FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Mairangi Bay Small Business Loans
Tell me how you can avail the Mairangi Bay Small Business Loans
Mairangi Bay unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from a traditional business loan?
Apply for the Small Business Loan in under 10 minutes online or on the phone. You’ll receive an immediate response, and have the funds available in just 24 hours. Traditional business loans reference an annual interest rate as well as other fees and charges. Our business loan is an upfront priced loan so you will be aware of the total amount payable including any interest, fees or charges. Then, it is divided into a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business use, including cash flow management, company renovations, marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal use.
About the Larger Mairangi Bay Business Loans
What is the Larger Mairangi Bay Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term with a maximum of 36 months. Repayments are weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan in this amount, your business needs to have been trading for at least 3 years and have an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funding be utilised?
A Larger Business Loan can be used for almost all company purpose including business renovations, to purchase inventory or new equipment for general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. This can be done by way of charge on assets, and could be registered in the PPSR or registering a caveat.
A personal or director’s guarantee is a promise to repay credit that is generally in nature rather than specifying security over an asset. The person who is signing the guarantee is personally accountable if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR gives prioritisation over property that is personal to be assigned in accordance with the date on which a security interest was registered.
An affidavit is an official form of document to offer the public notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for a Larger Business Loan that exceeds $250K, we may offer a preliminary pre-approval to help make the process. It is possible to make this decision without credit checks and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes answering a couple of financial health checks. It is in no way an offer, nor is it a guarantee of financing. A conditional approval is subject a full credit assessment and any offer that you receive could be subject to different terms.
Do I qualify for funds?
You can apply for an 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)
- can demonstrate at least 6 months worth of trade (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Complete the online form in few minutes and a dedicated company credit specialist will contact you to guide you.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s Licence) and an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent, 12 months of bank records, IRD statements, last 2 years finalised financial statements, as well as interim financials for the current financial year including Aged Payables, Aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we typically offer an answer within an hour – as long as you make your application within quality business hours and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your bank statements , we will be able to provide the decision in as little as 1 company day.
For Larger Business Loans ($100K to $500K) we could be likely to provide you with a conditional pre-approval within 6 hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain offers have been approved within the space of 24 hours.
The quickest way to apply is to ensure you apply during standard business hours and allow us to use the modern bank verification link to verify your bank information online. If you decide to upload documents from your account statement, it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we can often provide an answer in just one hour, provided you submit your request at normal business hours and allow us to use the bank verification system to immediately verify your bank account information online. If you want to send us copies of your bank statement, we’ll offer an answer in as little as one business day.
For the Larger Business Loans ($100K up to $500,000) we may be in a position to offer the conditional pre-approval within 6 hours. Once you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval, however it could be faster based on the specifics of each application. Some transactions have received approval within less than 24 hours.
The fastest method can be ensure you apply during normal business hours. Also, let us use the advance bank verification to verify your bank account information online. If you choose to upload duplicates of your banking statements it takes a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a certain amount, we take into consideration a range of aspects for determining your well-being of your business and the level of payments your company can afford. The amount you receive from the loan will be determined by the specifics the business.
When you apply for a set amount, we will consider a number of variables to determine how much we can lend you such as health of your company and the level of repayments that your company can support. The total amount of your loan will depend on the specifics the company.
Fees & repayments
What is the cost for an business loan?
When you make an application for our company loan, we will assess the risk profile the business and provide an individualised offer that includes loan amount, term and the interest rates. A company loan is an upfront priced loan and you’ll be aware in advance of the total amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I pay?
The interest rates on company loans rates vary due to variables like the amount to be borrowed, the business assets the funds will be used for as well as the field the business operates in, the long the business has been in operation, how long the company has enough cash flow to cover the loan, and general well-being or creditworthiness of the company.
What are the costs?
There are no hidden costs for our business loans, and you’ll be aware of the amount you’ll need to pay, and at what time, from the first day. There’s no compounding interest and there are no additional charges (as long as you make your payments in time).
We don’t charge an Application Fee. You can make an application for loans with no upfront cost or the obligation to take action.
The Origination Fee is the cost associated in establishing and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan earlier?
You can decide to repay the entire amount of the loan at any point in time.
If you choose to pursue this option, please contact our helpful business credit experts. They’ll offer you with details on repayment along with an early payout estimate. The figure will be calculated as the sum of the principal amount remaining plus any accrued interest as of the time of early payout plus 1.5 percent of the principal remaining plus any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss due dates and also to be in line with your cash flow routine, we offer repayments that are either weekly or daily. They are automatically deducted from your company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being clear about how we collect, use, exchange and ensure the security of your information is vital and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to customer security and security. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account details online. This allows us to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the company owner borrows from the assets they have to make the funding. The asset may be an individual property, such as the family home, or it could be a company asset such as a vehicle or piece or equipment.
The vast majority of lenders, even the largest banks, are inclined to guarantee loans against an asset. If you’re having trouble paying back the loan then the asset could be offered for sale by the lender. In essence it’s an opportunity to secure new financing making use of the value of what you already own.
What do I need security for a company loan?
For loans up to $150K there is no requirement for asset security in advance to gain access to the funds However, we require a personal guarantee. require an individual guarantee. As long as you follow your loan commitments (as specified in the loan contract) Asset security will never be needed. For loans of over $150,000 generally, you can get a personal guarantee and security in the form of the charge of assets.