FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The New Lynn Small Business Loans
Tell me more about New Lynn Small Business Loans
New Lynn unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from an traditional company loan?
The application to get your Small Business Loan in under 10 minutes on the phone. You’ll receive an immediate response, and funds may be in your account within 24 hours. Traditional company loans have an interest rate per annum plus other fees and charges. This company loan is an upfront priced loan and you’ll be aware in advance of the total amount to be paid, including any fees, interest or charges. This is then broken down into either weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for almost any business reason, such as cash flow management, company improvements, advertising for purchasing inventory or new equipment, for general working capital and much more. The loan is not available for personal use.
About Larger New Lynn Business Loans
What is the Larger New Lynn 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 over a fixed term that can last up to 36 months. Repayments are weekly or fortnightly depending on your cash flow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large, your company needs to be operating for a minimum of 3 years and generate an annual revenue of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funds for?
A large company loan can be used for almost every business need, including company improvements, purchasing equipment or inventory for general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. It is usually as a result of an charge over assets and can include registration on the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is general in nature rather than specifying security over a particular asset. The person who is signing the ensure is personally accountable if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR permits priority over personal property to be assigned according to the date the security interest was registered.
A caveat is a legal document filed to provide the legal claim against a property.
What is a pre-approval without Credit Check?
If you’re requesting the Larger Business Loan that is greater than $250,000 we can offer an initial pre-approval in order to make the process. We may be able to do this without credit checks and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves you answering some financial well-being checks. It’s not an offer of credit or guarantee of credit. A conditional approval is subject an extensive credit evaluation and any offer you may receive may be based on different terms.
The application process
Can I be eligible for funding?
You may apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for a 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. Simply complete the online form within a couple minutes, and an experienced business loan specialist will be in touch to guide you through the process.
To apply for up $100,000 you’ll require proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Information on the application including credit consent as well as 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, in addition to interim financials from the current financial year such as age-related payables and aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we usually offer an answer within one hour, provided you submit your request in standard company times and you allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your bank statements we can provide a decision within just the span of one business day.
If you are applying for a Larger Business Loan ($100K or more) we could be able to provide you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Certain deals have been approved within the space of 24 hours.
The quickest way to apply can be make sure you apply during normal business hours. You can also permit us to use the advance bank verification to confirm your bank details online. If you opt to send us copies of your bank statements , it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer in just one hour if you make your application at normal business time and permit us to make use of the advanced bank verification system link to instantly verify your bank details online. If you choose to submit copies of your bank statements we can offer the decision in as little as an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be able to offer the conditional pre-approval in about six hours. Once you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval, however this can be faster depending on the specifics of each application. Some deals have been approved in just 24 hours.
The most effective method can be ensure you apply during standard business hours and allow us to use the modern bank verification to instantly verify your bank information online. If you send us the copies of bank statements it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a particular amount, we look at a variety of factors in order to assess how much we can lend you health that is your business and the amount of payments your business can support. The total amount of the loan will be determined by the specifics for your company.
When you submit an application for a set amount, we look at a range of variables to determine your well-being of your company and the amount of payments your company can afford. The total amount of your loan will be determined by the particular circumstances for your business.
Fees & repayments
How much do you charge for a business loan?
If you decide to apply for our business loans, we will assess the risk profile the company and offer 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 know the exact amount you will have to pay, including charges or interest.
What is the factor that determines the price I pay?
The interest rates on business loans rates vary due to factors like the amount of money borrowed, the business assets the money are used to purchase in addition to the industry that the business is in, how long the company has been running as well as in the event that the company has sufficient cash flow to support the loan, and also the overall well-being and creditworthiness of the business.
What are the cost?
There are no hidden costs for our business loans. You’ll be aware of the amount you be required to pay and at what time, from the very first day. There’s no compounding interest and no additional fees (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You can get a cash loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the costs associated with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay off the loan in advance?
You may choose to pay back the total amount of your loan in full at any time.
If you choose to pursue this option, please contact our helpful business loan experts. The experts will provide you with details for repayment as well as an early payout amount. This will be calculated as the sum of the principal remaining plus any accrued interest as of the time of early payment and 1.5 percent of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss due dates and also to be in line your cash flow cycle we offer repayments either weekly or daily. They will be automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and being transparent about the ways we gather data, process, exchange and safeguard your data, is crucial and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to security for our customers and privacy. We utilise a sophisticated bank verification system to immediately confirm your bank account information online. This allows us to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an business owner borrows from an asset that they own to make the funding. The asset may be a personal asset like the family home, or it could be a business property like a truck or piece of equipment.
The vast majority of the lenders even the big banks, tend to guarantee loans against an asset. If you’re struggling to pay back the loan, the asset could be taken over by the lender. In essence it is an opportunity to secure additional financing using the worth of the asset you already have.
Should I need security to get a company loan?
For loans up to $150,000 there is no requirement for asset security in advance to gain access to the funds but we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan commitments (as specified in your loan contract document) and you are able to meet your obligations, asset security will never be needed. If you take out loans in excess of $150K generally, there is personal ensure and security that is in the form an asset charge.