FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Newlands Small Business Loans
Tell me more about Newlands Small Business Loans
Newlands unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
How is the Unsecured Loan different from a traditional business loan?
It is possible to apply for the Small Business Loan in under 10 minutes online or on the phone. You’ll receive a same day response and the funds could be in your account in 24 hours. Traditional company loans have an annual interest rate together with additional fees and charges. This business loan is a pre-paid loan and you’ll know in advance the total amount due, which includes any fees, interest or charges. This is then broken down into either weekly or daily amount to be paid back.
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 the management of cash flow, business remodeling, marketing for purchasing inventory or new equipment, as general working capital and much more. The loan is not available for personal use.
About Larger Newlands Business Loans
What is the Larger Newlands Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term for up to 36 months. Repayments are either weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a credit of this size the business needs to be operating for a minimum of 3 years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funds be utilised?
A Larger Business Loan can be used to fund almost any company reason, such as 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 needed for accessing funds over $150,000. This can be done by way of charge over assets and can include the registration of this on the PPSR or filing a caveat.
A personal or director’s ensure is a guarantee to repay credit that is generally based rather than stating security over a particular asset. The person who signs the ensure is personally liable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including goods or assets). The PPSR grants priority over personal property to be assigned according to the date the security interest was registered.
The caveat can be described as a formal document that is filed to provide the legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting larger business loans of $250K or more, we may offer a preliminary pre-approval to help make the process. We could be able to apply for this without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes the answer to a series of financial well-being checks. This is neither an offer nor a guarantee of finance. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you might receive could be on different terms.
The application process
Do I qualify for funds?
You are eligible to apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application in just a few minutes, and an experienced business credit specialist will call you to assist you.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, in addition to interim financials for the current financial year including Aged Payables, Aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K and up) we usually offer a response in one hour if you make your application during standard business times and permit us to utilise the bank verification system to immediately verify your bank account information online. If you decide to upload copies of your banking statements , we’ll be able to provide an answer within just one company day.
For the Larger Business Loan ($100K to $500K) we might be likely to offer you with pre-approval conditional to your application in about 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Certain transactions have received approval within less than 24 hours.
The most efficient method for you to apply is make sure you apply during normal business hours, and permit us to use the advance bank verification to instantly check your bank’s information online. If you choose to upload duplicates of your banking accounts, it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) we typically offer an answer in just one hour, provided you make your application within standard business hours and you 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 bank statements, we will be able to provide a decision in just 1 business day.
For Larger Business Loans ($100K or more) we may be able to provide you with conditional pre-approval within about six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this could be shorter based upon the circumstances for each application. Some offers have been approved within just 24 hours.
The fastest way would be to make sure you apply during standard business hours. Also, allow us to use the sophisticated bank verification link to check your bank’s information online. If you opt to send us copies of your bank accounts, it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a particular amount, we take into consideration a range of aspects that determine how much we can lend you well-being of the company as well as the amount of payments your business can afford. The total amount of your loan will depend on the particular circumstances for your company.
If you apply for a particular amount, we will consider a number of aspects to assess the well-being of your business as well as the amount of payments your company is able to afford. The amount you receive from your loan will depend on the particulars that are unique to your company.
Fees & repayments
How much do you charge for a company loan?
When you request one of our business financing, we will assess the risk profile for your company and provide an individualised proposal that includes the amount of the loan, the duration and interest rates. This company loan is an upfront cost loan therefore you will be aware in advance of the total amount you will have to pay, including interest rates, fees or charges.
What determines the amount I’m charged?
Interest rates for company loans rates differ based on various factors including the amount borrowed, the business assets the funds will be used for, the industry the company is operating in, how long the business is in operation for, in the event that the company has enough cash flow to support the loan, and overall well-being and creditworthiness of the business.
What are the charges?
There are no hidden fees for our business loans. You’ll know precisely what you’ll need to pay, and when, right from the day you sign up. There’s no compounding interest and there are no additional charges (as as you make your payments in time).
We do not charge an application fee. You can request a credit loan no cost upfront or commitment to apply.
The Origination Fee includes the expenses associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay off the loan in advance?
You can repay the entire amount of your loan at any point in time.
If you choose to do this please contact our helpful business loan experts. We will provide you with repayment details and an early payout figure. This will be calculated as the total of the principal amount remaining and the accrued interest up to the time of early payout in addition to 1.5% of the principal balance as well as any outstanding fees.
How do repayments work?
To ensure that you don’t miss repayments and to fit in with your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from your designated company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear how we collect the information we collect, use, share and secure your information, is crucial and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We use an advanced bank verification system that allows you to instantly confirm your bank account information online to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
The term “asset-based” refers to borrowing where an company owner uses an asset that they own to make the funds for a loan. The asset can be an individual asset, such as the family home, or an business asset such as a truck or piece or equipment.
The majority of lending institutions, not just the banks with the biggest size, prefer to secure loans against an asset. If you’re struggling to pay back the loan then your asset may be taken over by the lender. In essence it’s an opportunity to secure new financing by using the worth of the asset you already own.
Should I require security to secure an company loan?
For loans of up to $150,000, the requirement for asset security is not required prior to the loan’s access however, we do need an individual guarantee. In the event that you fulfill your loan obligations (as specified in your loan contract) Asset security is not needed. For loans over $150K generally there is an individual ensure and security is provided in the form of an asset charge.