FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Papakura Small Business Loans
Tell me how you can avail the Papakura Small Business Loans
Papakura unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from the traditional business loan?
The application to get the Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an instant response and funds may be in your account within 24 hours. Traditional business loans refer to an interest rate per annum plus other fees and charges. This business loan is a cash-based loan and you’ll be aware in advance of the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into either a daily or weekly installment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company need, such as control of cash flow company improvements, advertising to purchase inventory, new equipment, for general working capital and much more. The loan is not available for personal purposes.
Concerning Larger Papakura Business Loans
What is the Larger Papakura Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. Repayments are weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount the company needs to be operating for at least three years with an annual turnover of $700,000. Your business must belong to 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 to prove at least 12 months of trading.
What can I use the funding for?
A Larger Business Loan can be used to fund almost all business purpose including company improvements, purchasing new equipment or inventory for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. It’s as a result of an charge against assets, and may be registered in the PPSR or the registration of a caveat.
A personal or director’s guarantee is a promise to repay credit that is general in nature rather than specifying the security for a particular asset. The person signing the ensure is personally accountable if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR permits prioritisation over property that is personal to be assigned depending on the date that a security interest has been registered.
An affidavit is an official form of document to offer notice of a legal claim to a property.
What is a pre-approval without Credit Check?
When you’re applying for larger company loans of $250K or more we can offer an initial pre-approval in order to smooth out the process. We might be able to make this decision without a credit check, and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves you answering some financial health questions. It’s not an offer or guarantee of financing. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you may receive may be subject to different terms.
The application process
Can I be eligible for funding?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Just complete the online application in few minutes and an experienced business expert in lending will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll require the right identification documents (valid Driver’s License) and a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent twelve months of bank statements, IRD statement Last 2 years’ finalised financial statements, and interim financials from the current financial year, Aged Payables and Aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we typically provide a response in one hour – as long as you submit your request during standard company times and let us use the advanced bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statement, we’ll provide an answer within just one company day.
For the Larger Business Loan ($100K up to $500,000) we could be capable of offer you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Some transactions have received approval within less than 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal company hours, and allow us to use the modern bank verification to instantly confirm your bank details online. If you decide to upload copies of your bank statements , it can take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K and up) we can often offer an answer within an hour, provided you make your application within normal business time and let us use the advanced bank verification system to instantly verify your bank’s information online. If you decide to submit copies of your bank statements we can provide a decision within 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be capable of provide the conditional pre-approval within six hours. Once you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however it could be faster based on the specifics of each application. Certain offers have been approved within less than 24 hours.
The fastest method would be to ensure you apply during standard business hours and allow us to use our sophisticated bank verification to confirm your bank details online. If you decide to upload duplicates of your banking statement, it will take a little longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a certain amount we take into consideration a range of factors for determining the health that is your company as well as the amount of the repayments your business can afford. The amount you receive from your loan will depend on the particular circumstances for your business.
When you apply for a certain amount, we consider a variety of aspects to determine the well-being that is your business as well as the amount of repayments that your business is able to afford. The amount you receive from your loan will be determined by the particulars for your business.
Fees & repayments
How much do you charge for an business loan?
If you decide to make an application for our company credit, we’ll assess the risk profile the business and provide an individualised offer including the amount of the loan, the duration and interest rates. This company loan is an upfront priced loan which means you be aware of the total amount to be paid, including any charges, interest rates or fees.
What determines the amount I am charged?
Interest rates for company loans rates vary due to factors like the amount of money borrowed, the company assets the funds will be used for in addition to the industry that the company operates in, the long the company is in operation as well as whether the company has sufficient cash flow to cover the loan, as well as the general well-being as well as creditworthiness company.
What are the fees?
There are no hidden costs with our company loans. You’ll know exactly how much you’ll be required to pay, and when, right from the day you sign up. There’s no compounding and there are no additional charges (as long as you are able to make your payments on time).
We don’t charge an application fee. You are able to get a cash loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the expenses involved with establishing and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay out the loan in advance?
You can choose to repay the entire amount of the advance loan at any time.
If you are deciding to pursue this option, please speak to our friendly business loans specialists. The experts will offer you with the details of your repayment and an early payout figure. This will be calculated as the sum of the principal amount remaining and accrued interest to the time of early payment, plus 1.5 percent of the remaining principal plus any outstanding fees.
How do repayments work?
To make sure you do not miss payments and to work with your cash flow standard, we offer repayments that are either weekly or daily. These are automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing how we collect, use, exchange and secure your information, is vital and an integral element 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 clients and privacy. We use an advanced bank verification system link to instantly confirm your bank account information online. This allows us to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
The term “asset-based” refers to borrowing where an business owner borrows from assets they own to obtain the funding. The asset can be an individual property, such as the family home or an business property like a truck or other piece of machinery.
The vast majority of banks, not just the banks with the biggest size, prefer to make loans secured by an asset. If you’re struggling to pay back the loan then your assets could be taken over by the lender. In essence, it’s the process of securing additional financing using the worth of the asset you already have.
What do I require security for a business loan?
Up to $150,000 in loans there is no requirement for asset security in advance to gain access to the funds However, we require a personal guarantee. need an individual guarantee. As long as you follow your loan commitments (as stated in your loan contract document) Asset security is not needed. For loans that exceed $150K, generally, you can get the option of a personal guarantee and security that is in the form an asset charge.