FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Highbury Small Business Loans
Let me know about the Highbury Small Business Loans
Highbury unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
What makes this Unsecured Loan different from an traditional business loan?
Apply for your Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and the money could be available in just 24 hours. Traditional company loans are based on an interest rate per annum 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 to be paid, including any fees, interest or charges. Then, it is broken down into a daily or weekly installment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business reason, such as control of cash flow company remodels and marketing for purchasing inventory or new equipment, as general working capital and so much more. The loan is not available for personal purposes.
About larger Highbury Business Loans
What is the Larger Highbury Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to have been trading for at least 3 years with an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funds for?
A Larger Business Loan is a great option for almost every business purpose including business improvements, purchasing new equipment or inventory, as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. It is usually as a result of an charge over assets, which could also include the registration of this with the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a commitment to repay credit that is generally in nature rather than specifying security over a particular asset. The person who is signing the ensure is personally liable if the company lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including items or assets). The PPSR allows preference over private property assigned in accordance with the date on which a registration of a security interest.
An affidavit is an official document that is filed to provide notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re seeking a Larger Business Loan that exceeds $250,000 it’s possible to offer an initial pre-approval to smooth out the process. We might be able to make this decision without a credit check, and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering some financial well-being checks. It is in no way an offer, nor is it a guarantee of finance. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you receive could have different terms.
The application process
Are I eligible for funding?
You may be eligible for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form within a couple minutes, and an experienced company expert in lending will be in touch to assist you.
For a loan of up to $100,000, you’ll need ID details (valid Driver’s License) 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 need:
$100K-$250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent twelve month bank accounts, the IRD statements, last 2 years finalised financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we usually offer a response in one hour – as long as you submit your request at quality business timings and let us use the advanced bank verification system link to immediately verify your bank account information online. If you choose to send us copies of your bank statements , we are able to provide an answer in just the span of one business day.
For the Larger Business Loan ($100K or more) we may be able to provide the conditional pre-approval in about six hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, it could be faster based on the particular circumstances of each application. Some transactions have received approval within 24 hours.
The quickest way to apply can be make sure you apply during normal business hours. You can also permit us to use the modern bank verification to verify your bank information online. If you decide to upload documents from your account statement, it may take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K or more) we usually provide an answer within an hour – provided you submit your request during standard business timings and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statements, we are able to offer a decision within the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we might be capable of offer the conditional pre-approval within about six hours. After 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 circumstances of each application. Certain transactions have received approval in 24 hours.
The fastest method can be ensure you apply during normal business hours, and permit us to use the modern bank verification to check your bank’s information online. If you choose to upload the copies of bank accounts, it takes a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you submit an application for a certain amount we consider a variety of variables in order to assess what is the well-being of your company and the level of payments your business can support. The total amount of your loan will depend on the specifics that are unique to your business.
When you make an application for a particular amount, we take into consideration a variety of variables to determine how much we can lend you such as health that is 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 particulars for your business.
Fees & repayments
How much do you charge for the cost of a business loan?
When you make an application for our business loan, we’ll assess the risk assessment the business and provide you with a customised offer, including the amount of the loan, the duration and interest rates. The business loan is an upfront-priced loan therefore you will be aware of the total amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I’m charged?
Business loan interest rates vary due to factors including the amount that is borrowed, what company assets the money are used to purchase and the sector the business is in, how long the business has been operating and whether the company has enough cash flow to fund the loan, as well as the general well-being and creditworthiness of the company.
What are the cost?
There aren’t any hidden charges with our business loans, and you’ll know precisely what you be required to pay and at what time, from the first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments punctually).
We don’t charge an Application Fee. You can make an application for loans with no cost upfront or any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan earlier?
You can choose to repay all of your loan at any point in time.
If you do decide to pursue this option, please call our helpful business loan professionals. They will offer you with the details of your repayment as well as an early payout amount. The figure will be calculated as the sum of the remaining principal amount and any accrued interest at the date of early payout in addition to 1.5% of the principal balance and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in with your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my data be protected?
Security of your data, and making it clear how we collect, use, exchange and safeguard your data, is vital and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their privacy. We employ a highly sophisticated bank verification system to immediately confirm your bank account information online so we can offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term “asset-based” refers to borrowing where the company owner utilises an asset that they own to make a loan. The asset could be an asset belonging to the personal, like the family home or an company asset like a truck or piece of equipment.
The majority of the lenders including the big banks, tend to secure loans against an asset. If you have trouble paying back the loan then the asset might be taken over by the lender. In essence it’s a way of securing new financing by making use of the value of what you already have.
Do I need security for an business loan?
Up to $150K in loans the requirement for asset security is not required in advance to gain access to the funds however, we do need the personal guarantee. As long as you follow the loan terms (as detailed in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans over $150K generally, you are able to get a personal ensure and security that is in the form an asset charge.