FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Manukau Small Business Loans
Let me know about the Manukau Small Business Loans
Manukau unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from an ordinary business loan?
It is possible to apply for the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive a same day response and have the funds in your account in 24 hours. Traditional business loans are based on an annual interest rate along with other charges and fees. The business loan is a cash-based loan which means you know in advance the total amount to be paid, including the interest, fees and charges. This is then broken down into either weekly or daily installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business purpose including cash flow management, company renovations, marketing for purchasing inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal reasons.
About the Larger Manukau Business Loans
What is the Larger Manukau Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan of this size the company needs to be trading for at least 3 years and generate an annual revenue of at least $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can I use the funds for?
A larger business loan can be used for nearly any business purpose including business remodeling, buying new equipment or inventory as well as for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. It’s by way of charge over assets, and may include registering this on the PPSR or the registration of as a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is general in nature rather than specifying security over an asset. The person who is signing the guarantee is personally responsible if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR permits the priority of personal property assigned depending on the date that a registration of a security interest.
The caveat can be described as a formal document lodged to offer the public notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking the Larger Business Loan of $250K or more it’s possible to offer an initial pre-approval in order to smooth out the process. We could be able to apply for this without a credit check, and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes answering a couple of financial health checks. It’s not an offer of credit or guarantee of financing. A conditional approval is subject an exhaustive credit evaluation, and any offer you receive could have different conditions.
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, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for 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 quick and easy. Just complete the online application within a few minutes and an experienced business expert in lending will call you to assist you.
To be eligible for up to $100,000, you’ll require ID details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, and interim financials from the current financial year such as age-related payables and aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we can often offer an answer within an hour – as long as you make your application at standard company timings and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you want to send us copies of your bank statements , we are able to offer a decision within an company day.
For the Larger Business Loan ($100K to $500K) we may be able to offer you with conditional pre-approval in about six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Some deals have been approved in less than 24 hours.
The quickest method is to ensure you apply during normal business hours, and permit us to use the advanced bank verification system to instantly verify your bank account information online. If you decide to upload documents from your account statements , it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we usually offer an answer within an hour if you submit your request within normal business time and permit us to utilise the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your banking statements, we are able to offer the decision within the span of one business day.
For the Larger Business Loans ($100K or more) we might be capable of provide you with a conditional pre-approval in around six hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Certain deals have been approved within 24 hours.
The quickest method can be make sure you apply during normal business hours, and let us use the advance bank verification link to check your bank’s information online. If you send us the copies of bank statements, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a certain amount we consider a variety of factors for determining how much we can lend you health of your business as well as the amount of repayments that your company can afford. The total amount of the loan will be determined by the specifics for your company.
When you submit an application for a specific amount we look at a range of aspects to assess how much we can lend you such as well-being that is your business and the level of repayments that your company will be able to support. The amount you receive from the loan will be determined by the particular circumstances of your business.
Fees & repayments
What is the cost for an business loan?
When you make an application for business loans with us company loans, we’ll assess the risk assessment of your company and offer you with a customised offer including the amount of loan, the term and interest rates. This business loan is an upfront-priced loan so you will be aware of the total amount to be paid, including any interest rates, fees or charges.
What determines the amount I am charged?
Business loan interest rates differ based on various factors like the amount of money borrowed, the company assets the money are used to purchase in addition to the industry that the business operates in, the long the company has been running for, how long the company has enough cash flow to cover the loan, and the overall well-being or creditworthiness of the business.
What are the costs?
There aren’t any hidden costs with our company loans. You’ll know precisely how much you’ll need to pay and when, starting from the very first day. There’s no compounding interest, and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You are able to apply for a loan with no cost upfront or commitment to apply.
The Origination Fee covers the costs associated with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I repay the loan earlier?
You can choose to repay the total amount of your loan early at any time.
If you choose to pursue this option, please contact our helpful business lending specialists. They’ll provide you with the details of your repayment and an early payment figure. It will be calculated using the sum of the principal amount remaining and any accrued interest at the time of the early payout and 1.5 percent of the principal remaining and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line your cash flow cycle we offer repayments that are either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being clear about the ways we gather data, process, exchange and protect your information, is vital and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We make use of an advanced bank verification system to immediately verify your bank account details online to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when a business owner uses assets they own to get a loan. The asset can be an individual asset, such as the family home or a business asset such as a vehicle or other piece of machinery.
The vast majority of lenders, not just the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan then your asset may be sold by the lender. In essence it is an opportunity to secure new financing by using the worth of the asset you already own.
Are I need security to get an company loan?
For loans up to $150K no asset security is required prior to the loan’s access However, we do need an individual guarantee. So long as you comply with the loan terms (as specified in the loan contract), asset security is not required. For loans over $150K typically, you will need an individual guarantee and security that is in the form an asset charge.