FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Long Bay Small Business Loans
Let me know about the Long Bay Small Business Loans
Long Bay unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from an ordinary company loan?
The application for your Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an immediate response, and funds may be in your account in 24 hours. Traditional business loans have an annual interest rate along with other charges and fees. We offer a business loan is a loan that is priced upfront so you will know in advance the total amount payable including the interest, fees and charges. This is then divided into weekly or daily payment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business reason, such as cash flow management, company remodeling, marketing to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal reasons.
Concerning Larger Long Bay Business Loans
What is the Larger Long Bay Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to have been operating for a minimum of 3 years with an annual turnover of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A larger company loan can be used to fund almost all business need, including business renovations, to purchase equipment or inventory as well as for general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It is usually in the form of a charge over assets, and could include the registration of this with the PPSR or the registration of a caveat.
A personal or director’s guarantee is a promise to repay a loan which is general in nature, rather than specifying the security of a specific asset. The person who signs the guarantee is personally liable if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including goods or assets). The PPSR grants prioritisation over property that is personal to be assigned in accordance with the date on which a registration of a security interest.
Caveats are legal form of document to provide the public notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re applying for larger business loans of $250,000 or more, we may offer an initial pre-approval that will help smooth out the process. We may be able to make this decision without a credit verification and within 6 hours of your initial application. This pre-approval is based on a preliminary assessment which includes the answer to a series of financial health questions. This is in no way an offer, nor is it a guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer you receive could have different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for an business 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 prove at least 6 months worth of trade (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Just fill out the online application within a couple minutes, and a dedicated business credit specialist will be in touch to guide you.
To be eligible 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 of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Information on the application including credit consent and 12 months bank statement, an IRD statements, last 2 years finalised financial statements, as well as interim financials for the current financial year including Aged Payables, Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we usually offer a response in one hour – as long as you make your application during standard company timings and you allow us to utilise the bank verification system link to instantly verify your bank details online. If you decide to upload copies of your bank statements , we will be able to offer the decision in as little as the span of one business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we might be able to offer you with conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Certain transactions have received approval in 24 hours.
The most effective method for you to apply is make sure you apply during normal company hours, and let us use the advance bank verification to verify your bank information online. If you upload copies of your bank statement, it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K to $100K) we typically offer a response in one hour if you make your application in normal business hours and permit us to use the bank verification system to instantly verify your bank’s information online. If you want to upload copies of your banking statements, we are able to provide an answer within one business day.
For the Larger Business Loans ($100K to $500K) we could be able to offer you with a conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be faster depending on the specifics of each application. Certain deals have been approved within the space of 24 hours.
The quickest method for you to apply is make sure you apply during normal business hours and let us use the modern bank verification link to instantly confirm your bank details online. If you choose to send us documents from your account statements it may take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a particular amount, we will consider a number of variables for determining your health that is your business as well as the amount of the repayments your business will be able to support. The total amount of your loan will depend on the specifics the company.
When you submit an application for a set amount, we take into consideration a variety of factors to assess the well-being for your company and the extent of repayments your business will be able to support. The total amount of your loan will depend on the specific circumstances of your company.
Fees & repayments
How much should you charge for a company loan?
If you decide to request one of our company financing, we’ll assess the risk profile the company and provide you with a customised offer including the loan amount, the terms and interest rates. This business loan is an upfront cost loan therefore you will know the exact amount to be paid, including any charges or interest.
What determines the amount I am charged?
The interest rates on company loans rates differ based on various variables like the amount to be borrowed, the business assets the funds will be used for and the sector the company is in, how long the company has been operating for, how long the business has enough cash flow to pay for the loan, and the overall health and creditworthiness of the business.
What are the fees?
There aren’t any hidden costs with our company loans, and you’ll know precisely what you’ll need to pay and when, from the day you sign up. There’s no compounding interest and the loan comes with no additional fees (as as long as you pay your payments in time).
We don’t charge an Application Fee. You can get a cash loan no cost upfront or the obligation to take action.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I repay the loan earlier?
You can repay all of your advance loan at any time.
If you choose to do this please call our helpful company loans professionals. We will provide you with repayment details along with an early payout estimate. The figure will be calculated as the total of the principal balance and the accrued interest up to the date of early payout plus 1.5% of the principal amount remaining and any fees that remain unpaid.
How do repayments work?
In order to help you avoid missing repayments and to fit in your cash flow cycle we offer repayments either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my information be secure?
Security of your data, and being upfront about the ways we gather data, process, exchange and secure your information, is of huge importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to security for our clients and security. We make use of an advanced bank verification system link to instantly verify the bank account details online, allowing us to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an company owner utilises an asset that they own to get the loan. The asset could be a personal asset like the family home or an company asset such as a truck or piece or equipment.
The vast majority of lenders, not just the largest banks, are inclined to make loans secured by assets. If you are having difficulty paying back the loan, then the asset could be offered for sale by the lender. In essence it is means of securing new financing using the worth of the asset you already have.
Are I need security for a company loan?
Up to $150K in loans the requirement for asset security is not required upfront to access the money but we require a personal guarantee. need the personal guarantee. In the event that you fulfill your loan commitments (as stipulated in your loan contract) Asset security is not needed. For loans that exceed $150K, generally, there is an individual ensure and security is provided in the form of a charge over assets.