FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Johnsonville Small Business Loans
Tell me more about Johnsonville Small Business Loans
Johnsonville unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What makes how is the Unsecured Loan different from the traditional business loan?
The application to get this Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and have the funds in your account within 24 hours. Traditional business loans reference an annual interest rate as well as other fees and charges. This business loan is a pre-paid loan so you will know ahead of time the total amount payable including any fees, interest or charges. This is then broken down into either a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any company need, such as cash flow management, business remodels and marketing, to purchase inventory or new equipment, for general working capital, and much more. The loan cannot be used for personal reasons.
About the Larger Johnsonville Business Loans
What is the Larger Johnsonville Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to be in operation for at least 3 years and have an annual turnover of at least $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can the funds be used for?
A large business loan can be used for nearly any company use, including business improvements, purchasing inventory or new equipment or as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed to obtain funding above $150,000. It’s by taking a charge on assets, which could also include the registration of this through the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a promise to repay a loan which is generally in nature rather than stipulating the security for a particular asset. The person who is signing the guarantee is personally accountable if the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It contains security interests that are registered for personal property (including objects or assets). The PPSR permits the priority of personal property assigned according to the date the security interest that is registered.
A caveat is a legal document lodged to provide notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan of $250,000 or more we may be able to provide an initial pre-approval that will help ease the process. We could be able to apply for this without credit checks and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial well-being questions. It’s in no way an offer, nor is it a guarantee of finance. A conditional approval is subject an assessment of your creditworthiness and any offer you might receive could be based on different terms.
Do I have the right to receive funds?
You may apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in just a few minutes, and a dedicated company expert in lending will contact you to help you.
For a loan of up to $100,000, you’ll need identification details (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll 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: Details of the application, including credit consent twelve month bank accounts, the IRD statements as well as the two most recent years’ financial statements, as well as interim financials for the current financial year including Aged Payables, Aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we typically provide an answer in just one hour, provided you make your application in standard company timings and let us utilise the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statements , we are able to offer an answer within the span of one company day.
For Larger Business Loans ($100K or more) we might be in a position to provide you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Some offers have been approved in the space of 24 hours.
The quickest method would be to ensure you apply during normal business hours. Also, let us use the advanced bank verification system to instantly check your bank’s information online. If you send us documents from your account statements it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) We can usually provide a response in one hour if you apply at normal business time and permit us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your bank statements, we are able to provide a decision in as little as an business day.
For the Larger Business Loans ($100K and up) We may be in a position to provide you with conditional pre-approval in about six hours. Once you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be faster depending on the specifics of each application. Certain offers have been approved within just 24 hours.
The fastest method for you to apply is make sure you apply during normal business hours and allow us to use our modern bank verification link to verify your bank account information online. If you opt to send us duplicates of your banking statements, it will take a little longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a specific amount we will consider a number of elements in order to assess the health of your business and the extent of the repayments your company can afford. The amount you receive from your loan will be contingent on the specific circumstances the business.
When you make an application for a certain amount, we consider a variety of factors to assess how much we can lend you such as health for your business and the level of repayments your company can afford. The amount you receive from your loan will depend on the particular circumstances for your business.
Fees & repayments
How much do you charge for the cost of a business loan?
When you make an application for business loans with us company credit, we’ll assess the risk profile for your business and provide an individualised proposal that includes the amount of loan, the term and the interest rates. The company loan is an upfront-priced loan therefore you will be aware in advance of the total amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I will be charged?
Business loan interest rates differ based on various factors such as the amount that is borrowed, the company assets the money will be used for, the industry the business is in, how long the company has been operating as well as whether the business has sufficient cash flow to pay for the loan, and also the overall health or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges for our business loans. You’ll know exactly how much you’ll need to pay, and when, right from the very first day. There’s no compounding and there are no additional charges (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 in establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan early?
You can repay the entire amount of your loan at any point in time.
If you decide to take this route, please talk to one of our helpful company credit specialists. We will provide you with details for repayment and an early payout figure. It will be calculated using the total of the principal balance plus any accrued interest as of the time of early payment and 1.5 percent of the principal amount remaining and any outstanding fees.
What is the process for repayments?
To ensure you do not miss payment dates and to align your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from your company account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing the ways we gather the information we collect, use, share and protect your information, 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 protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to protecting the security of customers and privacy. We make use of an advanced banking verification system to immediately verify your bank account information online, allowing us to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term “asset-based” refers to borrowing where the business owner utilises assets they own to make the funding. The asset can be an individual property, such as the family home or an company asset such as a truck as well as a piece of machine.
The majority of lenders, including the largest banks, are inclined to guarantee loans against an asset. If you are having difficulty paying back the loan then the asset could be sold by the lender. In essence it’s a way of securing new financing taking advantage of the value of what you already own.
What do I need security to get a business loan?
For loans up to $150,000 it is not necessary to secure assets before you are able to access the money However, we require a personal guarantee. need the personal guarantee. So long as you comply with the terms of your loan (as stipulated in your loan contract) Asset security will never be required. If you take out loans in excess of $150K generally, there is a personal ensure and security that is in the form the charge of assets.