FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Mairangi Bay Small Business Loans
Let me know about the Mairangi Bay Small Business Loans
Mairangi Bay unsecured loans provides 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 makes what makes the Unsecured Loan different from a traditional business loan?
It is possible to apply to get your Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and the money could be available in just 24 hours. Traditional business loans reference an annual rate of interest along with other charges and fees. This company loan is a loan that is priced upfront so you will be aware of the total amount to be paid, including any interest, fees or charges. This is then divided into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business purpose including managing cash flows, business improvements, advertising for purchasing inventory or new equipment, to fund general working capital, and much more. The loan cannot be used to fund personal expenses.
About Larger Mairangi Bay Business Loans
What is the Larger Mairangi Bay Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of that can last up to 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which 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 of this size, your company needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funding for?
A large business loan can be used for almost all business need, including business improvements, purchasing new equipment or inventory as well as for general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is needed to access funding over $150,000. This is as a result of an charge against assets and can include the registration of this with the PPSR or the registration of a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is generally based rather than defining the security of a specific asset. The person who signs the ensure is personally liable in the event that the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including items or assets). The PPSR grants prioritisation over property that is personal to be assigned depending on the date that a security interest was registered.
A caveat is a legal document that is filed to provide the public notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking larger company loans that is greater than $250,000, we may offer an initial pre-approval in order to ease the process. It is possible to make this decision without a credit verification and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering a few financial well-being questions. This is in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to an assessment of your creditworthiness and any offer you receive could be based on different conditions.
The application process
Are I eligible for funding?
You may be eligible for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have 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 continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a few minutes and an experienced business loan specialist will contact you to help you.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s License) and a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Information on the application including credit consent, 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) we can often offer an answer within one hour, provided you apply during standard company timings and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to send us copies of your bank statement, we’ll offer a decision in as little as the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to provide you with a conditional pre-approval in around 6 hours. After you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Some transactions have received approval within the space of 24 hours.
The most efficient method for you to apply is make sure you apply during standard company hours. Also, permit us to use the modern bank verification to instantly verify your bank account information online. If you upload duplicates of your banking statement, it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) we can often provide a response in one hour if you make your application within standard business hours and you allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statement, we’ll provide an answer in just the span of one business day.
For Larger Business Loans ($100K and up) we might be capable of offer you with pre-approval conditional to your application within about 6 hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, it could be faster based on the specifics of each application. Certain deals have been approved within the space of 24 hours.
The quickest method can be ensure you apply during normal business hours. Also, permit us to use the sophisticated bank verification link to instantly confirm your bank details online. If you choose to send us the copies of bank statements it may take a bit longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. When you submit an application for a specific amount we will consider a number of aspects to determine how much we can lend you well-being that is your business and the extent of payments your business will be able to support. The total amount of your loan will be contingent on the specific circumstances the business.
If you apply for a set amount, we will consider a number of factors to determine your well-being of your business and the amount of repayments your company is able to afford. The total amount of your loan will be contingent on the specifics for your company.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to make an application for one of our business credit, we will assess the risk assessment of your business and offer you with a customised proposal that includes loan amount, term and interest rates. This business loan is an upfront priced loan therefore you will be aware in advance of the total amount payable including any charges or interest.
What is the factor that determines the price I will be charged?
Business loan interest rates depend on several factors like the amount of money that is borrowed, what company assets the funds will be used for as well as the field the company operates in, how long the business has been running as well as what percentage of the business has sufficient cash flow to cover the loan, and the overall health or financial standing of the company.
What are the cost?
There aren’t any hidden charges for our business loans. You’ll be aware of the amount it is that you be required to pay and when, starting from the first day. There’s no compounding interest and no extra fees (as as you make your payments punctually).
We don’t charge an Application Fee. You can request a credit loan with with no upfront cost or commitment to apply.
The Origination Fee includes the expenses associated with the setting up and management of the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan in advance?
You may choose to pay back all of your loan at any point in time.
If you do decide to pursue this option, please call our helpful business credit experts. They’ll offer you with repayment details along with an early payout estimate. This will be calculated as the sum of the principal balance plus any accrued interest as of the time of early payout in addition to 1.5% of the principal 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 offer repayments either daily or weekly. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my information be protected?
Security of your data, and knowing the ways we gather data, process, exchange and ensure the security of 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 protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We use an advanced bank verification system that allows you to immediately verify the bank account details online. This allows us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when the company owner borrows from the assets they have to make a loan. The asset can be either an asset belonging to the personal, like the family home or a company asset such as a truck or piece or equipment.
The majority of banks, not just the largest banks, are inclined to secure loans against assets. If you’re struggling to pay back the loan then your assets could be transferred to the lender. In essence, it is an opportunity to secure additional financing taking advantage of the value of what you already own.
What do I require security for a company loan?
Up to $150K in loans there is no requirement for asset security in advance to gain access to the funds, however we require a personal guarantee. need the personal guarantee. If you adhere to your loan obligations (as stated in your loan contract document), asset security will never be required. If you take out loans in excess of $150,000 typically, you will need an individual guarantee and security is provided in the form of an asset charge.