FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Lower Hutt Small Business Loans
Tell me how you can avail the Lower Hutt Small Business Loans
Lower Hutt unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from an traditional company loan?
Apply to your Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and funds may be in your account in 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. Our company loan is a cash-based loan so you will know in advance the total amount due, which includes any fees, charges or charges. This is then broken down into either a daily or weekly installment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company reason, such as managing cash flows, business renovations, marketing for purchasing inventory or new equipment, or as general working capital and much more. The loan is not available to fund personal expenses.
About Larger Lower Hutt Business Loans
What is the Larger Lower Hutt Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 over a fixed term for up to 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount, your company needs to be operating for at least three years and have 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 minimum 12 months of continuous trading.
How can the funding be used for?
A Business Loan of a larger size can be used for almost all business reason, such as company remodeling, buying inventory or new equipment for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. It’s as a result of an charge on assets and can include registering this on the PPSR or filing a caveat.
A director’s or personal ensure is a commitment to repay a loan which is general in nature rather than stating security over a particular asset. The person signing the guarantee is personally responsible if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It contains security interests that are registered for personal property (including objects or assets). The PPSR gives the priority of personal property granted in accordance with the date on which a security interest that is registered.
An affidavit is an official document filed to provide an official notice of a claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for the Larger Business Loan of more than $250,000, we may offer an initial pre-approval to simplify the process. It is possible to apply for this without a credit verification and within six hours of your initial application. This pre-approval is made based on an initial evaluation that 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 a full credit assessment and any offer you receive could be subject to different conditions.
Do I have the right to receive funds?
You may be eligible for an 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 prove at least 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Complete the online form in just a few minutes, and an experienced company expert in lending will contact you to assist you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s License) as well as an active NZBN/IRD, and at least six months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent and 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we usually provide an answer within an hour – as long as you submit your request in 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 upload copies of your banking statement, we’ll offer a decision within an business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we could be likely to provide you with conditional pre-approval in around 6 hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however it could be faster based on the circumstances of each application. Some deals have been approved in 24 hours.
The most effective method would be to make sure you apply during normal business hours. You can also allow us to use the advance bank verification to instantly verify your bank account information online. If you opt to upload the copies of bank statements it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) we can often offer a response in one hour – provided you make your application within normal business times and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statements we can provide an answer in just 1 business day.
If you are applying for Larger Business Loans ($100K and up) We may be in a position to offer the conditional pre-approval within about six hours. After you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this can be faster depending on the specifics of each application. Some deals have been approved in the space of 24 hours.
The quickest method would be to make sure you apply during normal business hours, and let us use the sophisticated bank verification to verify your bank account information online. If you upload the copies of bank statement, it takes a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a certain amount, we look at a variety of elements that determine your health for your company as well as the amount of payments your company is able to afford. The total amount of your loan will depend on the specifics that are unique to your company.
If you apply for a specific amount we look at a range of factors to determine how much we can lend you such as well-being of the business and the amount of repayments your company can afford. The total amount of your loan will be determined by the particular circumstances for your company.
Fees & repayments
What is the cost for an company loan?
When you request our company loans, we will assess the risk assessment the company and provide you with a tailored proposal that includes the loan amount, the terms and the interest rates. This business loan is an upfront priced loan and you’ll be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I am charged?
Business loan interest rates depend on several factors such as the amount that is borrowed, the company assets the funds are used to purchase in addition to the industry that the company is operating in, how long the business is in operation for, how long the business has enough cash flow to cover the loan, and general well-being or creditworthiness of the company.
What are the charges?
There aren’t any hidden costs for our business loans, and you’ll know precisely what you need to pay and at what time, from the day you sign up. There’s no compounding interest and no additional fees (as long as you make your payments on time).
We don’t charge an Application Fee. You are able to request a credit loan with no cost upfront or any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan earlier?
You can decide to repay the entire amount of your loan in full at any time.
If you are deciding to do this please talk to one of our helpful company lending experts. They’ll provide you with repayment details and an early payment figure. The figure will be calculated as the total of the principal amount remaining plus any accrued interest as of the date of early payout and 1.5 percent of the remaining principal and any outstanding fees.
What are the repayment methods?
To ensure you do not miss due dates and also to be in line with your cash flow standard, we provide payments that are either daily or weekly. They are automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as knowing the ways we gather the information we collect, use, share and safeguard your data, is crucial and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their privacy. We utilise a sophisticated banking verification system to instantly verify your bank account details online. This allows us to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
The term “asset-based” refers to borrowing where an business owner borrows from assets they own to get the funding. The asset can be either an individual asset, such as the family home or a company asset like a truck or other piece of machinery.
The majority of banks, even the largest banks, are inclined to secure loans against an asset. If you’re struggling to pay back the loan then the asset might be sold by the lender. In essence it’s an opportunity to secure new funding taking advantage of the value of what you already have.
Are I require security for a company loan?
For loans up to $150K the requirement for asset security is not required prior to the loan’s access however, we require a personal guarantee. need a personal guarantee. In the event that you fulfill your loan obligations (as stated in the loan contract), asset security is not needed. For loans of over $150,000 generally, there is personal guarantee and security in the form of an asset charge.