FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Te Atatu South Small Business Loans
Tell me what you think of the Te Atatu South Small Business Loans
Te Atatu South unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from an ordinary business loan?
You can apply for this Small Business Loan in under 10 minutes by phone. You will receive an answer within the same day and the funds could be available in just 24 hours. Traditional business loans have an interest rate per annum plus other fees and charges. Our company loan is a loan that is priced upfront and you’ll know in advance the total amount due, which includes the interest, fees and charges. This is then divided into weekly or daily installment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business reason, such as control of cash flow company remodeling, marketing for purchasing inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal use.
Concerning Larger Te Atatu South Business Loans
What is the Larger Te Atatu South Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your business needs to be in operation for at least 3 years and generate an annual revenue of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can the funds be used for?
A large company loan is a great option for almost any business use, including business improvements, purchasing equipment or inventory for general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. It is usually in the form of a charge on assets, which could also include the registration of this through the PPSR or the registration of a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is general in nature rather than specifying security over a particular asset. The person signing the ensure is personally responsible if the company lender is not able to make the repayment.
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 which are registered with respect to personal property (including items or assets). The PPSR allows the priority of personal property assigned according to the date the security interest that is registered.
An affidavit is an official form of document to provide notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger business loans of more than $250,000 it is possible to offer an initial pre-approval in order to make the process. We may be able to make this decision without a credit check, and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves you answering a few financial well-being questions. This is not an offer or guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer that you receive could be based on different conditions.
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 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application in few minutes and an experienced business lending specialist will contact you to help you.
For a loan of up to $100,000, you’ll require the right identification documents (valid Driver’s License) as well as a valid NZBN/IRD and at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details of the application, including credit consent, 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 Summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we can often provide a response in one hour – as long as you apply within standard company time and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you want to send us copies of your bank statements , we will be able to offer an answer within just one business day.
For Larger Business Loans ($100K up to $500,000) we may be in a position to provide you with a conditional pre-approval in about 6 hours. Once 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 on the circumstances of each application. Some transactions have received approval within less than 24 hours.
The quickest way to apply can be ensure you apply during standard business hours, and allow us to use our advance bank verification link to instantly confirm your bank details online. If you decide to upload the copies of bank accounts, it takes a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer within an hour – as long as you submit your request during normal business timings and allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you decide to send us copies of your bank statement, we’ll offer the decision within one business day.
For Larger Business Loans ($100K to $500K) we might be likely to provide the conditional pre-approval within about 6 hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Some offers have been approved within just 24 hours.
The most effective method can be make sure you apply during normal business hours, and allow us to use the advanced bank verification system link to verify your bank account information online. If you choose to send us copies of your bank statements, it takes a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a certain amount, we will consider a number of elements that determine your health for your business as well as the amount of repayments that your company will be able to support. The total amount of your loan will be contingent on the specifics that are unique to your business.
When you submit an application for a specific amount we will consider a number of variables to assess your well-being that is your company as well as the amount of repayments your business can support. The amount you receive from the loan will be determined by the particular circumstances of your company.
Fees & repayments
How much do you charge for the cost of a business loan?
When you request one of our business financing, we will assess the risk assessment of your company and provide you with a customised offer including the amount of the loan, the duration and interest rates. This business loan is an upfront-priced loan therefore you will be aware of the total amount due, which includes any costs, fees, or interest rates.
What determines the rate that I will be charged?
Interest rates for company loans rates depend on a variety of variables like the amount to be of money borrowed, the business assets the funds will be used for as well as the field the business operates in, the long the company has been operating and in the event that the business has enough cash flow to support the loan, as well as the general well-being and creditworthiness of the business.
What are the costs?
There are no hidden fees with our company loans. You’ll be aware of the amount it is that you be required to pay, and when, starting from day one. 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 no cost upfront or commitment to apply.
The Origination Fee includes the expenses associated in establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can choose to repay the entire amount of the loan at any point in time.
If you do decide to take this route, please contact our helpful company credit experts. They will provide you with repayment details along with an early payout estimate. It will be calculated using the sum of the principal remaining and accrued interest to the time of early payment and 1.5 percent of the principal balance and any outstanding fees.
How do repayments work?
To ensure you do not miss repayments and to fit in with your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being upfront about how we collect data, process, exchange and secure your information, is crucial and is an essential element 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 sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to protecting the security of customers and security. We use an advanced bank verification system link to immediately verify your bank account details online to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the company owner borrows from an asset they own to get the loan. The asset can be either an individual property, such as the family home or it could be a company asset such as a truck or piece or equipment.
The vast majority of lending institutions, even the big banks, tend to guarantee loans against an asset. If you are having difficulty paying back the loan then the asset could be sold by the lender. In essence, it is the process of securing additional financing making use of the value of what you already own.
Are I require security to secure a company loan?
For loans up to $150K no asset security is required upfront to access the money however, we require a personal guarantee. require a personal guarantee. As long as you follow the loan terms (as specified in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans of over $150,000 generally, there is an individual ensure and security in the form of a charge over assets.