FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Mount Albert Small Business Loans
Tell me about the Mount Albert Small Business Loans
Mount Albert unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from the traditional business loan?
It is possible to apply to get the Small Business Loan in under 10 minutes on the phone. You’ll receive an instant response and have the funds available in just 24 hours. Traditional business loans refer to an annual rate of interest plus other fees and charges. This business loan is a pre-paid loan which means you know in advance the amount you will have to pay, including any fees, charges or charges. This is then divided into a daily or weekly payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company need, such as the management of cash flow, business improvements, advertising for purchasing inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal use.
About the Larger Mount Albert Business Loans
What is the Larger Mount Albert 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 for a fixed period of with a maximum of 36 months. Repayments are weekly or fortnightly depending on the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your company needs to be operating for at least three years and generate an annual revenue of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can the funds be used for?
A large company loan can be used to fund almost all company purpose including company renovations, to purchase new equipment or inventory as well as for general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. It is usually in the form of a charge against assets and can be registered on the PPSR or making a caveat.
A personal or director’s ensure is a promise to repay a loan which is general in nature rather than stipulating security over an asset. The person signing the ensure is personally accountable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR allows priority over personal property to be assigned in accordance with the date on which a security interest has been registered.
The caveat can be described as a formal document filed to offer the legal claim against a property.
What is a pre-approval without Credit Check?
If you’re requesting an enterprise loan of more than $250K we may be able to provide an initial pre-approval that will help simplify the process. It is possible to do this without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes answering a couple of financial well-being checks. It’s not an offer of credit or guarantee of credit. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you are offered could be based on different conditions.
The application process
Do I qualify for funds?
You may apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application in few minutes and a dedicated company lending specialist will be in touch to guide you through the process.
For a loan of up to $100,000, you’ll need proof of identity (valid Driver’s License) and a valid NZBN/IRD as well as at least six months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent, 12 months of bank records, IRD statements and the last two years’ finalised financial statements, as well as interim financial statements for the current year such as age-related payables and aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within an hour if you make your application during standard company times and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statement, we’ll offer a decision within 1 company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be able to provide you with conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this can be quicker based on the particular circumstances of each application. Certain agreements have been approved in just 24 hours.
The fastest way is to make sure you apply during normal company hours and let us use the advanced bank verification system link to instantly verify your bank information online. If you send us documents from your account statement, it may take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) we can often offer a response in one hour – provided you apply within standard business hours and permit us to use the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statements, we are able to provide a decision in just one business day.
For Larger Business Loans ($100K to $500K) we may be capable of offer the conditional pre-approval within 6 hours. Once you have signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this could be shorter based upon the circumstances for each application. Certain deals have been approved in the space of 24 hours.
The fastest method is to ensure you apply during normal business hours. Also, let us use the advanced bank verification system link to verify your bank information online. If you choose to upload the copies of bank statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you make an application for a certain amount, we will consider a number of elements for determining what is the well-being of the company and the level of repayments your business can afford. The total amount of your loan will be contingent on the particular circumstances the company.
When you submit an application for a particular amount, we will consider a number of factors to assess how much we can lend you such as health for your business as well as the amount of payments your business can support. The amount you receive from your loan will be determined by the specifics the company.
Fees & repayments
What is the cost for a business loan?
When you make an application for business loans with us business financing, we will assess the risk profile the company and provide you with a customised offer including the amount of the loan, the duration and the interest rates. A company loan is an upfront priced loan therefore you will be aware in advance of the total amount you will have to pay, including charges or interest.
What determines the rate that I pay?
Interest rates for business loans rates vary due to variables like the amount to be that is borrowed, what business assets the funds are used to purchase and the sector the company operates in, the long the company has been operating, what percentage of the company has sufficient cash flow to support the loan, and also the overall health or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges for our business loans. You’ll know precisely what it is that you need to pay, and at what time, from the first day. There’s no compounding and no extra fees (as long as you make your payments in time).
We do not charge an application fee. You can request a credit loan with with no upfront cost or any obligation to sign up.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay out the loan early?
You can decide to repay all of your loan at any point in time.
If you choose to take this route, please contact our helpful company loan specialists. The experts will offer you with the details of your repayment as well as an early payout amount. This is calculated as the sum of the principal balance and the accrued interest up to the time of early payout, plus 1.5% of the principal remaining and any outstanding fees.
How do repayments work?
In order to help you avoid missing repayments and to fit in your cash flow schedule, we provide payments that are either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my information be secure?
Security of your data, and being upfront about how we collect, use, exchange and safeguard your data, is crucial and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to customer security and privacy. We utilise a sophisticated banking verification system to instantly confirm your bank account information online to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when the company owner uses assets they own to secure the funds for a loan. The asset can be an individual property, such as the family home or it could be a business asset such as a truck or piece of equipment.
The majority of lenders, including the banks with the biggest size, prefer to secure loans against an asset. If you have trouble paying back the loan then your assets could be offered for sale by the lender. In essence it’s the process of securing new financing by making use of the value of what you already own.
Do I need security to get a company loan?
For loans of up to $150,000, there is no requirement for asset security before you are able to access the money but we do need the personal guarantee. As long as you follow your loan obligations (as stated in your loan contract) the security of assets is not needed. If you take out loans in excess of $150K generally there is personal guarantee and security is provided in the form of the charge of assets.