FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Pinehill Small Business Loans
Let me know about the Pinehill Small Business Loans
Pinehill unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
What makes what makes the Unsecured Loan different from the traditional company loan?
The application to get this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an answer within the same day and the funds could be available in just 24 hours. Traditional company loans are based on an interest rate per annum together with additional fees and charges. Our company loan is a cash-based loan therefore you’ll be aware of the total amount to be paid, including the interest, fees and charges. This is then divided into weekly or daily payment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for almost every company use, including cash flow management, business remodels and marketing, to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal reasons.
Concerning Larger Pinehill Business Loans
What is the Larger Pinehill Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of for up to 36 months. Repayments are scheduled weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount the business needs to have been operating for at least three years, and have an annual income of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funding for?
A large company loan can be used for nearly any business use, including company renovations, purchase of equipment or inventory, as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. It’s in the form of a charge on assets and can include the registration of this through the PPSR or the registration of as a caveat.
A director’s or personal ensure is a promise to repay credit that is general in nature, rather than defining the security of a specific asset. The person who is signing the guarantee is personally accountable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests that are registered for personal property (including objects or assets). The PPSR grants priority over personal property to be granted according to the date the security interest that is registered.
Caveats are legal document lodged to offer an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for larger business loans of $250,000 or more we can offer an initial pre-approval that will help simplify the process. It is possible to apply for this without credit checks and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves you answering some financial health questions. It’s neither an offer nor a guarantee of funds. A conditional approval is subject an extensive credit evaluation and any offer you might receive could have different conditions.
The application process
Are I eligible for funding?
You are eligible to apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a couple minutes, and a dedicated business lending specialist will be in touch to guide you through the process.
To apply for up $100,000, you’ll need identification details (valid Driver’s License), a valid NZBN/IRD and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details for application including credit consent twelve months of bank records, IRD statements, last 2 years finalised financial statements, as well as interim financials for 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 can often provide an answer within an hour, provided you make your application within standard business times and you 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 will be able to offer a decision within the span of one business day.
If you are applying for a Larger Business Loan ($100K and up) we could be able to offer you with conditional pre-approval in about 6 hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Certain deals have been approved in the space of 24 hours.
The quickest method for you to apply is ensure you apply during standard company hours and let us use the advanced bank verification system link to instantly verify your bank information online. If you upload copies of your bank accounts, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) We can usually offer an answer in just one hour, provided you apply within standard business timings and allow us to use the bank verification system to immediately verify your bank account information online. If you choose to send us copies of your bank statements, we are able to offer the decision within one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be likely to provide you with pre-approval conditional to your application in about 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 particular circumstances of each application. Some offers have been approved in 24 hours.
The quickest method would be to ensure you apply during standard business hours and let us use the sophisticated bank verification link to verify your bank account information online. If you choose to upload the copies of bank statement, it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a certain amount we look at a variety of aspects that determine the well-being that is your company and the extent of payments your business will be able to support. The total amount of your loan will be contingent on the specifics that are unique to your business.
When you make an application for a particular amount, we look at a range of variables to determine how much we can lend you such as well-being of the company as well as the amount of repayments your company can support. The amount you receive from the loan will be determined by the specifics for your business.
Fees & repayments
How much should you charge for the cost of a company loan?
When you make an application for our company credit, we will assess the risk assessment for your business and provide you with a customised proposal that includes loan amount, term and interest rates. The company loan is an upfront-priced loan which means you know the exact amount payable including any charges, interest rates or fees.
What determines the rate that I’m charged?
Interest rates for company loans rates vary due to factors such as the amount that is that is borrowed, what company assets the funds are used to purchase in addition to the industry that the company is in, how long the business has been operating and what percentage of the business has sufficient cash flow to support the loan, and general health as well as creditworthiness company.
What are the costs?
There aren’t any hidden charges for our business loans. You’ll know precisely how much it is that you need to pay, and when, right from the first day. There’s not any compounding interest and no extra fees (as as you make your payments in time).
We do not charge an Application Fee. You are able to apply for a loan with no cost upfront or commitment to apply.
The Origination Fee covers the expenses involved with the setting up and management of the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I repay the loan earlier?
You can choose to repay the entire amount of the loan early at any time.
If you do decide to pursue this option, please talk to one of our helpful business lending experts. They’ll provide you with the details of your repayment and an early payment figure. This will be calculated as the total of the principal amount remaining and the accrued interest up to the time of early payout and 1.5% of the remaining principal plus any outstanding fees.
How do repayments work?
To ensure you do not miss repayments and to fit in with your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my data be protected?
Protecting your information, and making it clear how we collect, use, exchange and safeguard your data, 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 make use of industry-standard encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to customer security and security. We utilise a sophisticated bank verification system to immediately confirm your bank account information online, allowing us to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the company owner utilises the assets they have to get a loan. The asset could be an individual property, such as the family home or a company asset such as a truck as well as a piece of machine.
The majority of lenders, not just the largest banks, are inclined to make loans secured by an asset. If you have trouble paying back the loan then your asset may be sold by the lender. In essence, it’s means of securing new financing using the worth of the asset you already own.
Should I need security to secure a business loan?
For loans of up to $150,000, it is not necessary to secure assets upfront to access the money, however we do require an individual guarantee. In the event that you fulfill your loan commitments (as detailed in your loan contract document) the security of assets will never be required. For loans of over $150K typically, you will need an individual ensure and security that is in the form an asset charge.