FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Auckland CBD Small Business Loans
Tell me about the Auckland CBD Small Business Loans
Auckland CBD unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from an traditional business loan?
Apply to this Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an answer within the same day and have the funds in your account within 24 hours. Traditional company loans reference an interest rate per annum together with additional fees and charges. Our company loan is an upfront priced loan so you will be aware of the total amount due, which includes any fees, interest or charges. This is then divided into weekly or daily repayment figure.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business need, such as control of cash flow company remodeling, marketing to purchase inventory, new equipment, as general working capital and so much more. The loan is not available for personal reasons.
Concerning Larger Auckland CBD Business Loans
What is the Larger Auckland CBD Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your company needs to be operating for at least three years and have an annual turnover of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funding be used for?
A large company loan can be used for almost all company need, including business renovations, purchase of new equipment or inventory 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 for funding of more than $150,000. This can be done as a result of an charge on assets, and could include registering this with the PPSR or registering as a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is generally based rather than defining security over an asset. The person signing the guarantee is personally liable in the event that the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including objects or assets). The PPSR grants prioritisation over property that is personal to be assigned in accordance with the date on which a security interest has been registered.
The caveat can be described as a formal document lodged to provide an official notice of a claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking a Larger Business Loan of $250,000 or more we can offer a preliminary pre-approval to help make the process. It is possible to apply for this without credit checks and within 6 hours of the initial application. This pre-approval is based on a preliminary assessment which includes you answering some financial well-being questions. It is not an offer or guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you receive could be based on different conditions.
The application process
Are I eligible for funding?
You can apply 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)
- must show at least six months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application within a few minutes and a dedicated business loan specialist will call you to guide you.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s Licence), an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K – $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Information on the application including credit consent, 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we typically offer an answer within an hour, provided you make your application at standard business hours and permit us to use the advanced bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statements , we will be able to offer a decision within 1 company day.
For the Larger Business Loan ($100K and up) we could be in a position to provide you with a conditional pre-approval within 6 hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Certain offers have been approved in just 24 hours.
The most effective method would be to make sure you apply during normal company hours. You can also allow us to use our advanced bank verification system to instantly verify your bank information online. If you decide to upload documents from your account statements it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K to $100K) We can usually provide a response in one hour if you make your application in normal business timings and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statements, we are able to provide an answer within one business day.
For the Larger Business Loans ($100K or more) we could be in a position to offer you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Certain deals have been approved in just 24 hours.
The fastest method for you to apply is make sure you apply during standard business hours. You can also allow us to use the sophisticated bank verification link to instantly check your bank’s information online. If you choose to send us duplicates of your banking statements it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a certain amount we consider a variety of aspects for determining your well-being of your business and the extent of repayments your business will be able to support. The amount you receive from your loan will depend on the specifics for your company.
When you submit an application for a specific amount we look at a range of aspects to assess your well-being for your company and the extent of repayments that your company will be able to support. The total amount of your loan will be contingent on the specific circumstances the business.
Fees & repayments
How much do you charge for a company loan?
When you request one of our company financing, we’ll assess the risk assessment that you have for your company and offer an individualised proposal that includes the amount of loan, the term and the interest rates. It is a company loan is an upfront priced loan so you will know in advance the total amount you will have to pay, including charges, interest rates or fees.
What determines the amount I’m charged?
Interest rates for company loans rates differ based on various variables like the amount to be borrowed, the company assets the money will be used for, the industry the business is operating in, how long the business is in operation, whether the business has enough cash flow to pay for the loan, as well as the general health or creditworthiness of the company.
What are the costs?
There are no hidden fees for our company loans, and you’ll know precisely what it is that you need to pay and when, starting from day one. There’s not any compounding interest and there are no additional charges (as as you make your payments in time).
We don’t charge an Application Fee. You are able to make an application for loans with with no upfront cost or commitment to apply.
The Origination Fee covers the expenses involved in establishing and managing the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay out the loan earlier?
You can choose to repay the entire amount of the advance loan at any time.
If you do decide to take this route, please call our helpful company loans experts. We will provide you with details on repayment and an early payment figure. It will be calculated using the total of the remaining principal amount and accrued interest to the time of early payout in addition to 1.5 percent of the principal amount remaining plus any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss payment dates and to align your cash flow schedule, we provide payments that are either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my data 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 a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to the security of our clients as well as their privacy. We employ an exceptionally sophisticated bank verification system to immediately confirm your bank account information online. This allows us to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an business owner uses assets they own to get the funds for a loan. The asset can be either a personal asset like the family home or a company asset such as a vehicle as well as a piece of machine.
The vast majority of the lenders including the banks with the biggest size, prefer to make loans secured by an asset. If you are having difficulty paying back the loan then your assets could be transferred to the lender. In essence it is an opportunity to secure new financing by using the value of what you already own.
Do I need security for a business loan?
Up to $150,000 in loans there is no requirement for asset security before you can access the money but we do need the personal guarantee. In the event that you fulfill the terms of your loan (as detailed in your loan contract document) the security of assets will never be needed. For loans that exceed $150K, generally there is the option of a personal guarantee and security in the form of the charge of assets.