FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The New Zealand Small Business Loans
Tell me how you can avail the New Zealand Small Business Loans
New Zealand unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from the traditional company loan?
Apply for this Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and have the funds in your account within 24 hours. Traditional business loans are based on an interest rate per annum together with additional fees and charges. Our company loan is a cash-based loan so you will know in advance the total amount payable including the interest, fees and charges. Then, it is divided into a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost any business need, such as control of cash flow company renovations, marketing for purchasing inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal purposes.
About Larger New Zealand Business Loans
What is the Larger New Zealand Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size the company needs to be operating for a minimum of 3 years and have an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funds be utilised?
A large company loan can be used to fund almost any company reason, such as company renovations, purchase of inventory or new equipment or as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. This can be done as a result of an charge on assets, and may include the registration of this through the PPSR or making a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally in nature rather than stipulating the security of a specific 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 reflects security interests which are registered with respect to personal property (including items or assets). The PPSR allows priority over personal property to be assigned according to the date a security interest has been registered.
Caveats are legal document filed to offer notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for an enterprise loan that is greater than $250,000 we may be able to provide a preliminary pre-approval to help smooth out the process. We might be able to do this without a credit verification and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves the answer to a series of financial well-being questions. It’s in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you might receive could have different terms.
Application process
Can I be eligible for funding?
You are eligible to apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Just complete the online application in just a few minutes, and an experienced business credit specialist will call you to guide you through the process.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K to $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent twelve month bank accounts, the IRD statements and the last two years’ finalised financial statements, plus interim financials from the current financial year, Aged Payables and Aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K or more) We can usually offer an answer within an hour – as long as you make your application at standard business timings and let us use the advanced bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statement, we’ll offer the decision in just 1 company day.
For Larger Business Loans ($100K up to $500,000) we may be capable of offer you with pre-approval conditional to your application within 6 hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Some agreements have been approved in just 24 hours.
The quickest method would be to make sure you apply during normal business hours. You can also permit us to use the advance bank verification to instantly verify your bank account information online. If you send us duplicates of your banking statements , it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K to $100K) we usually provide an answer within an hour – as long as you submit your request at standard business timings and permit us to use the bank verification system link to instantly verify your bank details online. If you opt to upload copies of your banking statements, we will be able to offer an answer within one business day.
For the Larger Business Loans ($100K and up) we could be capable of offer you with pre-approval conditional to your application within about six hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however it could be faster based on the specifics of each application. Certain transactions have received approval in just 24 hours.
The fastest way would be to ensure you apply during standard business hours and permit us to use the sophisticated bank verification link to instantly confirm your bank details online. If you opt to send us copies of your bank statements, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a certain amount we look at a variety of variables to determine how much we can lend you health that is your business and the level of payments your business will be able to support. The total amount of your loan will be contingent on the particular circumstances for your business.
When you apply for a particular amount, we take into consideration a variety of elements to determine how much we can lend you such as well-being of the company and the level of repayments that your company is able to afford. The total amount of your loan will be determined by the particular circumstances the business.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to make an application for business loans with us company credit, we’ll assess the risk assessment that you have for your business and offer you with a customised proposal that includes the amount of loan, the term and the interest rates. This business loan is an upfront-priced loan which means you be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I will be charged?
The interest rates on business loans rates differ based on various factors such as the amount that is borrowed, the company assets the money are used to purchase, the industry the business is in, how long the business has been running as well as how long the business has sufficient cash flow to support the loan, and the overall well-being or financial standing of the company.
What are the costs?
There are no hidden costs for our business loans, and you’ll know exactly how much it is that you need to pay, and when, right from day one. There’s no compounding and no extra fees (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You are able to make an application for loans absolutely no upfront cost and no commitment to apply.
The Origination Fee is the cost associated in establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay off the loan earlier?
You can choose to repay the total amount of your loan early at any time.
If you decide to take this route, please call our helpful company loans experts. They will provide you with details for repayment and an early payment figure. It will be calculated using the sum of the principal balance and the accrued interest up to the date of early payout plus 1.5 percent of the remaining principal and any outstanding fees.
How do you make repayments work?
To ensure you do not miss due dates and also to be in line with your cash flow general, we offer repayments either weekly or daily. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear the ways we gather data, process, exchange and ensure the security of 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 utilise industry-recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their privacy. We use an advanced bank verification system that allows you to instantly verify your bank account details online so we can provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an business owner borrows from an asset that they own to get the funds for a loan. The asset may be a personal asset like the family home, or a business asset such as a vehicle as well as a piece of machine.
The vast majority of lending institutions, including the banks with the biggest size, prefer to make loans secured by an asset. If you are having difficulty paying back the loan, your assets could be taken over by the lender. In essence it is an opportunity to secure new financing by using the value of what you already own.
Do I require security to secure a business loan?
Up to $150K in loans it is not necessary to secure assets before you are able to access the money, however we require a personal guarantee. need the personal guarantee. So long as you comply with your loan commitments (as detailed in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans over $150,000 generally, you can get personal ensure and security is provided in the form of the charge of assets.
