FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Auckland Small Business Loans
Let me know how you are able to avail the Auckland Small Business Loans
Auckland unsecured loans offers amounts between $5,000 and $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 company loan?
The application to your Small Business Loan in under 10 minutes over the phone. You’ll get a same day response and funds may be in your account in 24 hours. Traditional business loans refer to an interest rate per annum as well as other fees and charges. This company loan is a pre-paid loan and you’ll be aware of the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into a daily or weekly payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company need, such as cash flow management, business remodeling, marketing for purchasing inventory or new equipment, as general working capital and much more. The loan is not available to fund personal expenses.
About Larger Auckland Business Loans
What is the Larger Auckland Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size the business needs to be operating for at least three years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A larger business loan can be used for nearly any company purpose including company renovations, to purchase new equipment or inventory or as general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. It is usually as a result of an charge against assets, and could be registered with the PPSR or making a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is general in nature rather than specifying the security for a particular asset. The person who signs the guarantee is personally liable in the event that the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including objects or assets). The PPSR gives the priority of personal property granted according to the date the security interest has been registered.
Caveats are legal document filed to provide the public notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan of $250K or more we can offer a preliminary pre-approval to help simplify the process. We might be able to do this without a credit check, and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial well-being questions. This is not an offer or guarantee of funds. The approval of a conditional loan is subject to a full credit assessment and any offer you are offered could have different conditions.
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 at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form in few minutes and an experienced business loan specialist will contact you to help you.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent twelve months of bank records, IRD statement and the last two years’ finalised financial statements, plus interim current financial year financials as well as Aged Payables and Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we usually offer a response in one hour, provided you make your application during quality company times and let us utilise the bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statements , we will be able to provide an answer in as little as an business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be able to provide you with a conditional pre-approval within about 6 hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending upon the circumstances for each application. Some transactions have received approval within less than 24 hours.
The most effective method is to ensure you apply during normal company hours and let us use the advanced bank verification system to verify your bank account information online. If you opt to upload the copies of bank statements , it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) We can usually provide a response in one hour – provided you submit your request within normal business times and permit us to use the bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statement, we’ll provide an answer within one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be in a position to provide you with a conditional pre-approval within about six hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Certain deals have been approved in just 24 hours.
The fastest way is to make sure you apply during standard business hours. You can also permit us to use the modern bank verification link to instantly verify your bank account information online. If you opt to upload documents from your account statement, it takes a bit longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a certain amount we take into consideration a range of variables to determine how much we can lend you health that is your company as well as the amount of repayments your company is able to afford. The amount you receive from the loan will be determined by the particular circumstances for your business.
If you apply for a specific amount we consider a variety of variables to determine your well-being of the company and the extent of the repayments your company can support. The total amount of your loan will be determined by the specifics the business.
Fees & repayments
How do you charge for a business loan?
When you apply for our business loans, we will assess the risk assessment the company and offer you with a customised offer including the loan amount, the terms and the interest rates. The business loan is an upfront cost loan and you’ll be aware in advance of the total amount payable including any charges, interest rates or fees.
What is the factor that determines the price I’m charged?
The interest rates on business loans rates vary due to factors such as the amount that is that is borrowed, what business assets the money will be used for as well as the field the business operates in, how long the company has been operating and how long the business has sufficient cash flow to support the loan, and the general health as well as creditworthiness company.
What are the costs?
There are no hidden costs with our business loans. You’ll know precisely how much you’ll be required to pay and when, starting 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 on time).
We don’t charge an Application Fee. You can apply for a loan with with no upfront cost or commitment to apply.
The Origination Fee includes the expenses associated in establishing and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I repay the loan earlier?
You may choose to pay back the total amount of your advance loan at any time.
If you are deciding to do this please speak to our friendly business loan experts. We will provide you with details for repayment and an early payout figure. This is calculated as the total of the principal balance plus any accrued interest as of the time of early payout, plus 1.5% of the principal remaining and any outstanding fees.
What is the process for repayments?
To make sure you do not miss repayments and to fit in your cash flow schedule, we offer repayments either daily or weekly. They are automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being transparent about how we collect, use, exchange and safeguard your data, is crucial and a vital element 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 information and our funders are ISO 27001 certified for our commitment to the security of our customers as well as their privacy. We make use of an advanced bank verification system to immediately verify your bank account details online, allowing us to offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a company owner makes use of the assets they have to make the funds for a loan. The asset could be an individual property, such as the family home or a company property like a truck or piece of equipment.
The vast majority of the lenders even the largest banks, are inclined to guarantee loans against assets. If you’re struggling to pay back the loan, then your assets could be taken over by the lender. In essence it’s an opportunity to secure additional financing using the worth of the asset you already own.
What do I need security to secure an business loan?
For loans of up to $150,000, there is no requirement for asset security prior to the loan’s access however, we require a personal guarantee. need the personal guarantee. As long as you follow your loan commitments (as stated in the loan contract) Asset security will never be needed. If you take out loans in excess of $150K generally there is personal guarantee and security that is in the form an asset charge.