FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Albany Small Business Loans
Let me know about the Albany Small Business Loans
Albany unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from the traditional company loan?
You can apply to get the Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and have the funds in your account in 24 hours. Traditional company loans are based on an annual rate of interest plus other fees and charges. This business loan is a cash-based loan therefore you’ll know in advance the total amount due, which includes any fees, charges or charges. Then, it is broken down into either a daily or weekly repayment figure.
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 managing cash flows, company remodels and marketing to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal purposes.
About larger Albany Business Loans
What is the Larger Albany Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been operating for at least three years, and have an annual income of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A Larger Business Loan can be used for nearly any company use, including business renovations, to purchase new equipment or inventory, as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It’s by taking a charge over assets, and could include registration with the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is generally based rather than specifying security over an asset. The person who signs the ensure is personally liable in the event that the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are that are registered for personal property (including objects or assets). The PPSR allows the priority of personal property assigned in accordance with the date on which a security interest was registered.
An affidavit is an official document filed to offer the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for an enterprise loan that exceeds $250,000 it’s possible to offer an initial pre-approval to make the process. We could be able to get this done without credit checks and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes the answer to a series of financial well-being questions. It is in no way an offer, nor is it a guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer that you might receive could be on different terms.
Do I have the right to receive funds?
You are eligible to apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (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 simple and simple. Simply complete the online form in just a few minutes, and a dedicated company credit specialist will call you to assist you.
To apply for up $100,000, you’ll require the right identification documents (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Information on the application including credit consent as well as 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, plus interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) We can usually provide an answer in just one hour, provided you apply within quality company timings and allow us to utilise the bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statements , we will be able to offer an answer within the span of one business day.
For the Larger Business Loan ($100K or more) we might be capable of provide the conditional pre-approval within six hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Some offers have been approved within 24 hours.
The quickest way to apply can be ensure you apply during standard company hours, and let us use the advanced bank verification system to check your bank’s information online. If you choose to upload documents from your account statements , it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we usually provide a response in one hour if you apply at normal business timings and allow us to use the bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statements we can offer a decision in just the span of one business day.
For Larger Business Loans ($100K to $500K) we may be likely to provide the conditional pre-approval in around six hours. Once you’ve signed your pre-approval document, you will require to wait around 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Certain transactions have received approval within less than 24 hours.
The fastest way would be to make sure you apply during normal business hours. Also, allow us to use the sophisticated bank verification to instantly check your bank’s information online. If you decide to upload copies of your bank accounts, it may take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a particular amount, we consider a variety of factors to determine the well-being of the business as well as the amount of repayments your company can support. The total amount of the loan will be determined by the particular circumstances the business.
When you make an application for a certain amount, we take into consideration a variety of elements to determine how much we can lend you such as health for your company and the level of the repayments your company is able to afford. The total amount of your loan will be determined by the specifics for your company.
Fees & repayments
How do you charge for an business loan?
If you decide to make an application for our company financing, we’ll assess the risk assessment of your company and offer you with a customised offer including loan amount, term and interest rates. A company loan is a loan that is priced upfront therefore you will be aware in advance of the total amount due, which includes any charges, interest rates or fees.
What determines the rate that I am charged?
Interest rates for business loans rates differ based on various factors such as the amount that is that is borrowed, what business assets the funds will be used for and the sector the company operates in, the long the business has been running and what percentage of the company has enough cash flow to pay for the loan, and general well-being as well as creditworthiness business.
What are the costs?
There are no hidden fees for our company loans. You’ll be aware of the amount you’ll 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 on time).
We do not charge an application fee. You can apply for a loan no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the loan amount.
Do I have the option of paying off the loan in advance?
You can decide to repay the entire amount of the loan in full at any time.
If you choose to take this route, please speak to our friendly company lending experts. They’ll offer you with repayment details along with an early payout estimate. The figure will be calculated as the sum of the principal balance and the accrued interest up to the time of early payout in addition to 1.5 percent of the remaining principal plus any outstanding fees.
How do repayments work?
To make sure that you don’t miss payments and to work your cash flow schedule, we provide payments that are either weekly or daily. They will be automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Security of your data, and knowing the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of huge 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 techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to security for our clients and privacy. We make use of an advanced bank verification system link to instantly verify the bank account details online so we can provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an company owner utilises assets they own to secure the loan. The asset can be either an asset belonging to the personal, like the family home, or it could be a company asset such as a truck or piece or equipment.
The vast majority of lenders, even the big banks, tend to secure loans against an asset. If you are having difficulty paying back the loan, then your asset may be offered for sale by the lender. In essence it is a way of securing new financing by using the value of what you already own.
Should I require security to get a company loan?
For loans up to $150,000 there is no requirement for asset security before you can access the money however, we do need a personal guarantee. If you adhere to the terms of your loan (as stipulated in your loan contract) Asset security will never be needed. If you take out loans in excess of $150,000 generally there is an individual guarantee and security is provided in the form of a charge over assets.