FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Albanvale Small Business Loans
Tell me about the Albanvale Small Business Loans
Albanvale unsecured loans provides the range of $5,000 to $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 the traditional business loan?
It is imaginable to apply to this Small Business Loan in under 10 minutes online or over the phone, receive a same day response and have the funds in your account within 24 hours. Traditional business loans reference an annual rate of interest together with additional fees and charges. Our business loan is a loan that is priced upfront so you will be aware of the total amount payable including any fees, charges or charges. Then, it is divided into a daily or weekly payment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business reason, such as control of cash flow company renovations, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan is not available for personal reasons.
Concerning Larger Albanvale Business Loans
What is the Larger Albanvale Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your business needs to have been in operation for at least 3 years with an annual turnover of at least $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or 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 used for?
A larger company loan is a great option for almost all company reason, such as company improvements, purchasing new equipment or inventory for general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required for accessing funds over $150,000. It’s as a result of an charge against assets, and may include registration on the PPSR or making as a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is general in nature rather than defining the security of a specific asset. The person who is signing the ensure is personally liable in the event that the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It records security interests that have been registered in respect of personal property (including goods or assets). The PPSR allows the priority of personal property granted depending on the date that a security interest that is registered.
A caveat is a legal document that is filed to offer the public notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for the Larger Business Loan of more than $250,000 we can offer an initial pre-approval to make the process. We may be able to apply for this without a credit verification and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering a few financial well-being checks. This is in no way an offer, nor is it a guarantee of credit. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you may receive may have different terms.
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 over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application in just a few minutes, and a dedicated business lending specialist will call you to help you.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s Licence), a valid NZBN/IRD as well as at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Application details including credit consent twelve months of bank records, IRD statements and the last two years’ finalised financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) We can usually provide an answer within an hour, provided you make your application at standard business times and you allow us to utilise the bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statements we can offer the decision within just an business day.
If you are applying for a Larger Business Loan ($100K to $500K) we might be in a position to provide you with conditional pre-approval within about 6 hours. After you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Some deals have been approved in less than 24 hours.
The most effective method can be ensure you apply during standard company hours and allow us to use the modern bank verification to instantly verify your bank account information online. If you send us the copies of bank accounts, it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) we can often offer a response in one hour – provided you make your application during standard business time and let us use the bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statements, we are able to offer the decision in as little as the span of one business day.
For the Larger Business Loans ($100K or more) we might be likely to provide you with conditional pre-approval within six hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this could be shorter based on the particular circumstances of each application. Certain deals have been approved within 24 hours.
The fastest method can be make sure you apply during normal business hours. Also, let us use the modern bank verification to instantly verify your bank information online. If you choose to upload the copies of bank accounts, it will take a little longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a specific amount we consider a variety of elements in order to assess your health of your business and the extent of repayments that your business can afford. The total amount of your loan will depend on the specific circumstances of your business.
When you make an application for a set amount, we will consider a number of factors to determine how much we can lend you such as well-being of the company and the extent of repayments your business will be able to support. The amount you receive from the loan will be determined by the particulars for your company.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to request business loans with us business credit, we’ll assess the risk assessment for your business and offer you with a customised proposal that includes the loan amount, the terms and interest rates. The business loan is an upfront-priced loan which means you be aware of the total amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I am charged?
Interest rates for company loans rates depend on several factors including the amount that is borrowed, what business assets the money will be used for and the sector the business operates in, the long the business has been operating and how long the company has enough cash flow to cover the loan, and overall health or financial standing of the business.
What are the cost?
There aren’t any hidden costs for our company loans. You’ll know precisely what it is that you need to pay and at what time, from the very first day. There’s no compounding and no additional fees (as long as you are able to make your payments on time).
We don’t charge an application fee. You can apply for a loan with without any upfront costs or 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. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay off the loan early?
You can repay all of your loan in full at any time.
If you are deciding to take this route, please contact our helpful business loan specialists. The specialists will offer you with details on repayment along with an early payout estimate. This will be calculated as the sum of the principal remaining and accrued interest to the time of the early payout, plus 1.5% of the remaining principal as well as any outstanding fees.
How do repayments work?
To make sure that you don’t miss payments and to work your cash flow schedule, we offer repayments that are either weekly or daily. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being upfront about how we collect, use, exchange and ensure the security of your information is of huge importance and an integral element 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 financial information and our funders are ISO 27001 certified for our commitment to customer security and privacy. We use an advanced bank verification system to immediately confirm your bank account information online to provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an company owner utilises an asset that they own to obtain the loan. The asset can be an individual asset, such as the family home or it could be a company property like a truck or piece or equipment.
The majority of lenders, including the banks with the biggest size, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan then your assets could be offered for sale by the lender. In essence it’s an opportunity to secure new funding taking advantage of the value of what you already have.
Do I require security to get a company 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 the personal guarantee. In the event that you fulfill your loan commitments (as stipulated in your loan contract) the security of assets is not required. For loans of over $150,000 generally, you can get a personal guarantee and security that is in the form charges on assets.