FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Half Moon Bay Small Business Loans
Let me know more about Half Moon Bay Small Business Loans
Half Moon Bay unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from the traditional business loan?
Apply to get this Small Business Loan in under 10 minutes online or by phone. You will receive an instant response and have the funds available in just 24 hours. Traditional business loans have an annual interest rate as well as other fees and charges. We offer a company loan is an upfront priced loan which means you be aware of the total amount to be paid, including any interest, fees or charges. Then, it is broken down into either a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company need, such as managing cash flows, company improvements, advertising to purchase inventory, new equipment, to fund general working capital and so much more. The loan is not available to fund personal expenses.
About larger Half Moon Bay Business Loans
What is the Larger Half Moon Bay 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 for a fixed period of up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the business needs to be operating for a minimum of 3 years with an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (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 is a great option for almost any business need, including business improvements, purchasing equipment or inventory as well as for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. This is by taking a charge on assets, which could also include registering this with the PPSR or making a caveat.
A personal or director’s ensure is a commitment to repay a loan which is generally in nature rather than stipulating security over a particular asset. The person who is signing the guarantee is personally accountable if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including the assets or goods). The PPSR grants priority over personal property to be assigned according to the date a security interest that is registered.
The caveat can be described as a formal document that is filed to offer an official notice of a claim to a property.
What is a pre-approval minus Credit Check?
If you’re applying for an enterprise loan of more than $250,000, we may offer an initial pre-approval to make the process. We may be able to apply for this without a credit check, and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial well-being checks. This is neither an offer nor a guarantee of finance. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you are offered could be based on different terms.
Are I eligible for funding?
You may apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a couple minutes, and a dedicated business loan specialist will be in touch to assist you.
To be eligible for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) and an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Application requirements, including credit approval, 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, 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, in addition to interim financials from the current financial 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 often offer a response in one hour, provided you make your application at standard business timings and permit us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your banking statements , we will be able to provide an answer within just the span of one company day.
For Larger Business Loans ($100K to $500K) we might be likely to provide you with a conditional pre-approval in around six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Some transactions have received approval within the space of 24 hours.
The quickest method for you to apply is ensure you apply during standard company hours. Also, permit us to use the advanced bank verification system to instantly verify your bank account information online. If you send us the copies of bank statements , it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K or more) we can often provide a response in one hour, provided you apply within normal business time and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you opt to submit copies of your bank statements we can provide an answer in just 1 business day.
For Larger Business Loans ($100K up to $500,000) We may be in a position to offer the conditional pre-approval within 6 hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be faster depending on the specifics of each application. Some transactions have received approval within less than 24 hours.
The fastest way can be ensure you apply during standard business hours. Also, permit us to use the sophisticated bank verification link to instantly check your bank’s information online. If you send us the copies of bank statements it may take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you make an application for a certain amount, we will consider a number of elements in order to assess your health of your company and the amount of repayments your business can afford. The amount you receive from your loan will be contingent on the specific circumstances that are unique to your business.
When you submit an application for a set amount, we consider a variety of variables to assess how much we can lend you such as health of your business as well as the amount of the repayments your business can afford. The total amount of your loan will be determined by the specifics the business.
Fees & repayments
How much should you charge for an business loan?
If you decide to request our business financing, we will assess the risk profile of your business and offer an individualised proposal that includes the loan amount, the terms and the interest rates. The company loan is an upfront-priced loan therefore you will be aware in advance of the total amount to be paid, including any charges or interest.
What is the factor that determines the price I’m charged?
Interest rates for company loans rates depend on several factors such as the amount that is of money borrowed, the company assets the funds will be used for and the sector the company operates in, the long the business has been running for, how long the company has enough cash flow to fund the loan, as well as the general health and creditworthiness of the business.
What are the costs?
There are no hidden fees with our business loans, and you’ll know precisely what you need to pay and when, from the day you sign up. 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 get a cash loan with no upfront cost or any obligation to sign up.
The Origination Fee is the cost associated with establishing 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 percentage of the amount of the loan.
Can I pay off the loan early?
You may choose to pay back the total amount of your advance loan at any time.
If you decide to do this please speak to our friendly company credit professionals. We will provide you with the details of your repayment and an early payout figure. It will be calculated using the total of the remaining principal amount and the accrued interest up to the time of the early payout plus 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 with your cash flow cycle we provide payments that are either daily or weekly. They are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being transparent about how we collect information, use it, and exchange it, as well as secure your information, is crucial and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to security for our customers and security. We utilise a sophisticated bank verification system that allows you to instantly confirm your bank account information online. This allows us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an company owner makes use of assets they own to make a loan. The asset may be an asset belonging to the personal, like the family home or a company asset such as a truck or piece of equipment.
The vast majority of lenders, including the banks with the biggest size, prefer to secure loans against an asset. If you’re struggling to pay back the loan then your assets could be taken over by the lender. In essence it’s means of securing new financing by using the worth of the asset you already have.
Should I require security to get an business loan?
For loans up to $150,000 there is no requirement for asset security before you are able to access the money however, we require a personal guarantee. need the personal guarantee. In the event that you fulfill the terms of your loan (as specified in your loan contract) the security of assets is not required. For loans that exceed $150K, generally, you are able to get personal ensure and security in the form an asset charge.