FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Vogeltown Small Business Loans
Let me know about the Vogeltown Small Business Loans
Vogeltown unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from a traditional business loan?
Apply to get this Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and funds may be in your account within 24 hours. Traditional company loans have an interest rate per annum together with additional fees and charges. This business loan is a loan that is priced upfront and you’ll be aware in advance of the total amount payable including any fees, interest or charges. Then, it is broken down into either weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any company reason, such as managing cash flows, business remodels and 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 Vogeltown Business Loans
What is the Larger Vogeltown Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size, your company needs to be in operation for at least 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funds be used for?
A Larger Business Loan can be used to fund almost any business reason, such as business improvements, purchasing new equipment or inventory for general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. This is by taking a charge against assets, which could also include the registration of this through the PPSR or making a caveat.
A director’s or personal guarantee is a guarantee to pay off a credit line that is general in nature, rather than stating the security for a particular asset. The person who is signing the guarantee is personally liable if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests registered in respect of personal property (including items or assets). The PPSR gives the priority of personal property assigned depending on the date that a security interest was registered.
An affidavit is an official document that is filed to offer the legal claim on a 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 may offer 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 based on an initial assessment, which involves the answer to a series of financial health questions. It is neither an offer nor a guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer that you might receive could be on different conditions.
Can I be eligible for funding?
You can apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Complete the online form in few minutes and a dedicated company expert in lending will call you to assist you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s License), a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K-$250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Application details including credit consent, 12 months of bank statements, IRD statement, last 2 years finalised financial statements, in addition to interim financial statements for the current year such as age-related payables and aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we usually provide an answer within an hour – as long as you apply in standard business time and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your bank statements we can provide a decision within just an business day.
If you are applying for a Larger Business Loan ($100K or more) we may be able to provide you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, this can be quicker based upon the circumstances for each application. Some deals have been approved in the space of 24 hours.
The most efficient method would be to ensure you apply during normal business hours, and allow us to use our advanced bank verification system link to instantly check your bank’s information online. If you opt to upload copies of your bank statement, it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) we usually offer a response in one hour – as long as you make your application within standard business timings and permit us to make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your banking statements, we are able to provide a decision in as little as an business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be likely to provide you with conditional pre-approval within six hours. Once you have signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Certain offers have been approved within 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours. You can also permit us to use the advance bank verification link to verify your bank information online. If you choose to send us copies of your bank statements it takes a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a certain amount, we look at a variety of elements to determine what is the health for your business and the amount of repayments that your business can afford. The total amount of your loan will be contingent on the specifics of your company.
When you submit an application for a certain amount, we will consider a number of elements to determine your well-being of the business and the amount of repayments your business will be able to support. The total amount of your loan will be contingent on the particulars of your business.
Fees & repayments
How much should you charge for a company loan?
If you decide to apply for the company credit, we will assess the risk profile for your business and provide you with a tailored offer that includes the loan amount, the terms and interest rates. This company loan is an upfront cost loan which means you be aware of the total amount payable including any charges or interest.
What determines the rate that I pay?
The interest rates on business loans rates differ based on various factors like the amount of money of money borrowed, the business assets the money are used to purchase as well as the field the company operates in, how long the company has been operating for, what percentage of the company has sufficient cash flow to pay for the loan, and general health and creditworthiness of the business.
What are the costs?
There are no hidden fees for our business loans. You’ll know precisely what you be required to pay and at what time, from the day you sign up. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We don’t charge an application fee. You can get a cash loan with with no upfront cost or any obligation to sign up.
The Origination Fee includes the expenses associated with setting up and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay out the loan in advance?
You can choose to repay the total amount of your loan in full at any time.
If you decide to do this please talk to one of our helpful company loan experts. They’ll provide you with the details of your repayment and an early payout figure. This is calculated as the total of the principal amount remaining and any accrued interest at the date of early payout plus 1.5 percent of the principal amount remaining and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing repayments and to fit in with your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Security of your data, and being clear about how we collect the information we collect, use, share and safeguard your data, is vital and an integral part 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 and financial data and our funders are ISO 27001 certified for our commitment to customer security and privacy. We utilise a sophisticated bank verification system that allows you to immediately verify your bank account information online to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the company owner utilises an asset that they own to secure the loan. The asset can be either a personal asset like the family home, or it could be a business property like a truck as well as a piece of machine.
The majority of the lenders including the largest banks, are inclined to guarantee loans against an asset. If you’re having trouble paying back the loan, then the asset might be sold by the lender. In essence, it is means of securing new funding using the worth of the asset you already own.
Are I need security to get a business loan?
For loans of up to $150K, no asset security is required before you can access the money however, we require a personal guarantee. require a personal guarantee. As long as you follow your loan obligations (as stated in your loan contract) Asset security will never be needed. If you take out loans in excess of $150,000 generally, you are able to get personal ensure and security is provided in the form of a charge over assets.