FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Pakuranga Small Business Loans
Tell me how you are able to avail the Pakuranga Small Business Loans
Pakuranga unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from an traditional company loan?
You can apply to get your Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and funds may be on your account within 24 hours. Traditional company loans reference an annual rate of interest together with additional fees and charges. We offer a company loan is a pre-paid loan which means you know ahead of time the total amount to be paid, including any interest, fees or charges. This is then divided into weekly or daily installment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for nearly every business use, including managing cash flows, company improvements, advertising for purchasing inventory or new equipment, to fund general working capital and much more. The loan is not available for personal use.
About Larger Pakuranga Business Loans
What is the Larger Pakuranga Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your company needs to have been in operation for at least 3 years, and have an annual income of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funding be utilised?
A Business Loan of a larger size can be used for almost every business use, including business renovations, purchase of inventory or new equipment or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. This is by way of charge over assets, which could also be registered with the PPSR or filing a caveat.
A director’s or personal ensure is a commitment to repay a loan which is general in nature rather than defining the security of a specific asset. The person signing the guarantee is personally accountable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be assigned in accordance with the date on which a security interest has been registered.
An affidavit is an official form of document to provide the public notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan that exceeds $250K it’s possible to offer an initial pre-approval in order to make the process. We might be able to do this without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves you answering some financial well-being checks. This is in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you might receive could be on different terms.
The application process
Do I have the right to receive funds?
You can apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form within a few minutes and a dedicated company expert in lending will contact you to guide you.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s License) as well as an active NZBN/IRD, and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K – $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent and 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, in addition to interim financials for the current financial year such as age-related payables and aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we typically offer an answer in just one hour – as long as you submit your request in quality business times and allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your bank statements we can offer a decision in just an company day.
For Larger Business Loans ($100K to $500K) we may be capable of provide you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Some transactions have received approval within just 24 hours.
The most efficient method would be to make sure you apply during normal company hours. You can also allow us to use the modern bank verification to instantly verify your bank account information online. If you decide to send us copies of your bank accounts, it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer within one hour if you make your application in normal business hours and you allow us to use the bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statement, we’ll provide an answer in just the span of one business day.
For Larger Business Loans ($100K or more) we might be able to offer you with conditional pre-approval in around six hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Certain offers have been approved within the space of 24 hours.
The fastest method can be ensure you apply during standard business hours, and allow us to use the modern bank verification link to instantly verify your bank account information online. If you upload the copies of bank statements it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a particular amount, we consider a variety of factors that determine your well-being of the business as well as the amount of payments your company will be able to support. The total amount of your loan will depend on the specific circumstances of your company.
When you submit an application for a specific amount we look at a range of elements to determine your well-being of the business and the level of the repayments your company will be able to support. The total amount of the loan will be determined by the specifics for your business.
Fees & repayments
How much do you charge for an business loan?
If you decide to request business loans with us company financing, we will assess the risk assessment the business and provide an individualised offer including the loan amount, the terms and the interest rates. The business loan is an upfront-priced loan therefore you will be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What is the factor that determines the price I pay?
Interest rates for business loans rates differ based on various factors including the amount that is borrowed, what business assets the funds will be used for and the sector the business operates in, how long the company has been operating for, how long the business has sufficient cash flow to support the loan, and the general well-being or creditworthiness of the company.
What are the costs?
There aren’t any hidden charges with our business loans. You’ll know precisely what it is that you need to pay, and at what time, from the day you sign up. There’s no compounding and no extra fees (as as you make your payments on time).
We don’t charge an Application Fee. You are able to apply for a loan without any upfront costs or the obligation to take action.
The Origination Fee covers the expenses involved with the setting up and management of 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 loan.
Do I have the option of paying off the loan earlier?
You can decide to repay all of your loan in full at any time.
If you choose to take this route, please contact our helpful business loan specialists. We will provide you with the details of your repayment 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 plus 1.5 percent of the principal amount remaining and any fees that remain unpaid.
What are the repayment methods?
In order to help you avoid missing payment dates and to align your cash flow schedule, we offer repayments that are either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being clear about how we collect information, use it, and exchange it, as well as ensure the security of your information is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their privacy. We employ an exceptionally sophisticated bank verification system link to instantly confirm your bank account information online so we can offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term “asset-based” refers to borrowing where an company owner utilises an asset that they own to make the funding. The asset can be an asset belonging to the personal, like the family home, or a company asset like a truck or other piece of machinery.
The vast majority of lending institutions, not just the largest banks, are inclined to guarantee loans against assets. If you’re struggling to pay back the loan then the asset might be sold by the lender. In essence it is an opportunity to secure new financing using the value of what you already have.
Are I need security for an company 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. As long as you follow your loan commitments (as detailed in your loan contract document) and you are able to meet your obligations, asset security will never be needed. For loans that exceed $150K, generally, there is personal ensure and security in the form of an asset charge.