FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Mellons Bay Small Business Loans
Let me know about the Mellons Bay Small Business Loans
Mellons Bay unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from an traditional business loan?
You can apply to get the Small Business Loan in under 10 minutes by phone. You will receive a same day response and have the funds on your account within 24 hours. Traditional company loans are based on an interest rate per annum plus other fees and charges. This business loan is an upfront priced loan and you’ll know ahead of time the total amount due, which includes any fees, charges or charges. This is then broken down into either weekly or daily 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 use, including the management of cash flow, company renovations, marketing to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal reasons.
About Larger Mellons Bay Business Loans
What is the Larger Mellons Bay Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. The repayments are made weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large the company needs to be in operation for at least 3 years and have an annual turnover of $700,000. Your company 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 the least 12 months of operating.
How can the funds be used for?
A Larger Business Loan can be used to fund almost every business reason, such as company renovations, to purchase equipment or inventory or as general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required for accessing funds over $150,000. This is by taking a charge over assets, and could include registration on the PPSR or the registration of a caveat.
A director’s or personal ensure is a commitment to repay a loan which is generally in nature rather than stating the security for a particular asset. The person who is signing the ensure is personally liable if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR permits the priority of personal property assigned according to the date a security interest was registered.
Caveats are legal document that is filed to provide the legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re applying for a Larger Business Loan of $250K or more we may be able to provide an initial pre-approval to simplify the process. We may be able to make this decision without a credit check, and within 6 hours of your initial application. This pre-approval is made based on an initial evaluation that involves you answering some financial health checks. It’s in no way an offer, nor is it a guarantee of financing. A conditional approval is subject an extensive credit evaluation and any offer you might receive could be on different conditions.
The application process
Are I eligible for funding?
You may be eligible for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form in just a few minutes, and an experienced company credit specialist will call you to help you.
To apply for up $100,000 you’ll require ID details (valid Driver’s License), an NZBN/IRD that is valid and at least 6 months of bank statements.
For larger loan sizes, you’ll also require:
$100K-$250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details of the application, including credit consent twelve months bank statement, an IRD statement Last 2 years’ finalised financial statements, and interim financials for the current financial year such as age-related payables and aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K and up) we can often offer a response in one hour – as long as you submit your request within quality company times and allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statements , we are able to provide a decision within just the span of one business day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be in a position to offer you with conditional pre-approval in about six hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Certain transactions have received approval in 24 hours.
The fastest way for you to apply is ensure you apply during standard company hours, and allow us to use our modern bank verification link to instantly check your bank’s information online. If you opt to upload the copies of bank statement, it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we typically provide an answer within one hour if you apply within normal business times and let us use the advanced bank verification system link to instantly verify your bank information online. If you opt to submit copies of your bank statements, we will be able to provide a decision within 1 business day.
For the Larger Business Loans ($100K to $500K) we could be able to provide you with conditional pre-approval in around six hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending upon the circumstances for each application. Some agreements have been approved within the space of 24 hours.
The quickest method is to ensure you apply during normal business hours and allow us to use the advance bank verification link to instantly verify your bank account information online. If you choose to upload copies of your bank statements, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a particular amount, we look at a variety of aspects in order to assess what is the health for your company as well as the amount of repayments that your company can support. The amount you receive from your loan will be contingent on the particular circumstances of your company.
If you apply for a specific amount we consider a variety of variables to determine your well-being that is your business as well as the amount of the repayments your business can support. The total amount of the loan will be determined by the particulars the business.
Fees & repayments
How much do you charge for the cost of a company loan?
When you apply for business loans with us business financing, we will assess the risk profile that you have for your company and offer an individualised proposal that includes the amount of loan, the term and the interest rates. It is a company loan is an upfront cost loan which means you be aware in advance of the total amount due, which includes any charges or interest.
What is the basis for the rate I am charged?
The interest rates on business loans rates vary due to factors such as the amount that is that is borrowed, what company assets the funds are used to purchase in addition to the industry that the company operates in, how long the business has been operating, in the event that the company has enough cash flow to support the loan, and the general health as well as creditworthiness company.
What are the fees?
There aren’t any hidden charges with our business loans. You’ll know precisely how much it is that you need to pay and at what time, from day one. There’s no compounding and the loan comes with no additional fees (as as you make your payments on time).
We don’t charge an Application Fee. You are able to make an application for loans with no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated with establishing and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan in advance?
You can repay the entire amount of the advance loan at any time.
If you are deciding to do this please contact our helpful company loan specialists. The experts will offer you with details for repayment along with an early payout estimate. This will be calculated as the sum of the principal balance and the accrued interest up to the time of early payment, plus 1.5% of the principal remaining and any fees that remain unpaid.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow cycle we offer repayments either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Security of your data, and knowing how we collect the information we collect, use, share and ensure the security of your information is of paramount importance and is a crucial 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 protect 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 security. We make use of an advanced bank verification system that allows you to immediately verify your bank account information online. This allows us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a company owner borrows from an asset that they own to obtain the loan. The asset may be an asset belonging to the personal, like the family home, or a company asset such as a truck or piece of equipment.
The majority of the lenders even the largest banks, are inclined to make loans secured by an asset. If you are having difficulty paying back the loan then the asset could be transferred to the lender. In essence it is a way of securing new funding using the worth of the asset you already own.
What do I need security for an business loan?
Up to $150,000 in loans no asset security is required upfront to access the money, however we require a personal guarantee. require a personal guarantee. So long as you comply with your loan obligations (as detailed in your loan contract document), asset security is not needed. For loans of over $150K typically, you will need personal guarantee and security in the form of charges on assets.