FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Harbour View Small Business Loans
Tell me more about Harbour View Small Business Loans
Harbour View unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
How is the Unsecured Loan different from an ordinary company loan?
It is imaginable to apply to get this Small Business Loan in under 10 minutes online or by phone. You will receive an instant response and the money could be in your account within 24 hours. Traditional business loans have an interest rate per annum together with additional fees and charges. The company loan is an upfront priced loan and you’ll be aware in advance of the total amount payable including any fees, charges or charges. This is then divided into weekly or daily repayment figure.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company purpose including managing cash flows, business remodels and marketing for purchasing inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal use.
Concerning Larger Harbour View Business Loans
What is the Larger Harbour View Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are scheduled weekly or fortnightly depending on you cashflow.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount the company needs to have been trading for at least 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years and have 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 company loan can be used for nearly every company purpose including company remodeling, buying equipment or inventory as well as for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. This can be done by taking a charge against assets, which could also be registered through the PPSR or filing a caveat.
A personal or director’s ensure is a guarantee to repay credit that is generally in nature rather than stating security over a particular asset. The person who signs the ensure is personally liable in the event that the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests registered in respect of personal property (including the assets or goods). The PPSR allows priority over personal property to be assigned according to the date the security interest has been registered.
A caveat is a legal document filed to offer notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan that exceeds $250,000 we may be able to provide an initial pre-approval to make the process. It is possible to make this decision without a credit check and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes answering a couple of financial health checks. It’s not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you may receive may be on different terms.
The application process
Can I be eligible for funding?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months worth of trade (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a few minutes and a dedicated business loan specialist will call you to help you.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s Licence) and an active NZBN/IRD, and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, and interim financial statements for the current year as well as Aged Payables and Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K and up) We can usually offer an answer within an hour – as long as you submit your request in standard company hours and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your banking statements , we are able to provide an answer in as little as 1 business day.
For the Larger Business Loan ($100K and up) we could be in a position to provide the conditional pre-approval within about 6 hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending on the specifics of each application. Some deals have been approved in 24 hours.
The quickest way to apply can be ensure you apply during standard business hours, and allow us to use our advance bank verification to instantly confirm your bank details online. If you opt to upload the copies of bank statements , it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer within one hour – provided you submit your request at normal business timings and let us use the bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your bank statements, we are able to offer an answer in just one business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be capable of offer you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be faster depending on the particular circumstances of each application. Some agreements have been approved in just 24 hours.
The fastest method would be to make sure you apply during normal business hours. You can also let us use the advance bank verification to instantly verify your bank account information online. If you decide to send us copies of your bank statements it may take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a particular amount, we look at a variety of elements that determine the well-being for your company and the level of repayments that your company can support. The total amount of the loan will be determined by the specifics for your company.
When you apply for a set amount, we will consider a number of variables to determine how much we can lend you such as health that is your company as well as the amount of the repayments your business can support. The total amount of your loan will be contingent on the particular circumstances the business.
Fees & repayments
What is the cost for a company loan?
If you decide to request business loans with us business credit, we’ll assess the risk profile that you have for your company and provide you with a customised offer including the amount of the loan, the duration and the interest rates. This business loan is a loan that is priced upfront therefore you will be aware in advance of the total amount payable including any interest rates, fees or charges.
What determines the amount I will be charged?
The interest rates on business loans rates depend on a variety of factors like the amount of money borrowed, the business assets the funds are used to purchase as well as the field the company operates in, the long the business has been running for, what percentage of the company has enough cash flow to pay for the loan, and the overall well-being and creditworthiness of the company.
What are the costs?
There aren’t any hidden charges with our business loans, and you’ll know precisely how much you’ll need to pay, and when, right from the first day. There’s no compounding and no additional fees (as long as you make your payments in time).
We do not charge an application fee. You are able to make an application for loans without any upfront costs or commitment to apply.
The Origination Fee is the cost associated with setting up and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I repay the loan early?
You can choose to repay all of your advance loan at any time.
If you are deciding to do this please contact our helpful business loans professionals. They’ll offer you with details for repayment as well as an early payout amount. This will be calculated as the sum of the principal amount remaining and the accrued interest up to the time of the early payout, plus 1.5% of the principal balance plus any outstanding fees.
How do you make repayments work?
To help you avoid missing payments and to work your cash flow schedule, we provide repayments either weekly or daily. They will be automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and making it clear how we collect data, process, exchange and safeguard your data, is crucial and an integral 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 certified for our commitment to the security of our clients as well as their privacy. We use an advanced bank verification system link to instantly confirm your bank account information online. This allows us to offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a business owner borrows from an asset that they own to get the funds for a loan. The asset could be an asset belonging to the personal, like the family home or a business property like a truck or other piece of machinery.
The majority of lending institutions, even the big banks, tend to secure loans against an asset. If you are having difficulty paying back the loan, the asset could be taken over by the lender. In essence it is means of securing new funding making use of the value of what you already have.
Are I require security for a business loan?
Up to $150K in loans the requirement for asset security is not required upfront to access the money however, we require a personal guarantee. require the personal guarantee. As long as you follow your loan commitments (as specified in your loan contract document) Asset security is not needed. For loans that exceed $150K, generally there is a personal guarantee and security is provided in the form of charges on assets.