot be used to fund personal expenses.
Concerning Larger Pukerua Bay Business Loans
What is the Larger Pukerua Bay Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly, depending on your situation.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large the company needs to have been operating for at least three years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funding be used for?
A Larger Business Loan is a great option for almost all company reason, such as business remodeling, buying new equipment or inventory, as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. It’s as a result of an charge over assets and can include registering this in the PPSR or registering as a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is general in nature, rather than stipulating security over an asset. The person who signs the ensure is personally liable if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR grants priority over personal property to be assigned depending on the date that a security interest was registered.
A caveat is a legal document filed to offer the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan that exceeds $250K it’s possible to offer a preliminary pre-approval to help ease the process. We might be able to make this decision without a credit check and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes answering a couple of financial health checks. It’s not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer you receive could have different terms.
The application process
Do I qualify for funds?
You may apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form within a couple minutes, and an experienced company lending specialist will call you to guide you through the process.
To be eligible for up to $100,000 you’ll need ID details (valid Driver’s Licence) and a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Information on the application including credit consent, 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, in addition to interim financials from the current financial year as well as Aged Payables and Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we typically provide an answer in just one hour – as long as you apply within standard business hours and let us utilise the bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your banking statements , we’ll be able to offer the decision within an company day.
For the Larger Business Loan ($100K to $500K) we could be in a position to provide you with conditional pre-approval within 6 hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however it could be faster based on the specifics of each application. Some offers have been approved in less than 24 hours.
The quickest way to apply would be to make sure you apply during standard business hours. Also, permit us to use the modern bank verification to verify your bank information online. If you choose to upload documents from your account accounts, it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K to $100K) we can often offer an answer within an hour if you apply at normal business timings and allow us to use the bank verification system to instantly verify your bank information online. If you want to send us copies of your bank statements we can offer the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K or more) We may be in a position to provide you with conditional pre-approval in around 6 hours. After 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 upon the circumstances for each application. Some offers have been approved in less than 24 hours.
The fastest method can be ensure you apply during standard business hours and permit us to use the modern bank verification link to instantly check your bank’s information online. If you decide to upload copies of your bank statements it takes a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a certain amount we take into consideration a range of variables in order to assess what is the health of your company and the amount of repayments your company is able to afford. The amount you receive from your loan will depend on the specific circumstances for your business.
When you apply for a specific amount we consider a variety of aspects to assess how much we can lend you such as health that is your company and the amount of repayments your company can support. The amount you receive from your loan will be contingent on the particular circumstances of your business.
Fees & repayments
How do you charge for a company loan?
When you request our company credit, we will assess the risk assessment for your business and offer you with a customised offer including the amount of the loan, the duration and the interest rates. It is a company loan is an upfront cost loan which means you be aware of the total amount you will have to pay, including charges or interest.
What is the factor that determines the price I am charged?
Interest rates for company loans rates depend on several factors such as the amount that is of money borrowed, the business assets the funds are used to purchase, the industry the business operates in, how long the business has been operating and how long the company has sufficient cash flow to pay for the loan, and also the general health or creditworthiness of the business.
What are the charges?
There are no hidden costs with our business loans, and you’ll know precisely what you’ll need to pay, and when, right from the first day. There’s no compounding interest, and no additional fees (as as you make your payments punctually).
We don’t charge an application fee. You can make an application for loans with with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I repay the loan early?
You can repay the entire amount of the loan at any point in time.
If you decide to do this please talk to one of our helpful company credit specialists. We will offer you with the details of your repayment and an early payment figure. It will be calculated using the sum of the principal remaining plus any accrued interest as of the time of early payout, plus 1.5 percent of the remaining principal as well as any outstanding fees.
What is the process for repayments?
To help you avoid missing repayments and to fit in with your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing the ways we gather, use, exchange 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 use industry recognised encryption techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to the security of our customers as well as their security. We utilise a sophisticated bank verification system link to instantly verify the bank account details online. This allows us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an company owner utilises an asset they own to make a loan. The asset can be an asset belonging to the personal, like the family home or an company property like a truck or piece or equipment.
The vast majority of lending institutions, including the major banks, prefer to secure loans against assets. If you have trouble paying back the loan, your assets could be taken over by the lender. In essence it is a way of securing new funding making use of the value of what you already have.
What do I need security for an company loan?
For loans up to $150K no asset security is required upfront to access the money However, we do require the personal guarantee. If you adhere to your loan commitments (as specified in your loan contract document) the security of assets is not required. For loans that exceed $150,000, generally, there is an individual ensure and security that is in the form charges on assets.