FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Auckland Small Business Loans
Let me know what you think of the Auckland Small Business Loans
Auckland unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from an ordinary business loan?
Apply for this Small Business Loan in under 10 minutes online or by phone. You will receive a same day response and funds may be in your account in 24 hours. Traditional company loans reference an annual interest rate together with additional fees and charges. This company 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 divided into a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company purpose including cash flow management, company improvements, advertising for purchasing inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal reasons.
About Larger Auckland Business Loans
What is the Larger Auckland Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the business needs to be trading for at least 3 years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can the funds be used for?
A Larger Business Loan can be used for almost all company purpose including business improvements, purchasing equipment or inventory for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. It is usually as a result of an charge on assets, and may include the registration of this with the PPSR or filing as a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is general in nature, rather than stipulating security over an asset. The person who signs the guarantee is personally liable if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including goods or assets). The PPSR allows preference over private property assigned according to the date the registration of a security interest.
An affidavit is an official document that is filed to provide the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan of $250,000 or more we may be able to provide a preliminary pre-approval to help simplify the process. We could be able to apply for this without a credit check and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial health checks. It’s not an offer or guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer that you receive could be subject to different conditions.
The application process
Do I have the right to receive funds?
You may apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Complete the online form in just a few minutes, and a dedicated business expert in lending will contact you to guide you.
To be eligible for up to $100,000, you’ll need proof of identity (valid Driver’s Licence) and a valid NZBN/IRD and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent, 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 an answer?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer in just one hour, provided you submit your request in standard business timings and let us utilise the bank verification system link to instantly verify your bank information online. If you opt to submit copies of your bank statements we can provide an answer within just one business day.
For the Larger Business Loan ($100K or more) we may be able to offer you with conditional pre-approval within 6 hours. Once you have 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 transactions have received approval in 24 hours.
The quickest way to apply can be ensure you apply during normal company hours, and permit us to use the modern bank verification link to instantly verify your bank information online. If you upload copies of your bank accounts, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K to $100K) we usually offer an answer in just one hour – as long as you submit your request in normal business timings and let us make use of the advanced bank verification system link to instantly verify your bank information online. If you opt to send us copies of your bank statements we can offer an answer in as little as 1 business day.
For the Larger Business Loans ($100K to $500K) we may be able to offer you with pre-approval conditional to your application within six hours. Once you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval. However, this may be quicker depending upon the circumstances for each application. Certain transactions have received approval in just 24 hours.
The fastest method can be ensure you apply during normal business hours. You can also allow us to use our advanced bank verification system link to instantly confirm your bank details online. If you upload duplicates of your banking statements, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a particular amount, we look at a variety of variables for determining what is the health of your company as well as the amount of the repayments your company can support. The total amount of your loan will depend on the specifics the business.
When you make an application for a set amount, we take into consideration a variety of factors to determine your health that is 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 for your business.
Fees & repayments
What is the cost for a company loan?
When you apply for one of our business loan, we will assess the risk profile of your company and offer you with a customised proposal that includes loan amount, term and interest rates. A business loan is a loan that is priced upfront and you’ll know the exact amount you will have to pay, including interest rates, fees or charges.
What determines the amount I will be charged?
Interest rates for business loans rates vary due to factors including the amount borrowed, the business assets the money will be used for, the industry the business operates in, the long the business has been in operation and how long the company has enough cash flow to fund the loan, as well as the general health or creditworthiness of the company.
What are the fees?
There are no hidden costs for our business loans. You’ll know precisely how much it is that you need to pay and when, right from the very first day. There’s no compounding interest, and no additional fees (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You can apply for a loan absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated with establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay off the loan in advance?
You can choose to repay all of your loan in full at any time.
If you do decide to pursue this option, please talk to one of our helpful company loan specialists. The professionals will provide you with the details of your repayment as well as an early payout amount. This will be calculated as the total of the remaining principal amount and any accrued interest at the time of the early payout, plus 1.5% of the remaining principal as well as any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss repayments and to fit in your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being clear about how we collect data, process, exchange and ensure the security of your information is crucial and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to protecting the security of customers and security. We use an advanced bank verification system link to immediately verify your bank account information online, allowing us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the business owner makes use of an asset that they own to get the funds for a loan. The asset can be either an individual asset, such as the family home, or it could be a business asset like a truck as well as a piece of machine.
The vast majority of the lenders not just the major banks, prefer to make loans secured by assets. If you have trouble paying back the loan, then the asset could be offered for sale by the lender. In essence, it’s a way of securing new funding making use of the value of what you already have.
Do I need security to get a company loan?
For loans that exceed $150,000, no asset security is required upfront to access the money but we do require an individual guarantee. In the event that you fulfill the loan terms (as specified in your loan contract), asset security will never be needed. If you take out loans in excess of $150K generally, there is the option of a personal guarantee and security in the form the charge of assets.