FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Plimmerton Small Business Loans
Tell me about the Plimmerton Small Business Loans
Plimmerton unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from an ordinary business loan?
It is imaginable to apply for this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an immediate response, and the funds could be on your account within 24 hours. Traditional company loans reference an annual rate of interest as well as other fees and charges. This company loan is a pre-paid loan and you’ll be aware in advance of the amount you will have to pay, including any fees, interest or charges. This is then broken down into weekly or daily payment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company purpose including managing cash flows, business improvements, advertising, to purchase inventory or new equipment, as general working capital and much more. The loan is not available for personal reasons.
About Larger Plimmerton Business Loans
What is the Larger Plimmerton Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. The repayments are made weekly or fortnightly to work with you cashflow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the business needs to be operating for at least three years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funds for?
A larger business loan can be used for nearly any business purpose including company renovations, to purchase equipment or inventory for general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. It’s as a result of an charge on assets, which could also include the registration of this on the PPSR or making as a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally in nature rather than stating the security of a specific asset. The person who is signing the ensure is personally liable in the event that the company the borrower fails to repay 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 the assets or goods). The PPSR grants the priority of personal property assigned according to the date the security interest has been registered.
An affidavit is an official form of document to offer the legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re requesting an enterprise loan that is greater than $250,000 it’s possible to offer an initial pre-approval in order to simplify the process. We may be able to apply for this without a credit check and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves you answering some financial health questions. This is not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer you may receive may be based on different terms.
The application process
Can I be eligible for funding?
You can apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form in few minutes and a dedicated company credit specialist will be in touch to help you.
To apply for up $100,000 you’ll require ID details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent and 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we usually offer an answer within an hour, provided you apply during quality business time 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 banking statement, we’ll offer an answer within just one company day.
For the Larger Business Loan ($100K to $500K) we could be able to provide the conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain agreements have been approved within the space of 24 hours.
The quickest method is to ensure you apply during normal business hours. Also, allow us to use our modern bank verification to instantly confirm your bank details online. If you decide to upload duplicates of your banking accounts, it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) We can usually provide a response in one hour – provided you apply within standard business times and allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statements we can provide an answer in just the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we might be in a position to offer you with conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however it could be faster based on the specifics of each application. Some deals have been approved within less than 24 hours.
The fastest method would be to make sure you apply during normal business hours, and allow us to use the modern bank verification to verify your bank information online. If you choose to upload the copies of bank statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a certain amount, we take into consideration a range of elements that determine what is the well-being for your company and the amount of payments your company will be able to support. The total amount of your loan will be contingent on the particular circumstances the business.
When you make an application for a specific amount we take into consideration a variety of variables to determine your well-being of your business and the extent of repayments your company can support. The total amount of your loan will be determined by the particulars that are unique to your business.
Fees & repayments
How much should you charge for the cost of a company loan?
When you request the business loan, we will assess the risk profile that you have for your business and provide you with a customised offer that includes the amount of the loan, the duration and the interest rates. A business loan is a loan that is priced upfront therefore you will be aware of the total amount payable including any costs, fees, or interest rates.
What is the basis for the rate I will be charged?
Business loan interest rates depend on several factors including the amount borrowed, the business assets the funds will be used for in addition to the industry that the business is in, how long the company is in operation, in the event that the business has enough cash flow to cover the loan, and the general well-being or creditworthiness of the business.
What are the charges?
There aren’t any hidden charges for our company loans, and you’ll know precisely what you’ll need to pay, and at what time, from the first day. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments on time).
We do not charge an Application Fee. You are able to get a cash loan with with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved with the setting up and management of the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can decide to repay the entire amount of the loan in full at any time.
If you choose to take this route, please speak to our friendly company credit experts. They’ll offer you with the details of your repayment as well as an early payout amount. It will be calculated using the total of the remaining principal amount and the accrued interest up to the date of early payout plus 1.5% of the remaining principal and any fees that remain unpaid.
What is the process for repayments?
To ensure that you don’t miss payments and to work with your cash flow cycle we provide payments that are either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing how we collect, use, exchange and safeguard your data, is vital and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to security for our clients and security. We employ a highly sophisticated bank verification system to instantly verify the bank account details online. This allows us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the company owner uses the assets they have to make the funding. The asset could be an individual asset, such as the family home or an company asset such as a truck or other piece of machinery.
The vast majority of lending institutions, including the major banks, prefer to make loans secured by an asset. If you’re having trouble paying back the loan, your assets could be offered for sale by the lender. In essence it’s the process of securing new financing by taking advantage of the value of what you already have.
What do I require security for an company loan?
For loans up to $150,000 there is no requirement for asset security before you are able to access the money but we require a personal guarantee. require a personal guarantee. If you adhere to the terms of your loan (as specified in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans over $150,000 generally, you are able to get an individual guarantee and security that is in the form a charge over assets.