FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Harkaway Small Business Loans
Tell me more about Harkaway Small Business Loans
Harkaway unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from an ordinary business loan?
Apply for the Small Business Loan in under 10 minutes via the internet or by phone. You will receive a same day response and funds may be available in just 24 hours. Traditional company loans reference an annual interest rate as well as other fees and charges. We offer a business loan is a pre-paid loan therefore you’ll be aware in advance of the amount you will have to pay, including any fees, charges or charges. This is then divided into weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company use, including cash flow management, company renovations, marketing to purchase inventory, new equipment, or as general working capital and much more. The loan cannot be used to fund personal expenses.
About Larger Harkaway Business Loans
What is the Larger Harkaway Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan that is this large the company needs to be operating for a minimum of 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can the funds be used for?
A Business Loan of a larger size can be used for nearly every business purpose including business renovations, to purchase equipment or inventory, as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. It is usually by way of charge against assets, which could also be registered in the PPSR or registering a caveat.
A personal or director’s guarantee is a promise to repay a loan which is general in nature, rather than specifying the security for a particular asset. The person signing the guarantee is personally liable if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including items or assets). The PPSR permits prioritisation over property that is personal to be assigned depending on the date that a registration of a security interest.
The caveat can be described as a formal form of document to offer the legal claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan of more than $250,000 we can offer an initial pre-approval in order to smooth out the process. We might be able to apply for this without credit checks and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial well-being questions. This is in no way an offer, nor is it a guarantee of funds. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you are offered could be subject to different conditions.
The application process
Do I have the right to receive funds?
You may be eligible for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Complete the online form in few minutes and an experienced business expert in lending will contact you to guide you through the process.
To be eligible for up to $100,000 you’ll need identification details (valid Driver’s Licence), 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 to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Information on the application including credit consent, 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, as well as interim financials for the current financial year including Aged Payables, Aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K or more) we usually offer an answer in just one hour, provided you make your application at quality business timings and permit us to make use of the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statements , we will be able to provide the decision in as little as 1 company day.
For the Larger Business Loan ($100K to $500K) we could be able to provide you with pre-approval conditional to your application within about six hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Certain deals have been approved in 24 hours.
The most effective method can be ensure you apply during standard business hours. You can also allow us to use our modern bank verification to instantly verify your bank account information online. If you opt to send us copies of your bank statement, it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically offer an answer in just one hour, provided you make your application at normal business timings and you allow us to use the bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statement, we’ll provide an answer within 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be in a position to provide you with a conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this may be quicker depending on the circumstances of each application. Some offers have been approved within just 24 hours.
The most efficient method is to make sure you apply during standard business hours. Also, let us use the modern bank verification link to instantly verify your bank information online. If you opt to send us documents from your account statements, it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a certain amount we take into consideration a range of aspects to determine your well-being of the company and the level of repayments that your business can support. The total amount of the loan will be determined by the particular circumstances the company.
When you make an application for a specific amount we take into consideration a variety of variables to determine your well-being for your business and the level of payments your business can support. The total amount of your loan will be determined by the specifics that are unique to your business.
Fees & repayments
How much do you charge for a company loan?
If you decide to make an application for one of our business credit, we’ll assess the risk profile the company and offer you with a tailored proposal that includes the amount of the loan, the duration and the interest rates. It is a company loan is an upfront priced loan so you will know the exact amount due, which includes any costs, fees, or interest rates.
What determines the amount I’m charged?
Interest rates for company loans rates depend on a variety of variables like the amount to be that is borrowed, what business assets the funds will be used for in addition to the industry that the company operates in, the long the business has been operating for, in the event that the company has enough cash flow to pay for the loan, and the general health or creditworthiness of the company.
What are the costs?
There aren’t any hidden charges for our business loans, and you’ll be aware of the amount you need to pay, and at what time, from the day you sign up. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments punctually).
We do not charge an Application Fee. You can apply for a loan no cost upfront 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 out the loan earlier?
You can decide to repay the entire amount of your loan in full at any time.
If you do decide to pursue this option, please call our helpful business loans experts. They will offer you with the details of your repayment as well as an early payout amount. This will be calculated as the sum of the principal balance and any accrued interest at the time of early payout and 1.5% of the principal amount remaining as well as any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being upfront about how we collect the information we collect, use, share and protect your information, is crucial and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to customer security and privacy. We use an advanced banking verification system to instantly verify the bank account details online to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an company owner utilises an asset that they own to make a loan. The asset can be an individual property, such as the family home, or an business asset such as a vehicle or other piece of machinery.
The majority of lenders, even the banks with the biggest size, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, your assets could be offered for sale by the lender. In essence, it is the process of securing new financing by making use of the value of what you already have.
What do I require security to get a business loan?
Up to $150,000 in loans the requirement for asset security is not required before you are able to access the money but we require a personal guarantee. need an individual guarantee. So long as you comply with your loan obligations (as specified in your loan contract) Asset security is not needed. For loans of over $150,000 generally, there is the option of a personal ensure and security in the form of the charge of assets.