FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Mount Victoria Small Business Loans
Let me know about the Mount Victoria Small Business Loans
Mount Victoria unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from an traditional company loan?
Apply to get the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and the funds could be on your account within 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. We offer a business loan is an upfront priced loan therefore you’ll be aware of the total amount payable including any fees, charges or charges. Then, it is broken down into either weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business use, including cash flow management, business remodels and marketing, to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal reasons.
About larger Mount Victoria Business Loans
What is the Larger Mount Victoria 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 for a fixed period of that can last up to 36 months. Repayments are either weekly or fortnightly depending on your cash flow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan of this size, your business needs to have been in operation for at least 3 years with an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funds for?
A Larger Business Loan can be used for almost all company purpose including business improvements, purchasing inventory or new equipment as well as for general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It is usually as a result of an charge on assets, and may include registration through the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a guarantee to pay off a credit line that is general in nature rather than stipulating the security for a particular asset. The person who is signing the guarantee is personally accountable if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including the assets or goods). The PPSR allows preference over private property assigned according to the date a registration of a security interest.
Caveats are legal form of document to provide notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
When you’re applying for an enterprise loan that is greater than $250,000 we may be able to provide an initial pre-approval to make the process. We may be able to get this done without a credit check, and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves answering a couple of financial well-being checks. It is not an offer or guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer you may receive may have different conditions.
The application process
Can I be eligible for funding?
You can apply for a 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 you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application in few minutes and a dedicated business expert in lending will be in touch to assist 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 six months worth of bank statements.
For larger loan sizes, you’ll also require:
$100K-$250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent and 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, and interim financial statements for the current year, Aged Payables and Aged Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K and up) We can usually provide an answer within an hour, provided you make your application in quality business hours and allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your banking statements , we will be able to offer an answer within 1 business day.
For the Larger Business Loan ($100K or more) we may be capable of provide you with conditional pre-approval within 6 hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Some offers have been approved in the space of 24 hours.
The quickest way to apply for you to apply is make sure you apply during standard business hours and allow us to use the modern bank verification to instantly confirm your bank details online. If you send us copies of your bank statements it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer in just one hour – provided you make your application in normal business time and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statements, we are able to provide the decision within an business day.
For the Larger Business Loans ($100K and up) we may be able to provide the conditional pre-approval in around six hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Some offers have been approved in the space of 24 hours.
The most efficient method for you to apply is ensure you apply during normal business hours. You can also allow us to use the advanced bank verification system to instantly verify your bank account information online. If you opt to send us duplicates of your banking statements, it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a particular amount, we take into consideration a range of aspects for determining the well-being of the business as well as the amount of the repayments your company can support. The amount you receive from the loan will be determined by the specifics that are unique to your company.
If you apply for a certain amount, we will consider a number of aspects to assess how much we can lend you such as well-being of the company as well as the amount of repayments your business will be able to support. The amount you receive from the loan will be determined by the specific circumstances for your business.
Fees & repayments
What is the cost for a company loan?
If you decide to apply for one of our business credit, we will assess the risk assessment for your business and provide you with a tailored offer, including loan amount, term and the interest rates. It is a company loan is an upfront cost loan and you’ll be aware of the total amount to be paid, including any charges, interest rates or fees.
What determines the rate that I am charged?
Interest rates for company loans rates differ based on various variables like the amount to be that is borrowed, what business assets the money will be used for in addition to the industry that the company operates in, how long the company has been running for, in the event that the company has sufficient cash flow to cover the loan, and also the general well-being and creditworthiness of the business.
What are the cost?
There aren’t any hidden charges with our company loans, and you’ll know precisely how much you be required to pay, and when, right from the very first day. There’s no compounding interest, and there are no additional charges (as as long as you pay your payments on time).
We do not charge an application fee. You can apply for a loan with with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I repay the loan in advance?
You can choose to repay the entire amount of your loan in full at any time.
If you decide to take this route, please call our helpful business credit professionals. We will offer you with the details of your repayment as well as an early payout amount. This is calculated as the total of the principal amount remaining plus any accrued interest as of the time of early payment, plus 1.5 percent of the principal remaining as well as any outstanding fees.
How do repayments work?
To ensure you do not miss payment dates and to align with your cash flow general, we provide repayments either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being transparent about the ways we gather the information we collect, use, share and secure your information, is of huge importance and a vital element 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 sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We employ a highly sophisticated bank verification system that allows you to immediately verify the bank account details online. This allows us to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the business owner utilises the assets they have to get the loan. The asset can be an individual property, such as the family home or an business asset such as a truck as well as a piece of machine.
The majority of banks, including the major banks, prefer to secure loans against assets. If you have trouble paying back the loan, your assets could be taken over by the lender. In essence it’s a way of securing additional financing using the worth of the asset you already have.
Do I require security for a company loan?
For loans of up to $150,000, there is no requirement for asset security prior to the loan’s access however, we require a personal guarantee. require an individual guarantee. As long as you follow your loan commitments (as stated in your loan contract document) the security of assets is not needed. If you take out loans in excess of $150,000 generally, there is an individual ensure and security in the form the charge of assets.