FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Mairangi Bay Small Business Loans
Let me know what you think of the Mairangi Bay Small Business Loans
Mairangi Bay unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
How is how is the Unsecured Loan different from an traditional company loan?
Apply to the Small Business Loan in under 10 minutes on the phone. You’ll receive a same day response and funds may be in your account within 24 hours. Traditional company loans refer to an annual rate of interest as well as other fees and charges. We offer a business loan is an upfront priced loan and you’ll be aware of the total amount to be paid, including any fees, charges or charges. Then, it is broken down into either weekly or daily installment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company need, such as the management of cash flow, company remodeling, marketing to purchase inventory, new equipment, as general working capital, and much more. The loan is not available to fund personal expenses.
About Larger Mairangi Bay Business Loans
What is the Larger Mairangi Bay Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range from $100,000 to $500,000 over a fixed term with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a credit that is this large the business needs to have been in operation for at least 3 years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funds for?
A Business Loan of a larger size can be used for nearly all company need, including business improvements, purchasing equipment or inventory as well as for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. It is usually as a result of an charge on assets, and could include the registration of this with the PPSR or making as a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is generally in nature rather than defining the security for a particular asset. The person signing the guarantee is personally liable if the business lender is not able to pay back 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 the assets or goods). The PPSR gives prioritisation over property that is personal to be granted according to the date the registration of a security interest.
The caveat can be described as a formal document that is filed to provide the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger business loans of $250,000 or more, we may offer an initial pre-approval to smooth out the process. We could be able to apply for this without a credit verification 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 checks. This is in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you receive could be subject to different terms.
Application process
Can I be eligible for funding?
You can 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 trading (for the 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 easy. Simply complete the online form within a couple minutes, and a dedicated company lending specialist will call you to guide you through the process.
For a loan of up to $100,000 you’ll need the right identification documents (valid Driver’s License), an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K to $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Information on the application including credit consent as well as 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) We can usually provide a response in one hour – as long as you apply within standard company timings and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statements , we are able to offer an answer in as little as the span of one company day.
For the Larger Business Loan ($100K to $500K) we may be capable of provide you with a conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this could be shorter based on the specifics of each application. Some deals have been approved within the space of 24 hours.
The quickest way to apply can be make sure you apply during standard business hours. Also, let us use the advanced bank verification system to confirm your bank details online. If you opt to upload copies of your bank statement, it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer within an hour if you apply during standard business timings and let us use the advanced bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statement, we’ll provide a decision in just an business day.
For the Larger Business Loans ($100K or more) We may be capable of offer the conditional pre-approval within 6 hours. Once you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this may be quicker depending on the specifics of each application. Some offers have been approved in less than 24 hours.
The quickest method would be to make sure you apply during standard business hours. You can also allow us to use the sophisticated bank verification to instantly check your bank’s information online. If you choose to send us documents from your account statements it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a certain amount, we consider a variety of elements for determining your well-being for your business and the amount of payments your business will be able to support. The total amount of your loan will depend on the specifics the company.
When you submit an application for a set amount, we take into consideration a variety of elements to assess the well-being of your business and the amount of payments your business can support. The amount you receive from your loan will depend on the particular circumstances for your business.
Fees & repayments
How much should you charge for an business loan?
If you decide to request business loans with us business loan, we’ll assess the risk assessment that you have for your business and offer you with a customised proposal that includes the amount of the loan, the duration and the interest rates. This company loan is an upfront priced loan therefore you will know the exact amount due, which includes any charges or interest.
What determines the amount I am charged?
Business loan interest rates vary due to factors like the amount of money that is borrowed, what company assets the funds will be used for and the sector the business operates in, how long the business has been in operation and whether the company has enough cash flow to cover the loan, and general well-being or financial standing of the company.
What are the charges?
There are no hidden fees with our company loans, and you’ll know precisely how much it is that you need to pay, and when, from day one. There’s no compounding interest, and no additional fees (as long as you make your payments in time).
We do not charge an Application Fee. You can apply for a loan with no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated in establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay off the loan earlier?
You can repay the entire amount of your loan early at any time.
If you choose to pursue this option, please call our helpful business loan professionals. They’ll provide you with repayment details along with an early payout estimate. This will be calculated as the sum of the principal amount remaining and the accrued interest up to the time of early payout plus 1.5% of the remaining principal as well as any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss payments and to work your cash flow cycle we offer repayments that are either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and making it clear how we collect the information we collect, use, share and ensure the security of your information is of paramount importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication 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 to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the company owner borrows from assets they own to secure the loan. The asset may be a personal asset like the family home or a business asset such as a truck as well as a piece of machine.
The majority of lending institutions, not just the banks with the biggest size, prefer to secure loans against assets. If you’re having trouble paying back the loan then the asset might be transferred to the lender. In essence it is an opportunity to secure additional financing using the worth of the asset you already own.
What do I require security for a business loan?
For loans up to $150K the requirement for asset security is not required prior to the loan’s access but we require a personal guarantee. need a personal guarantee. If you adhere to your loan obligations (as stipulated in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans that exceed $150K, typically, you will need personal ensure and security in the form a charge over assets.