FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Maraetai Small Business Loans
Tell me about the Maraetai Small Business Loans
Maraetai unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from the traditional company loan?
The application to the Small Business Loan in under 10 minutes online or on the phone. You’ll receive an immediate response, and have the funds on your account within 24 hours. Traditional company loans have an annual rate of interest plus other fees and charges. The business loan is an upfront priced loan which means you know in advance the total amount due, which includes any interest, fees or charges. Then, it is broken down into either weekly or daily payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business need, such as cash flow management, company improvements, advertising to purchase inventory, new equipment, or as general working capital and so much more. The loan cannot be used for personal reasons.
About Larger Maraetai Business Loans
What is the Larger Maraetai Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range from $100,000 to $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly depending on your cash flow.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the company needs to be operating for at least three years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A larger company loan is a great option for almost every company use, including business renovations, purchase of 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 necessary for accessing funds over $150,000. It’s by way of charge over assets, and could include registering this on the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is general in nature, rather than stipulating security over an asset. The person signing the ensure is personally accountable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including goods or assets). The PPSR gives preference over private property assigned in accordance with the date on which a registration of a security interest.
A caveat is a legal document filed to offer notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan that exceeds $250K we may be able to provide an initial pre-approval that will help simplify the process. We may be able to make this decision without credit checks and within 6 hours of your initial application. The pre-approval is based upon an initial assessment, which involves answering a couple of financial health checks. It is neither an offer nor a guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer you receive could be on different terms.
Can I be eligible for funding?
You may apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form within a couple minutes, and an experienced business credit specialist will contact you to assist you.
To apply for up to $100,000 you’ll require proof of identity (valid Driver’s Licence), an active NZBN/IRD, and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent twelve month bank accounts, the IRD statements and the last two years’ finalised financial statements, in addition to interim financial statements for the current year such as age-related payables and aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we typically offer a response in one hour – as long as you apply during quality company timings and allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you want to submit copies of your bank statement, we’ll offer a decision within one business day.
For the Larger Business Loan ($100K and up) we may be capable of provide you with conditional pre-approval within 6 hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending on the specifics of each application. Some offers have been approved in 24 hours.
The fastest way can be ensure you apply during standard business hours. You can also let us use the modern bank verification link to verify your bank information online. If you choose to upload the copies of bank statements it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we usually provide a response in one hour if you submit your request during normal business timings and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you opt to send us copies of your bank statements, we’ll be able to provide the decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K and up) we could be capable of offer the conditional pre-approval in around six hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Certain offers have been approved within just 24 hours.
The fastest method can be make sure you apply during normal business hours. Also, permit us to use the sophisticated bank verification to verify your bank account information online. If you upload copies of your bank statements it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you submit an application for a certain amount we look at a variety of elements to determine what is the well-being of the business as well as the amount of the repayments your business is able to afford. The amount you receive from your loan will be contingent on the particular circumstances that are unique to your company.
When you submit an application for a specific amount we take into consideration a variety of elements to determine how much we can lend you such as health for your company and the level of payments your company is able to afford. The amount you receive from the loan will be determined by the particulars the business.
Fees & repayments
How much do you charge for a business loan?
When you apply for one of our business loan, we’ll assess the risk assessment for your business and offer you with a tailored offer that includes the amount of loan, the term and interest rates. It is a company loan is an upfront cost loan and you’ll know in advance the total amount to be paid, including any costs, fees, or interest rates.
What is the factor that determines the price I’m charged?
The interest rates on business loans rates vary due to factors such as the amount that is borrowed, the company assets the money are used to purchase, the industry the business operates in, the long the business is in operation, how long the company has sufficient cash flow to pay for the loan, and the general well-being as well as creditworthiness company.
What are the costs?
There are no hidden fees with our business loans, and you’ll know precisely how much you need to pay, and when, from the day you sign up. There’s not any compounding interest and the loan comes with no additional fees (as long as you make your payments in time).
We don’t charge an application fee. You can get a cash loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan in advance?
You can repay all of your loan at any point in time.
If you do decide to do this please call our helpful business loan specialists. The specialists will provide you with repayment details as well as an early payout amount. It will be calculated using the sum of the principal amount remaining and any accrued interest at the time of the early payout, plus 1.5% of the principal balance and any outstanding fees.
How do repayments work?
In order to help you avoid missing repayments and to fit in your cash flow schedule, we offer repayments that are either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being transparent about how we collect, use, exchange and safeguard your data, 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 make use of industry-standard encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to security for our clients and security. We use an advanced bank verification system link to immediately confirm your bank account information online, allowing us to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
The term “asset-based” refers to borrowing where a business owner uses an asset they own to secure the funding. The asset can be an individual property, such as the family home or an company property like a truck as well as a piece of machine.
The vast majority of banks, even the largest banks, are inclined to guarantee loans against assets. If you are having difficulty paying back the loan then your assets could be transferred to the lender. In essence, it is means of securing new funding using the value of what you already own.
Do I require security to secure a business loan?
Up to $150K in loans no asset security is required in advance to gain access to the funds but we do need a personal guarantee. In the event that you fulfill the terms of your loan (as stipulated in the loan contract) the security of assets will never be needed. If you take out loans in excess of $150K typically, you will need personal guarantee and security in the form a charge over assets.