FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Plimmerton Small Business Loans
Let me know how you are able to avail the Plimmerton Small Business Loans
Plimmerton unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
How is how is the Unsecured Loan different from a traditional company loan?
You can apply to your Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an answer within the same day and funds may be in your account within 24 hours. Traditional business loans refer to an interest rate per annum as well as other fees and charges. Our company loan is a cash-based loan and you’ll know in advance the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into either weekly or daily payment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company use, including control of cash flow business remodeling, marketing for purchasing inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal reasons.
About larger Plimmerton Business Loans
What is the Larger Plimmerton Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly, depending on your situation.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to be in operation for at least 3 years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate 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 much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. This can be done in the form of a charge against assets, and may include the registration of this with the PPSR or making a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is general in nature rather than stipulating the security for a particular asset. The person who signs 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 a central, national online register run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be assigned depending on the date that a security interest that is registered.
A caveat is a legal document that is filed to provide the public notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
When you’re applying for the Larger Business Loan that exceeds $250K we may be able to provide an initial pre-approval that will help make the process. We may be able to get this done 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 well-being checks. This is not an offer or guarantee of funds. The approval of a conditional loan is subject to a full credit assessment and any offer that you are offered could be based on different terms.
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 company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for the 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 quick and easy. Just fill out the online application in just a few minutes, and an experienced business loan specialist will be in touch to assist you.
To apply for up to $100,000, you’ll need the right identification documents (valid Driver’s Licence) and an NZBN/IRD that is valid and at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent twelve months bank statement, an IRD statements and the last two years’ finalised financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we usually offer an answer within one hour, provided you submit your request within quality company timings and permit us to make use of the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statement, we’ll provide an answer in just an business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be likely to offer you with pre-approval conditional to your application within about six hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Some agreements have been approved in 24 hours.
The quickest method for you to apply is ensure you apply during standard company hours. Also, allow us to use our modern bank verification link to instantly verify your bank information online. If you opt to upload duplicates of your banking statement, it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer in just one hour, provided you make your application during standard business times and allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statements, we are able to offer a decision within 1 business day.
For Larger Business Loans ($100K to $500K) we may be capable of offer the conditional pre-approval in about six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this could be shorter based on the specifics of each application. Certain offers have been approved within just 24 hours.
The fastest way would be to make sure you apply during standard business hours. Also, permit us to use the advanced bank verification system to instantly check your bank’s information online. If you opt to send us the copies of bank statement, it will take a little longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a certain amount we consider a variety of aspects to determine your well-being for your company and the level of payments your business can support. The total amount of the loan will be determined by the specifics that are unique to your company.
When you make an application for a certain amount, we take into consideration a variety of elements to determine your health that is your company and the level of the repayments your business will be able to support. The amount you receive from your loan will depend on the particulars that are unique to your business.
Fees & repayments
How much should you charge for an business loan?
When you request the company loan, we will assess the risk assessment that you have for your business and offer you with a customised proposal that includes the amount of the loan, the duration and interest rates. It is a company loan is an upfront-priced loan therefore you will be aware in advance of the total amount you will have to pay, including costs, fees, or interest rates.
What determines the amount I am charged?
The interest rates on business loans rates differ based on various factors including the amount borrowed, the company assets the money are used to purchase as well as the field the company operates in, the long the company has been operating for, whether the company has enough cash flow to fund the loan, as well as the overall well-being as well as creditworthiness company.
What are the fees?
There aren’t any hidden charges with our business loans, and you’ll know exactly how much it is that you need to pay and when, starting from the first day. There’s not any compounding interest and no extra fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You can make an application for loans with no cost upfront or commitment to apply.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay off the loan early?
You may choose to pay back the entire amount of the loan early at any time.
If you do decide to do this please call our helpful business loan experts. The experts will offer you with details for repayment and an early payment figure. This will be calculated as the sum of the remaining principal amount and the accrued interest up to the date of early payout in addition to 1.5% of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
To make sure you do not miss due dates and also to be in line with your cash flow standard, we offer repayments either daily or weekly. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing how we collect data, process, exchange and ensure the security of your information is vital and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We employ a highly sophisticated bank verification system link to immediately verify your bank account information online. This allows us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a business owner uses the assets they have to get the loan. The asset could be an asset belonging to the personal, like the family home, or it could be a company asset like a truck or other piece of machinery.
The vast majority of lenders, not just the major banks, prefer to make loans secured by assets. If you’re struggling to pay back the loan, the asset could be transferred to the lender. In essence it’s the process of securing new funding using the value of what you already own.
What do I need security to secure an company loan?
For loans that exceed $150K, no asset security is required prior to the loan’s access However, we do need a personal guarantee. So long as you comply with the terms of your loan (as specified in your loan contract document) Asset security will never be required. If you take out loans in excess of $150K generally, there is a personal ensure and security is provided in the form of an asset charge.