FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Newmarket Small Business Loans
Let me know what you think of the Newmarket Small Business Loans
Newmarket unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from the traditional business loan?
The application for the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and the money could be on your account within 24 hours. Traditional company loans refer to an annual interest rate as well as other fees and charges. Our business loan is a loan that is priced upfront and you’ll know in advance the amount you will have to pay, including any fees, interest or charges. This is then divided into a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for almost every business reason, such as cash flow management, company improvements, advertising to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used for personal purposes.
About Larger Newmarket Business Loans
What is the Larger Newmarket Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large, your business needs to have been operating for a minimum of 3 years and have an annual turnover of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funding for?
A Business Loan of a larger size is a great option for almost every business purpose including company improvements, purchasing equipment or inventory, as 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 required to access funding over $150,000. It’s as a result of an charge against assets and can include the registration of this on the PPSR or the registration of as a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally based rather than stipulating the security of a specific asset. The person who signs the ensure is personally responsible if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including items or assets). The PPSR permits preference over private property assigned depending on the date that a security interest that is registered.
An affidavit is an official document lodged to provide notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re requesting a Larger Business Loan of more than $250K it is possible to offer a preliminary pre-approval to help simplify the process. It is possible to get this done without a credit check, and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes answering a couple of financial well-being checks. It is not an offer of credit or guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer you receive could be on different terms.
The application process
Do I have the right to receive funds?
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 demonstrate at minimum 6 months of business (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form in few minutes and a dedicated business lending specialist will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Details of the application, including credit consent, 12 months bank statement, an IRD statements, last 2 years finalised financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K and up) we can often provide an answer within one hour – as long as you apply in standard business hours and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your banking statement, we’ll provide an answer within just an company day.
For Larger Business Loans ($100K or more) we might be in a position to offer the conditional pre-approval in around six hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain transactions have received approval within less than 24 hours.
The fastest way would be to make sure you apply during normal company hours, and let us use the advanced bank verification system to check your bank’s information online. If you choose to send us documents from your account statements it may take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K to $100K) we usually offer a response in one hour – provided you make your application in standard business times and permit us to use the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your banking statements we can offer an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be in a position to provide you with pre-approval conditional to your application within about six hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Certain deals have been approved in less than 24 hours.
The fastest way can be make sure you apply during normal business hours. You can also permit us to use the modern bank verification to check your bank’s information online. If you opt to upload copies of your bank accounts, it takes a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of variables for determining how much we can lend you health of the business and the level of payments your company is able to afford. The amount you receive from your loan will depend on the particular circumstances that are unique to your company.
When you apply for a particular amount, we take into consideration a variety of aspects to assess the well-being for your business and the amount of repayments that your business can support. The amount you receive from the loan will be determined by the specifics the company.
Fees & repayments
What is the cost for an company loan?
When you apply for one of our company loan, we will assess the risk assessment for your business and provide an individualised proposal that includes the loan amount, the terms and the interest rates. A business loan is an upfront cost loan which means you know the exact amount you will have to pay, including costs, fees, or interest rates.
What determines the amount I pay?
Interest rates for business loans rates depend on several factors such as the amount that is of money borrowed, the business assets the money will be used for, the industry the company operates in, the long the company has been running as well as how long the business has enough cash flow to support the loan, and also the overall well-being or financial standing of the business.
What are the fees?
There aren’t any hidden costs with our business loans, and you’ll know exactly how much you need to pay and when, from the first day. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments punctually).
We don’t charge an application fee. You can get a cash loan with no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I repay the loan early?
You can decide to repay the entire amount of your loan early at any time.
If you choose to take this route, please call our helpful company loans professionals. The experts will provide you with details for repayment and an early payment figure. This will be calculated as the total of the principal amount remaining plus any accrued interest as of the time of early payment and 1.5% of the principal balance and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow schedule, we provide repayments either daily or weekly. They will be automatically deducted from your company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being upfront about the ways we gather data, process, exchange and protect your information, is of huge importance and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to security for our clients and security. We make use of an advanced bank verification system link to instantly verify your bank account details online so we can provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term “asset-based” refers to borrowing where an company owner utilises an asset that they own to get the loan. The asset can be an individual asset, such as the family home or it could be a business asset like a truck or other piece of machinery.
The majority of lending institutions, even the major banks, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, then the asset could be transferred to the lender. In essence, it is means of securing new financing by taking advantage of the value of what you already own.
Do I need security for an company loan?
For loans up to $150K there is no requirement for asset security in advance to gain access to the funds However, we do require a personal guarantee. In the event that you fulfill the loan terms (as detailed in your loan contract) the security of assets will never be required. For loans that exceed $150,000, generally, you are able to get the option of a personal guarantee and security is provided in the form of an asset charge.