FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The New Zealand Small Business Loans
Tell me what you think of 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. They also offer cash flow-friendly repayments that are either per day or weekly.
How is how is the Unsecured Loan different from an traditional business loan?
The application to get your Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an immediate response, and the funds could be on your account within 24 hours. Traditional business loans have an interest rate per annum plus other fees and charges. This company loan is an upfront priced loan and you’ll be aware in advance of the total amount payable including any fees, charges or charges. This is then broken down into weekly or daily installment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business use, including cash flow management, business renovations, marketing to purchase inventory, new equipment, or as general working capital and so much more. The loan is not available for personal use.
About Larger New Zealand Business Loans
What is the Larger New Zealand Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan in this amount the company needs to be trading for at least 3 years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funding be used for?
A large company loan can be used to fund almost every business purpose including company improvements, purchasing inventory or new equipment as well as for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. It is usually by way of charge against assets, which could also include registering this with the PPSR or registering as a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is generally based rather than specifying security over an asset. The person signing the ensure is personally responsible if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including objects or assets). The PPSR permits the priority of personal property granted according to the date a security interest has been registered.
A caveat is a legal document that is filed to offer the legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for an enterprise loan that is greater than $250,000, we may offer an initial pre-approval to ease the process. We might be able to do this without a credit check and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves answering a couple of financial well-being checks. It’s neither an offer nor a guarantee of financing. A conditional approval is subject an exhaustive credit evaluation, and any offer that you may receive may be on different terms.
Application process
Are I eligible for funding?
You may be eligible for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a few minutes and a dedicated company loan specialist will be in touch to guide you.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s License) along with a valid NZBN/IRD and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K-$250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details for application including credit consent, 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, plus interim financial statements for the current year such as age-related payables and aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we can often offer an answer in just one hour, provided you apply at quality business hours and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statements , we are able to provide the decision within the span of one company day.
For Larger Business Loans ($100K or more) we could be likely to offer you with pre-approval conditional to your application within about 6 hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Certain agreements have been approved within 24 hours.
The fastest way can be make sure you apply during normal company hours and allow us to use the modern bank verification to verify your bank information online. If you choose to upload the copies of bank statement, it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer within an hour if you submit your request during standard business time and allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you want to send us copies of your bank statements we can provide an answer in as little as an business day.
If you are applying for Larger Business Loans ($100K and up) we may be capable of offer the conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Certain deals have been approved within 24 hours.
The fastest method is to make sure you apply during standard business hours, and allow us to use our advance bank verification link to instantly verify your bank account information online. If you choose to upload duplicates of your banking statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you make an application for a certain amount we take into consideration a range of factors for determining the well-being of your company and the level of the repayments your business is able to afford. The total amount of your loan will depend on the specific circumstances the business.
If you apply for a particular amount, we will consider a number of elements to assess your well-being that is your company and the extent of repayments your company can afford. The total amount of the loan will be determined by the particulars the business.
Fees & repayments
How do you charge for an business loan?
When you apply for our company loan, we will assess the risk assessment that you have for your company and offer you with a customised offer that includes the amount of loan, the term and interest rates. The company loan is an upfront priced loan and you’ll know in advance the total amount to be paid, including any charges or interest.
What is the factor that determines the price I pay?
Interest rates for company loans rates depend on a variety of variables like the amount to be of money borrowed, the company assets the money will be used for, the industry the company operates in, the long the company has been running for, what percentage of the company has sufficient cash flow to pay for the loan, and overall well-being and creditworthiness of the company.
What are the costs?
There are no hidden costs for our company loans, and you’ll know precisely what you’ll be required to pay, and at what time, from the day you sign up. There’s no compounding interest, and the loan comes with no additional fees (as long as you make your payments in time).
We don’t charge an Application Fee. You are able to request a credit loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee is the cost associated with setting up and managing the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay off the loan earlier?
You can repay all of your loan at any point in time.
If you do decide to do this please call our helpful business loan experts. They’ll provide you with details on repayment and an early payment figure. It will be calculated using the sum of the principal remaining and accrued interest to the time of early payout, plus 1.5% of the principal remaining and any fees that remain unpaid.
How do you make repayments work?
To ensure you do not miss due dates and also to be in line your cash flow cycle we offer repayments that are either daily or weekly. They are automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as knowing the ways we gather, use, exchange and secure your information, is of huge importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We make use of an advanced banking verification system to immediately verify your bank account information online. This allows us to offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a company owner makes use of assets they own to secure the funds for a loan. The asset can be either an individual property, such as the family home or an company asset such as a truck as well as a piece of machine.
The majority of lenders, even the big banks, tend to guarantee loans against assets. If you have trouble paying back the loan, your assets could be sold by the lender. In essence, it’s a way of securing additional financing using the worth of the asset you already own.
Do I need security to secure an company loan?
Up to $150,000 in loans no asset security is required prior to the loan’s access but we do need the personal guarantee. So long as you comply with your loan obligations (as detailed in your loan contract), asset security will never be required. For loans of over $150K generally there is a personal guarantee and security that is in the form the charge of assets.
