FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Morningside Small Business Loans
Tell me how you can avail the Morningside Small Business Loans
Morningside unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from an traditional company loan?
You can apply for your Small Business Loan in under 10 minutes by phone. You will receive an instant response and funds may be on your account within 24 hours. Traditional business loans refer to an interest rate per annum along with other charges and fees. This company loan is a loan that is priced upfront so you will be aware of the total amount payable including any fees, charges or charges. Then, it is divided into a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for almost every business need, such as managing cash flows, company improvements, advertising for purchasing inventory or new equipment, to fund general working capital and so much more. The loan cannot be used to fund personal expenses.
About larger Morningside Business Loans
What is the Larger Morningside Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount the company needs to have been operating for at least three years and generate an annual revenue of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funding for?
A Larger Business Loan is a great option for almost all business reason, such as business remodeling, buying new equipment or inventory for general working capital, and much more. The loan cannot be used for personal use.
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 on assets, and could be registered in the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is general in nature, rather than stipulating security over a particular asset. The person who is signing the ensure is personally liable if the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including the assets or goods). The PPSR gives preference over private property granted depending on the date that a security interest that is registered.
An affidavit is an official document filed to provide an official notice of a claim against a property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan of more than $250K it’s possible to offer an initial pre-approval that will help smooth out the process. We may be able to do this without a credit check, and within six hours of your initial application. This pre-approval is based on an initial assessment that includes you answering some financial health questions. This is not an offer of credit or guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer you receive could be based on different terms.
The application process
Do I have the right to receive funds?
You are eligible to apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and simple. Just fill out the online application within a few minutes and a dedicated company expert in lending will be in touch to guide you.
For a loan of up to $100,000 you’ll need identification details (valid Driver’s Licence), a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll also require:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent as well as 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, in addition to interim financial statements for the current year such as age-related payables and aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we typically offer an answer in just one hour, provided you make your application at standard business timings and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you opt to submit copies of your bank statements , we’ll be able to provide an answer in just 1 company day.
For the Larger Business Loan ($100K or more) we might be likely to offer the conditional pre-approval in about six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be quicker based on the specifics of each application. Some transactions have received approval in just 24 hours.
The quickest way to apply would be to make sure you apply during normal business hours. Also, allow us to use our modern bank verification to instantly verify your bank information online. If you opt to send us copies of your bank accounts, it may take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer in just one hour – provided you make your application in normal business times and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your bank statements we can offer a decision within an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be capable of offer you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The most efficient method can be make sure you apply during normal business hours and allow us to use the modern bank verification to instantly check your bank’s information online. If you opt to upload duplicates of your banking statement, it takes a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a specific amount we take into consideration a range of factors for determining your health for your business and the extent of the repayments your company will be able to support. The amount you receive from the loan will be determined by the specifics the company.
When you make an application for a certain amount, we consider a variety of elements to determine how much we can lend you such as health for your company and the extent of the repayments your company can afford. The amount you receive from your loan will be determined by the particulars for your company.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to request business loans with us company loans, we’ll assess the risk profile that you have for your company and provide an individualised offer including the loan amount, the terms and the interest rates. It is a business loan is an upfront priced loan therefore you will be aware in advance of the total amount payable including any interest rates, fees or charges.
What determines the amount I pay?
Business loan interest rates depend on several factors like the amount of money borrowed, what business assets the funds will be used for and the sector the business operates in, the long the business has been operating for, in the event that the company has enough cash flow to cover the loan, as well as the overall health or financial standing of the company.
What are the cost?
There aren’t any hidden costs with our company loans, and you’ll know precisely what you need to pay and when, right from the day you sign up. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You can make an application for loans without any upfront costs or obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I repay the loan in advance?
You may choose to pay back the total amount of your loan at any point in time.
If you decide to pursue this option, please talk to one of our helpful business loans specialists. The specialists will offer you with details for repayment and an early payout figure. This is calculated as the total of the principal amount remaining and the accrued interest up to the time of early payout, plus 1.5 percent of the principal amount remaining plus any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss payments and to work your cash flow cycle we offer repayments that are either weekly or daily. They are automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Security of your data, and making it clear how we collect data, process, exchange and ensure the security of your information is of huge importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to customer security and security. We employ an exceptionally sophisticated bank verification system to immediately verify your bank account information online so we can provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a company owner utilises assets they own to make the funding. The asset can be either a personal asset like the family home or a company property like a truck or piece of equipment.
The majority of lending institutions, even the major banks, prefer to make loans secured by an asset. If you’re having trouble paying back the loan, your asset may be transferred to the lender. In essence, it’s an opportunity to secure additional financing making use of the value of what you already own.
Should I require security for an business loan?
For loans up to $150K no asset security is required in advance to gain access to the funds however, we do require a personal guarantee. So long as you comply with the loan terms (as stipulated in your loan contract document), asset security is not needed. For loans of over $150K generally there is personal guarantee and security in the form an asset charge.