FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Pinehaven Small Business Loans
Tell me more about Pinehaven Small Business Loans
Pinehaven unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from the traditional company loan?
Apply for the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and funds may be in your account within 24 hours. Traditional business loans refer to an annual rate of interest plus other fees and charges. This company loan is a cash-based loan and you’ll be aware in advance of the total amount to be paid, including the interest, fees and charges. Then, it is broken down into either a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every company reason, such as control of cash flow business remodeling, marketing, to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used to fund personal expenses.
About the Larger Pinehaven Business Loans
What is the Larger Pinehaven Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term with a maximum of 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size the business needs to have been operating for a minimum of 3 years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can the funds be used for?
A Larger Business Loan can be used for almost any company need, including business remodeling, buying 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 one that requires security?
Asset security is needed to obtain funding above $150,000. It’s in the form of a charge over assets, and could include the registration of this in the PPSR or registering a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is generally in nature rather than defining the security for a particular asset. The person signing the guarantee is personally liable if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests that are registered for personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be granted in accordance with the date on which a registration of a security interest.
Caveats are legal document filed to provide an official notice of a claim against a property.
What is a pre-approval minus Credit Check?
If you’re requesting larger company loans of more than $250,000, we may offer an initial pre-approval to simplify the process. We may 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 answering a couple of financial well-being questions. This is in no way an offer, nor is it a guarantee of finance. A conditional approval is subject an exhaustive credit evaluation, and any offer you receive could be subject to different conditions.
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 over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application in few minutes and an experienced business credit specialist will contact you to guide you.
To apply for up to $100,000, you’ll need ID details (valid Driver’s License) and an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K to $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Details for application including credit consent as well as 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, plus interim financials from the current financial year, Aged Payables and Aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we typically offer an answer within one hour, provided you submit your request during standard business time and allow us to utilise the bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statement, we’ll provide the decision in as little as an business day.
For the Larger Business Loan ($100K and up) we may be in a position to provide you with conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this can be quicker based upon the circumstances for each application. Some offers have been approved in the space of 24 hours.
The most efficient method for you to apply is make sure you apply during normal business hours. Also, allow us to use the advance bank verification link to instantly verify your bank account information online. If you decide to upload documents from your account statements , it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K to $100K) we can often offer a response in one hour if you apply at normal business hours and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your bank statements, we are able to provide an answer within 1 business day.
For Larger Business Loans ($100K up to $500,000) we may be capable of offer you with a conditional pre-approval in about 6 hours. Once 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 transactions have received approval in just 24 hours.
The most effective method for you to apply is make sure you apply during normal business hours, and permit us to use the advanced bank verification system to check your bank’s information online. If you decide to upload the copies of bank accounts, it will take a little longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a certain amount, we consider a variety of variables in order to assess how much we can lend you health of the company as well as the amount of payments your business can support. The amount you receive from the loan will be determined by the specifics of your business.
When you make an application for a particular amount, we will consider a number of factors to assess your well-being of your company and the extent of the repayments your business can support. The amount you receive from your loan will depend on the particular circumstances the company.
Fees & repayments
What is the cost for an company loan?
If you decide to request our business credit, we will assess the risk assessment for your business and provide you with a tailored offer that includes the amount of loan, the term and interest rates. This company loan is an upfront-priced loan and you’ll know in advance the total amount payable including any costs, fees, or interest rates.
What determines the rate that I pay?
Interest rates for business loans rates depend on a variety of factors like the amount of money borrowed, what company assets the funds will be used for and the sector the business is in, how long the business is in operation and how long the business has sufficient cash flow to cover the loan, and the overall health or creditworthiness of the business.
What are the cost?
There aren’t any hidden costs for our business loans. You’ll know precisely how much you’ll be required to pay, and at what time, from the very first day. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments in time).
We don’t charge an application fee. You can request a credit loan with no cost upfront or obligation to proceed.
The Origination Fee is the cost associated with establishing and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I repay the loan early?
You can repay the total amount of your loan at any point in time.
If you choose to take this route, please talk to one of our helpful business loans professionals. The professionals will offer you with repayment details and an early payout figure. This is calculated as the total of the principal balance and accrued interest to the time of early payout plus 1.5 percent of the remaining principal as well as any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss repayments and to fit in your cash flow cycle we provide repayments either daily or weekly. They will be automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being upfront about the ways we gather data, process, exchange and ensure the security of your information is vital and is an essential part 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 financial information and our funders are ISO 27001 qualified for our dedication to customer security and privacy. We utilise a sophisticated bank verification system that allows you to instantly confirm your bank account information online so we can provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an company owner utilises assets they own to get a loan. The asset can be a personal asset like the family home or it could be a company asset such as a truck as well as a piece of machine.
The majority of banks, including the big banks, tend to make loans secured by assets. If you are having difficulty paying back the loan then the asset might be taken over by the lender. In essence it is the process of securing additional financing taking advantage of the value of what you already have.
What do I require security to get a company loan?
Up to $150,000 in loans no asset security is required upfront to access the money However, we do require a personal guarantee. If you adhere to the terms of your loan (as stated in your loan contract) Asset security will never be needed. If you take out loans in excess of $150K generally there is the option of a personal ensure and security in the form of a charge over assets.