FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Mauku Small Business Loans
Tell me how you are able to avail the Mauku Small Business Loans
Mauku unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from a traditional business loan?
The application to your Small Business Loan in under 10 minutes online or on the phone. You’ll receive an instant response and have the funds available in just 24 hours. Traditional company loans refer to an annual rate of interest plus other fees and charges. Our business loan is a cash-based loan therefore you’ll be aware in advance of the total amount payable including any interest, fees or charges. Then, it is divided into weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business use, including control of cash flow business renovations, marketing for purchasing inventory or new equipment, for general working capital, and much more. The loan is not available for personal purposes.
About the Larger Mauku Business Loans
What is the Larger Mauku Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount the company needs to be operating for a minimum of 3 years with an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funding be utilised?
A large business loan can be used for almost every company reason, such as business remodeling, buying equipment or inventory as well as for general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. It is usually in the form of a charge against assets, and may be registered through the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is generally based rather than specifying the security for a particular asset. The person who signs the ensure is personally liable if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including goods or assets). The PPSR gives the priority of personal property assigned according to the date the registration of a security interest.
The caveat can be described as a formal form of document to provide the public notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re seeking an enterprise loan that exceeds $250,000 we can offer a preliminary pre-approval to help ease the process. We might be able to make this decision without credit checks and within six hours of your initial application. This pre-approval is made based on an initial assessment, which involves the answer to a series of financial well-being checks. This is not an offer of credit or guarantee of credit. Unconditional approval is subject to an extensive credit evaluation and any offer that you might receive could be based on different conditions.
Can I be eligible for funding?
You can apply for a 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)
- can demonstrate at least 6 months worth of trade (for the 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 fill out the online application within a couple minutes, and an experienced business loan specialist will call you to guide you.
To apply for up $100,000, you’ll require ID details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Application details including credit consent, 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) we usually offer an answer within one hour – as long as you submit your request in standard business timings and permit us to utilise the advanced bank verification system link to instantly verify your bank details online. If you want to send us copies of your bank statements , we’ll be able to offer a decision within just the span of one business day.
For Larger Business Loans ($100K up to $500,000) we could be in a position to offer you with pre-approval conditional to your application within 6 hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this may be quicker depending on the circumstances of each application. Some agreements have been approved within the space of 24 hours.
The fastest way is to make sure you apply during normal company hours and permit us to use the advanced bank verification system to verify your bank account information online. If you upload the copies of bank statement, it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we can often offer an answer within one hour, provided you submit your request at normal business times and permit us to use the bank verification system to instantly verify your bank details online. If you opt to upload copies of your banking statements we can offer the decision in as little as an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be in a position to offer the conditional pre-approval within 6 hours. Once you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval, however this could be shorter based on the specifics of each application. Certain offers have been approved within 24 hours.
The quickest method would be to make sure you apply during standard business hours, and permit us to use the advanced bank verification system to confirm your bank details online. If you decide to send us duplicates of your banking statements, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a certain amount, we take into consideration a range of elements for determining the well-being of your business as well as the amount of payments your business is able to afford. The total amount of your loan will depend on the particular circumstances that are unique to your business.
If you apply for a particular amount, we take into consideration a variety of aspects to determine how much we can lend you such as health that is your business and the amount of the repayments 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 company.
Fees & repayments
What is the cost for an business loan?
When you apply for business loans with us company credit, we’ll assess the risk assessment of your company and provide you with a tailored offer, including loan amount, term and the interest rates. This company loan is an upfront cost loan and you’ll know in advance the total amount to be paid, including any interest rates, fees or charges.
What determines the amount I will be charged?
Interest rates for company loans rates vary due to factors such as the amount that is of money borrowed, the company assets the funds will be used for and the sector the business operates in, the long the company is in operation as well as in the event that the company has enough cash flow to support the loan, as well as the general health or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges with our company loans, and you’ll know precisely how much you’ll need to pay, and at what time, from day one. There’s no compounding and there are no additional charges (as long as you make your payments in time).
We don’t charge an application fee. You can apply for a loan with no cost upfront or commitment to apply.
The Origination Fee includes the expenses associated with the setting up and management of the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay off the loan earlier?
You can repay the total amount of your loan at any point in time.
If you choose to take this route, please talk to one of our helpful business credit professionals. They’ll offer you with repayment details and an early payment figure. This is calculated as the total of the principal balance plus any accrued interest as of the date of early payout plus 1.5% of the principal remaining and any fees that remain unpaid.
What are the repayment methods?
To help you avoid missing repayments and to fit in with your cash flow standard, we offer repayments that are either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Protecting your information, and making it clear how we collect the information we collect, use, share and protect 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 utilise industry-recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to customer security and security. We employ a highly sophisticated bank verification system link to immediately confirm your bank account information online to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when a company owner borrows from assets they own to make a loan. The asset can be either an individual asset, such as the family home, or a business property like a truck or piece or equipment.
The majority of lending institutions, not just the largest banks, are inclined to make loans secured by an asset. If you’re struggling to pay back the loan then the asset might be offered for sale by the lender. In essence, it’s a way of securing new financing by using the worth of the asset you already have.
Are I need security to secure an company loan?
For loans that exceed $150,000, it is not necessary to secure assets in advance to gain access to the funds, however we do need an individual guarantee. So long as you comply with your loan commitments (as stated in your loan contract document) Asset security is not needed. For loans over $150,000 generally there is an individual ensure and security that is in the form charges on assets.