FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Linden Small Business Loans
Let me know about the Linden Small Business Loans
Linden unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from the traditional company loan?
It is possible to apply to the Small Business Loan in under 10 minutes online or over the phone, receive a same day response and the money could be in your account in 24 hours. Traditional company loans reference an interest rate per annum together with additional fees and charges. We offer a business loan is a loan that is priced upfront so you will know ahead of time the total amount due, which includes the interest, fees and charges. This is then broken down into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business need, such as control of cash flow business remodels and marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan is not available for personal purposes.
About larger Linden Business Loans
What is the Larger Linden Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. The repayments are made weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount the business needs to have been operating for at least three years with 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 and have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A Larger Business Loan can be used to fund almost any company purpose including company remodeling, buying equipment or inventory or as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. This can be done by way of charge over assets, and may include the registration of this through the PPSR or filing as a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is general in nature, rather than stating security over a particular asset. The person who is signing the guarantee is personally accountable if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR grants priority over personal property to be assigned in accordance with the date on which a security interest has been registered.
The caveat can be described as a formal form of document to provide the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for the Larger Business Loan of $250,000 or more it is possible to offer an initial pre-approval in order to smooth out the process. It is possible to make this decision without credit checks and within 6 hours of the initial application. The pre-approval is based upon an initial evaluation that involves the answer to a series of financial well-being questions. It’s not an offer or guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you are offered could be on different conditions.
Are I eligible for funding?
You are eligible to apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for 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. Complete the online form in just a few minutes, and a dedicated company credit specialist will be in touch to guide you.
To apply for up to $100,000 you’ll require ID details (valid Driver’s Licence) along with 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-$250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent and 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, in addition to interim financials for the current financial year including Aged Payables, Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K and up) we usually provide an answer within an hour, provided you submit your request within standard company time and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you decide to send us copies of your bank statement, we’ll provide the decision in just 1 company day.
For Larger Business Loans ($100K or more) we might be in a position to provide you with conditional pre-approval within about 6 hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based on the circumstances of each application. Some offers have been approved within just 24 hours.
The fastest way is to make sure you apply during normal business hours and let us use the modern bank verification link to check your bank’s information online. If you send us duplicates of your banking statements , it may take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer in just one hour – as long as you make your application during standard business times and let us make use of the advanced bank verification system to instantly verify your bank information online. If you decide to send us copies of your bank statements, we will be able to provide the decision in just one business day.
For Larger Business Loans ($100K or more) we could be capable of offer you with conditional pre-approval within about six hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be faster depending on the circumstances of each application. Some deals have been approved in less than 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours. Also, permit us to use the modern bank verification link to instantly check your bank’s information online. If you choose to send us copies of your bank accounts, it may take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a particular amount, we take into consideration a range of factors that determine your health of the business and the extent of the repayments your company can afford. The total amount of your loan will depend on the specifics that are unique to your business.
When you submit an application for a particular amount, we take into consideration a variety of elements to assess the health of your business as well as the amount of payments your company is able to afford. The total amount of the loan will be determined by the specific circumstances the company.
Fees & repayments
How do you charge for an company loan?
When you make an application for the company credit, we’ll assess the risk assessment the company and provide you with a customised offer including the amount of the loan, the duration and interest rates. A business loan is a loan that is priced upfront therefore you will be aware of the total amount due, which includes any costs, fees, or interest rates.
What determines the rate that I am charged?
Business loan interest rates differ based on various factors including the amount that is borrowed, what company assets the funds will be used for in addition to the industry that the business is operating in, how long the company has been operating and how long the company has enough cash flow to cover the loan, and overall health as well as creditworthiness company.
What are the charges?
There are no hidden costs for our business loans. You’ll know precisely how much you be required to pay and when, right from the 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 are able to request a credit loan with without any upfront costs or commitment to apply.
The Origination Fee includes the expenses associated with the setting up and management of the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay off the loan earlier?
You can decide to repay all of your loan at any point in time.
If you do decide to pursue this option, please call our helpful company loans experts. We will provide you with details for repayment along with an early payout estimate. It will be calculated using the total of the principal remaining and the accrued interest up to the time of the early payout and 1.5% of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
To make sure that you don’t miss due dates and also to be in line with your cash flow cycle we offer repayments either weekly or daily. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being transparent about the ways we gather the information we collect, use, share and protect 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 make use of industry-standard encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to security for our customers and privacy. We utilise a sophisticated banking verification system to instantly verify your bank account information online to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the company owner uses assets they own to make the loan. The asset may be an asset belonging to the personal, like the family home or it could be a business asset like a truck or other piece of machinery.
The vast majority of lending institutions, including the big banks, tend to make loans secured by assets. If you are having difficulty paying back the loan, your asset may be taken over by the lender. In essence, it is an opportunity to secure new financing taking advantage of the value of what you already own.
Should I need security to get an company loan?
For loans that exceed $150,000, the requirement for asset security is not required prior to the loan’s access However, we require a personal guarantee. need the personal guarantee. If you adhere to the terms of your loan (as stated in the loan contract), asset security will never be required. If you take out loans in excess of $150K typically, you will need personal ensure and security that is in the form an asset charge.