FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Mount Cook Small Business Loans
Tell me how you are able to avail the Mount Cook Small Business Loans
Mount Cook unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from a traditional company loan?
The application for your Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an immediate response, and have the funds in your account in 24 hours. Traditional company loans refer to an annual interest rate plus other fees and charges. The business loan is a loan that is priced upfront which means you know ahead of time the total amount to be paid, including any fees, charges or charges. Then, it is divided into weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every company purpose including the management of cash flow, business renovations, marketing to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal purposes.
About larger Mount Cook Business Loans
What is the Larger Mount Cook Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size, your business needs to have been trading for at least 3 years, and have an annual income of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate 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 every business need, including company renovations, purchase of new equipment or inventory for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. It is usually in the form of a charge on assets and can be registered through the PPSR or filing a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is general in nature, rather than specifying the security of a specific asset. The person who signs the guarantee is personally accountable if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including goods or assets). The PPSR allows preference over private property assigned according to the date a security interest was registered.
A caveat is a legal document filed to provide an official notice of a claim to a property.
What exactly is a preapproval without Credit Check?
If you’re applying for larger company loans that exceeds $250,000 we may be able to provide an initial pre-approval in order to smooth out the process. It is possible to get this done without credit checks and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial health checks. It is in no way an offer, nor is it a guarantee of financing. Acceptance without condition is subject to a full credit assessment and any offer that you receive could be on different terms.
Application process
Do I qualify for funds?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for a 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. Just fill out the online application in few minutes and a dedicated business credit specialist will call you to guide you.
For a loan of up to $100,000, you’ll need the right identification documents (valid Driver’s Licence), an active NZBN/IRD, and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Information on the application including credit consent and 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) We can usually provide an answer within one hour – as long as you make your application during quality company timings and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statements , we will be able to provide an answer within one business day.
For the Larger Business Loan ($100K and up) we may be in a position to offer you with a conditional pre-approval in about six hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Certain offers have been approved in 24 hours.
The fastest way can be ensure you apply during standard company hours. You can also permit us to use the modern bank verification to verify your bank account information online. If you send us documents from your account statements it can take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer within an hour – provided you submit your request within standard business time and allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you want to submit copies of your bank statements we can offer an answer in as little as one business day.
If you are applying for Larger Business Loans ($100K or more) we may be likely to provide you with conditional pre-approval within six hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval within just 24 hours.
The fastest way is to make sure you apply during standard business hours, and let us use the sophisticated bank verification link to instantly verify your bank information online. If you choose to send us the copies of bank statements, it will take a little longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you submit an application for a certain amount, we consider a variety of factors in order to assess what is the health for your company and the level of the repayments your business will be able to support. The total amount of your loan will be contingent on the particular circumstances for your company.
When you make an application for a specific amount we consider a variety of factors to determine the well-being that is your company as well as the amount of payments your business can support. The total amount of your loan will be determined by the specific circumstances for your company.
Fees & repayments
How do you charge for an company loan?
If you decide to request business loans with us company loans, we will assess the risk profile of your business and provide you with a tailored offer, including the loan amount, the terms and interest rates. The business loan is an upfront priced loan and you’ll know in advance the total amount due, which includes any charges, interest rates or fees.
What determines the rate that I will be charged?
The interest rates on company loans rates vary due to factors like the amount of money of money borrowed, the company assets the money will be used for, the industry the company operates in, the long the business has been in operation and in the event that the business has sufficient cash flow to pay for the loan, and general well-being as well as creditworthiness company.
What are the costs?
There aren’t any hidden costs for our company loans, and you’ll know precisely how much it is that you need to pay and at what time, from day one. There’s no compounding interest, and there are no additional charges (as long as you make your payments on time).
We do not charge an Application Fee. You can get a cash loan with without any upfront costs or any obligation to sign up.
The Origination Fee covers the expenses involved with setting up and managing the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I repay the loan early?
You can choose to repay all of your loan early at any time.
If you are deciding to take this route, please speak to our friendly business credit professionals. The professionals will provide you with details for repayment along with an early payout estimate. This will be calculated as the sum of the principal amount remaining and the accrued interest up to the time of the early payout in addition to 1.5 percent of the principal amount remaining and any fees that remain unpaid.
How do repayments work?
To make sure you do not miss repayments and to fit in your cash flow cycle we offer repayments that are either daily or weekly. They are automatically deducted from your business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of huge importance and is a crucial 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 protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to security for our clients and security. We use an advanced bank verification system that allows you to instantly verify your bank account details online to provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a business owner uses an asset they own to secure the funds for a loan. The asset can be a personal asset like the family home, or a business asset like a truck as well as a piece of machine.
The vast majority of banks, not just the major banks, prefer to secure loans against assets. If you are having difficulty paying back the loan, then your asset may be taken over by the lender. In essence it’s the process of securing new financing by using the worth of the asset you already have.
Should I require security to secure a business loan?
For loans that exceed $150K, there is no requirement for asset security prior to the loan’s access however, we do need an individual guarantee. So long as you comply with the terms of your loan (as stated in your loan contract document) the security of assets will never be needed. For loans over $150,000 generally there is an individual ensure and security in the form the charge of assets.