FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Auckland Small Business Loans
Let me know about the Auckland Small Business Loans
Auckland unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
What is how is the Unsecured Loan different from the traditional company loan?
It is possible to apply to the Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and the money could be available in just 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. This business loan is a pre-paid loan therefore you’ll be aware in advance of the amount you will have to pay, including any interest, fees or charges. This is then broken down into either weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business reason, such as cash flow management, business improvements, advertising to purchase inventory, new equipment, to fund general working capital, and much more. The loan is not available for personal use.
About Larger Auckland Business Loans
What is the Larger Auckland Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan in this amount, your company needs to have been operating for at least three 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 as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funds for?
A Larger Business Loan can be used for nearly every business reason, such as business improvements, purchasing equipment or inventory or as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. It is usually in the form of a charge over assets, and could include the registration of this in the PPSR or registering as a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is general in nature, rather than stating the security of a specific asset. The person who is signing the guarantee is personally liable if the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests that are registered for personal property (including objects or assets). The PPSR grants preference over private property assigned according to the date the security interest has been registered.
An affidavit is an official form of document to provide the legal claim on a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger company loans of more than $250,000 we can offer a preliminary pre-approval to help smooth out the process. We might be able to make this decision without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves answering a couple of financial well-being checks. This is neither an offer nor a guarantee of credit. A conditional approval is subject an extensive credit evaluation and any offer that you may receive may be based on different terms.
Application process
Do I have the right to receive funds?
You may be eligible for a 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)
- can demonstrate at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Complete the online form within a couple minutes, and a dedicated business lending specialist will call you to guide you.
To apply for up to $100,000 you’ll need ID details (valid Driver’s License), an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K-$250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details for application including credit consent and 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, plus interim financials for the current financial year, Aged Payables and Aged Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we can often provide a response in one hour if you make your application in quality company time and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your bank statements , we are able to provide a decision in just 1 company day.
For the Larger Business Loan ($100K up to $500,000) we may be capable of offer you with conditional pre-approval in around six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be quicker based on the circumstances of each application. Some agreements have been approved in less than 24 hours.
The fastest way is to make sure you apply during standard business hours and let us use the advanced bank verification system link to confirm your bank details online. If you send us copies of your bank statements it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we can often provide an answer within one hour – as long as you submit your request during standard business time and let us use the advanced bank verification system link to instantly verify your bank details online. If you choose to submit copies of your bank statement, we’ll provide the decision within the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be capable of provide you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Certain deals have been approved within just 24 hours.
The fastest way would be to ensure you apply during normal business hours, and permit us to use the advance bank verification link to instantly verify your bank account information online. If you opt to upload documents from your account statements it can take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a specific amount we take into consideration a range of aspects that determine how much we can lend you health of your business as well as the amount of repayments that your company can support. The total amount of your loan will be contingent on the specific circumstances for your business.
When you submit an application for a particular amount, we consider a variety of variables to determine your well-being for your business and the extent of repayments that your business can support. The amount you receive from your loan will depend on the particular circumstances of your business.
Fees & repayments
How much should you charge for an company loan?
If you decide to make an application for the company loan, we’ll assess the risk profile that you have for your business and offer an individualised offer, including the loan amount, the terms and the interest rates. This company loan is a loan that is priced upfront which means you know the exact amount payable including any charges or interest.
What is the basis for the rate I will be charged?
The interest rates on company loans rates depend on a variety of factors like the amount of money borrowed, what company assets the money are used to purchase and the sector the company is operating in, how long the company is in operation as well as what percentage of the company has sufficient cash flow to pay for the loan, as well as the general health and creditworthiness of the business.
What are the cost?
There aren’t any hidden costs with our company loans, and you’ll be aware of the amount it is that you need to pay, and when, right from the very first day. There’s no compounding and there are no additional charges (as as long as you pay your payments in time).
We don’t charge an application fee. You are able to get a cash loan no cost upfront or any obligation to sign up.
The Origination Fee includes the expenses associated with establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan in advance?
You can choose to repay the entire amount of the advance loan at any time.
If you choose to pursue this option, please speak to our friendly company credit experts. They will offer you with details for repayment and an early payout figure. It will be calculated using the total of the principal remaining and any accrued interest at the time of early payment and 1.5 percent of the principal amount remaining and any fees that remain unpaid.
What are the repayment methods?
To help you avoid missing repayments and to fit in your cash flow schedule, we offer repayments either daily or weekly. They are automatically deducted from your company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being transparent about how we collect information, use it, and exchange it, as well as secure your information, is crucial and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their security. We make use of an advanced banking verification system to instantly verify your bank account details online so we can offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a business owner borrows from an asset they own to obtain the funding. The asset could be an individual property, such as the family home, or an business property like a truck or other piece of machinery.
The vast majority of lenders, even the banks with the biggest size, prefer to make loans secured by an asset. If you are having difficulty paying back the loan, the asset could be taken over by the lender. In essence, it’s the process of securing new financing using the value of what you already own.
What do I need security for an company loan?
Up to $150,000 in loans it is not necessary to secure assets in advance to gain access to the funds however, we require a personal guarantee. need a personal guarantee. As long as you follow the terms of your loan (as specified in your loan contract) Asset security will never be required. For loans that exceed $150,000, typically, you will need a personal guarantee and security in the form the charge of assets.