FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Manukau Small Business Loans
Let me know what you think of the Manukau Small Business Loans
Manukau unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from an ordinary business loan?
The application for your Small Business Loan in under 10 minutes by phone. You will receive an answer within the same day and have the funds in your account within 24 hours. Traditional business loans refer to an annual rate of interest along with other charges and fees. We offer a business loan is a pre-paid loan therefore you’ll be aware in advance of the total amount payable including any fees, interest or charges. Then, it is broken down into either a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business need, such as managing cash flows, business renovations, marketing to purchase inventory or new equipment, as general working capital and much more. The loan is not available for personal reasons.
About larger Manukau Business Loans
What is the Larger Manukau Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large, your company needs to have been operating for a minimum of 3 years and generate an annual revenue of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can the funds be used for?
A Business Loan of a larger size is a great option for almost all business purpose including business remodeling, buying inventory or new equipment as well as 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 needed to access funding over $150,000. This can be done as a result of an charge against assets, which could also include registration with the PPSR or filing a caveat.
A director’s or personal guarantee is a promise 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 creditor is unable to make the repayment.
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 gives prioritisation over property that is personal to be assigned depending on the date that a security interest was registered.
Caveats are legal document lodged to offer the legal claim against a property.
What is a pre-approval without Credit Check?
If you’re requesting an enterprise loan of more than $250,000 we can offer an initial pre-approval in order to smooth out the process. We might be able to do this without a credit check, and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering a few financial health questions. It’s neither an offer nor a guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer you receive could be on different terms.
Application process
Are I eligible for funding?
You may be eligible for a business 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)
- can demonstrate at least 6 months of business (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form in just a few minutes, and a dedicated business lending specialist will call you to help you.
For a loan of up to $100,000, you’ll need identification details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K-$250K: Details of application, 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 and 12 months bank statement, an IRD statement, last 2 years finalised financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we usually provide an answer in just one hour, provided you apply at standard company times and let us utilise the bank verification system to instantly verify your bank’s information online. If you decide to submit copies of your bank statements , we are able to offer an answer in just an company day.
For Larger Business Loans ($100K up to $500,000) we might be in a position to provide you with conditional pre-approval within six hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Certain agreements have been approved within just 24 hours.
The most efficient method would be to ensure you apply during standard business hours and allow us to use the advanced bank verification system link to verify your bank account information online. If you choose to upload the copies of bank accounts, it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer within an hour – provided you make your application within standard business hours and let us use the bank verification system link to instantly verify your bank details online. If you want to upload copies of your banking statements, we’ll be able to provide an answer in just an business day.
For Larger Business Loans ($100K to $500K) we could be able to provide you with pre-approval conditional to your application within 6 hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Certain offers have been approved in the space of 24 hours.
The fastest method can be ensure you apply during standard business hours, and allow us to use our modern bank verification to check your bank’s information online. If you decide to send us the copies of bank statements, it may take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a specific amount we will consider a number of elements in order to assess how much we can lend you health for your company as well as the amount of payments your company can support. The amount you receive from the loan will be determined by the particular circumstances for your business.
If you apply for a certain amount, we consider a variety of aspects to assess the health for your business as well as the amount of payments your company is able to afford. The amount you receive from the loan will be determined by the particular circumstances for your company.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to apply for one of our business loans, we will assess the risk profile for your company and provide you with a tailored offer that includes the loan amount, the terms and the interest rates. A business loan is a loan that is priced upfront therefore you will be aware of the total amount payable including any interest rates, fees or charges.
What is the factor that determines the price I am charged?
Interest rates for business loans rates depend on a variety of variables like the amount to be borrowed, the business assets the funds are used to purchase as well as the field the company is in, how long the company has been running, in the event that the company has enough cash flow to pay for the loan, and also the general well-being as well as creditworthiness company.
What are the fees?
There are no hidden costs for our business loans, and you’ll be aware of the amount you’ll need to pay, and when, from the first day. There’s no compounding and no extra fees (as as long as you pay your payments in time).
We do not charge an Application Fee. You can make an application for loans with with no upfront cost or commitment to apply.
The Origination Fee is the cost associated with establishing and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay out the loan early?
You can choose to repay the entire amount of your advance loan at any time.
If you do decide to do this please talk to one of our helpful business loan experts. We will offer you with details on repayment along with an early payout estimate. This will be calculated as the total of the principal remaining plus any accrued interest as of the time of the early payout, plus 1.5% of the remaining principal plus any outstanding fees.
How do repayments work?
To make sure you do not miss payments and to work with your cash flow cycle we provide repayments either daily or weekly. These are automatically deducted from your nominated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as knowing how we collect, use, exchange and safeguard your data, is of huge importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to customer security and privacy. We utilise a sophisticated bank verification system link to instantly confirm your bank account information online. This allows us to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the business owner borrows from an asset that they own to obtain a loan. The asset may be a personal asset like the family home or it could be a business property like a truck as well as a piece of machine.
The vast majority of the lenders not just the largest banks, are inclined to guarantee loans against assets. If you’re struggling to pay back the loan then your asset may be offered for sale by the lender. In essence it is an opportunity to secure additional financing using the worth of the asset you already own.
Do I require security to secure an business loan?
For loans of up to $150,000, there is no requirement for asset security prior to the loan’s access however, we require a personal guarantee. require the personal guarantee. As long as you follow your loan obligations (as stipulated in your loan contract document), asset security is not required. If you take out loans in excess of $150K typically, you will need an individual guarantee and security in the form of an asset charge.