FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Mangere East Small Business Loans
Tell me how you are able to avail the Mangere East Small Business Loans
Mangere East 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 this Unsecured Loan different from a traditional company loan?
Apply for your Small Business Loan in under 10 minutes over the phone, receive an instant response and the money could be in your account in 24 hours. Traditional business loans have an interest rate per annum as well as other fees and charges. Our company loan is a cash-based loan therefore you’ll know ahead of time the amount you will have to pay, including any fees, interest or charges. This is then broken down into either weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business need, such as managing cash flows, business remodels and marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan cannot be used for personal reasons.
About larger Mangere East Business Loans
What is the Larger Mangere East Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed that can last up to 36 months. Repayments are scheduled weekly or fortnightly to work with the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan of this size the business needs to have been operating for a minimum of 3 years and generate an annual revenue of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can I use the funding for?
A Larger Business Loan is a great option for almost all company purpose including company renovations, purchase of inventory or new equipment, as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. This can be done by way of charge on assets, and may include registration in the PPSR or the registration of a caveat.
A personal or director’s guarantee is a promise to pay back a loan that is general in nature rather than specifying the security of a specific asset. The person signing the guarantee is personally liable in the event that the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including the assets or goods). The PPSR grants preference over private property assigned according to the date the registration of a security interest.
The caveat can be described as a formal form of document to offer the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re applying for a Larger Business Loan of more than $250,000 we may be able to provide an initial pre-approval that will help simplify the process. We could be able to get this done without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves the answer to a series of financial health questions. It’s not an offer of credit or guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you receive could be based on different terms.
Are I eligible for funding?
You may be eligible for a 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)
- you must demonstrate at minimum 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just complete the online application within a couple minutes, and a dedicated business loan specialist will contact you to guide you through the process.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K to $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Application details including credit consent twelve months of bank statements, IRD statement and the last two years’ finalised financial statements, and interim financial statements for the current year as well as Aged Payables and Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we usually provide a response in one hour if you apply during quality company times and you allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your banking statements , we’ll be able to provide an answer in as little as 1 company day.
For the Larger Business Loan ($100K and up) we could be able to offer the conditional pre-approval within 6 hours. After you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Certain offers have been approved in 24 hours.
The quickest method is to ensure you apply during normal company hours, and let us use the advance bank verification to instantly confirm your bank details online. If you decide to send us the copies of bank statements it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we can often offer an answer within one hour – as long as you submit your request in normal business timings and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statement, we’ll offer an answer in just the span of one business day.
For the Larger Business Loans ($100K up to $500,000) we might be capable of provide the conditional pre-approval within six hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this can be faster depending on the specifics of each application. Certain deals have been approved in less than 24 hours.
The fastest way can be make sure you apply during standard business hours and allow us to use our sophisticated bank verification to instantly verify your bank account information online. If you opt to send us duplicates of your banking statements it will take a little longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you submit an application for a particular amount, we consider a variety of elements to determine what is the health that is your business and the extent of payments your company will be able to support. The amount you receive from your loan will be contingent on the particular circumstances the business.
When you submit an application for a specific amount we look at a range of variables to determine your well-being for your company and the amount of repayments your business can support. The total amount of your loan will depend on the specific circumstances the company.
Fees & repayments
How much should you charge for a company loan?
If you decide to apply for one of our company credit, we’ll assess the risk profile the business and offer you with a customised offer, including the amount of the loan, the duration and interest rates. A company loan is a loan that is priced upfront and you’ll be aware in advance of the total amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I am charged?
The interest rates on business loans rates depend on several variables like the amount to be of money borrowed, the business assets the funds are used to purchase, the industry the business is in, how long the business is in operation as well as whether the company has enough cash flow to pay for the loan, as well as the general health or creditworthiness of the company.
What are the fees?
There are no hidden fees for our company loans, and you’ll be aware of the amount it is that you be required to pay, and when, right from day one. There’s not any compounding interest and there are no additional charges (as long as you make your payments on time).
We do not charge an Application Fee. You are able to get a cash loan with no upfront cost or obligation to proceed.
The Origination Fee covers the costs associated in establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay out the loan early?
You can decide to repay all of your advance loan at any time.
If you are deciding to pursue this option, please contact our helpful business loans experts. We will provide you with details for repayment and an early payout figure. This will be calculated as the total of the principal balance and the accrued interest up to the time of the early payout plus 1.5% of the remaining principal and any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payments and to work your cash flow schedule, we provide payments that are either daily or weekly. These are automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing the ways we gather data, process, exchange and protect your information, is crucial and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to security for our clients and privacy. We make use of an advanced bank verification system to immediately verify your bank account details online so we can offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
The term “asset-based” refers to borrowing where the company owner borrows from assets they own to make the funding. The asset can be either an asset belonging to the personal, like the family home, or it could be a business asset such as a truck as well as a piece of machine.
The vast majority of lending institutions, even the largest banks, are inclined to make loans secured by an asset. If you’re struggling to pay back the loan then your assets could be taken over by the lender. In essence it is an opportunity to secure additional financing using the worth of the asset you already have.
Should I need security to secure an company loan?
Up to $150,000 in loans the requirement for asset security is not required upfront to access the money however, we require a personal guarantee. require the personal guarantee. So long as you comply with your loan obligations (as stated in the loan contract), asset security is not required. If you take out loans in excess of $150,000 typically, you will need the option of a personal ensure and security is provided in the form of an asset charge.