FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Petone Small Business Loans
Tell me about the Petone Small Business Loans
Petone unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from the traditional business loan?
Apply to get your Small Business Loan in under 10 minutes online or on the phone. You’ll receive an answer within the same day and the funds could be in your account in 24 hours. Traditional company loans have an interest rate per annum together with additional fees and charges. This business loan is an upfront priced loan which means you know ahead of time the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into either a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business reason, such as cash flow management, business remodels and marketing for purchasing inventory or new equipment, as general working capital, and much more. The loan is not available for personal reasons.
About the Larger Petone Business Loans
What is the Larger Petone Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are either weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been operating for a minimum of 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be utilised?
A Business Loan of a larger size can be used to fund almost any company use, including business improvements, purchasing inventory or new equipment as well as for general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is required for accessing funds over $150,000. This can be done by taking a charge against assets, and could include registration on the PPSR or making a caveat.
A personal or director’s ensure is a commitment to repay a loan which is generally based rather than stipulating security over an asset. The person signing the guarantee is personally liable in the event that the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including objects or assets). The PPSR allows priority over personal property to be assigned according to the date the registration of a security interest.
The caveat can be described as a formal form of document to offer notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for an enterprise loan that is greater than $250K we can offer a preliminary pre-approval to help simplify the process. We might be able to do this without a credit verification and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes you answering a few financial well-being questions. It’s neither an offer nor a guarantee of finance. Acceptance without condition is subject to an extensive credit evaluation and any offer that you might receive could have different conditions.
Do I qualify for funds?
You can apply for an company 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)
- can demonstrate at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application within a couple minutes, and an experienced business expert in lending will be in touch to help you.
To apply for up $100,000, you’ll require identification details (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent and 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, as well as interim financial statements for the current year such as age-related payables and aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K and up) We can usually offer an answer within an hour, provided you apply during standard business time and allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your banking statement, we’ll provide an answer within one company day.
For Larger Business Loans ($100K up to $500,000) we may be capable of provide you with a conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this could be shorter based on the specifics of each application. Some deals have been approved in just 24 hours.
The most effective method is to ensure you apply during standard company hours, and allow us to use the advance bank verification link to confirm your bank details online. If you opt to upload duplicates of your banking statements , it may take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K and up) We can usually provide a response in one hour – provided you make your application within normal business hours and allow us to use the advanced bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statements, we’ll be able to offer a decision within one business day.
For Larger Business Loans ($100K to $500K) We may be likely to offer you with conditional pre-approval within about six hours. Once you have signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this may be quicker depending on the specifics of each application. Some transactions have received approval in 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours and permit us to use the advance bank verification link to verify your bank account information online. If you decide to send us the copies of bank statements, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a certain amount, we will consider a number of aspects for determining the health of the business 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 of your company.
When you submit an application for a specific amount we will consider a number of variables to assess your well-being that is your business and the level of payments your business is able to afford. The amount you receive from your loan will depend on the particular circumstances for your business.
Fees & repayments
How do you charge for an business loan?
If you decide to make an application for the business credit, we’ll assess the risk assessment for your business and provide you with a customised offer, including the amount of the loan, the duration and the interest rates. This company loan is an upfront priced loan therefore you will be aware in advance of the total amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I pay?
Business loan interest rates vary due to factors including the amount that is borrowed, what company assets the funds will be used for, the industry the business is in, how long the business has been in operation as well as what percentage of the company has sufficient cash flow to support the loan, and general health or financial standing of the company.
What are the costs?
There are no hidden fees with our business loans, and you’ll know precisely how much it is that you need to pay and when, starting from the very first day. There’s not any compounding interest and no extra fees (as long as you make your payments punctually).
We don’t charge an application fee. You are able to make an application for loans without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with establishing and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay off the loan in advance?
You can choose to repay the total amount of your advance loan at any time.
If you are deciding to take this route, please talk to one of our helpful company loan specialists. They will provide you with details on repayment and an early payment figure. The figure will be calculated as the total of the principal balance and the accrued interest up to the date of early payout plus 1.5 percent of the principal balance plus any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss due dates and also to be in line your cash flow cycle we provide payments that are either weekly or daily. They will be automatically deducted from your business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being clear about the ways we gather data, process, exchange and safeguard your data, is crucial and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We utilise a sophisticated bank verification system link to immediately verify your bank account information online to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the company owner borrows from an asset they own to make a loan. The asset could be an individual property, such as the family home or it could be a company asset like a truck or piece of equipment.
The majority of banks, including the largest banks, are inclined to guarantee loans against an asset. If you have trouble paying back the loan then your assets could be taken over by the lender. In essence, it’s the process of securing new financing taking advantage of the value of what you already have.
Are I require security to get a company loan?
For loans that exceed $150,000, it is not necessary to secure assets prior to the loan’s access However, we do require the personal guarantee. As long as you follow your loan commitments (as detailed in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150K typically, you will need an individual ensure and security in the form of an asset charge.