FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Henderson Small Business Loans
Tell me what you think of the Henderson Small Business Loans
Henderson unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
What makes this Unsecured Loan different from an traditional company loan?
The application to get this Small Business Loan in under 10 minutes online or by phone. You will receive a same day response and have the funds on your account within 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. Our business loan is an upfront priced loan which means you be aware in advance of the total amount due, which includes any interest, fees or charges. This is then broken down into weekly or daily 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 virtually every company need, such as the management of cash flow, company remodeling, marketing for purchasing inventory or new equipment, as general working capital and much more. The loan cannot be used for personal purposes.
About larger Henderson Business Loans
What is the Larger Henderson Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your situation.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to be trading for at least 3 years, and have an annual income of $700K. The applicant must also be 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 demonstrate at least 12 months of trading.
What can I use the funding for?
A large business loan can be used for nearly every business reason, such as company renovations, purchase of equipment or inventory for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. It is usually by taking a charge over assets, and may include registration through the PPSR or filing a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is generally based rather than specifying the security for a particular asset. The person who signs the guarantee is personally liable in the event that the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including the assets or goods). The PPSR permits preference over private property assigned in accordance with the date on which a registration of a security interest.
Caveats are legal document lodged to offer the legal claim to property.
What exactly is a preapproval without Credit Check?
When you’re applying for a Larger Business Loan that is greater than $250K, we may offer an initial pre-approval to simplify the process. It is possible to make this decision without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves you answering a few financial health checks. It’s not an offer or guarantee of finance. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you are offered could be subject to different terms.
Can I be eligible for funding?
You can apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of trading (for a 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. Just fill out the online application in few minutes and an experienced business credit specialist will contact you to help you.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s Licence) along with a valid NZBN/IRD and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Information on the application including credit consent twelve months of bank records, IRD statement, last 2 years finalised financial statements, plus interim current financial year financials including Aged Payables, Aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) We can usually provide an answer within one hour if you apply in standard company timings and allow us to make use of 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 are able to provide a decision in as little as 1 company day.
For Larger Business Loans ($100K up to $500,000) we could be in a position to provide the conditional pre-approval in about six hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Certain transactions have received approval within just 24 hours.
The most efficient method can be ensure you apply during standard business hours. You can also let us use the advance bank verification to confirm your bank details online. If you decide to send us the copies of bank accounts, it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) we usually provide a response in one hour – provided you apply at standard business hours and permit us to use the advanced bank verification system to immediately verify your bank account information online. If you want to send us copies of your bank statement, we’ll offer an answer in as little as one business day.
For the Larger Business Loans ($100K to $500K) we might be in a position to provide you with pre-approval conditional to your application in about 6 hours. After you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this could be shorter based upon the circumstances for each application. Some deals have been approved in the space of 24 hours.
The fastest method can be ensure you apply during normal business hours. Also, allow us to use our modern 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.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a certain amount, we will consider a number of factors for determining the health that is your company and the amount of the repayments your business is able to afford. The total amount of your loan will be contingent on the particular circumstances the company.
When you make an application for a set amount, we look at a range of elements to determine the well-being of the company as well as the amount of payments your business will be able to support. The amount you receive from your loan will depend on the particulars of your business.
Fees & repayments
What is the cost for an company loan?
If you decide to request business loans with us company loan, we will assess the risk assessment for your business and provide you with a customised offer, including loan amount, term and the interest rates. The business loan is a loan that is priced upfront therefore 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 depend on a variety of factors like the amount of money borrowed, what company assets the funds will be used for as well as the field the company is in, how long the company has been running and in the event that the company has sufficient cash flow to cover the loan, as well as the overall well-being or creditworthiness of the company.
What are the charges?
There aren’t any hidden charges with our company loans. You’ll know exactly how much you be required to pay, and at what time, from the day you sign up. There’s no compounding and there are no additional charges (as long as you are able to make your payments in time).
We do not charge an application fee. You are able to get a cash loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. The only way to pay this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay out the loan early?
You may choose to pay back the entire amount of the loan at any point in time.
If you choose to take this route, please speak to our friendly business loan experts. They will offer you with repayment details as well as an early payout amount. It will be calculated using the total of the principal balance and any accrued interest at the date of early payout plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
How do repayments work?
To ensure that you don’t miss payment dates and to align your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from your business account.
Security & privacy
Will my information be secure?
Protecting your information, and knowing how we collect, use, exchange and secure your information, is crucial and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to customer security and privacy. We use an advanced bank verification system that allows you to instantly confirm your bank account information online, allowing us to provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a business owner borrows from assets they own to obtain the funds for a loan. The asset can be either an individual property, such as the family home or it could be a business asset such as a truck or other piece of machinery.
The vast majority of lenders, not just the largest banks, are inclined to make loans secured by assets. If you’re struggling to pay back the loan, the asset might be taken over by the lender. In essence it is means of securing additional financing using the worth of the asset you already own.
Do I require security for an business loan?
For loans of up to $150,000, the requirement for asset security is not required in advance to gain access to the funds but we do require an individual guarantee. As long as you follow your loan obligations (as stipulated in your loan contract document) Asset security will never be needed. For loans that exceed $150K, generally, you are able to get a personal guarantee and security is provided in the form of the charge of assets.