FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Porirua Small Business Loans
Let me know how you can avail the Porirua Small Business Loans
Porirua unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
What makes this Unsecured Loan different from a traditional company loan?
It is imaginable to apply to get the Small Business Loan in under 10 minutes online or over the phone. You’ll get an instant response and have the funds available in just 24 hours. Traditional company loans reference an annual interest rate along with other charges and fees. Our company loan is a loan that is priced upfront which means you know ahead of time the total amount to be paid, including any fees, interest or charges. This is then broken down into weekly or daily repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company reason, such as managing cash flows, business renovations, marketing, to purchase inventory or new equipment, for general working capital and much more. The loan is not available for personal reasons.
About the Larger Porirua Business Loans
What is the Larger Porirua Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to be in operation for at least 3 years, and have an annual income of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funding for?
A large company loan can be used for almost all company reason, such as business renovations, to purchase equipment or inventory as well as for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. This can be done by way of charge on assets, which could also include registration with the PPSR or registering as a caveat.
A personal or director’s guarantee is a promise to pay back a loan that is generally in nature rather than stipulating security over a particular asset. The person who is signing the guarantee is personally accountable if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including the assets or goods). The PPSR grants preference over private property assigned depending on the date that a security interest was registered.
Caveats are legal document that is filed to offer notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re requesting larger business loans of more than $250,000 we can offer an initial pre-approval to smooth out the process. We may 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 assessment that includes you answering a few financial well-being questions. It is not an offer of credit or guarantee of finance. A conditional approval is subject an exhaustive credit evaluation, and any offer that you are offered could be on different terms.
The application process
Are I eligible for funding?
You may apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (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 - $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form within a couple minutes, and a dedicated business loan specialist will be in touch to guide you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details of the application, including credit consent twelve month bank accounts, the IRD statement, last 2 years finalised financial statements, as well as interim current financial year financials, Aged Payables and Aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we usually provide an answer within one hour – as long as you apply within standard company times and let us use the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statements we can offer an answer within just 1 company day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to provide you with a conditional pre-approval within about six hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Certain deals have been approved within just 24 hours.
The fastest way can be make sure you apply during standard company hours. You can also permit us to use the advance bank verification link to confirm your bank details online. If you upload duplicates of your banking statements it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we usually offer an answer in just one hour – as long as you submit your request within standard business time and permit us to use the bank verification system link to instantly verify your bank details online. If you choose 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 up to $500,000) we could be capable of offer the conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however it could be faster based on the specifics of each application. Certain agreements have been approved within 24 hours.
The fastest way would be to ensure you apply during standard business hours. Also, allow us to use our modern bank verification link to instantly confirm your bank details online. If you opt to upload duplicates of your banking accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a certain amount we look at a variety of aspects in order to assess your health of your business as well as the amount of repayments that your business can afford. The total amount of your loan will be contingent on the specifics that are unique to your business.
If you apply for a specific amount we consider a variety of elements to assess how much we can lend you such as well-being for your company and the amount of payments your company will be able to support. The total amount of your loan will be determined by the particular circumstances for your business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to make an application for the company loans, we will assess the risk assessment of your business and offer you with a customised offer, including loan amount, term and the interest rates. The business loan is an upfront cost loan which means you know the exact amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I’m charged?
Business loan interest rates depend on several factors such as the amount that is of money borrowed, the company assets the money will be used for in addition to the industry that the business operates in, the long the business has been in operation and what percentage of the business has enough cash flow to pay for the loan, as well as the overall well-being and creditworthiness of the company.
What are the costs?
There aren’t any hidden charges with our business loans. You’ll know precisely how much you need to pay and at what time, from the day you sign up. There’s no compounding interest, and no extra fees (as as long as you pay your payments in time).
We don’t charge an application fee. You are able to request a credit loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the expenses involved with 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 percentage of the loan amount.
Can I repay the loan early?
You can choose to repay the entire amount of the advance loan at any time.
If you decide to pursue this option, please talk to one of our helpful company lending experts. They will offer you with details for repayment and an early payout figure. It will be calculated using the sum of the principal balance and any accrued interest at the time of the early payout plus 1.5% of the principal amount remaining plus any outstanding fees.
How do you make repayments work?
To ensure you do not miss payments and to work your cash flow cycle we offer repayments that are either daily or weekly. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing the ways we gather data, process, exchange and protect your information, is of paramount importance and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We use an advanced bank verification system to instantly verify the bank account details online. This allows us to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the company owner uses an asset they own to secure the loan. The asset could be an individual property, such as the family home or it could be a company property like a truck or other piece of machinery.
The majority of lenders, including the largest banks, are inclined to make loans secured by an asset. If you’re struggling to pay back the loan, then your assets could be taken over by the lender. In essence it’s the process of securing new financing by making use of the value of what you already have.
Do I require security to get a company loan?
For loans that exceed $150K, the requirement for asset security is not required in advance to gain access to the funds however, we do require an individual guarantee. As long as you follow your loan commitments (as stipulated in your loan contract) the security of assets will never be needed. For loans of over $150K generally, there is a personal guarantee and security in the form the charge of assets.