FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Alicetown Small Business Loans
Tell me more about Alicetown Small Business Loans
Alicetown unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from an traditional company loan?
Apply to this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an answer within the same day and have the funds on your account within 24 hours. Traditional company loans have an annual rate of interest along with other charges and fees. This business loan is an upfront priced loan therefore you’ll know ahead of time the total amount due, which includes the interest, fees and charges. This is then divided into weekly or daily installment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business reason, such as managing cash flows, company remodels and marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan cannot be used to fund personal expenses.
Concerning Larger Alicetown Business Loans
What is the Larger Alicetown Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the company needs to be trading for at least 3 years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funding be utilised?
A large business loan can be used for nearly every business purpose including company renovations, purchase of new equipment or inventory as well as for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. This is by taking a charge over assets, and could include the registration of this in the PPSR or registering as a caveat.
A director’s or personal ensure is a promise to repay credit that is general in nature, rather than defining the security for a particular asset. The person who is signing the guarantee is personally liable in the event that the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including items or assets). The PPSR gives prioritisation over property that is personal to be granted depending on the date that a security interest that is registered.
The caveat can be described as a formal document lodged to offer notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan of more than $250,000, we may offer an initial pre-approval to smooth out the process. We could be able to do this without a credit check and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes you answering a few financial health questions. It is in no way an offer, nor is it a guarantee of credit. A conditional approval is subject an extensive credit evaluation and any offer that you may receive may have different terms.
The application process
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 at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application in just a few minutes, and an experienced company loan specialist will contact you to guide you through the process.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s Licence) and a valid NZBN/IRD as well as at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K-$250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Application details including credit consent and 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) We can usually provide an answer within one hour – as long as you submit your request during standard company times and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your bank statements , we are able to offer the decision in just the span of one business day.
For Larger Business Loans ($100K to $500K) we could be capable of offer you with conditional pre-approval within six hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this can be quicker based on the circumstances of each application. Some agreements have been approved in just 24 hours.
The most effective method is to ensure you apply during normal business hours and allow us to use the advance bank verification link to instantly verify your bank information online. If you opt to send us copies of your bank statements , it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically provide an answer in just one hour – provided you apply within normal business hours and permit us to make use of the advanced bank verification system to instantly verify your bank information online. If you choose to send us copies of your bank statements, we are able to offer a decision in just one business day.
If you are applying for Larger Business Loans ($100K or more) We may be capable of offer you with pre-approval conditional to your application in around six hours. Once you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval, however this could be shorter based on the specifics of each application. Certain transactions have received approval in just 24 hours.
The quickest method can be ensure you apply during standard business hours, and let us use the sophisticated bank verification to verify your bank information online. If you opt to upload the copies of bank statements, it may take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you submit an application for a certain amount we consider a variety of factors that determine what is the health of your company and the amount of the repayments your company can afford. The amount you receive from the loan will be determined by the specifics of your business.
When you make an application for a set amount, we take into consideration a variety of aspects to determine your health of your business and the level of repayments that your company can support. The amount you receive from your loan will depend on the particulars of your company.
Fees & repayments
How much should you charge for an business loan?
When you apply for our company financing, we’ll assess the risk profile of your company and offer you with a tailored offer including loan amount, term and interest rates. The business loan is a loan that is priced upfront and you’ll know in advance the total amount to be paid, including any interest rates, fees or charges.
What determines the amount I’m 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, the industry the company operates in, how long the business has been in operation for, how long the business has enough cash flow to pay for the loan, as well as the general well-being as well as creditworthiness business.
What are the fees?
There aren’t any hidden charges with our business loans. You’ll know precisely how much you need to pay and at what time, from the first day. There’s no compounding interest and no extra fees (as long as you make your payments on time).
We don’t charge an application fee. You can make an application for loans no cost upfront or any obligation to sign up.
The Origination Fee includes the expenses associated with the setting up and management of the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Do I have the option of paying off the loan early?
You can choose to repay the entire amount of the advance loan at any time.
If you are deciding to do this please call our helpful company loans specialists. They’ll offer you with repayment details and an early payment figure. The figure will be calculated as the sum of the principal remaining and any accrued interest at the time of early payout, plus 1.5 percent of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line with your cash flow cycle we offer repayments that are either daily or weekly. They are automatically deducted from your business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being upfront about how we collect data, process, exchange and secure your information, is vital and a vital 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 secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our customers and security. We make use of an advanced bank verification system link to immediately verify your bank account information online to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the business owner utilises an asset they own to make the funds for a loan. The asset could be an individual asset, such as the family home or it could be a business property like a truck as well as a piece of machine.
The majority of lending institutions, even the major banks, prefer to secure loans against an asset. If you have trouble paying back the loan, then the asset could be taken over by the lender. In essence, it’s the process of securing new funding making use of the value of what you already have.
Are I need security to get an business loan?
For loans up to $150,000 there is no requirement for asset security in advance to gain access to the funds but we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan obligations (as stated in your loan contract), asset security is not needed. For loans over $150K typically, you will need personal ensure and security in the form of charges on assets.