FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Mount Victoria Small Business Loans
Tell me more about Mount Victoria Small Business Loans
Mount Victoria unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from the traditional business loan?
You can apply for the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an instant response and the money could be in your account in 24 hours. Traditional business loans are based on an annual interest rate along with other charges and fees. This business loan is a loan that is priced upfront so you will be aware of the total amount to be paid, including any interest, fees or charges. Then, it is broken down into either a daily or weekly payment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company need, such as cash flow management, company remodeling, marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan is not available for personal reasons.
Concerning Larger Mount Victoria Business Loans
What is the Larger Mount Victoria Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are scheduled weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount the business needs to have been trading for at least 3 years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funding for?
A larger business loan can be used to fund almost every company reason, such as business remodeling, buying inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. It’s in the form of a charge against assets, and may include the registration of this with the PPSR or the registration of a caveat.
A director’s or personal ensure is a promise to pay off a credit line that is generally based rather than stipulating the security of a specific asset. The person who signs the ensure is personally liable in the event that the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It lists security interests that are that are registered for personal property (including the assets or goods). The PPSR permits priority over personal property to be granted according to the date a security interest has been registered.
The caveat can be described as a formal document filed to offer an official notice of a claim to property.
What is a pre-approval minus Credit Check?
When you’re applying for a Larger Business Loan that exceeds $250K it’s possible to offer an initial pre-approval that will help simplify the process. We may be able to do this without credit checks and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves you answering a few financial health questions. It is 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 are offered could have different terms.
Application process
Do I qualify for funds?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for you to qualify for 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. Simply complete the online form in few minutes and a dedicated company loan specialist will contact 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 Licence), an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Application details including credit consent twelve month bank accounts, the IRD statement, last 2 years finalised financial statements, and interim financials from the current financial year, Aged Payables and Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we can often offer an answer in just one hour, provided you submit your request within standard company hours and let us make use of the advanced bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statements we can provide the decision within one business day.
If you are applying for a Larger Business Loan ($100K or more) we could be capable of provide the conditional pre-approval in around six hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain transactions have received approval in just 24 hours.
The quickest way to apply can be ensure you apply during normal business hours, and allow us to use the modern bank verification to confirm your bank details online. If you send us copies of your bank statements it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer within an hour if you apply at standard business time and let us utilise the advanced bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statements we can provide an answer in just an business day.
If you are applying for Larger Business Loans ($100K and up) we might be likely to provide you with pre-approval conditional to your application within about six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, it could be faster based on the specifics of each application. Certain transactions have received approval within less than 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours. Also, allow us to use our sophisticated bank verification to verify your bank information online. If you decide to send us copies of your bank statement, it takes a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a specific amount we will consider a number of factors to determine what is the health for your business and the amount of repayments that your company will be able to support. The total amount of the loan will be determined by the specific circumstances the company.
If you apply for a particular amount, we will consider a number of aspects to assess the well-being of your company and the amount of payments your business is able to afford. The total amount of your loan will be contingent on the particulars that are unique to your business.
Fees & repayments
How do you charge for the cost of a company loan?
When you request our company credit, we will assess the risk assessment for your business and provide you with a tailored offer that includes loan amount, term and interest rates. The business loan is an upfront cost loan which means you know in advance the total amount to be paid, including any charges, interest rates or fees.
What is the basis for the rate I am charged?
The interest rates on company loans rates vary due to factors like the amount of money of money borrowed, the business assets the funds will be used for in addition to the industry that the business is in, how long the business is in operation for, whether the company has enough cash flow to cover the loan, as well as the overall well-being or financial standing of the company.
What are the fees?
There are no hidden fees for our company loans, and you’ll know exactly how much you’ll need to pay, and when, right from the first day. There’s no compounding interest, and no extra fees (as as you make your payments punctually).
We don’t charge an application fee. You are able to get a cash loan without any upfront costs or the obligation to take action.
The Origination Fee includes the expenses 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% of the amount of the loan.
Can I repay the loan in advance?
You can repay all of your advance loan at any time.
If you decide to take this route, please contact our helpful business lending specialists. They will offer you with details for repayment and an early payment figure. This is calculated as the total of the principal balance plus any accrued interest as of the time of early payout in addition to 1.5% of the principal balance as well as any outstanding fees.
What is the process for repayments?
To make sure you do not miss repayments and to fit in with your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my information be secure?
Protecting your information, and knowing how we collect data, process, exchange and protect your information, is of huge importance and is a crucial element 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 information and our funders are ISO 27001 certified for our commitment to customer security and privacy. We employ an exceptionally sophisticated bank verification system to immediately verify your bank account details online. This allows us to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an business owner uses an asset that they own to get the funds for a loan. The asset could be an individual property, such as the family home or a company asset like a truck or other piece of machinery.
The majority of lending institutions, not just the big banks, tend to guarantee loans against assets. If you have trouble paying back the loan then the asset might be taken over by the lender. In essence, it’s means of securing new funding taking advantage of the value of what you already have.
Do I need security to secure an company loan?
For loans up to $150,000 it is not necessary to secure assets before you can access the money, however we require a personal guarantee. need the personal guarantee. As long as you follow your loan commitments (as detailed in the loan contract) the security of assets is not required. For loans over $150K generally, there is an individual guarantee and security in the form a charge over assets.