FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Newtown Small Business Loans
Tell me more about Newtown Small Business Loans
Newtown unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What is what makes the Unsecured Loan different from an ordinary company loan?
You can apply to the Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and have the funds on your account within 24 hours. Traditional company loans reference an annual interest rate together with additional fees and charges. The company loan is a pre-paid loan so you will be aware in advance of the total amount to be paid, including the interest, fees and charges. Then, it is divided into a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every company reason, such as control of cash flow company remodels and marketing to purchase inventory, new equipment, as general working capital, and much more. The loan is not available to fund personal expenses.
Concerning Larger Newtown Business Loans
What is the Larger Newtown 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 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your situation.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your business needs to be operating for a minimum of 3 years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can I use the funding for?
A large company loan is a great option for almost every business purpose including business renovations, purchase of inventory or new equipment, as general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. This is by way of charge against assets, which could also include registration with the PPSR or registering a caveat.
A personal or director’s ensure is a commitment to repay a loan which is general in nature, rather than defining security over a particular asset. The person signing the ensure is personally liable in the event that the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including the assets or goods). The PPSR permits prioritisation over property that is personal to be granted according to the date a registration of a security interest.
A caveat is a legal document lodged to offer an official notice of a claim on a property.
What is a pre-approval without Credit Check?
If you’re seeking the Larger Business Loan that exceeds $250K we can offer an initial pre-approval that will help smooth out the process. We could be able to make this decision without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial well-being checks. It’s 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 may receive may be subject to different conditions.
Can I be eligible for funding?
You may be eligible for a company 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 for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form in few minutes and a dedicated company lending specialist will be in touch to assist you.
To apply for up $100,000, you’ll require ID details (valid Driver’s License) along with an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Information on the application including credit consent, 12 months bank statement, an IRD statement 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 up to $100,000) we typically provide an answer within one hour – as long as you submit your request in quality company times and permit us to make use of the advanced bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statement, we’ll provide the decision within the span of one company day.
For Larger Business Loans ($100K up to $500,000) we could be able to provide you with pre-approval conditional to your application in around 6 hours. Once you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval, however it could be faster based on the specifics of each application. Certain transactions have received approval within just 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours, and permit us to use the modern bank verification to instantly confirm your bank details online. If you send us duplicates of your banking statements , it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within an hour – as long as you apply within standard business timings and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you opt to submit copies of your bank statements, we are able to offer the decision in as little as one business day.
For the Larger Business Loans ($100K and up) we may be able to provide you with a conditional pre-approval within 6 hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however it could be faster based upon the circumstances for each application. Some deals have been approved in the space of 24 hours.
The fastest way is to make sure you apply during standard business hours. You can also allow us to use the advanced bank verification system to instantly check your bank’s information online. If you decide to upload copies of your bank statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a particular amount, we consider a variety of factors for determining how much we can lend you health of your business and the extent of the repayments your company can afford. The total amount of the loan will be determined by the specific circumstances of your company.
If you apply for a specific amount we look at a range of variables to determine how much we can lend you such as well-being of your business and the amount of the repayments your business can support. The amount you receive from your loan will be contingent on the specifics of your business.
Fees & repayments
How do you charge for a company loan?
If you decide to request one of our business loans, we will assess the risk profile that you have for your company and provide you with a customised proposal that includes the amount of the loan, the duration and the interest rates. It is a business loan is an upfront priced loan so you will be aware of the total amount you will have to pay, including interest rates, fees or charges.
What is the basis for the rate I am charged?
The interest rates on business loans rates depend on a variety of variables like the amount to be borrowed, the company assets the money are used to purchase as well as the field the company is operating in, how long the business is in operation for, what percentage of the company has sufficient cash flow to cover the loan, and overall health or creditworthiness of the business.
What are the fees?
There are no hidden fees with our business loans. You’ll know precisely how much you be required to pay and when, from the first day. There’s no compounding and there are no additional charges (as as long as you pay your payments on time).
We don’t charge an application fee. You can get a cash loan 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 proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Do I have the option of paying off the loan early?
You can choose to repay all of your loan early at any time.
If you are deciding to do this please speak to our friendly business loans specialists. They will offer you with the details of your repayment and an early payment figure. It will be calculated using the sum of the remaining principal amount and accrued interest to the date of early payout plus 1.5% of the principal balance and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in your cash flow schedule, we offer repayments either weekly or daily. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being clear about the ways we gather, use, exchange and secure your information, is of paramount 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 techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We make use of an advanced banking verification system to instantly verify the bank account details online. This allows us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the business owner makes use of an asset that they own to obtain the funding. The asset could be a personal asset like the family home, or a company asset like a truck or piece or equipment.
The majority of lenders, not just the banks with the biggest size, prefer to guarantee loans against an asset. If you have trouble paying back the loan, the asset might be transferred to the lender. In essence it’s a way of securing new funding using the value of what you already own.
Are I need security to secure an business loan?
Up to $150K in loans there is no requirement for asset security prior to the loan’s access however, we do require an individual guarantee. So long as you comply with your loan obligations (as stipulated in the loan contract) Asset security is not required. If you take out loans in excess of $150,000 generally, you are able to get personal ensure and security is provided in the form of an asset charge.