FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Pinehaven Small Business Loans
Let me know how you can avail the Pinehaven Small Business Loans
Pinehaven unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What makes this Unsecured Loan different from the traditional business loan?
It is possible to apply to your Small Business Loan in under 10 minutes online or over the phone, receive a same day response and the funds could be in your account within 24 hours. Traditional company loans reference an interest rate per annum along with other charges and fees. The business loan is a loan that is priced upfront so you will know in advance the total amount due, which includes the interest, fees and charges. Then, it is broken down into a daily or weekly installment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every company purpose including control of cash flow business improvements, advertising for purchasing inventory or new equipment, for general working capital and much more. The loan is not available for personal reasons.
About Larger Pinehaven Business Loans
What is the Larger Pinehaven Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is determined at 2.5% 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 the business needs to be operating for at least three years, and have an annual income of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funds be used for?
A Business Loan of a larger size can be used for nearly any business need, including business renovations, purchase of inventory or new equipment for general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. It’s by taking a charge against assets, and may include registering this through the PPSR or making as a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is generally based rather than stipulating security over an asset. The person signing the guarantee is personally responsible if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be granted depending on the date that a registration of a security interest.
The caveat can be described as a formal document lodged to offer the legal claim on a property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan of more than $250,000 we may be able to provide an initial pre-approval to make the process. We could be able to do this without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial assessment that includes you answering some financial health questions. This is not an offer of credit or guarantee of funds. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you might receive could be subject to different conditions.
The application process
Do I qualify for funds?
You are eligible to 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 of business (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application in few minutes and a dedicated company expert in lending will call you to guide you.
To apply for up $100,000, you’ll need identification details (valid Driver’s Licence) as well as an active NZBN/IRD, and at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Application details including credit consent twelve months of bank records, IRD statement as well as the two most recent years’ financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) we usually offer an answer in just one hour, provided you apply during quality company hours and let us make use of the advanced bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statements , we are able to offer an answer in as little as one company day.
For Larger Business Loans ($100K and up) we might be capable of provide you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Some deals have been approved in just 24 hours.
The quickest way to apply would be to ensure you apply during normal business hours. Also, permit us to use the advanced bank verification system link to instantly verify your bank account information online. If you opt to upload duplicates of your banking statements , it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) we usually provide a response in one hour if you submit your request during normal business hours and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your bank statements, we will be able to offer a decision in as little as one business day.
For Larger Business Loans ($100K or more) we could be likely to offer you with pre-approval conditional to your application within about six hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this can be faster depending on the specifics of each application. Certain transactions have received approval in the space of 24 hours.
The fastest method is to ensure you apply during normal business hours. Also, let us use the advance bank verification to verify your bank information online. If you decide to send us the copies of bank accounts, it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a certain amount we look at a variety of elements for determining what is the health of your company and the level of repayments that your business will be able to support. The amount you receive from your loan will depend on the specifics for your business.
When you apply for a set amount, we take into consideration a variety of factors to determine your well-being of the business as well as the amount of payments your business will be able to support. The amount you receive from your loan will depend on the specifics for your business.
Fees & repayments
How do you charge for an business loan?
If you decide to make an application for the business loans, we will assess the risk profile that you have for your company and provide you with a customised offer that includes the loan amount, the terms and interest rates. A company loan is a loan that is priced upfront so you will know the exact amount you will have to pay, including interest rates, fees or charges.
What is the basis for the rate I’m charged?
Business loan interest rates depend on several factors including the amount borrowed, what business assets the funds will be used for in addition to the industry that the business is operating in, how long the business is in operation, what percentage of the business has sufficient cash flow to cover the loan, as well as the general health as well as creditworthiness business.
What are the costs?
There aren’t any hidden costs with our business loans, and you’ll know precisely what it is that you need to pay and when, starting from the first day. There’s no compounding and there are no additional charges (as as you make your payments punctually).
We don’t charge an application fee. You can get a cash loan no cost upfront or the obligation to take action.
The Origination Fee includes the expenses associated with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan early?
You can decide to repay the total amount of your loan at any point in time.
If you decide to pursue this option, please call our helpful business lending professionals. They will provide you with repayment details and an early payment figure. The figure will be calculated as the total of the remaining principal amount and accrued interest to the time of early payment, plus 1.5 percent of the remaining principal and any outstanding fees.
How do repayments work?
To help you avoid missing payments and to work with your cash flow standard, we offer repayments that are either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my information be secure?
Security of your data, and making it clear the ways we gather information, use it, and exchange it, as well as protect your information, is of paramount importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to customer security and security. We use an advanced banking verification system to instantly verify your bank account details online. This allows us 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 an company owner uses assets they own to secure the funds for a loan. The asset may be an asset belonging to the personal, like the family home or an business asset such as a vehicle or other piece of machinery.
The vast majority of the lenders even the largest banks, are inclined to guarantee loans against assets. If you’re struggling to pay back the loan, then the asset might be taken over by the lender. In essence, it’s a way of securing new funding using the worth of the asset you already own.
What do I need security for a business loan?
For loans that exceed $150,000, there is no requirement for asset security prior to the loan’s access but we do need the personal guarantee. In the event that you fulfill the loan terms (as stated in your loan contract document) Asset security is not needed. For loans that exceed $150,000, typically, you will need a personal ensure and security is provided in the form of a charge over assets.