FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Heretaunga Small Business Loans
Let me know more about Heretaunga Small Business Loans
Heretaunga unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from an ordinary company loan?
It is imaginable to apply for your Small Business Loan in under 10 minutes online or over the phone. You’ll get an immediate response, and the money could be in your account within 24 hours. Traditional company loans refer to an annual rate of interest as well as other fees and charges. Our business loan is a cash-based loan and you’ll know in advance the amount you will have to pay, including any interest, fees or charges. This is then broken down into either weekly or daily installment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business purpose including cash flow management, company remodels and marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available to fund personal expenses.
About larger Heretaunga Business Loans
What is the Larger Heretaunga Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be used for?
A Business Loan of a larger size can be used to fund almost every business need, including company remodeling, buying inventory or new equipment as well as for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. This is in the form of a charge against assets, and may be registered in the PPSR or filing as a caveat.
A director’s or personal ensure is a guarantee to repay a loan which is general in nature, rather than specifying security over an asset. The person who signs the ensure is personally liable if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR grants priority over personal property to be assigned in accordance with the date on which a security interest that is registered.
An affidavit is an official document lodged to offer the public notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
When you’re applying for an enterprise loan that exceeds $250K, we may offer an initial pre-approval that will help make the process. We could be able to make this decision without a credit verification and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes answering a couple of financial health questions. It’s neither an offer nor a guarantee of finance. Acceptance without condition is subject to an extensive credit evaluation and any offer that you receive could have different conditions.
Are I eligible for funding?
You are eligible to apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (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. Just fill out the online application within a few minutes and an experienced business expert in lending will be in touch to help you.
For a loan of up to $100,000, you’ll need proof of identity (valid Driver’s License) as well as an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K to $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Application details including credit consent as well as 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, plus interim current financial year financials such as age-related payables and aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we typically provide an answer within an hour, provided you submit your request during quality business timings and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your banking statement, we’ll provide an answer within just the span of one business day.
If you are applying for a Larger Business Loan ($100K to $500K) we could be able to offer you with conditional pre-approval within six hours. After you’ve signed your pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however this may be quicker depending on the specifics of each application. Certain transactions have received approval within just 24 hours.
The fastest way is to make sure you apply during normal business hours. Also, let us use the modern bank verification link to check your bank’s information online. If you choose to upload documents from your account statements it takes a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we usually offer an answer within an hour – provided you submit your request at normal business times and let us use the advanced bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statements, we are able to provide a decision within the span of one business day.
For the Larger Business Loans ($100K and up) we might be in a position to provide you with pre-approval conditional to your application within about six hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Certain deals have been approved in 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours. Also, permit us to use the advanced bank verification system link to check your bank’s information online. If you decide to upload the copies of bank statement, it may take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a specific amount we will consider a number of elements for determining what is the well-being that is your company as well as the amount of repayments your business will be able to support. The amount you receive from the loan will be determined by the specific circumstances the business.
When you apply for a particular amount, we will consider a number of variables to assess how much we can lend you such as well-being for your business and the amount of the repayments your business will be able to support. The amount you receive from your loan will be contingent on the specific circumstances of your business.
Fees & repayments
What is the cost for an company loan?
When you apply for our company loan, we’ll assess the risk profile the business and offer an individualised proposal that includes the amount of loan, the term and the interest rates. A company loan is an upfront priced loan and you’ll know the exact amount due, which includes any charges or interest.
What determines the amount I pay?
Interest rates for company loans rates depend on a variety of variables like the amount to be of money borrowed, the company assets the money will be used for, the industry the company operates in, how long the business has been running and what percentage of the business has sufficient cash flow to pay for the loan, as well as the overall health or financial standing of the company.
What are the charges?
There are no hidden costs with our business loans, and you’ll be aware of the amount it is that you need to pay and when, from the first day. There’s no compounding interest, and there are no additional charges (as as you make your payments on time).
We don’t charge an Application Fee. You can get a cash loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee includes the expenses associated with the setting up and management of the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I pay off the loan in advance?
You can decide to repay the entire amount of your loan in full at any time.
If you decide to do this please talk to one of our helpful company loans specialists. We will provide you with repayment details as well as an early payout amount. This will be calculated as the sum of the principal balance and the accrued interest up to the time of early payout, plus 1.5% of the principal remaining and any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss payments and to work your cash flow schedule, we provide payments that are either weekly or daily. These are automatically withdrawn 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 secure your information, is of huge importance and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We employ an exceptionally sophisticated bank verification system to immediately verify your bank account information online. This allows us to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner uses an asset they own to obtain the loan. The asset can be either an individual asset, such as the family home, or an company asset such as a vehicle or piece or equipment.
The vast majority of the lenders not just the banks with the biggest size, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, then the asset could be offered for sale by the lender. In essence, it’s a way of securing additional financing using the worth of the asset you already own.
Do I need security to get an business loan?
For loans that exceed $150K, there is no requirement for asset security before you can access the money, however we do need a personal guarantee. So long as you comply with the loan terms (as stipulated in your loan contract), asset security will never be needed. For loans of over $150K generally, you are able to get personal guarantee and security in the form of a charge over assets.