FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Pukekohe Small Business Loans
Let me know how you are able to avail the Pukekohe Small Business Loans
Pukekohe unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from an ordinary company loan?
The application for the Small Business Loan in under 10 minutes via the internet or over the phone, receive an immediate response, and funds may be in your account in 24 hours. Traditional business loans have an interest rate per annum along with other charges and fees. The business loan is a cash-based loan so you will be aware of the amount you will have to pay, including any fees, interest or charges. This is then broken down into weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company need, such as control of cash flow company renovations, marketing for purchasing inventory or new equipment, or as general working capital and much more. The loan is not available to fund personal expenses.
Concerning Larger Pukekohe Business Loans
What is the Larger Pukekohe Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the company needs to be operating for at least three years and have an annual turnover of $700,000. You must 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 demonstrate at the least 12 months of operating.
How can the funding be utilised?
A Larger Business Loan can be used for almost any business purpose including business renovations, purchase of equipment or inventory as well as for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. This can be done as a result of an charge on assets, and could be registered on the PPSR or the registration of a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is generally in nature rather than stating the security for a particular asset. The person signing the ensure is personally accountable if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including items or assets). The PPSR permits preference over private property assigned according to the date the security interest that is registered.
A caveat is a legal document lodged to offer notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250,000 we can offer a preliminary pre-approval to help smooth out the process. We may be able to do this without a credit verification and within 6 hours of the initial application. This pre-approval is based on a preliminary assessment which includes answering a couple of financial health questions. This is in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you receive could be subject to different conditions.
Do I qualify for funds?
You are eligible to apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a couple minutes, and an experienced business loan specialist will call you to assist you.
For a loan of up to $100,000, you’ll need the right identification documents (valid Driver’s Licence), a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Details for application including credit consent, 12 months of bank records, IRD statement, last 2 years finalised financial statements, plus interim current financial year financials such as age-related payables and aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) We can usually offer an answer within one hour – as long as you apply during standard company timings and let us utilise the bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statements , we are able to offer the decision within an business day.
For the Larger Business Loan ($100K up to $500,000) we could be likely to offer you with pre-approval conditional to your application within about 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Certain transactions have received approval within the space of 24 hours.
The quickest method can be make sure you apply during normal business hours, and permit us to use the advanced bank verification system link to instantly verify your bank account information online. If you upload copies of your bank statements it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we usually offer an answer in just one hour, provided you apply within standard business time and let us utilise the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statements, we will be able to provide the decision within one business day.
If you are applying for Larger Business Loans ($100K and up) we may be likely to offer the conditional pre-approval within about six hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Some deals have been approved in 24 hours.
The fastest way can be ensure you apply during normal business hours and let us use the advance bank verification to confirm your bank details online. If you opt to upload documents from your account statements, it takes a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a particular amount, we look at a variety of elements for determining the health of the business and the amount of repayments your company can afford. The amount you receive from your loan will depend on the specifics for your business.
When you apply for a set amount, we take into consideration a variety of elements to determine how much we can lend you such as well-being for your business and the extent of the repayments your company will be able to support. The total amount of your loan will depend on the particulars the business.
Fees & repayments
How do you charge for a business loan?
If you decide to request one of our business credit, we’ll assess the risk assessment of your company and provide you with a tailored offer that includes the amount of the loan, the duration and interest rates. The company loan is an upfront cost loan which means you know in advance the total amount you will have to pay, including interest rates, fees or charges.
What determines the amount I pay?
Interest rates for company loans rates depend on several variables like the amount to be borrowed, the company assets the funds are used to purchase, the industry the business operates in, how long the company is in operation and what percentage of the company has enough cash flow to fund the loan, and also the general well-being and creditworthiness of the company.
What are the charges?
There aren’t any hidden charges with our company loans, and you’ll be aware of the amount you be required to pay and when, right from the day you sign up. There’s no compounding interest, and no additional fees (as as long as you pay your payments punctually).
We do not charge an application fee. You are able to make an application for loans with with no upfront cost or any obligation to sign up.
The Origination Fee is the cost associated in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I repay 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 call our helpful company loan experts. They’ll provide you with the details of your repayment and an early payment figure. This is calculated as the sum of the principal remaining and any accrued interest at the time of the early payout in addition to 1.5 percent of the principal remaining as well as any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss due dates and also to be in line with your cash flow cycle we provide payments that are either daily or weekly. They are automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
Security of your data, and knowing the ways we gather data, process, exchange and secure your information, is of huge importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to security for our clients and privacy. We employ a highly sophisticated bank verification system to immediately verify your bank account information online. This allows us to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
The term “asset-based” refers to borrowing where an business owner utilises an asset they own to get the funds for a loan. The asset could be a personal asset like the family home, or a business asset like a truck or piece of equipment.
The vast majority of the lenders not just the banks with the biggest size, prefer to guarantee loans against assets. If you are having difficulty paying back the loan, then your assets could be sold by the lender. In essence it’s a way of securing new financing taking advantage of the value of what you already have.
Are I need security for a company loan?
For loans up to $150,000 there is no requirement for asset security before you can access the money but we do require an individual guarantee. If you adhere to your loan obligations (as specified in your loan contract document) the security of assets will never be required. For loans of over $150,000 typically, you will need an individual ensure and security in the form of the charge of assets.