FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Porirua Small Business Loans
Let me know about the Porirua Small Business Loans
Porirua unsecured loans provides 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.
How is what makes the Unsecured Loan different from an traditional business loan?
Apply to your 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 available in just 24 hours. Traditional business loans refer to an annual rate of interest as well as other fees and charges. We offer a business loan is a pre-paid loan and you’ll know in advance the amount you will have to pay, including any fees, interest or charges. This is then divided into a daily or weekly amount to be paid back.
What can the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company need, such as managing cash flows, company remodels and marketing for purchasing inventory or new equipment, for general working capital and so much more. The loan cannot be used to fund personal expenses.
About Larger Porirua Business Loans
What is the Larger Porirua Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the company needs to be in operation for at least 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A large company loan can be used to fund almost any company need, including company renovations, purchase of equipment or inventory as well as for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It is usually by taking a charge against assets and can include registering this on the PPSR or making as a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is generally in nature rather than specifying security over a particular asset. The person who is signing the ensure is personally accountable if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be granted according to the date a security interest that is registered.
The caveat can be described as a formal document lodged to provide notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for larger business loans of more than $250K it’s possible to offer a preliminary pre-approval to help make the process. We might be able to do this without a credit check and within 6 hours of your initial application. This pre-approval is based on a preliminary assessment which includes answering a couple of financial well-being questions. This is neither an offer nor a guarantee of financing. A conditional approval is subject an extensive credit evaluation and any offer you receive could be on different terms.
The application process
Are I eligible for funding?
You are eligible to apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form in just a few minutes, and a dedicated company loan specialist will contact you to guide you through the process.
To apply for up to $100,000 you’ll need the right identification documents (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent as well as 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) we can often provide an answer within one hour, provided you submit your request during quality company hours and you allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you opt to send us copies of your bank statements , we are able to offer an answer within just an company day.
For the Larger Business Loan ($100K up to $500,000) we may be capable of offer you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Certain deals have been approved within 24 hours.
The fastest way can be make sure you apply during standard business hours. Also, allow us to use our advance bank verification to verify your bank account information online. If you choose to send us documents from your account statement, it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer in just one hour, provided you make your application within standard business time and allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your banking statement, we’ll provide a decision in as little as one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be likely to offer you with a conditional pre-approval within about six hours. After you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however this can be faster depending upon the circumstances for each application. Certain transactions have received approval within the space of 24 hours.
The fastest way would be to ensure you apply during normal business hours, and let us use the advanced bank verification system link to instantly verify your bank account information online. If you opt to send us the copies of bank statements, it can take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of variables in order to assess how much we can lend you well-being that is your business and the amount of repayments that your business is able to afford. The total amount of your loan will be contingent on the specific circumstances the company.
When you make an application for a specific amount we look at a range of elements to determine 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 total amount of your loan will depend on the particular circumstances of your business.
Fees & repayments
How much do you charge for a company loan?
When you apply for business loans with us company credit, we will assess the risk assessment the business and provide an individualised offer that includes the amount of loan, the term and the interest rates. It is a company loan is a loan that is priced upfront which means you know in advance the total amount due, which includes any interest rates, fees or charges.
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 business assets the money will be used for, the industry the company operates in, the long the business has been running as well as what percentage of the business has enough cash flow to support the loan, and overall health and creditworthiness of the company.
What are the cost?
There are no hidden costs for our company loans. You’ll know precisely what you need to pay and when, from day one. There’s no compounding and no additional fees (as as you make your payments punctually).
We do not charge an Application Fee. You can make an application for loans with with no upfront cost or obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. The only way to pay this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay out the loan in advance?
You can decide to repay all of your loan at any point in time.
If you do decide to do this please contact our helpful company credit professionals. The professionals will offer you with details for repayment and an early payment figure. This is calculated as the sum of the principal amount remaining plus any accrued interest as of the date of early payout and 1.5% of the remaining principal as well as any outstanding fees.
How do you make repayments work?
To make sure you do not miss payments and to work with your cash flow standard, we provide repayments either daily or weekly. These are automatically deducted from your business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being transparent about the ways we gather data, process, exchange and secure your information, is of paramount importance and is a crucial 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 as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We employ an exceptionally sophisticated bank verification system link to immediately verify your 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 occurs when a business owner utilises the assets they have to make the loan. The asset may be an individual property, such as the family home, or an company asset like a truck as well as a piece of machine.
The majority of lending institutions, even the major banks, prefer to secure loans against an asset. If you have trouble paying back the loan, then the asset might be sold by the lender. In essence it is an opportunity to secure new funding taking advantage of the value of what you already have.
Should I need security for a business loan?
For loans of up to $150,000, it is not necessary to secure assets in advance to gain access to the funds however, we do need a personal guarantee. So long as you comply with the terms of your loan (as specified in your loan contract), asset security will never be needed. For loans over $150K generally, you can get an individual ensure and security in the form charges on assets.