FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Arch Hill Small Business Loans
Let me know what you think of the Arch Hill Small Business Loans
Arch Hill unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from an ordinary business loan?
You can apply for your Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and the funds could be on your account within 24 hours. Traditional company loans reference an annual interest rate along with other charges and fees. The business loan is a loan that is priced upfront so you will be aware in advance of the total amount payable including any interest, fees or charges. Then, it is divided into a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business need, such as the management of cash flow, business remodels and marketing to purchase inventory, new equipment, for general working capital and so much more. The loan cannot be used for personal purposes.
About larger Arch Hill Business Loans
What is the Larger Arch Hill Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed for up to 36 months. Repayments are either weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
A 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?
To qualify for a loan that is this large, your business needs to have been trading for at least 3 years, and have an annual income of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funding be utilised?
A Larger Business Loan can be used for almost all business reason, such as company renovations, to purchase equipment or inventory, as general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. It’s as a result of an charge on assets and can be registered on the PPSR or filing a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is general in nature, rather than specifying the security of a specific asset. The person signing 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 that is operated by the New Zealand Government. It contains security interests that are registered for personal property (including the assets or goods). The PPSR allows preference over private property assigned according to the date a security interest that is registered.
Caveats are legal document filed to provide an official notice of a claim against a property.
What is a pre-approval without Credit Check?
If you’re requesting the Larger Business Loan of more than $250,000 we can offer an initial pre-approval that will help smooth out the process. We may be able to apply for this without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves answering a couple of financial health checks. It’s neither an offer nor a guarantee of financing. A conditional approval is subject an assessment of your creditworthiness and any offer you might receive could be based on different terms.
Are I eligible for funding?
You can apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form in few minutes and a dedicated business loan specialist will call you to guide you through the process.
To apply for up $100,000 you’ll require ID details (valid Driver’s Licence) and a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, in addition to interim current financial year financials, Aged Payables and Aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we usually offer an answer within one hour, provided you apply in standard company timings and permit us to use the advanced bank verification system to instantly verify your bank’s information online. If you opt to send us copies of your bank statement, we’ll offer the decision in just 1 business day.
For the Larger Business Loan ($100K or more) we could be in a position to offer you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this could be shorter based on the specifics of each application. Certain agreements have been approved within 24 hours.
The quickest way to apply is to ensure you apply during normal company hours. You can also permit us to use the advance bank verification link to instantly confirm your bank details online. If you choose to upload the copies of bank accounts, it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) we can often offer a response in one hour – as long as you make your application at standard business hours and permit us to use the bank verification system to instantly verify your bank information online. If you opt to upload copies of your bank statements, we are able to offer the decision within the span of one business day.
For Larger Business Loans ($100K up to $500,000) We may be capable of offer you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, this may be quicker depending on the specifics of each application. Certain transactions have received approval within just 24 hours.
The most effective method is to ensure you apply during standard business hours. You can also permit us to use the advanced bank verification system to verify your bank information online. If you opt to send us the copies of bank statement, it may take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a certain amount, we take into consideration a range of elements in order to assess your health of your company and the level of repayments that your company will be able to support. The amount you receive from your loan will depend on the specific circumstances that are unique to your business.
If you apply for a specific amount we will consider a number of factors to assess the well-being that is your company and the extent of repayments your company will be able to support. The total amount of your loan will be contingent on the specific circumstances for your business.
Fees & repayments
How much do you charge for the cost of a business loan?
When you make an application for the business loans, we’ll assess the risk assessment for your business and provide you with a customised offer including the amount of loan, the term and the interest rates. The business loan is an upfront cost loan so you will be aware of the total amount to be paid, including any interest rates, fees or charges.
What determines the amount I am charged?
Business loan interest rates differ based on various variables like the amount to be borrowed, the business assets the money are used to purchase in addition to the industry that the company is operating in, how long the company has been in operation for, in the event that the company has sufficient cash flow to support the loan, and general well-being or creditworthiness of the company.
What are the cost?
There are no hidden costs for our company loans. You’ll know exactly how much you need to pay, and when, starting from day one. There’s no compounding interest, and no extra fees (as as you make your payments in time).
We do not charge an Application Fee. You can request a credit loan with with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved with establishing and managing the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay out the loan earlier?
You can decide to repay the entire amount of the loan early at any time.
If you do decide to pursue this option, please call our helpful company loans experts. They’ll provide you with details for repayment as well as an early payout amount. It will be calculated using the total of the principal remaining plus any accrued interest as of the time of early payout and 1.5 percent of the principal remaining and any fees that remain unpaid.
What is the process for repayments?
To help you avoid missing due dates and also to be in line your cash flow schedule, we offer repayments either daily or weekly. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my data be protected?
Security of your data, and being clear about the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and is an essential aspect 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 personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to security for our clients and privacy. We use an advanced bank verification system to instantly confirm your bank account information online, allowing us to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the company owner borrows from an asset that they own to get the funding. The asset can be either an asset belonging to the personal, like the family home or it could be a company asset like a truck or piece of equipment.
The majority of lending institutions, including the major banks, prefer to secure loans against an asset. If you are having difficulty paying back the loan, your asset may be sold by the lender. In essence, it is a way of securing new financing by taking advantage of the value of what you already have.
Are I require security for an business loan?
For loans up to $150,000 there is no requirement for asset security in advance to gain access to the funds, however we require a personal guarantee. need the personal guarantee. So long as you comply with the loan terms (as detailed in the loan contract) and you are able to meet your obligations, asset security is not required. For loans of over $150K generally there is the option of a personal ensure and security in the form charges on assets.