FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Harbour View Small Business Loans
Let me know more about Harbour View Small Business Loans
Harbour View unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
How is the Unsecured Loan different from the traditional company loan?
You can apply to your Small Business Loan in under 10 minutes over the phone, receive an answer within the same day and funds may be in your account within 24 hours. Traditional business loans have an interest rate per annum together with additional fees and charges. This company loan is an upfront priced loan so you will be aware of the total amount payable including any interest, fees or charges. This is then broken down into weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
A Small Business Loan can be used for nearly any business need, such as the management of cash flow, business improvements, advertising, to purchase inventory or new equipment, to fund general working capital and much more. The loan is not available for personal use.
Concerning Larger Harbour View Business Loans
What is the Larger Harbour View Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your business needs to be trading for at least 3 years and have an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funding be utilised?
A large company loan is a great option for almost every business reason, such as company renovations, to purchase 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 needed to access funding over $150,000. This can be done as a result of an charge over assets, and could include the registration of this on the PPSR or filing as a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is generally based rather than specifying security over a particular asset. The person who is signing the ensure is personally responsible if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It records security interests that have been registered in respect of personal property (including the assets or goods). The PPSR grants the priority of personal property assigned in accordance with the date on which a security interest that is registered.
A caveat is a legal document lodged to offer an official notice of a claim against a property.
What is a pre-approval without Credit Check?
When you’re applying for a Larger Business Loan of $250K or more, we may offer an initial pre-approval in order to make the process. We might be able to get this done without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves the answer to a series of financial well-being checks. It is in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you might receive could have different conditions.
Are I eligible for funding?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just complete the online application in just a few minutes, and a dedicated business lending specialist will call you to help you.
To apply for up $100,000 you’ll require the right identification documents (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K-$250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent, 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) We can usually provide a response in one hour, provided you apply during standard company timings and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your bank statements , we’ll be able to offer the decision within the span of one company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we might be capable of offer 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 it could be faster based on the circumstances of each application. Certain offers have been approved within the space of 24 hours.
The quickest method would be to ensure you apply during standard business hours. You can also permit us to use the advance bank verification link to instantly verify your bank account information online. If you choose to send us copies of your bank statements , it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we usually offer an answer within an hour, provided you apply during normal business hours and permit us to utilise the advanced bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statements, we’ll be able to provide an answer in just 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be capable of provide the conditional pre-approval in about six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be faster depending upon the circumstances for each application. Certain deals have been approved within 24 hours.
The quickest method can be make sure you apply during standard business hours. You can also allow us to use our modern bank verification link to instantly verify your bank information online. If you decide to upload duplicates of your banking statements, it will take a little longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a particular amount, we take into consideration a range of variables that determine how much we can lend you health of your company and the amount of payments your company will be able to support. The amount you receive from the loan will be determined by the specific circumstances of your business.
When you submit an application for a particular amount, we look at a range of aspects to determine how much we can lend you such as health that is your company and the amount of the repayments your company can afford. The amount you receive from your loan will depend on the particular circumstances for your business.
Fees & repayments
How much do you charge for an business loan?
When you make an application for the company loans, we will assess the risk profile of your company and provide you with a customised offer, including the loan amount, the terms and interest rates. The company loan is an upfront cost loan and you’ll know the exact amount to be paid, including any costs, fees, or interest rates.
What determines the amount I am charged?
Business loan interest rates depend on several factors including the amount borrowed, the company assets the money will be used for and the sector the company operates in, the long the company has been running, in the event that the company has sufficient cash flow to pay for the loan, and overall well-being or creditworthiness of the company.
What are the cost?
There are no hidden fees with our business loans, and you’ll be aware of the amount it is that you be required to pay, and at what time, from the very first day. There’s no compounding and the loan comes with no additional fees (as long as you make your payments punctually).
We don’t charge an application fee. You can request a credit loan with without any upfront costs or any obligation to sign up.
The Origination Fee covers the costs associated in establishing and managing the loan. This is only a 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 repay the loan earlier?
You can repay the entire amount of your loan early at any time.
If you choose to do this please contact our helpful company loans experts. They will provide you with repayment details along with an early payout estimate. This is calculated as the sum of the principal amount remaining plus any accrued interest as of the time of early payout, plus 1.5% of the remaining principal and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line with your cash flow routine, we offer repayments that are either weekly or daily. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Security of your data, and knowing how we collect information, use it, and exchange it, as well as secure your information, is of huge importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to security for our customers and security. We use an advanced bank verification system that allows you to instantly verify the bank account details online so we can offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the company owner borrows from assets they own to make the loan. The asset can be either an individual asset, such as the family home or a company asset such as a vehicle or piece or equipment.
The vast majority of lenders, not just the major banks, prefer to secure loans against assets. If you’re struggling to pay back the loan then the asset might be transferred to the lender. In essence it is the process of securing additional financing using the value of what you already own.
Should I require security to secure an company loan?
Up to $150,000 in loans it is not necessary to secure assets prior to the loan’s access However, we do need a personal guarantee. In the event that you fulfill your loan commitments (as detailed in your loan contract document) the security of assets will never be needed. For loans that exceed $150,000, generally there is the option of a personal guarantee and security in the form of a charge over assets.