FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Manor Park Small Business Loans
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Manor Park unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from an ordinary company loan?
Apply to this Small Business Loan in under 10 minutes over the phone, receive an instant response and the funds could be in your account in 24 hours. Traditional company loans are based on an interest rate per annum plus other fees and charges. We offer a company loan is a loan that is priced upfront so you will be aware of the total amount to be paid, including any fees, charges or charges. Then, it is broken down into weekly or daily payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for almost every business need, such as control of cash flow business improvements, advertising, to purchase inventory or new equipment, or as general working capital and much more. The loan is not available for personal purposes.
Concerning Larger Manor Park Business Loans
What is the Larger Manor Park Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed for up to 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large, your business needs to be in operation for at least 3 years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funding be used for?
A Larger Business Loan can be used to fund almost all company need, including business renovations, to purchase new equipment or inventory or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. This is by way of charge over assets, and could include the registration of this with the PPSR or the registration of a caveat.
A director’s or personal ensure is a commitment to pay back a loan that is general in nature, rather than specifying security over a particular asset. The person signing the guarantee is personally accountable if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It lists security interests that are that are registered for personal property (including items or assets). The PPSR grants preference over private property granted 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 legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan of more than $250K we can offer an initial pre-approval in order to smooth out the process. We might be able to make this decision without a credit check, and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes answering a couple of financial well-being checks. This is not an offer of credit or guarantee of funds. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you receive could be on different conditions.
The application process
Do I have the right to receive funds?
You are eligible to apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own 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 simple. Just complete the online application within a few minutes and an experienced business lending specialist will be in touch to guide you through the process.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s License) along with a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll also need:
$100K-$250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent twelve month bank accounts, the IRD statement as well as the two most recent years’ financial statements, and interim financial statements for the current year as well as Aged Payables and Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we usually offer a response in one hour – as long as you make your application at quality business times and you allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statements , we are able to provide a decision within just an business day.
If you are applying for a Larger Business Loan ($100K or more) we may be capable of offer you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this can be quicker based upon the circumstances for each application. Some agreements have been approved in the space of 24 hours.
The quickest method for you to apply is make sure you apply during standard company hours. You can also let us use the modern bank verification to confirm your bank details online. If you decide to send us duplicates of your banking statements , it may take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we typically provide an answer within an hour if you make your application in standard business timings and you allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your bank statements, we are able to offer an answer within 1 business day.
For Larger Business Loans ($100K to $500K) we might be able to offer you with conditional pre-approval within 6 hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Some transactions have received approval within just 24 hours.
The quickest method would be to ensure you apply during normal business hours. Also, allow us to use our advance bank verification to check your bank’s information online. If you opt to upload duplicates of your banking statement, it takes a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a particular amount, we consider a variety of elements that determine how much we can lend you health for your company as well as the amount of payments your business will be able to support. The total amount of the loan will be determined by the particular circumstances of your business.
When you submit an application for a set amount, we look at a range of aspects to assess how much we can lend you such as health for your company and the level of payments your company will be able to support. The total amount of the loan will be determined by the particular circumstances that are unique to your business.
Fees & repayments
How do you charge for the cost of a company loan?
When you make an application for the business financing, we will assess the risk profile the company and provide an individualised proposal that includes loan amount, term and the interest rates. The business loan is an upfront cost loan and you’ll be aware of the total amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I am charged?
Interest rates for company loans rates differ based on various variables like the amount to be borrowed, what business assets the money will be used for in addition to the industry that the company is operating in, how long the company has been in operation as well as how long the company has enough cash flow to fund the loan, and the general well-being and creditworthiness of the business.
What are the cost?
There are no hidden fees with our business loans. You’ll know precisely how much you’ll need to pay, and when, from the day you sign up. There’s no compounding and there are no additional charges (as long as you are able to make your payments in time).
We do not charge an application fee. You can apply for a loan with no upfront cost or the obligation to take action.
The Origination Fee is the cost associated with setting up and managing the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan early?
You can repay all of your loan early at any time.
If you are deciding to pursue this option, please speak to our friendly business loan experts. They will provide you with details on repayment along with an early payout estimate. The figure will be calculated as the total of the principal balance and any accrued interest at the date of early payout, plus 1.5 percent of the remaining principal plus any outstanding fees.
How do you make repayments work?
To help you avoid missing 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 your designated company account.
Security & privacy
Will my data be protected?
Protecting your information, and making it clear the ways we gather the information we collect, use, share and safeguard your data, is vital and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their privacy. We use an advanced bank verification system to instantly confirm your bank account information online to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the business owner utilises assets they own to obtain the funds for a loan. The asset may be an asset belonging to the personal, like the family home or a company asset like a truck or other piece of machinery.
The majority of lending institutions, not just the big banks, tend to make loans secured by assets. If you have trouble paying back the loan then the asset might be sold by the lender. In essence, it’s a way of securing new financing using the value of what you already own.
Should I require security to secure an company loan?
For loans up to $150K no asset security is required upfront to access the money but we do require an individual guarantee. If you adhere to the loan terms (as specified in your loan contract document) the security of assets will never be needed. For loans that exceed $150K, generally, there is an individual guarantee and security is provided in the form of an asset charge.