FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Naenae Small Business Loans
Let me know more about Naenae Small Business Loans
Naenae unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from the traditional business loan?
Apply to get this Small Business Loan in under 10 minutes by phone. You will receive an answer within the same day and funds may be in your account in 24 hours. Traditional company loans reference an annual rate of interest plus other fees and charges. Our company loan is a pre-paid loan so you will be aware of the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into a daily or weekly payment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any business need, such as the management of cash flow, company improvements, advertising for purchasing inventory or new equipment, for general working capital, and much more. The loan cannot be used for personal use.
About the Larger Naenae Business Loans
What is the Larger Naenae Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of for up to 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to be operating for a minimum of 3 years, and have an annual income of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can the funding be used for?
A Larger Business Loan can be used for almost any company use, including company renovations, purchase of equipment or inventory as well as for general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. This is by way of charge over assets, which could also include registration with the PPSR or registering as a caveat.
A personal or director’s ensure is a commitment to pay off a credit line that is general in nature, rather than defining security over an asset. The person who is signing the ensure is personally accountable if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including objects or assets). The PPSR gives priority over personal property to be granted according to the date a security interest was registered.
Caveats are legal document that is filed to offer notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan of more than $250,000 it is possible to offer a preliminary pre-approval to help make the process. We could be able to make this decision without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial evaluation that involves you answering some financial well-being questions. It’s not an offer or guarantee of financing. Acceptance without condition is subject to a full credit assessment and any offer you may receive may be based on different terms.
Application process
Can I be eligible for funding?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form in just a few minutes, and a dedicated company loan specialist will call you to guide you through the process.
To apply for up to $100,000 you’ll need the right identification documents (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$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 as well as 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we can often provide a response in one hour, provided you submit your request in quality company hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statements , we’ll be able to provide the decision within an company day.
For Larger Business Loans ($100K or more) we might be in a position to provide you with a conditional pre-approval within six hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval, however it could be faster based on the circumstances of each application. Certain offers have been approved within just 24 hours.
The quickest way to apply can be make sure you apply during standard business hours. Also, allow us to use the modern bank verification link to instantly verify your bank information online. If you decide to send us documents from your account statements it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we typically provide an answer within an hour, provided you submit your request at standard business time and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your bank statements, we’ll be able to offer the decision in just one business day.
If you are applying for Larger Business Loans ($100K and up) we may be able to provide you with conditional pre-approval within about six hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Some deals have been approved within 24 hours.
The quickest method would be to make sure you apply during normal business hours and permit us to use the modern bank verification link to confirm your bank details online. If you choose to upload documents from your account statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you submit an application for a particular amount, we look at a variety of factors to determine your health of your business and the extent of repayments that your company can afford. The total amount of your loan will be contingent on the particular circumstances the business.
When you make an application for a particular amount, we take into consideration a variety of elements to assess your health for your business and the amount of repayments that your company will be able to support. The amount you receive from your loan will be contingent on the particulars that are unique to your company.
Fees & repayments
How do you charge for a company loan?
If you decide to apply for one of our company loans, we will assess the risk profile for your business and offer you with a tailored offer that includes the amount of the loan, the duration and the interest rates. It is a company loan is a loan that is priced upfront and you’ll know in advance the total amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I’m charged?
Business loan interest rates depend on a variety of factors like the amount of money that is borrowed, what company assets the money are used to purchase as well as the field the business is in, how long the company is in operation as well as how long the business has enough cash flow to pay for the loan, and also the overall well-being or creditworthiness of the business.
What are the charges?
There are no hidden costs for our company loans. You’ll know precisely what you’ll need to pay, and at what time, from the day you sign up. There’s no compounding and no extra fees (as long as you make your payments in time).
We don’t charge an application fee. You can apply for a loan absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated with establishing and managing the loan. This is only a 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 earlier?
You can choose to repay all of your loan at any point in time.
If you are deciding to pursue this option, please speak to our friendly company lending experts. They’ll provide you with details for repayment as well as an early payout amount. This is calculated as the total of the principal remaining and any accrued interest at the date of early payout plus 1.5 percent of the principal remaining plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line with your cash flow routine, we offer repayments either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being clear about the ways we gather, use, exchange and safeguard your data, is of paramount importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to customer security and security. We use an advanced bank verification system that allows you to immediately confirm your bank account information online to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a business owner utilises an asset that they own to obtain the funds for a loan. The asset can be either a personal asset like the family home or a company asset like a truck or piece or equipment.
The majority of lenders, including the banks with the biggest size, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, then the asset could be taken over by the lender. In essence, it’s the process of securing new financing by making use of the value of what you already have.
What do I need security for a business loan?
For loans up to $150,000 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. In the event that you fulfill the terms of your loan (as specified in your loan contract) Asset security is not needed. For loans over $150,000 generally there is an individual guarantee and security in the form of charges on assets.