FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Moera Small Business Loans
Tell me how you can avail the Moera Small Business Loans
Moera unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What is what makes the Unsecured Loan different from a traditional business loan?
Apply for this Small Business Loan in under 10 minutes over the phone, receive an immediate response, and the funds could be in your account in 24 hours. Traditional business loans are based on an annual interest rate along with other charges and fees. The company loan is a cash-based loan and you’ll know in advance the total amount due, which includes any fees, interest or charges. Then, it is broken down into either a daily or weekly installment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business reason, such as cash flow management, company remodels and marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan is not available to fund personal expenses.
Concerning Larger Moera Business Loans
What is the Larger Moera Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to be operating for at least three years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funding be utilised?
A large business loan can be used for almost every business need, including company renovations, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. This is in the form of a charge over assets, and could include registration on the PPSR or filing as a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally based rather than defining security over a particular asset. The person who is signing the ensure is personally liable if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including the assets or goods). The PPSR grants preference over private property granted according to the date the security interest was registered.
A caveat is a legal document filed to offer the legal claim against a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for larger company loans that is greater than $250,000 we can offer an initial pre-approval in order to smooth out 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 process is based on an initial assessment, which involves the answer to a series of financial well-being checks. This is not an offer of credit or guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you are offered could be on different terms.
The application process
Do I qualify for funds?
You are eligible to apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application within a couple minutes, and a dedicated business credit specialist will contact you to help you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details for application including credit consent as well as 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, in addition to interim financials for the current financial year as well as Aged Payables and Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we usually offer a response in one hour if you submit your request at standard company hours and let us utilise the advanced bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statements , we are able to offer a decision within one company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be capable of offer you with pre-approval conditional to your application in about 6 hours. After you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Some transactions have received approval within just 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours. Also, let us use the advanced bank verification system to instantly verify your bank information online. If you decide to send us documents from your account statements , it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K to $100K) We can usually provide an answer in just one hour, provided you make your application in normal business timings and let us use the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your bank statements we can provide an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K or more) we could be likely to offer the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The fastest method for you to apply is make sure you apply during normal business hours. You can also let us use the modern bank verification to verify your bank account information online. If you upload the copies of bank statements, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a certain amount, we look at a variety of elements for determining your well-being of your company and the level of the repayments your company can support. The amount you receive from your loan will depend on the specific circumstances for your business.
When you submit an application for a specific amount we consider a variety of elements to determine how much we can lend you such as well-being that is your company and the extent of the repayments your company will be able to support. The total amount of the loan will be determined by the specifics the company.
Fees & repayments
How much should you charge for the cost of a company loan?
When you request the business loan, we will assess the risk profile that you have for your business and provide you with a tailored offer that includes the loan amount, the terms and interest rates. A company loan is an upfront cost loan so you will be aware of the total amount payable including any costs, fees, or interest rates.
What determines the rate that I’m charged?
Business loan interest rates depend on a variety of factors like the amount of money borrowed, the company assets the money are used to purchase and the sector the business operates in, the long the company has been operating for, what percentage of the company has enough cash flow to pay for the loan, as well as the overall well-being and creditworthiness of the business.
What are the cost?
There are no hidden fees with our company loans. You’ll know precisely how much you’ll be required to pay and when, right from the first day. There’s no compounding interest and no extra fees (as long as you are able to make your payments in time).
We don’t charge an application fee. You are able to get a cash loan without any upfront costs or commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. It is only charged for this fee if you 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 may choose to pay back all of your loan at any point in time.
If you do decide to pursue this option, please speak to our friendly company loans specialists. The experts will offer you with the details of your repayment and an early payment figure. This will be calculated as the sum of the principal balance and the accrued interest up to the time of early payment in addition to 1.5% of the remaining principal plus any outstanding fees.
What is the process for repayments?
To ensure you do not miss payment dates and to align your cash flow schedule, we offer repayments either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be protected?
Security of your data, and knowing how we collect information, use it, and exchange it, as well as ensure the security of your information is vital and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to security for our customers and privacy. We use an advanced banking verification system to immediately verify the bank account details online to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the company owner uses an asset that they own to obtain the funding. The asset can be an individual asset, such as the family home, or a business asset like a truck or other piece of machinery.
The vast majority of the lenders not just the big banks, tend to guarantee loans against an asset. If you have trouble paying back the loan then your asset may be transferred to 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?
For loans that exceed $150K, there is no requirement for asset security before you can access the money however, we require a personal guarantee. need a personal guarantee. In the event that you fulfill the loan terms (as detailed in your loan contract document), asset security is not required. For loans that exceed $150K, generally, there is the option of a personal guarantee and security in the form the charge of assets.