FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Ivanhoe Small Business Loans
Let me know how you can avail the Ivanhoe Small Business Loans
Ivanhoe unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What makes how is the Unsecured Loan different from an ordinary company loan?
It is imaginable to apply for this Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and have the funds on your account within 24 hours. Traditional business loans reference an annual rate of interest plus other fees and charges. This company loan is a loan that is priced upfront so you will be aware in advance of the total amount due, which includes any fees, charges or charges. This is then broken down into weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every business reason, such as the management of cash flow, company remodeling, marketing, to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal use.
Concerning Larger Ivanhoe Business Loans
What is the Larger Ivanhoe Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly, depending on your situation.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been in operation for at least 3 years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funds be utilised?
A Business Loan of a larger size can be used for almost all company need, including company renovations, purchase of inventory or new equipment as well as for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. This can be done by way of charge on assets and can be registered in the PPSR or the registration of a caveat.
A personal or director’s ensure is a guarantee to repay credit that is general in nature rather than stating the security of a specific asset. The person who is signing the ensure is personally accountable if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including items or assets). The PPSR allows priority over personal property to be granted according to the date a security interest that is registered.
The caveat can be described as a formal document filed to offer an official notice of a claim against a property.
What is a pre-approval minus Credit Check?
If you’re applying for an enterprise loan of more than $250,000 we can offer an initial pre-approval that will help make the process. It is possible to apply for this without credit checks and within 6 hours of your initial application. The pre-approval is based upon an initial assessment, which involves answering a couple of financial well-being questions. It’s neither an offer nor a guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you receive could be subject to different conditions.
The application process
Do I have the right to receive funds?
You may be eligible for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in few minutes and an experienced business loan specialist will call you to help you.
To apply for up to $100,000, you’ll need proof of identity (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Application details including credit consent and 12 months bank statement, an IRD statements, last 2 years finalised financial statements, plus interim financials for the current financial year as well as Aged Payables and Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we usually provide an answer within an hour if you make your application during quality company times and you allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statements , we are able to offer a decision in as little as 1 business day.
For the Larger Business Loan ($100K and up) we might be in a position to offer the conditional pre-approval in around six hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some transactions have received approval in 24 hours.
The quickest way to apply would be to make sure you apply during normal company hours. You can also allow us to use the modern bank verification link to verify your bank account information online. If you decide to upload duplicates of your banking accounts, it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer in just one hour – as long as you submit your request at normal business time and let us use the bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your banking statements we can offer a decision within an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be capable of provide you with conditional pre-approval within about six hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, this may be quicker depending on the specifics of each application. Certain deals have been approved in the space of 24 hours.
The fastest method can be make sure you apply during normal business hours and permit us to use the sophisticated bank verification to confirm your bank details online. If you decide to send us documents from your account statements it can take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a particular amount, we will consider a number of aspects that determine what is the health of the company and the extent of repayments your company can afford. The amount you receive from your loan will be contingent on the specifics of your company.
When you submit an application for a specific amount we take into consideration a variety of variables to determine how much we can lend you such as health for your business and the extent of payments your company can afford. The total amount of the loan will be determined by the specifics that are unique to your company.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to make an application for business loans with us business loans, we’ll assess the risk assessment the company and offer you with a customised offer, including loan amount, term and interest rates. A company loan is an upfront priced loan and you’ll be aware of the total amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I am charged?
Interest rates for company loans rates vary due to factors including the amount that is borrowed, what company assets the money are used to purchase in addition to the industry that the company is in, how long the business has been in operation for, in the event that the business has sufficient cash flow to pay for the loan, and also the overall well-being or creditworthiness of the company.
What are the fees?
There aren’t any hidden charges for our business loans. You’ll know precisely what it is that you be required to pay and when, starting from the day you sign up. There’s not any compounding interest and no additional fees (as long as you make your payments in time).
We don’t charge an Application Fee. You are able to make an application for loans with without any upfront costs or commitment to apply.
The Origination Fee covers the expenses involved with the setting up and management of the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan in advance?
You can repay the total amount of your loan in full at any time.
If you do decide to pursue this option, please talk to one of our helpful company lending professionals. We will provide you with the details of your repayment and an early payment figure. This is calculated as the sum of the principal balance and accrued interest to the date of early payout and 1.5 percent of the remaining principal as well as any outstanding fees.
How do you make repayments work?
To ensure you do not miss due dates and also to be in line with your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as making it clear the ways we gather data, process, exchange and protect your information, is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to protecting the security of customers and security. We utilise a sophisticated banking verification system to instantly verify your bank account details online, allowing us to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the business owner uses an asset that they own to get the funds for a loan. The asset can be an individual asset, such as the family home, or a business property like a truck or other piece of machinery.
The vast majority of lenders, not just the largest banks, are inclined to secure loans against an asset. If you are having difficulty paying back the loan, then your asset may be transferred to the lender. In essence it is a way of securing new funding making use of the value of what you already own.
Do I require security to secure an company loan?
For loans of up to $150,000, it is not necessary to secure assets prior to the loan’s access, however we do require a personal guarantee. In the event that you fulfill your loan obligations (as stipulated in the loan contract) the security of assets will never be required. For loans of over $150K generally, you can get the option of a personal ensure and security in the form of charges on assets.