FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Pinehill Small Business Loans
Let me know how you can avail the Pinehill Small Business Loans
Pinehill unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from an ordinary business loan?
Apply to the Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and funds may be in your account in 24 hours. Traditional business loans reference an annual interest rate together with additional fees and charges. Our company loan is a pre-paid loan so you will be aware in advance of the total amount payable including any fees, interest or charges. This is then divided into weekly or daily repayment figure.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for almost every business purpose including cash flow management, company remodeling, marketing to purchase inventory, new equipment, to fund general working capital, and much more. The loan cannot be used for personal reasons.
About larger Pinehill Business Loans
What is the Larger Pinehill Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size, your business needs to be in operation for at least 3 years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funds for?
A Business Loan of a larger size can be used for nearly all company use, including company renovations, purchase of equipment or inventory for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. It is usually as a result of an charge over assets, and may include the registration of this through the PPSR or filing a caveat.
A personal or director’s guarantee is a promise to pay back a loan that is generally based rather than stating the security of a specific asset. The person who signs the ensure is personally liable in the event that the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including the assets or goods). The PPSR allows preference over private property granted in accordance with the date on which a registration of a security interest.
The caveat can be described as a formal form of document to offer the public notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re seeking larger company loans that exceeds $250,000, we may offer an initial pre-approval in order to ease the process. We could be able to do this without a credit verification and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial health questions. It’s not an offer or guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer that you may receive may be on different conditions.
The application process
Are I eligible for funding?
You may apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form within a few minutes and a dedicated company lending specialist will call you to help you.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Information on the application including credit consent as well as 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, plus interim financials for the current financial year such as age-related payables and aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K or more) We can usually provide a response in one hour – as long as you apply within quality business hours and you allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statements , we are able to offer a decision within just the span of one business day.
If you are applying for a Larger Business Loan ($100K or more) we could be likely to provide you with a conditional pre-approval in around six hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, it could be faster based on the particular circumstances of each application. Certain transactions have received approval in the space of 24 hours.
The quickest method would be to make sure you apply during normal company hours. You can also let us use the modern bank verification to verify your bank information online. If you opt to send us the copies of bank accounts, it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) we can often offer a response in one hour, provided you submit your request at normal business time and permit us to use the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your banking statements, we’ll be able to provide a decision within an business day.
For Larger Business Loans ($100K or more) we might be able to offer you with conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval form, it will take about 2-3 days for final approval. However, this can be faster depending on the particular circumstances of each application. Certain offers have been approved within less than 24 hours.
The most effective method can be make sure you apply during standard business hours and permit us to use the modern bank verification link to verify your bank information online. If you opt to send us duplicates of your banking accounts, it can take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you make an application for a particular amount, we look at a variety of elements that determine the well-being of the company and the level of repayments that your company can afford. The amount you receive from your loan will be contingent on the specifics for your business.
When you make an application for a certain amount, we look at a range of variables to determine your health that is your business as well as the amount of payments your company will be able to support. The amount you receive from your loan will be determined by the particular circumstances of your business.
Fees & repayments
How much do you charge for the cost of a business loan?
When you apply for business loans with us business financing, we’ll assess the risk profile that you have for your company and offer an individualised proposal that includes the amount of loan, the term and the interest rates. The company loan is an upfront cost loan therefore you will be aware of the total amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I will be charged?
The interest rates on company loans rates depend on several factors like the amount of money borrowed, what company assets the money are used to purchase in addition to the industry that the business operates in, the long the company has been in operation, in the event that the business has sufficient cash flow to cover the loan, and general health and creditworthiness of the business.
What are the cost?
There aren’t any hidden costs for our company loans. You’ll know precisely how much you be required to pay and when, right from the very first day. There’s no compounding interest, and no additional 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 absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the expenses involved with establishing and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan early?
You may choose to pay back the total amount of your loan at any point in time.
If you choose to do this please call our helpful company loans experts. The experts will offer you with details on repayment along with an early payout estimate. This is calculated as the total of the principal remaining and accrued interest to the time of early payout plus 1.5% of the remaining principal plus any outstanding fees.
What is the process for repayments?
To help you avoid missing payments and to work with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and knowing the ways we gather data, process, exchange and secure your information, is of paramount importance and is an essential 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 personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We employ a highly sophisticated bank verification system link to instantly confirm your bank account information online so we can offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a company owner makes use of an asset that they own to get a loan. The asset may be an individual asset, such as the family home, or a business asset like a truck or piece or equipment.
The vast majority of lenders, including the banks with the biggest size, prefer to make loans secured by assets. If you’re struggling to pay back the loan, then the asset could be sold by the lender. In essence, it’s an opportunity to secure additional financing using the value of what you already have.
Should I require security to secure a business loan?
For loans that exceed $150K, the requirement for asset security is not required prior to the loan’s access However, we do require a personal guarantee. If you adhere to the loan terms (as stipulated in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans of over $150,000 generally, you can get the option of a personal ensure and security is provided in the form of the charge of assets.