FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Mangere Small Business Loans
Tell me about the Mangere Small Business Loans
Mangere unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from an traditional business loan?
The application to the Small Business Loan in under 10 minutes on the phone. You’ll receive a same day response and funds may be in your account in 24 hours. Traditional business loans are based on an interest rate per annum as well as other fees and charges. We offer a company loan is a cash-based loan so you will know in advance the total amount due, which includes the interest, fees and charges. Then, it is broken down into weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business purpose including managing cash flows, company improvements, advertising, to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal reasons.
About the Larger Mangere Business Loans
What is the Larger Mangere Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are scheduled weekly or fortnightly to work with you cashflow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan in this amount, your business needs to be in operation for at least 3 years and generate an annual revenue of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can I use the funds for?
A large company loan can be used for almost all business reason, such as business improvements, purchasing new equipment or inventory or as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. This can be done by taking a charge over assets, and may be registered through the PPSR or registering a caveat.
A director’s or personal ensure is a commitment to repay credit that is generally based rather than specifying security over an asset. The person signing the guarantee is personally responsible if the company the borrower fails 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 goods or assets). The PPSR grants preference over private property granted depending on the date that a security interest that is registered.
A caveat is a legal document filed to offer the public notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re requesting larger business loans that is greater than $250,000 it is possible to offer an initial pre-approval to smooth out the process. It is possible to apply for this without a credit check, and within six hours of your initial application. This pre-approval is based on an initial assessment that includes you answering a few financial health checks. It’s neither an offer nor a guarantee of credit. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you receive could be based on different terms.
Do I qualify for funds?
You can apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Complete the online form within a couple minutes, and a dedicated company lending specialist will contact you to help you.
To apply for up to $100,000 you’ll require identification details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Details of the application, including credit consent, 12 months of bank records, IRD statements, last 2 years finalised financial statements, plus interim current financial year financials such as age-related payables and aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we typically provide an answer within an hour – as long as you submit your request during standard company timings and let us utilise the bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statements we can provide a decision in just the span of one business day.
For the Larger Business Loan ($100K or more) we may be likely to provide you with pre-approval conditional to your application in around 6 hours. After you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this may be quicker depending on the particular circumstances of each application. Some deals have been approved within less than 24 hours.
The most efficient method is to make sure you apply during standard business hours. Also, let us use the modern bank verification link to confirm your bank details online. If you decide to send us duplicates of your banking statement, it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we typically provide an answer within an hour – as long as you submit your request in normal business times and you allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your banking statements we can provide the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K and up) we could be likely to provide you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Certain transactions have received approval in less than 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours. Also, allow us to use our advance bank verification to instantly check your bank’s information online. If you decide to upload duplicates of your banking statement, it will take a little longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a particular amount, we will consider a number of variables that determine how much we can lend you health of the business and the extent of payments your business can support. The amount you receive from your loan will be contingent on the particular circumstances the company.
When you submit an application for a certain amount, we look at a range of factors to determine the health for your company and the amount of the repayments your company can support. The total amount of your loan will be determined by the particulars for your business.
Fees & repayments
What is the cost for an business loan?
If you decide to apply for business loans with us company financing, we’ll assess the risk assessment that you have for your business and offer you with a customised offer that includes the amount of loan, the term and the interest rates. This business loan is a loan that is priced upfront so you will know the exact amount due, which includes any costs, fees, or interest rates.
What is the basis for the rate I pay?
Interest rates for business loans rates differ based on various variables like the amount to be borrowed, what business assets the funds will be used for and the sector the business is in, how long the company has been running, how long the business has sufficient cash flow to cover the loan, and general health as well as creditworthiness company.
What are the cost?
There are no hidden costs with our company loans, and you’ll know exactly how much you be required to pay, and at what time, from the first day. There’s no compounding and there are no additional charges (as long as you are able to make your payments in time).
We don’t charge an application fee. You are able to apply for a loan no cost upfront or any obligation to sign up.
The Origination Fee covers the expenses involved with setting up and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I repay the loan earlier?
You can decide to repay the entire amount of your loan in full at any time.
If you are deciding to take this route, please talk to one of our helpful company loans professionals. We will offer you with repayment details along with an early payout estimate. This will be calculated as the sum of the principal amount remaining and the accrued interest up to the date of early payout, plus 1.5 percent of the principal balance and any fees that remain unpaid.
What is the process for repayments?
In order to help you avoid missing payment dates and to align with your cash flow cycle we offer repayments either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
Protecting your information, and being upfront about how we collect the information we collect, use, share and secure your information, is of paramount importance and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to security for our customers and privacy. We employ an exceptionally sophisticated bank verification system that allows you to immediately verify your bank account information online to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an company owner borrows from an asset they own to obtain the funding. The asset could be an individual property, such as the family home or a business asset such as a vehicle or other piece of machinery.
The majority of banks, not just the major banks, prefer to guarantee loans against an asset. If you have trouble paying back the loan, the asset might be offered for sale by the lender. In essence, it’s a way of securing new funding using the value of what you already own.
Are I need security to get a business loan?
Up to $150,000 in loans the requirement for asset security is not required prior to the loan’s access however, we require a personal guarantee. require an individual guarantee. If you adhere to your loan commitments (as stipulated in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans over $150,000 typically, you will need an individual guarantee and security in the form an asset charge.