FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Maraetai Small Business Loans
Let me know about the Maraetai Small Business Loans
Maraetai unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
What makes this Unsecured Loan different from an traditional business loan?
You can apply for your Small Business Loan in under 10 minutes on the internet or by phone. You will receive an answer within the same day and funds may be available in just 24 hours. Traditional company loans refer to an annual interest rate as well as other fees and charges. Our company loan is a pre-paid loan and you’ll be aware of the total amount due, which includes any interest, fees or charges. Then, it is divided into weekly or daily installment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business use, including control of cash flow company remodels and marketing to purchase inventory, new equipment, as general working capital and much more. The loan cannot be used to fund personal expenses.
About Larger Maraetai Business Loans
What is the Larger Maraetai Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount the business needs to have been operating for at least three years with an annual turnover of at least $700,000. 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 to prove at the least 12 months of operating.
What can I use the funds for?
A Larger Business Loan can be used for nearly all company purpose including business remodeling, buying new equipment or inventory for general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. It is usually as a result of an charge over assets, which could also include the registration of this with the PPSR or registering as a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is generally in nature rather than stipulating security over an asset. The person who signs the guarantee is personally accountable if the company lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR grants the priority of personal property granted in accordance with the date on which a registration of a security interest.
An affidavit is an official document lodged to offer notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
When you’re applying for larger company loans of $250K or more we may be able to provide a preliminary pre-approval to help smooth out the process. We may be able to make this decision 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 some financial well-being checks. It is not an offer of credit or guarantee of credit. Unconditional approval is subject to a full credit assessment and any offer that you receive could have different conditions.
The application process
Do I qualify for funds?
You can apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have 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 three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a couple minutes, and a dedicated business lending specialist will call you to assist you.
To apply for up $100,000, you’ll need the right identification documents (valid Driver’s Licence) and an NZBN/IRD that is valid and at least six months worth of bank statements.
For larger loan sizes, you’ll also require:
$100K-$250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent and 12 months of bank records, IRD statement, last 2 years finalised financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) We can usually offer an answer in just one hour, provided you submit your request within quality business hours and permit us to utilise the bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your banking statements , we are able to provide a decision in just 1 business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be likely to offer you with pre-approval conditional to your application in about six hours. Once you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this can be quicker based on the circumstances of each application. Certain deals have been approved in 24 hours.
The most efficient method is to ensure you apply during normal company hours. You can also allow us to use our advance bank verification link to instantly verify your bank information online. If you upload documents from your account statement, it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we typically offer a response in one hour, provided you apply at standard business hours and let us use the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your banking statements we can provide a decision within an business day.
If you are applying for Larger Business Loans ($100K or more) we could be able to provide you with a conditional pre-approval within 6 hours. Once you’ve signed your pre-approval document, you will require to wait around 2-3 days for final approval. However, this can be faster depending on the circumstances of each application. Certain agreements have been approved within just 24 hours.
The fastest way would be to ensure you apply during standard business hours and let us use the modern bank verification to check your bank’s information online. If you upload copies of your bank statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a certain amount, we look at a variety of variables that determine how much we can lend you health of the company and the extent of the repayments your business can afford. The total amount of the loan will be determined by the particular circumstances that are unique to your business.
When you apply for a particular amount, we take into consideration a variety of aspects to determine how much we can lend you such as health of the business and the amount of payments your business can support. The amount you receive from your loan will depend on the particulars the company.
Fees & repayments
How much should you charge for the cost of a business loan?
When you request business loans with us company loans, we’ll assess the risk profile for your business and offer you with a customised proposal that includes the amount of loan, the term and interest rates. The company loan is an upfront priced loan therefore you will know the exact amount due, which includes any interest rates, fees or charges.
What determines the amount I will be charged?
Interest rates for company loans rates differ based on various factors such as the amount that is of money borrowed, the business assets the funds will be used for and the sector the business is in, how long the company is in operation for, in the event that the company has enough cash flow to fund the loan, as well as the overall well-being and creditworthiness of the company.
What are the cost?
There are no hidden costs with our business loans. You’ll know precisely how much you’ll need to pay, and at what time, from day one. There’s not any compounding interest and no additional fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You can apply for a loan with no cost upfront or the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay off the loan in advance?
You can repay the total amount of your loan at any point in time.
If you are deciding to do this please contact our helpful business loans specialists. The experts will provide you with details for repayment and an early payout figure. The figure will be calculated as the sum of the principal balance plus any accrued interest as of the time of early payout in addition to 1.5% of the principal remaining and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing repayments and to fit in with your cash flow cycle we provide payments that are either daily or weekly. They will be automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and making it clear the ways we gather data, process, exchange and ensure the security of your information is vital and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We employ an exceptionally sophisticated bank verification system to immediately verify the bank account details online, allowing us to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the company owner uses the assets they have to make the loan. The asset can be either an asset belonging to the personal, like the family home or a business asset such as a truck or piece or equipment.
The majority of lending institutions, including the major banks, prefer to secure loans against assets. If you are having difficulty paying back the loan then the asset could be transferred to the lender. In essence, it is a way of securing additional financing using the worth of the asset you already have.
Should I need security to get a company loan?
For loans up to $150,000 the requirement for asset security is not required prior to the loan’s access, however we require a personal guarantee. need a personal guarantee. So long as you comply with your loan obligations (as stated in your loan contract) the security of assets is not needed. For loans of over $150,000 typically, you will need an individual ensure and security is provided in the form of an asset charge.