FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Johnsonville Small Business Loans
Tell me how you can avail the Johnsonville Small Business Loans
Johnsonville unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from an ordinary company loan?
You can apply for this Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an immediate response, and funds may be in your account within 24 hours. Traditional business loans reference an interest rate per annum together with additional fees and charges. This company loan is an upfront priced loan so you will be aware of the amount you will have to pay, including any fees, charges or charges. This is then divided into a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company use, including control of cash flow company remodeling, marketing for purchasing inventory or new equipment, to fund general working capital and much more. The loan is not available to fund personal expenses.
About larger Johnsonville Business Loans
What is the Larger Johnsonville Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to have been trading for at least 3 years and generate an annual revenue of $700,000. It is necessary to 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 demonstrate at minimum 12 months of business.
What can the funds be used for?
A Business Loan of a larger size can be used to fund almost all company need, including business renovations, purchase of inventory or new equipment or as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary for accessing funds over $150,000. It’s in the form of a charge on assets and can be registered with the PPSR or making as a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is general in nature rather than stating security over an asset. The person who signs the ensure is personally responsible if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including items or assets). The PPSR grants the priority of personal property assigned according to the date a security interest that is registered.
A caveat is a legal document that is filed to offer the legal claim to property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan of more than $250K we can offer a preliminary pre-approval to help simplify the process. We could be able to apply for this without a credit check, and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial well-being questions. It is not an offer or guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you might receive could be subject to different terms.
Application process
Can I be eligible for funding?
You can apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application within a few minutes and a dedicated business expert in lending will call you to guide you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K – $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details for application including credit consent and 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, as well as interim financials from the current financial year, Aged Payables and Aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we can often offer an answer in just one hour – as long as you submit your request at quality company time and permit us to utilise the bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statement, we’ll offer the decision in as little as an business day.
If you are applying for a Larger Business Loan ($100K to $500K) we could be able to provide the conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however it could be faster based on the circumstances of each application. Some deals have been approved within the space of 24 hours.
The quickest method would be to ensure you apply during standard business hours and let us use the advance bank verification link to verify your bank account information online. If you choose to send us copies of your bank statement, it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we can often provide an answer within an hour – provided you make your application at normal business timings and allow us to use the bank verification system to instantly verify your bank’s information online. If you want to submit copies of your bank statements, we are able to offer the decision within the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we may be capable of provide the conditional pre-approval in around six hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Some offers have been approved in the space of 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours. Also, allow us to use the modern bank verification link to verify your bank information online. If you decide to send us the copies of bank accounts, it may take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a specific amount we consider a variety of aspects that determine the health of the business and the amount of repayments that your business can support. The amount you receive from your loan will depend on the specifics that are unique to your business.
When you submit an application for a set amount, we take into consideration a variety of factors to assess your well-being of your company and the amount of repayments that your company can afford. The total amount of your loan will be determined by the particulars the business.
Fees & repayments
What is the cost for an business loan?
When you make an application for one of our company financing, we will assess the risk assessment of your company and offer you with a tailored offer including loan amount, term and interest rates. It is a business loan is an upfront cost loan which means you be aware of the total amount you will have to pay, including charges, interest rates or fees.
What determines the amount I’m charged?
Business loan interest rates differ based on various variables like the amount to be that is borrowed, what company assets the money are used to purchase as well as the field the company operates in, how long the company has been operating as well as what percentage of the business has enough cash flow to pay for the loan, and the general health or financial standing of the company.
What are the costs?
There aren’t any hidden costs for our business loans, and you’ll know precisely what it is that you need to pay, and when, from day one. There’s no compounding interest, and the loan comes with no additional fees (as long as you make your payments punctually).
We do not charge an application fee. You can request a credit loan with without any upfront costs or any obligation to sign up.
The Origination Fee covers the expenses involved in establishing and managing the loan. It is only charged for 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 may choose to pay back all of your loan in full at any time.
If you choose to take this route, please speak to our friendly company loan professionals. They will offer you with details on repayment as well as an early payout amount. It will be calculated using the total of the principal balance and the accrued interest up to the date of early payout in addition to 1.5 percent of the remaining principal and any outstanding fees.
How do you make repayments work?
To help you avoid missing repayments and to fit in with your cash flow cycle we provide payments that are either daily or weekly. These are automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and knowing the ways we gather the information we collect, use, share and ensure the security of your information is of paramount importance and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their security. We use an advanced bank verification system that allows you to instantly verify your bank account information online so we can provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the business owner makes use of assets they own to get the loan. The asset may be an individual property, such as the family home or it could be a business asset like a truck as well as a piece of machine.
The majority of banks, including the banks with the biggest size, prefer to secure loans against an asset. If you’re struggling to pay back the loan, then the asset might be taken over by the lender. In essence it’s an opportunity to secure additional financing using the worth of the asset you already have.
Should I require security for an company loan?
For loans that exceed $150,000, there is no requirement for asset security in advance to gain access to the funds but we do need an individual guarantee. If you adhere to your loan commitments (as specified in your loan contract) Asset security is not required. For loans that exceed $150,000, generally, you are able to get an individual guarantee and security in the form charges on assets.