FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Miramar Small Business Loans
Let me know more about Miramar Small Business Loans
Miramar unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
How is this Unsecured Loan different from the traditional business loan?
It is imaginable to apply to get your Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and the money could be on your account within 24 hours. Traditional company loans reference an annual rate of interest as well as other fees and charges. Our company loan is a pre-paid loan so you will be aware in advance of the total amount to be paid, including any fees, interest or charges. This is then divided into a daily or weekly installment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost any business use, including managing cash flows, company remodels and marketing for purchasing inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal use.
About Larger Miramar Business Loans
What is the Larger Miramar Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of for up to 36 months. The repayments are made weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to be in operation for at least 3 years with an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funds be utilised?
A Business Loan of a larger size is a great option for almost any business purpose including business renovations, purchase of equipment or inventory or as general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. It’s by taking a charge against assets, and could be registered through the PPSR or the registration of a caveat.
A director’s or personal ensure is a promise to repay credit that is general in nature, rather than stipulating the security of a specific asset. The person who is 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 contains security interests registered in respect of personal property (including objects or assets). The PPSR permits prioritisation over property that is personal to be granted depending on the date that a security interest has been registered.
A caveat is a legal document filed to provide the public notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan of $250K or more, we may offer a preliminary pre-approval to help make the process. We might 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 answering a couple of financial health questions. It is not an offer or guarantee of credit. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you receive could be based on different terms.
Are I eligible for funding?
You may apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and easy. Just complete the online application in few minutes and an experienced company credit specialist will call you to guide you.
To apply for up to $100,000, you’ll need the right identification documents (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent twelve month bank accounts, the IRD statement, last 2 years finalised financial statements, plus interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) We can usually provide a response in one hour, provided you make your application at standard company hours and permit us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statements , we’ll be able to provide a decision within just one business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be able to offer you with pre-approval conditional to your application within about six hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Certain agreements have been approved within the space of 24 hours.
The fastest way is to ensure you apply during standard business hours. Also, allow us to use the advanced bank verification system to verify your bank information online. If you upload duplicates of your banking statement, it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) We can usually offer an answer within an hour, provided you submit your request at standard business time and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statements we can provide a decision within an business day.
If you are applying for Larger Business Loans ($100K or more) we may be able to provide you with conditional pre-approval in about six hours. Once you have signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Some offers have been approved within just 24 hours.
The fastest way would be to ensure you apply during normal business hours. You can also allow us to use our sophisticated bank verification link to instantly verify your bank account information online. If you send us duplicates of your banking accounts, it will take a little longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a certain amount we take into consideration a range of variables to determine your well-being of the company and the level of payments your company can afford. The total amount of your loan will be contingent on the specific circumstances that are unique to your business.
When you apply for a specific amount we will consider a number of elements to assess your well-being for your business and the amount of repayments your business can afford. The total amount of your loan will depend on the particular circumstances that are unique to your business.
Fees & repayments
How much should you charge for the cost of a company loan?
When you apply for our business financing, we will assess the risk profile that you have for your company and provide an individualised offer that includes the amount of the loan, the duration and the interest rates. It is a company loan is an upfront cost loan so you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I am charged?
Business loan interest rates differ based on various factors like the amount of money of money borrowed, the business assets the funds will be used for in addition to the industry that the business is operating in, how long the business has been in operation and whether the business has sufficient cash flow to cover the loan, as well as the overall well-being as well as creditworthiness company.
What are the fees?
There aren’t any hidden charges with our company loans. You’ll know precisely how much you need to pay and when, from the very first day. There’s no compounding interest, and there are no additional charges (as long as you make your payments on time).
We don’t charge an Application Fee. You are able to apply for a loan without any upfront costs or the obligation to take action.
The Origination Fee covers the expenses involved with the setting up and management of the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan early?
You can repay the entire amount of your advance loan at any time.
If you are deciding to do this please call our helpful business loan experts. They will provide you with repayment details along with an early payout estimate. This is calculated as the total of the principal balance plus any accrued interest as of the date of early payout and 1.5 percent of the principal amount remaining as well as any outstanding fees.
How do you make repayments work?
To help you avoid missing due dates and also to be in line your cash flow cycle we provide payments that are either weekly or daily. They will be automatically deducted from your business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being upfront about how we collect the information we collect, use, share and safeguard your data, is of paramount importance and is a crucial part 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 and financial data and our funders are ISO 27001 qualified for our commitment to protecting the security of clients and privacy. We use an advanced bank verification system to instantly verify your bank account information online to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when a company owner utilises an asset they own to make the loan. The asset can be either an asset belonging to the personal, like the family home, or an business asset like a truck or piece of equipment.
The majority of banks, even the largest banks, are inclined to make loans secured by an asset. If you are having difficulty paying back the loan, then your asset may be transferred to the lender. In essence it’s a way of securing additional financing using the worth of the asset you already own.
Do I need security to secure an company loan?
For loans up to $150K there is no requirement for asset security prior to the loan’s access, however we do need an individual guarantee. As long as you follow the loan terms (as detailed in the loan contract) and you are able to meet your obligations, asset security will never be needed. If you take out loans in excess of $150,000 generally there is the option of a personal guarantee and security in the form the charge of assets.