FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Pauatahanui Small Business Loans
Let me know about the Pauatahanui Small Business Loans
Pauatahanui unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from an ordinary business loan?
The application for the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an instant response and have the funds available in just 24 hours. Traditional business loans have an interest rate per annum along with other charges and fees. We offer a company loan is a pre-paid loan so you will be aware in advance of the total amount to be paid, including any fees, interest or charges. This is then broken down into weekly or daily installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company use, including managing cash flows, business remodels and marketing for purchasing inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal use.
Concerning Larger Pauatahanui Business Loans
What is the Larger Pauatahanui Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of for up to 36 months. Repayments are either weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the company needs to have been operating for a minimum of 3 years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can the funding be used for?
A large company loan is a great option for almost every company reason, such as company improvements, purchasing new equipment or inventory or as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. This is as a result of an charge over assets, and could include registering this with the PPSR or making as a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is generally based rather than stipulating security over a particular asset. The person who is signing the guarantee is personally liable in the event that the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including items or assets). The PPSR gives preference over private property assigned in accordance with the date on which a security interest that is registered.
An affidavit is an official document filed to provide 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 $250,000 we may be able to provide an initial pre-approval in order to smooth out the process. We may be able to do this without credit checks and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes the answer to a series of financial well-being checks. It is neither an offer nor a guarantee of financing. A conditional approval is subject a full credit assessment and any offer you may receive may have 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 over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate 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 easy. Simply complete the online form in few minutes and an experienced company credit specialist will call you to assist you.
To apply for up $100,000 you’ll require ID details (valid Driver’s License) and a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent twelve months of bank records, IRD statement Last 2 years’ finalised financial statements, in addition to interim financials from the current financial year as well as Aged Payables and Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K or more) We can usually provide an answer in just one hour, provided you apply at standard business hours and let us utilise the bank verification system link to immediately verify your bank account information online. If you opt to send us copies of your bank statements , we are able to offer a decision within just 1 company day.
For Larger Business Loans ($100K or more) we may be likely to provide the conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based on the specifics of each application. Some offers have been approved in just 24 hours.
The most efficient method is to ensure you apply during normal company hours. Also, permit us to use the advanced bank verification system to instantly confirm your bank details online. If you opt to send us documents from your account statement, it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) We can usually provide a response in one hour – provided you submit your request in standard business times and you allow us to use the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your banking statements, we are able to provide the decision within one business day.
For Larger Business Loans ($100K up to $500,000) we could be able to provide you with a conditional pre-approval within about six hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based upon the circumstances for each application. Some agreements have been approved in 24 hours.
The most efficient method is to make sure you apply during standard business hours. Also, permit us to use the modern bank verification to instantly verify your bank information online. If you upload copies of your bank statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you submit an application for a specific amount we consider a variety of factors to determine your well-being of the business and the extent of payments your company can support. The total amount of the loan will be determined by the specifics that are unique to your business.
When you apply for a specific amount we will consider a number of elements to determine how much we can lend you such as health of the business and the amount of repayments that your business will be able to support. The total amount of your loan will be contingent on the specifics for your company.
Fees & repayments
How much should you charge for the cost of a business loan?
When you apply for one of our company financing, we’ll assess the risk assessment of your company and offer an individualised offer that includes the amount of loan, the term and the interest rates. This business loan is a loan that is priced upfront therefore you will know in advance the total amount to be paid, including any costs, fees, or interest rates.
What is the factor that determines the price I am charged?
Business loan interest rates depend on a variety of factors like the amount of money borrowed, what company assets the money are used to purchase and the sector the business operates in, how long the business has been in operation and what percentage of the company has enough cash flow to pay for the loan, and also the overall well-being and creditworthiness of the business.
What are the cost?
There are no hidden costs with our company loans, and you’ll know precisely how much you’ll be required to pay and when, right from the day you sign up. There’s no compounding and no additional fees (as as you make your payments punctually).
We don’t charge an Application Fee. You can get a cash 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. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan early?
You can decide to repay the entire amount of your loan in full at any time.
If you are deciding to do this please talk to one of our helpful company loan experts. The experts will offer you with repayment details along with an early payout estimate. The figure will be calculated as the total of the principal remaining plus any accrued interest as of the date of early payout plus 1.5 percent of the principal remaining as well as any outstanding fees.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being transparent about the ways we gather data, process, exchange and protect your information, is of huge importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and security. We utilise a sophisticated bank verification system to immediately verify your bank account details online to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a company owner makes use of assets they own to obtain a loan. The asset can be an individual asset, such as the family home, or a company asset such as a vehicle or piece of equipment.
The majority of lending institutions, even the banks with the biggest size, prefer to guarantee loans against assets. If you are having difficulty paying back the loan, then your assets could be sold by the lender. In essence, it’s the process of securing new financing taking advantage of the value of what you already have.
Do I require security to secure an company loan?
For loans up to $150,000 it is not necessary to secure assets upfront to access the money but we do require a personal guarantee. As long as you follow your loan obligations (as stated in the loan contract) the security of assets is not needed. For loans of over $150,000 typically, you will need the option of a personal guarantee and security is provided in the form of a charge over assets.