FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Auckland Small Business Loans
Tell me what you think of the Auckland Small Business Loans
Auckland unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
How is the Unsecured Loan different from an ordinary business loan?
The application to get your Small Business Loan in under 10 minutes via the internet or over the phone, receive an answer within the same day and the funds could be in your account within 24 hours. Traditional company loans have an interest rate per annum as well as other fees and charges. The business loan is a loan that is priced upfront and you’ll know ahead of time the total amount to be paid, including any fees, interest or charges. Then, it is divided into weekly or daily repayment figure.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business use, including control of cash flow business remodels and marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal purposes.
About Larger Auckland Business Loans
What is the Larger Auckland Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled weekly or fortnightly, depending on you cashflow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your company needs to have been trading for at least 3 years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be utilised?
A Business Loan of a larger size can be used for nearly any company need, including business remodeling, buying equipment or inventory for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. This can be done in the form of a charge on assets, which could also include the registration of this through the PPSR or registering as a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is generally based rather than stipulating security over an asset. The person signing the ensure is personally responsible if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central 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 was registered.
Caveats are legal form of document to provide the legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250,000 it is possible to offer an initial pre-approval that will help smooth out the process. It is possible to do this without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves you answering some financial well-being questions. This is not an offer or guarantee of credit. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you may receive may be subject to different terms.
Application process
Are I eligible for funding?
You can apply for an business 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 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 fast and easy. Just complete the online application within a couple minutes, and an experienced business loan specialist will be in touch to help you.
For a loan of up to $100,000, you’ll require proof of identity (valid Driver’s Licence) and an NZBN/IRD that is valid and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details for application including credit consent as well as 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, as well as interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we usually offer a response in one hour, provided you make your application during standard business hours and allow us to use the advanced bank verification system to instantly verify your bank information online. If you choose to send us copies of your bank statements , we are able to provide the decision in just the span of one business day.
If you are applying for a Larger Business Loan ($100K and up) we may be able to offer you with pre-approval conditional to your application within six hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Some transactions have received approval in less than 24 hours.
The most effective method would be to make sure you apply during standard company hours. You can also allow us to use our modern bank verification to instantly check your bank’s information online. If you decide to send us copies of your bank statements , it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) we usually offer a response in one hour – as long as you submit your request at normal business times and let us use the advanced bank verification system link to instantly verify your bank’s information online. If you decide to send us copies of your bank statement, we’ll offer the decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be able to provide you with pre-approval conditional to your application within six hours. After you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however this may be quicker depending on the circumstances of each application. Certain agreements have been approved within 24 hours.
The fastest way would be to make sure you apply during normal business hours and allow us to use the sophisticated bank verification 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 loans ranging from $5,000 and $500,000. If you apply for a certain amount we will consider a number of elements in order to assess what is the well-being of the company and the amount of repayments your company will be able to support. The amount you receive from your loan will be contingent on the specifics for your company.
When you make an application for a set amount, we will consider a number of variables to determine your health of the company and the extent of the repayments your business can support. The total amount of your loan will depend on the particulars for your company.
Fees & repayments
How much do you charge for the cost of a company loan?
When you make an application for one of our business financing, we’ll assess the risk assessment for your business and provide an individualised proposal that includes the loan amount, the terms and interest rates. The business loan is a loan that is priced upfront therefore you will know the exact amount payable including any costs, fees, or interest rates.
What is the factor that determines the price I am charged?
Business loan interest rates vary due to factors like the amount of money that is borrowed, what business assets the funds will be used for, the industry the business is in, how long the company has been running for, what percentage of the business has sufficient cash flow to pay for the loan, as well as the overall health or creditworthiness of the company.
What are the costs?
There aren’t any hidden costs for our company loans, and you’ll know precisely what it is that you need to pay, and when, from day one. There’s no compounding interest, and no extra fees (as as you make your payments on time).
We don’t charge an Application Fee. You can apply for a loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the expenses involved with the setting up and management of the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan earlier?
You can decide to repay all of your loan early at any time.
If you choose to take this route, please speak to our friendly business loans professionals. They will offer you with details on repayment and an early payment figure. It will be calculated using the total of the principal amount remaining and accrued interest to the time of the early payout, plus 1.5 percent of the principal balance as well as any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss payment dates and to align your cash flow cycle we offer repayments either daily or weekly. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Security of your data, and being transparent about the ways we gather, use, exchange and protect your information, is vital and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to protecting the security of customers and privacy. We use an advanced bank verification system that allows you to instantly verify your bank account information online to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where the company owner makes use of an asset that they own to make the loan. The asset could be a personal asset like the family home, or a company asset such as a truck or piece of equipment.
The majority of lending institutions, not just the banks with the biggest size, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, then your assets could be transferred to the lender. In essence, it is the process of securing additional financing using the worth of the asset you already have.
Are I require security for a company loan?
For loans up to $150,000 no asset security is required upfront to access the money, however we require a personal guarantee. need a personal guarantee. If you adhere to your loan obligations (as stated in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans that exceed $150K, typically, you will need an individual guarantee and security that is in the form an asset charge.