FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Unsworth Heights Small Business Loans
Let me know about the Unsworth Heights Small Business Loans
Unsworth Heights unsecured loans provides 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 daily or weekly.
What is this Unsecured Loan different from an traditional company loan?
You can apply to the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an immediate response, and the money could be available in just 24 hours. Traditional business loans have an interest rate per annum as well as other fees and charges. We offer a company loan is a loan that is priced upfront therefore you’ll know ahead of time the total amount due, which includes the interest, fees and charges. Then, it is divided into weekly or daily installment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost any business purpose including control of cash flow company improvements, advertising to purchase inventory or new equipment, for general working capital, and much more. The loan is not available to fund personal expenses.
Concerning Larger Unsworth Heights Business Loans
What is the Larger Unsworth Heights Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size the business needs to have been trading for at least 3 years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own 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 funds for?
A Business Loan of a larger size is a great option for almost all company reason, such as business renovations, to purchase inventory or new equipment for 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 necessary to access funding over $150,000. It is usually in the form of a charge over assets, and may include registration with the PPSR or making as a caveat.
A director’s or personal ensure is a commitment to repay credit that is generally based rather than stipulating the security for a particular asset. The person signing the ensure is personally liable if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including the assets or goods). The PPSR permits priority over personal property to be assigned according to the date a security interest has been registered.
Caveats are legal document filed to offer the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan that exceeds $250,000 we can offer a preliminary pre-approval to help smooth out the process. It is possible to get this done without a credit check, and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering some financial well-being checks. It’s not an offer or guarantee of credit. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you receive could have different terms.
The application process
Can I be eligible for funding?
You may be eligible for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of trading (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Just complete the online application within a few minutes and a dedicated business expert in lending will be in touch to guide you.
For a loan of up to $100,000, you’ll need ID details (valid Driver’s Licence) along with a valid NZBN/IRD and at least six months of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent, 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) we typically provide a response in one hour if you submit your request during quality business time and let us utilise the bank verification system to immediately verify your bank account information online. If you want to upload copies of your banking statements we can offer a decision in as little as 1 company day.
For Larger Business Loans ($100K or more) we might be in a position to provide the conditional pre-approval in around 6 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 particular circumstances of each application. Certain offers have been approved within 24 hours.
The quickest method is to make sure you apply during normal company hours and let us use the modern bank verification link to instantly confirm your bank details online. If you decide to upload documents from your account statements , it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we can often offer an answer in just one hour – provided you submit your request during normal business timings and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your bank statements, we are able to provide the decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we could be capable of offer the conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, this may be quicker depending upon the circumstances for each application. Certain transactions have received approval in less than 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours. You can also allow us to use the modern bank verification to instantly confirm your bank details online. If you decide to send us copies of your bank statement, it takes a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. When you submit an application for a particular amount, we consider a variety of aspects to determine what is the well-being of your company as well as the amount of repayments your company can afford. The total amount of the loan will be determined by the specific circumstances for your business.
When you make an application for a particular amount, we consider a variety of elements to determine the health of your business and the amount of repayments that your business will be able to support. The total amount of your loan will depend on the specific circumstances that are unique to your business.
Fees & repayments
How much should you charge for a business loan?
When you make an application for business loans with us company loan, we’ll assess the risk assessment of your company and offer you with a customised proposal that includes loan amount, term and the interest rates. A company loan is an upfront-priced loan which means you be aware in advance of the total amount payable including any costs, fees, or interest rates.
What determines the amount I pay?
The interest rates on company loans rates differ based on various factors including the amount borrowed, what company assets the money are used to purchase and the sector the business operates in, the long the business has been operating as well as what percentage of the company has enough cash flow to pay for the loan, and the general health or financial standing of the company.
What are the charges?
There aren’t any hidden costs for our business loans, and you’ll know precisely what you’ll be required to pay and when, from the very first day. There’s no compounding interest, and no extra fees (as as you make your payments punctually).
We don’t charge an Application Fee. You can apply for a loan with without any upfront costs or the obligation to take action.
The Origination Fee includes the expenses associated with setting up and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay off the loan in advance?
You can decide to repay the entire amount of the loan early at any time.
If you choose to take this route, please speak to our friendly company lending professionals. The professionals will offer you with repayment details and an early payout figure. It will be calculated using the sum of the principal amount remaining and accrued interest to the time of early payment and 1.5% of the remaining principal and any outstanding fees.
How do repayments work?
To help you avoid missing due dates and also to be in line your cash flow schedule, we provide payments that are either weekly or daily. They are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Security of your data, and being clear about how we collect data, process, exchange and safeguard your data, is of paramount importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to customer security and security. We make use of an advanced bank verification system to instantly verify the bank account details online so we can offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a company owner makes use of assets they own to obtain a loan. The asset could be an individual asset, such as the family home or a company asset such as a truck as well as a piece of machine.
The vast majority of banks, including the banks with the biggest size, prefer to secure loans against an asset. If you have trouble paying back the loan, your asset may be offered for sale by the lender. In essence, it’s the process of securing new financing making use of the value of what you already have.
Should I require security to secure a business loan?
For loans of up to $150K, no asset security is required in advance to gain access to the funds, however we do need a personal guarantee. In the event that you fulfill your loan commitments (as specified in your loan contract document), asset security is not needed. For loans of over $150K generally, there is personal guarantee and security in the form of an asset charge.