FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Houghton Bay Small Business Loans
Let me know about the Houghton Bay Small Business Loans
Houghton Bay unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
How is the Unsecured Loan different from the traditional business loan?
You can apply to this Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and the funds could be on your account within 24 hours. Traditional business loans have an annual rate of interest plus other fees and charges. Our company loan is a loan that is priced upfront and you’ll be aware of the amount you will have to pay, including the interest, fees and charges. Then, it is divided into weekly or daily payment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every business need, such as control of cash flow business remodeling, marketing to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used to fund personal expenses.
Concerning Larger Houghton Bay Business Loans
What is the Larger Houghton Bay Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly depending on your cash flow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan of this size the company needs to be trading for at least 3 years, and have an annual income of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funds for?
A Business Loan of a larger size can be used to fund almost all company need, including business renovations, purchase of inventory or new equipment or as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. It is usually as a result of an charge on assets and can include the registration of this through the PPSR or the registration of as a caveat.
A personal or director’s ensure is a commitment to repay credit that is general in nature rather than specifying the security of a specific asset. The person who signs the ensure is personally accountable if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR grants preference over private property granted in accordance with the date on which a security interest that is registered.
A caveat is a legal form of document to offer notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re requesting a Larger Business Loan that is greater than $250K we may be able to provide an initial pre-approval in order to simplify the process. We could be able to make this decision without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial evaluation that involves you answering some financial health checks. It is neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you may receive may have different conditions.
The application process
Do I have the right to receive funds?
You can apply for an business 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 trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Just complete the online application within a couple minutes, and a dedicated business lending specialist will contact you to help you.
To apply for up $100,000, you’ll need identification details (valid Driver’s Licence) along with an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K and up) we typically offer a response in one hour – as long as you apply at quality company time and let us make use of the advanced bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statement, we’ll provide an answer within just an company day.
For the Larger Business Loan ($100K or more) we may be able to offer you with conditional pre-approval within six hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this could be shorter based on the specifics of each application. Some offers have been approved in the space of 24 hours.
The fastest way can be ensure you apply during normal company hours and allow us to use the modern bank verification link to instantly verify your bank account information online. If you opt to upload duplicates of your banking accounts, it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we can often offer an answer within one hour – as long as you make your application in normal business timings and permit us to use the bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statements, we will be able to provide the decision within an business day.
For the Larger Business Loans ($100K up to $500,000) we could be able to offer you with pre-approval conditional to your application within about 6 hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be faster depending on the specifics of each application. Certain transactions have received approval within just 24 hours.
The fastest way would be to ensure you apply during standard business hours. Also, let us use the sophisticated bank verification link to confirm your bank details online. If you choose to upload duplicates of your banking statements it takes 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 take into consideration a range of factors that determine what is the well-being for your company and the amount of the repayments your company will be able to support. The total amount of your loan will depend on the specifics for your business.
When you submit an application for a set amount, we take into consideration a variety of factors to determine the well-being of the company and the extent of payments your company can support. The amount you receive from your loan will be contingent on the particular circumstances the business.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to apply for the business credit, we’ll assess the risk assessment for your business and provide an individualised proposal that includes the amount of the loan, the duration and interest rates. The business loan is an upfront priced loan and you’ll know the exact amount you will have to pay, including costs, fees, or interest rates.
What determines the rate that I’m charged?
Interest rates for company loans rates vary due to factors including the amount borrowed, the business assets the funds will be used for as well as the field the company is operating in, how long the business is in operation for, what percentage of the business has sufficient cash flow to fund the loan, and also the overall well-being as well as creditworthiness business.
What are the charges?
There aren’t any hidden charges for our business loans. You’ll know precisely what you’ll be required to pay, and when, starting from the very first day. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to make your payments in time).
We don’t charge an application fee. You can request a credit loan no cost upfront or any obligation to sign up.
The Origination Fee is the cost associated with establishing and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percent of the loan amount.
Do I have the option of paying off the loan early?
You can choose to repay all of your loan at any point in time.
If you decide to pursue this option, please talk to one of our helpful company credit specialists. We will offer you with details on repayment as well as an early payout amount. This will be calculated as the total of the principal amount remaining and the accrued interest up to the time of early payout in addition to 1.5% of the principal amount remaining and any fees that remain unpaid.
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. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being clear about how we collect, use, exchange and secure your information, is of paramount importance and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use 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 that allows you to immediately confirm your bank account information online so we can offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the company owner makes use of assets they own to obtain the funding. The asset can be a personal asset like the family home or an company asset like a truck as well as a piece of machine.
The majority of lenders, including the largest banks, are inclined to guarantee loans against assets. If you are having difficulty paying back the loan, then the asset might be transferred to the lender. In essence, it’s an opportunity to secure new financing using the worth of the asset you already own.
What do I need security to secure a business loan?
Up to $150K in loans it is not necessary to secure assets in advance to gain access to the funds, however we do require an individual guarantee. So long as you comply with your loan obligations (as specified in your loan contract document), asset security is not needed. If you take out loans in excess of $150,000 generally, there is personal guarantee and security in the form of a charge over assets.