FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Auckland Small Business Loans
Let me know more about Auckland Small Business Loans
Auckland unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from a traditional business loan?
Apply for this Small Business Loan in under 10 minutes on the phone. You’ll receive an immediate response, and funds may be on your account within 24 hours. Traditional company loans refer to an annual rate of interest along with other charges and fees. This company loan is a pre-paid loan which means you know in advance the total amount due, which includes any interest, fees or charges. This is then broken down into a daily or weekly repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every company need, such as cash flow management, business remodeling, marketing to purchase inventory, new equipment, for general working capital, and much more. The loan cannot be used for personal reasons.
About the Larger Auckland Business Loans
What is the Larger Auckland Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are either weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large, your company needs to have been operating for a minimum of 3 years and have an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A large business loan can be used for almost any business need, including company renovations, to purchase new equipment or inventory or as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. It’s as a result of an charge on assets, and could include registering this on the PPSR or registering a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is generally in nature rather than specifying the security of a specific asset. The person signing the guarantee is personally accountable if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including the assets or goods). The PPSR gives prioritisation over property that is personal to be assigned according to the date the security interest was registered.
Caveats are legal document that is filed to provide the public notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking an enterprise loan of more than $250,000, we may offer an initial pre-approval in order to ease the process. We might be able to apply for this without credit checks and within 6 hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering some financial well-being questions. It is neither an offer nor a guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer you might receive could be subject to different terms.
Are I eligible for funding?
You may apply for an company 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)
- must show at least six months of trading (for you to qualify for 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 simple and simple. Complete the online form within a few minutes and a dedicated business expert in lending will contact you to guide you.
To apply for up to $100,000, you’ll need proof of identity (valid Driver’s License) along with an NZBN/IRD that is valid and at least six months worth of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent as well as 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) We can usually offer an answer within one hour, provided you submit your request during quality company timings and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statement, we’ll offer a decision in as little as 1 company day.
For the Larger Business Loan ($100K to $500K) we might be capable of provide you with a conditional pre-approval within 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however it could be faster based on the specifics of each application. Certain agreements have been approved in just 24 hours.
The quickest method would be to make sure you apply during normal business hours and allow us to use our advance bank verification link to verify your bank account information online. If you choose to upload copies of your bank accounts, it takes a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K or more) We can usually provide an answer within an hour, provided you apply at standard business hours and permit us to utilise the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your bank statements we can provide an answer in just 1 business day.
For Larger Business Loans ($100K and up) we might be capable of provide you with pre-approval conditional to your application within six hours. Once you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Certain deals have been approved in 24 hours.
The fastest way can be ensure you apply during normal business hours and let us use the sophisticated bank verification to instantly confirm your bank details online. If you decide to send us duplicates of your banking statement, it will take a little longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a certain amount we look at a variety of aspects that determine your health of your company as well as the amount of payments your company will be able to support. The total amount of your loan will depend on the particular circumstances of your business.
If you apply for a certain amount, we will consider a number of elements to assess how much we can lend you such as well-being of the company and the level of the repayments your company can support. The amount you receive from your loan will be contingent on the particulars for your company.
Fees & repayments
How do you charge for an business loan?
If you decide to make an application for one of our business credit, we will assess the risk assessment for your business and offer an individualised offer, including the loan amount, the terms and interest rates. The company loan is a loan that is priced upfront therefore you will be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What determines the rate that I’m charged?
The interest rates on company loans rates differ based on various factors including the amount that is borrowed, what business assets the funds will be used for, the industry the business is in, how long the business has been in operation and what percentage of the company has enough cash flow to fund the loan, and the general health or financial standing of the business.
What are the cost?
There aren’t any hidden costs with our business loans. You’ll know exactly how much you be required to pay and when, from day one. There’s no compounding and no additional fees (as long as you are able to make your payments on time).
We do not charge an Application Fee. You are able to make an application for loans absolutely no upfront cost and no any obligation to sign up.
The Origination Fee includes the expenses associated with setting up 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 percent of the amount of loan.
Do I have the option of paying off the loan in advance?
You can choose to repay the total amount of your loan at any point in time.
If you decide to pursue this option, please call our helpful company loan professionals. They will offer you with the details of your repayment and an early payment figure. This will be calculated as the total of the remaining principal amount plus any accrued interest as of the date of early payout and 1.5% of the principal remaining and any fees that remain unpaid.
What is the process for repayments?
To ensure that you don’t miss due dates and also to be in line with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing the ways we gather data, process, exchange and safeguard your data, is of huge importance and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their privacy. We make use of an advanced banking verification system to instantly verify your bank account details online, allowing us to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a company owner uses an asset that they own to secure a loan. The asset could be a personal asset like the family home or it could be a business property like a truck or piece or equipment.
The vast majority of the lenders even the largest banks, are inclined to secure loans against assets. If you have trouble paying back the loan, then the asset might be offered for sale by the lender. In essence it’s a way of securing new financing making use of the value of what you already have.
Should I need security to secure an company loan?
For loans up to $150K the requirement for asset security is not required upfront to access the money however, we do require an individual guarantee. In the event that you fulfill your loan obligations (as detailed in your loan contract) the security of assets will never be needed. For loans over $150,000 typically, you will need a personal guarantee and security in the form an asset charge.