FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Maungaraki Small Business Loans
Tell me how you are able to avail the Maungaraki Small Business Loans
Maungaraki 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 is how is the Unsecured Loan different from the traditional business loan?
It is possible to apply to get your Small Business Loan in under 10 minutes over the phone, receive an immediate response, and the money could be in your account in 24 hours. Traditional company loans have an annual interest rate along with other charges and fees. Our company loan is an upfront priced loan which means you be aware in advance of the total amount due, which includes any fees, charges or charges. Then, it is broken down into weekly or daily repayment figure.
What can the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every business purpose including managing cash flows, business remodeling, marketing, to purchase inventory or new equipment, or as general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger Maungaraki Business Loans
What is the Larger Maungaraki Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term up to 36 months. The repayments are made weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to be operating for at least three years and have an annual turnover of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funding be utilised?
A larger business loan is a great option for almost any company need, including company renovations, purchase of equipment or inventory for general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. It is usually in the form of a charge against assets, and may include registration in the PPSR or filing as a caveat.
A personal or director’s guarantee is a promise to repay a loan which is generally based rather than stipulating security over a particular asset. The person signing the guarantee is personally responsible if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including the assets or goods). The PPSR gives prioritisation over property that is personal to be granted depending on the date that a security interest was registered.
A caveat is a legal document lodged to offer an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting larger business loans that is greater than $250K it’s possible to offer a preliminary pre-approval to help simplify the process. We could be able to do this without a credit verification and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes you answering a few financial health questions. It’s neither an offer nor a guarantee of funds. A conditional approval is subject an assessment of your creditworthiness and any offer you might receive could be on different terms.
Do I qualify for funds?
You may be eligible for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form in few minutes and a dedicated company credit specialist will call you 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 as well as at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K-$250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details for application including credit consent, 12 months bank statement, an IRD statements, last 2 years finalised financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) We can usually offer an answer within one hour – as long as you apply during quality business times and you allow us to utilise the bank verification system to instantly verify your bank information online. If you opt to upload copies of your banking statements we can offer a decision in as little as 1 business day.
For Larger Business Loans ($100K to $500K) we may be likely to offer the conditional pre-approval within six hours. Once you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, it could be faster based on the specifics of each application. Some offers have been approved within the space of 24 hours.
The quickest method is to make sure you apply during normal business hours and let us use the advanced bank verification system to instantly verify your bank account information online. If you opt to upload documents from your account statements it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) we usually provide a response in one hour if you submit your request within standard business time and allow us to use the bank verification system link to immediately verify your bank account information online. If you want to upload copies of your banking statement, we’ll offer a decision in just one business day.
For the Larger Business Loans ($100K up to $500,000) We may be in a position to provide you with pre-approval conditional to your application in about six hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, it could be faster based on the circumstances of each application. Some deals have been approved in less than 24 hours.
The fastest way is to make sure you apply during normal business hours. Also, allow us to use the sophisticated bank verification to verify your bank information online. If you opt to send us documents from your account statement, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a certain amount we look at a variety of factors for determining the well-being of the business and the amount of repayments your company can support. The total amount of your loan will be contingent on the specific circumstances of your business.
When you apply for a specific amount we look at a range of variables to assess your health that is your business and the level of repayments your company will be able to support. The amount you receive from your loan will be determined by the particular circumstances of your company.
Fees & repayments
How do you charge for a company loan?
If you decide to make an application for the company loan, we will assess the risk assessment the company and offer an individualised proposal that includes the amount of loan, the term and interest rates. A business loan is an upfront priced loan so you will know in advance the total amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I pay?
The interest rates on business loans rates vary due to factors like the amount of money of money borrowed, the company assets the money will be used for and the sector the business operates in, the long the company has been in operation and in the event that the business has enough cash flow to pay for the loan, as well as the general health or financial standing of the business.
What are the cost?
There are no hidden costs for our company loans, and you’ll be aware of the amount you’ll be required to pay and when, starting from the very first day. There’s not any compounding interest and there are no additional charges (as long as you make your payments in time).
We don’t charge an application fee. You are able to make an application for loans without any upfront costs or any obligation to sign up.
The Origination Fee includes the expenses associated with setting up and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I repay the loan early?
You may choose to pay back the entire amount of the loan at any point in time.
If you choose to pursue this option, please contact our helpful company loans experts. They will offer you with details for repayment and an early payment figure. The figure will be calculated as the total of the principal amount remaining and accrued interest to the time of early payout plus 1.5 percent of the remaining principal and any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss due dates and also to be in line your cash flow schedule, we provide repayments either daily or weekly. They are automatically deducted from your nominated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing how we collect data, process, exchange and secure your information, is of paramount importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their privacy. We utilise a sophisticated banking verification system to immediately verify your bank account information online. This allows us to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the company owner utilises an asset they own to make the loan. The asset can be either an individual asset, such as the family home or an business asset like a truck or other piece of machinery.
The majority of lending institutions, not just the banks with the biggest size, prefer to make loans secured by an asset. If you have trouble paying back the loan, the asset might be taken over by the lender. In essence, it’s an opportunity to secure new funding taking advantage of the value of what you already have.
Should I need security to secure a company loan?
For loans of up to $150,000, it is not necessary to secure assets upfront to access the money However, we require a personal guarantee. need a personal guarantee. In the event that you fulfill the loan terms (as specified in your loan contract document) the security of assets will never be required. For loans over $150K generally, you can get a personal guarantee and security in the form charges on assets.