FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Porirua Small Business Loans
Tell me about the Porirua Small Business Loans
Porirua unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
How is this Unsecured Loan different from the traditional business loan?
It is possible to apply to get the Small Business Loan in under 10 minutes over the phone, receive a same day response and have the funds available in just 24 hours. Traditional business loans reference an annual rate of interest together with additional fees and charges. The business loan is a pre-paid loan so you will know in advance the total amount to be paid, including any fees, charges or charges. This is then divided into a daily or weekly installment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for almost every business purpose including the management of cash flow, company remodels and marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan cannot be used to fund personal expenses.
About the Larger Porirua Business Loans
What is the Larger Porirua Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion 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’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that 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 that is this large the business needs to have been trading for at least 3 years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can I use the funds for?
A large company loan can be used for nearly every company need, including business improvements, purchasing equipment or inventory, as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. This is by way of charge over assets, which could also include registering this through the PPSR or filing a caveat.
A director’s or personal ensure is a commitment to repay a loan which is general in nature, rather than defining security over a particular asset. The person signing the guarantee is personally liable in the event that the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR permits priority over personal property to be granted according to the date a security interest was registered.
The caveat can be described as a formal document filed to provide an official notice of a claim against a property.
What is a pre-approval without Credit Check?
When you’re applying for the Larger Business Loan that exceeds $250K, we may offer an initial pre-approval to ease the process. It is possible to apply for this without a credit check, and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves answering a couple of financial health questions. It is in no way an offer, nor is it a guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer that you are offered could have different conditions.
The application process
Can I be eligible for funding?
You can apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for you to qualify for 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 simple. Just fill out the online application in few minutes and an experienced business expert in lending will call you to guide you.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s License) as well as an active NZBN/IRD, and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent as well as 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, and interim current financial year financials as well as Aged Payables and Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) we usually offer an answer within an hour if you apply within quality company hours and allow us to use the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statements we can offer a decision in just the span of one company day.
For the Larger Business Loan ($100K and up) we may be capable of provide you with pre-approval conditional to your application within 6 hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this can be quicker based on the specifics of each application. Certain deals have been approved within less than 24 hours.
The most efficient method is to make sure you apply during normal company hours and let us use the advance bank verification link to instantly confirm your bank details online. If you choose to upload duplicates of your banking statements , it may take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K or more) we can often offer an answer in just one hour – provided you make your application at normal business time and allow us to use the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your bank statements, we’ll be able to provide the decision within 1 business day.
For Larger Business Loans ($100K or more) we could be able to offer you with pre-approval conditional to your application in about six hours. Once you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this could be shorter based on the particular circumstances of each application. Certain deals have been approved within less than 24 hours.
The most effective method is to make sure you apply during standard business hours. Also, let us use the advanced bank verification system link to instantly confirm your bank details online. If you opt to send us the copies of bank accounts, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a certain amount we take into consideration a range of variables in order to assess your health of the company and the extent of the repayments your business is able to afford. The amount you receive from your loan will depend on the specifics of your business.
When you submit an application for a set amount, we will consider a number of elements to determine your well-being of your company and the level of repayments that your company will be able to support. The amount you receive from your loan will be determined by the particulars of your business.
Fees & repayments
How do you charge for the cost of a company loan?
When you apply for business loans with us business financing, we will assess the risk profile of your company and offer an individualised offer that includes the loan amount, the terms and the interest rates. It is a company loan is an upfront cost loan so you will know the exact amount to be paid, including any interest rates, fees or charges.
What determines the amount I pay?
Interest rates for business loans rates vary due to variables like the amount to be borrowed, the business assets the funds will be used for, the industry the company is in, how long the business has been running and in the event that the company has enough cash flow to pay for the loan, and general health or financial standing of the company.
What are the charges?
There aren’t any hidden costs for our business loans. You’ll know precisely what you’ll need to pay and when, right from the very first day. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We don’t charge an application fee. You can apply for a loan no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan earlier?
You may choose to pay back the entire amount of your loan at any point in time.
If you are deciding to pursue this option, please speak to our friendly business lending specialists. We will offer you with details for repayment and an early payout figure. It will be calculated using the total of the principal amount remaining and accrued interest to the date of early payout and 1.5% of the principal remaining as well as any outstanding fees.
How do repayments work?
To help you avoid missing repayments and to fit in your cash flow cycle we provide repayments either daily or weekly. These are automatically withdrawn from your company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear the ways we gather data, process, exchange and safeguard your data, is of huge importance and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 qualified 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 to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the company owner utilises the assets they have to get the funding. The asset could be an individual asset, such as the family home or it could be a business asset such as a truck as well as a piece of machine.
The vast majority of the lenders not just the banks with the biggest size, prefer to make loans secured by an asset. If you are having difficulty paying back the loan then your asset may be transferred to the lender. In essence, it is the process of securing new funding using the value of what you already have.
Do I need security for an company loan?
Up to $150K in loans the requirement for asset security is not required upfront to access the money but we require a personal guarantee. need the personal guarantee. In the event that you fulfill your loan commitments (as detailed in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans over $150,000 generally, there is personal guarantee and security that is in the form an asset charge.