FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Heidelberg West Small Business Loans
Tell me about the Heidelberg West Small Business Loans
Heidelberg West unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from the traditional business loan?
It is possible to apply to get this Small Business Loan in under 10 minutes online or over the phone. You’ll get an immediate response, and have the funds on your account within 24 hours. Traditional company loans are based on an annual interest rate along with other charges and fees. This company loan is a loan that is priced upfront which means you be aware in advance of the total amount to be paid, including any fees, interest or charges. Then, it is broken down into a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company purpose including cash flow management, company renovations, 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 Heidelberg West Business Loans
What is the Larger Heidelberg West Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are either weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee calculated?
A 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?
In order to be eligible for a loan in this amount, your business needs to have been operating for at least three years, and have an annual income of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funding be utilised?
A large company loan is a great option for almost any business need, including company renovations, to purchase new equipment or inventory for 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 required for accessing funds over $150,000. It is usually as a result of an charge on assets, and may be registered on the PPSR or making a caveat.
A director’s or personal ensure is a promise to repay credit that is general in nature, rather than specifying the security of a specific asset. The person who is signing the ensure is personally accountable if the company 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 records security interests that have been that are registered for personal property (including goods or assets). The PPSR allows the priority of personal property assigned in accordance with the date on which a registration of a security interest.
An affidavit is an official document lodged to provide the legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan that exceeds $250,000 it is possible to offer an initial pre-approval to ease the process. We could be able to do this without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes answering a couple of financial health checks. It 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 that you receive could be on different conditions.
The application process
Do I have the right to receive funds?
You are eligible to apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for you to qualify for 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 fast and easy. Just complete the online application in few minutes and a dedicated business loan specialist will call you to guide you.
To apply for up to $100,000, you’ll need proof of identity (valid Driver’s License) and a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Application details including credit consent and 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, plus interim financial statements for the current year including Aged Payables, Aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K and up) We can usually offer a response in one hour, provided you apply within quality business times and permit us to utilise the bank verification system link to instantly verify your bank details online. If you opt to submit copies of your bank statements , we are able to provide an answer in as little as an 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 in about six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however it could be faster based upon the circumstances for each application. Certain offers have been approved within less than 24 hours.
The most effective method for you to apply is ensure you apply during normal business hours and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you upload copies of your bank statements it will take a little longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) we can often offer an answer within one hour if you apply at normal business timings and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statements, we’ll be able to provide an answer in as little as 1 business day.
For the Larger Business Loans ($100K to $500K) we could be likely to offer you with conditional pre-approval within 6 hours. Once you have signed the pre-approval document, you will require to wait around 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Certain offers have been approved in just 24 hours.
The fastest way can be make sure you apply during standard business hours. You can also allow us to use the sophisticated bank verification to instantly verify your bank information online. If you upload copies of your bank statement, it may take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a specific amount we look at a variety of aspects in order to assess what is the well-being for your business and the level of repayments that your company can afford. The amount you receive from your loan will be contingent on the particular circumstances the company.
If you apply for a specific amount we consider a variety of factors to determine the health of your business as well as the amount of repayments that your business can afford. The total amount of your loan will depend on the specifics for your company.
Fees & repayments
What is the cost for an company loan?
If you decide to apply for the company financing, we will assess the risk profile the company and provide an individualised proposal that includes loan amount, term and the interest rates. A company loan is an upfront priced loan which means you be aware of the total amount payable including any interest rates, fees or charges.
What determines the rate that I am charged?
Interest rates for company loans rates depend on several variables like the amount to be borrowed, the business assets the funds are used to purchase and the sector the business is operating in, how long the company is in operation for, how long the business has enough cash flow to pay for the loan, and also the overall well-being or financial standing of the business.
What are the cost?
There are no hidden costs with our company loans. You’ll know precisely what it is that you be required to pay, and when, from the very first day. There’s no compounding interest and no additional fees (as long as you are able to make your payments on time).
We do not charge an application fee. You are able to make an application for loans absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the expenses involved with establishing and managing the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I repay the loan earlier?
You can repay the total amount of your loan at any point in time.
If you are deciding to do this please contact our helpful company lending professionals. We will offer you with details for repayment and an early payout figure. This is calculated as the total of the principal remaining and the accrued interest up to the time of early payout in addition to 1.5 percent of the principal amount remaining and any fees that remain unpaid.
How do repayments work?
To make sure that you don’t miss payments and to work with your cash flow cycle we offer repayments either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being upfront about how we collect the information we collect, use, share and safeguard your data, is crucial and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to protecting the security of customers and privacy. We utilise a sophisticated bank verification system to instantly confirm your bank account information online so we can provide rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where an business owner utilises the assets they have to make the loan. The asset can be either an individual property, such as the family home or an company asset like a truck or piece or equipment.
The majority of lending institutions, not just the major banks, prefer to secure loans against assets. If you’re having trouble paying back the loan, then your assets could be offered for sale by the lender. In essence it is an opportunity to secure additional financing taking advantage of the value of what you already have.
Should I require security for a business loan?
For loans that exceed $150,000, no asset security is required prior to the loan’s access, however we require a personal guarantee. require a personal guarantee. So long as you comply with your loan obligations (as stipulated in the loan contract) the security of assets will never be required. For loans of over $150K generally there is personal guarantee and security in the form a charge over assets.