FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Massey Small Business Loans
Let me know how you are able to avail the Massey Small Business Loans
Massey unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from an ordinary business loan?
The application to your Small Business Loan in under 10 minutes online or by phone. You will receive an instant response and funds may be in your account in 24 hours. Traditional company loans refer to an interest rate per annum along with other charges and fees. The business loan is an upfront priced loan and you’ll be aware of the total amount due, which includes any interest, fees or charges. This is then broken down into either weekly or daily payment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for almost any company use, including cash flow management, company renovations, marketing to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal purposes.
Concerning Larger Massey Business Loans
What is the Larger Massey Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been operating for a minimum of 3 years, and have an annual income of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can the funds be used for?
A Larger Business Loan is a great option for almost all business purpose including business renovations, to purchase new equipment or inventory for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. It is usually by taking a charge against assets, which could also include the registration of this on the PPSR or registering a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is general in nature rather than stating the security for a particular asset. The person who is signing the guarantee is personally responsible if the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It contains security interests registered in respect of personal property (including objects or assets). The PPSR allows prioritisation over property that is personal to be 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 against a property.
What exactly is a preapproval without Credit Check?
When you’re applying for a Larger Business Loan of more than $250,000, we may offer an initial pre-approval that will help make the process. We might be able to apply for this without a credit check and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes you answering a few financial health questions. It is not an offer or guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer that you may receive may have different conditions.
Do I have the right to receive funds?
You are eligible to apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (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 trading (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 few minutes and a dedicated business credit specialist will call you to guide you through the process.
For a loan of up to $100,000, you’ll need the right identification documents (valid Driver’s License) as well as a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Information on the application including credit consent and 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, in addition to interim financials for the current financial year such as age-related payables and aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) We can usually offer an answer within an hour – as long as you apply within quality business time and let us make use of the advanced bank verification system link to instantly verify your bank details online. If you want to submit copies of your bank statement, we’ll offer an answer within just an company day.
For the Larger Business Loan ($100K up to $500,000) we may be capable of provide you with conditional pre-approval in around six hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval within just 24 hours.
The fastest way for you to apply is make sure you apply during standard company hours. Also, let us use the modern bank verification to verify your bank account information online. If you choose to upload copies of your bank statements it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K or more) We can usually provide an answer within an hour – provided you apply at normal business time and permit us to use the bank verification system to immediately verify your bank account information online. If you decide to send us copies of your bank statements we can provide the decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be capable of provide the conditional pre-approval in about six hours. Once you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, it could be faster based on the particular circumstances of 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 business hours, and allow us to use the modern bank verification link to check your bank’s information online. If you opt to send us the copies of bank statements it may take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. If you apply for a certain amount, we consider a variety of variables to determine how much we can lend you health for your business and the extent of payments your company can afford. The amount you receive from your loan will depend on the specific circumstances for your company.
When you apply for a specific amount we will consider a number of factors to assess the health of the business as well as the amount of payments your business can afford. The amount you receive from your loan will be determined by the particular circumstances the business.
Fees & repayments
What is the cost for a business loan?
If you decide to make an application for the business loans, we will assess the risk assessment that you have for your business and provide you with a customised offer including loan amount, term and the interest rates. It is a business loan is an upfront priced loan and you’ll know in advance the total amount payable including any charges, interest rates or fees.
What is the basis for the rate I’m charged?
The interest rates on company loans rates vary due to variables like the amount to be that is borrowed, what business assets the funds are used to purchase in addition to the industry that the company is operating in, how long the company is in operation and what percentage of the company has sufficient cash flow to pay for the loan, and also the overall health or creditworthiness of the company.
What are the cost?
There aren’t any hidden charges with our business loans, and you’ll know precisely what you’ll be required to pay, and at what time, from the day you sign up. There’s not any compounding interest and no additional fees (as long as you are able to make your payments in time).
We do not charge an Application Fee. You can request a credit loan with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved with the setting up and management of the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan in advance?
You can choose to repay the entire amount of the advance loan at any time.
If you choose to pursue this option, please speak to our friendly business lending professionals. They will provide you with the details of your repayment and an early payout figure. This will be calculated as the sum of the remaining principal amount and any accrued interest at the time of early payment and 1.5 percent of the principal remaining and any fees that remain unpaid.
What is the process for repayments?
To ensure you do not miss payment dates and to align with your cash flow routine, we offer repayments that are either daily or weekly. These are automatically deducted from the nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing the ways we gather information, use it, and exchange it, as well as ensure the security of your information is crucial and is an essential 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 and other data. Our funders are ISO 27001 certified for our commitment to the security of our clients as well as their security. We utilise a sophisticated banking verification system to instantly verify the bank account details online. This allows us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the company owner uses an asset that they own to get the funding. The asset can be an individual property, such as the family home or it could be a company asset such as a truck or piece or equipment.
The vast majority of lending institutions, not just the major banks, prefer to secure loans against assets. If you’re having trouble paying back the loan, then your asset may be transferred to the lender. In essence, it’s an opportunity to secure new financing using the value of what you already have.
Are I require security for a business loan?
For loans up to $150,000 no asset security is required upfront to access the money, however we require a personal guarantee. require the personal guarantee. In the event that you fulfill the loan terms (as detailed in the loan contract) the security of assets is not needed. If you take out loans in excess of $150K generally, there is the option of a personal guarantee and security is provided in the form of a charge over assets.