FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Puni Small Business Loans
Tell me about the Puni Small Business Loans
Puni unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from the traditional business loan?
The application to your Small Business Loan in under 10 minutes by phone. You will receive an instant response and have the funds in your account in 24 hours. Traditional business loans refer to an interest rate per annum plus other fees and charges. This company loan is a pre-paid loan so you will be aware of the amount you will have to pay, including the interest, fees and charges. Then, it is divided into weekly or daily payment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business use, including cash flow management, company improvements, advertising, to purchase inventory or new equipment, for general working capital and so much more. The loan is not available to fund personal expenses.
Concerning Larger Puni Business Loans
What is the Larger Puni 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 for up to 36 months. The repayments are made weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large, your business needs to have been operating for at least three years and have an annual turnover of at least $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old 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 funding for?
A Business Loan of a larger size is a great option for almost every business purpose including business improvements, purchasing inventory or new equipment or as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. This can be done as a result of an charge against assets, and may be registered in the PPSR or filing a caveat.
A personal or director’s guarantee is a promise to pay back a loan that is general in nature, rather than stating the security of a specific asset. The person who signs the ensure is personally accountable if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It records security interests that have been that are registered for personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be granted according to the date a security interest has been registered.
An affidavit is an official document that is filed to provide the legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan that is greater than $250K it is possible to offer an initial pre-approval to make the process. We could be able to apply for this without credit checks and within six hours of your initial application. This pre-approval is based on an initial assessment, which involves answering a couple of financial well-being questions. It is neither an offer nor 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 terms.
Are I eligible for funding?
You may be eligible for an company 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 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 simple. Complete the online form within a few minutes and an experienced business loan specialist will contact you to assist you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s License) and a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Information on the application including credit consent twelve months bank statement, an IRD statement as well as the two most recent years’ financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we typically provide an answer in just one hour – as long as you apply in standard company time and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you decide to send us copies of your bank statements , we’ll be able to provide an answer within just 1 business day.
For the Larger Business Loan ($100K and up) we may be likely to provide you with a conditional pre-approval in about 6 hours. Once you have signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however it could be faster based upon the circumstances for each application. Certain transactions have received approval within the space of 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal company hours, and let us use the modern bank verification link to instantly verify your bank account information online. If you decide to upload copies of your bank statements , it may take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K and up) We can usually provide a response in one hour if you make your application within normal business timings and permit us to use the bank verification system to instantly verify your bank information online. If you opt to send us copies of your bank statements we can provide a decision in as little as the span of one business day.
For Larger Business Loans ($100K to $500K) we could be likely to offer you with a conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Some agreements have been approved within less than 24 hours.
The fastest method would be to ensure you apply during normal business hours, and allow us to use our advance bank verification to verify your bank information online. If you choose to send us the copies of bank statements it will take a little longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a specific amount we will consider a number of factors to determine your health that is your business as well as the amount of repayments your business will be able to support. The amount you receive from the loan will be determined by the particular circumstances for your business.
If you apply for a specific amount we will consider a number of factors to determine your health of your business and the extent of the repayments your business is able to afford. The amount you receive from your loan will be contingent on the particular circumstances the company.
Fees & repayments
How much do you charge for an company loan?
When you apply for the business credit, we will assess the risk assessment of your business and provide you with a customised offer, including the amount of loan, the term and interest rates. A business loan is a loan that is priced upfront therefore you will know the exact amount you will have to pay, including charges or interest.
What determines the rate that I will be charged?
Business loan interest rates vary due to variables like the amount to be borrowed, the company assets the funds are used to purchase in addition to the industry that the business is in, how long the company has been operating for, what percentage of the business has enough cash flow to cover the loan, and also the overall well-being or creditworthiness of the company.
What are the fees?
There aren’t any hidden charges with our business loans, and you’ll know precisely what it is that you be required to pay and when, from day one. There’s no compounding interest, and there are no additional charges (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You are able to request a credit loan with no upfront cost or commitment to apply.
The Origination Fee covers the expenses involved with setting up and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I repay the loan early?
You can decide to repay the total amount of your advance loan at any time.
If you choose to do this please talk to one of our helpful business lending professionals. The experts will offer you with the details of your repayment as well as an early payout amount. It will be calculated using the sum of the principal remaining and the accrued interest up to the time of early payment plus 1.5% of the principal amount remaining and any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payments and to work with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my information be secure?
Protecting your information, and knowing how we collect information, use it, and exchange it, as well as protect your information, is crucial 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 protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to the security of our clients as well as their security. We employ a highly sophisticated banking verification system to instantly verify the bank account details online. This allows us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when a company owner borrows from the assets they have to secure the funding. The asset can be an asset belonging to the personal, like the family home, or it could be a business property like a truck or piece or equipment.
The vast majority of lending institutions, not just the largest banks, are inclined to secure loans against assets. If you have trouble paying back the loan, your assets could be offered for sale by the lender. In essence it is means of securing new funding using the worth of the asset you already own.
Should I need security to get a business loan?
Up to $150,000 in loans the requirement for asset security is not required prior to the loan’s access However, we require a personal guarantee. need the personal guarantee. If you adhere to the terms of your loan (as specified in the loan contract), asset security is not needed. If you take out loans in excess of $150K generally, you are able to get an individual guarantee and security in the form of a charge over assets.