FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The New Zealand Small Business Loans
Let me know more about New Zealand Small Business Loans
New Zealand unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
How is how is the Unsecured Loan different from the traditional business loan?
It is possible to apply to your Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an answer within the same day and funds may be available in just 24 hours. Traditional business loans are based on an annual rate of interest as well as other fees and charges. We offer a company loan is an upfront priced loan and you’ll be aware of the total amount due, which includes any fees, charges or charges. This is then broken down into a daily or weekly payment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business use, including cash flow management, company improvements, advertising for purchasing inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal use.
About Larger New Zealand Business Loans
What is the Larger New Zealand Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to be in operation for at least 3 years and have an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can the funds be used for?
A large business loan can be used for nearly any business purpose including business remodeling, buying equipment or inventory for general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. It is usually in the form of a charge on assets, and may be registered in the PPSR or filing as a caveat.
A personal or director’s guarantee is a commitment to pay back a loan that is generally in nature rather than stating security over an asset. The person signing the guarantee is personally liable in the event that the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including the assets or goods). The PPSR grants the priority of personal property assigned according to the date a security interest has been registered.
A caveat is a legal document lodged to provide an official notice of a claim to property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan of $250,000 or more, we may offer a preliminary pre-approval to help ease the process. We might be able to make this decision without a credit check, and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves you answering some financial health questions. It is in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you are offered could be on different terms.
Are I eligible for funding?
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 company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (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 simple and simple. Simply complete the online form within a few minutes and an experienced business expert in lending will call you to guide you through the process.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s Licence), an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, as well as interim financial statements for the current year such as age-related payables and aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K or more) We can usually offer an answer within an hour if you submit your request during quality company times and permit us to make use of the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statements we can offer an answer in as little as the span of one business day.
If you are applying for a Larger Business Loan ($100K and up) we could be able to provide you with pre-approval conditional to your application in about 6 hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this could be shorter based on the particular circumstances of each application. Some agreements have been approved in the space of 24 hours.
The fastest way would be to make sure you apply during standard business hours and let us use the advanced bank verification system link to verify your bank information online. If you upload documents from your account statements , it can take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) we typically offer an answer within an hour if you make your application within normal business times and permit us to use the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your bank statements we can offer an answer in just 1 business day.
If you are applying for Larger Business Loans ($100K and up) we may be able to provide you with pre-approval conditional to your application within six hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Certain offers have been approved within the space of 24 hours.
The quickest method would be to make sure you apply during standard business hours. You can also allow us to use our advanced bank verification system link to instantly confirm your bank details online. If you opt to send us duplicates of your banking statements it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a certain amount, we look at a variety of elements that determine what is the health for your company and the amount of repayments your business can afford. The total amount of your loan will depend on the specifics for your company.
When you submit an application for a particular amount, we will consider a number of elements to assess the health of your company as well as the amount of repayments that your company is able to afford. The total amount of the loan will be determined by the particular circumstances of your company.
Fees & repayments
How much do you charge for the cost of a business loan?
When you make an application for one of our business financing, we’ll assess the risk assessment of your company and offer you with a tailored offer, including the amount of loan, the term and interest rates. It is a business loan is an upfront cost loan and you’ll know in advance the total amount payable including any charges or interest.
What determines the amount I am charged?
The interest rates on business loans rates depend on a variety of factors such as the amount that is of money borrowed, the business assets the funds are used to purchase, the industry the business is operating in, how long the business has been operating and in the event that the company has enough cash flow to fund the loan, and the general well-being or creditworthiness of the business.
What are the cost?
There aren’t any hidden costs for our business loans. You’ll know precisely what it is that you be required to pay and when, starting from the very first day. There’s no compounding interest and the loan comes with no additional fees (as as long as you pay your payments in time).
We do not charge an Application Fee. You are able to make an application for loans absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the expenses involved with setting up and managing 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 earlier?
You can choose to repay the total amount of your loan in full at any time.
If you choose to take this route, please talk to one of our helpful business lending professionals. The experts will provide you with details for repayment and an early payment figure. This will be calculated as the sum of the principal amount remaining and any accrued interest at the date of early payout, plus 1.5% of the principal balance and 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 that are either daily or weekly. These are automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being upfront about the ways we gather information, use it, and exchange it, as well as protect your information, is of huge importance and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to customer security and privacy. We utilise a sophisticated bank verification system link to immediately verify your bank account information online, allowing us to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an business owner borrows from an asset that they own to obtain a loan. The asset can be an asset belonging to the personal, like the family home or an business property like a truck or piece of equipment.
The majority of lenders, including the big banks, tend to guarantee loans against an asset. If you are having difficulty paying back the loan then your asset may be taken over by the lender. In essence it’s a way of securing additional financing making use of the value of what you already have.
Are I need security to get a company loan?
For loans that exceed $150,000, there is no requirement for asset security upfront to access the money However, we do need an individual guarantee. If you adhere to the loan terms (as detailed in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans over $150K generally, there is a personal guarantee and security in the form the charge of assets.