FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Lower Portland Small Business Loans
Tell me how you are able to avail the Lower Portland Small Business Loans
Lower Portland unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from an ordinary business loan?
You can apply for this Small Business Loan in under 10 minutes over the phone, receive an answer within the same day and funds may be available in just 24 hours. Traditional business loans refer to an annual rate of interest along with other charges and fees. We offer a business loan is a loan that is priced upfront so you will know ahead of time the total amount due, which includes any fees, interest or charges. This is then broken down into either 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 company reason, such as control of cash flow business remodels and 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 the Larger Lower Portland Business Loans
What is the Larger Lower Portland Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large the business needs to be operating for at least three years, and have an annual income of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funds for?
A Business Loan of a larger size can be used to fund almost every company purpose including company renovations, to purchase inventory or new equipment for 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 required to obtain funding above $150,000. It’s by taking a charge over assets, and could include registering this with the PPSR or making a caveat.
A director’s or personal ensure is a guarantee to repay credit that is general in nature, rather than stating security over an asset. The person who is signing the ensure is personally accountable if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including items or assets). The PPSR grants preference over private property assigned in accordance with the date on which a registration of a security interest.
An affidavit is an official document filed to offer notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan that exceeds $250K we can offer an initial pre-approval in order to simplify the process. We may be able to make this decision without a credit verification and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes the answer to a series of financial well-being questions. It is not an offer of credit or guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you are offered could be based on different conditions.
Application process
Do I have the right to receive funds?
You may apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application within a couple minutes, and an experienced company lending specialist will call you to guide you.
For a loan of up to $100,000, you’ll need the right identification documents (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K-$250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Details of the application, including credit consent and 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, and interim financial statements for the current year such as age-related payables and aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) We can usually offer an answer within one hour, provided you apply within standard business times and you allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your bank statements , we are able to offer the decision within just one company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be able to offer you with conditional pre-approval within about six hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Some agreements have been approved in just 24 hours.
The fastest way would be to make sure you apply during normal company hours, and let us use the modern bank verification to verify your bank account information online. If you decide to upload copies of your bank statements , it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we typically offer an answer within an hour – as long as you make your application at normal business time and allow us to use the bank verification system to instantly verify your bank information online. If you want to send us copies of your bank statements we can offer the decision in as little as an business day.
For Larger Business Loans ($100K up to $500,000) we might be capable of offer you with a conditional pre-approval in around six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this can be faster depending upon the circumstances for each application. Some agreements have been approved in just 24 hours.
The fastest method can be make sure you apply during standard business hours and allow us to use the sophisticated bank verification link to instantly confirm your bank details online. If you decide to upload documents from your account statements it can take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a particular amount, we look at a variety of variables to determine the health of your business as well as the amount of payments your company can afford. The total amount of your loan will be contingent on the particular circumstances the company.
If you apply for a set amount, we will consider a number of factors to assess your health of your company and the level of payments your company will be able to support. The total amount of your loan will be determined by the particulars that are unique to your company.
Fees & repayments
How much do you charge for a business loan?
When you request one of our business loan, we’ll assess the risk assessment the company and provide you with a customised proposal that includes the loan amount, the terms and the interest rates. It is a business loan is a loan that is priced upfront therefore you will know the exact amount you will have to pay, including charges, interest rates or fees.
What determines the amount I pay?
The interest rates on business loans rates differ based on various factors like the amount of money borrowed, what company assets the funds are used to purchase as well as the field the company is operating in, how long the business is in operation, what percentage of the company has enough cash flow to fund the loan, as well as the overall health and creditworthiness of the business.
What are the costs?
There aren’t any hidden costs with our company loans. You’ll know precisely what you’ll be required to pay and at what time, from day one. There’s no compounding and no additional fees (as long as you make your payments punctually).
We do not charge an Application Fee. You can get a cash loan with with no upfront cost or commitment to apply.
The Origination Fee covers the expenses involved in establishing and managing the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay out the loan in advance?
You can decide to repay the entire amount of your loan in full at any time.
If you do decide to take this route, please speak to our friendly business loan professionals. We will offer you with the details of your repayment and an early payout figure. It will be calculated using the total of the remaining principal amount and any accrued interest at the time of early payment in addition to 1.5 percent of the remaining principal and any outstanding fees.
How do you make repayments work?
To make sure you do not miss repayments and to fit in your cash flow schedule, we provide repayments either weekly or daily. These are automatically deducted from your company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as making it clear how we collect data, process, exchange and ensure the security of your information is of paramount importance and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to security for our clients and security. We employ an exceptionally sophisticated bank verification system to immediately confirm your bank account information online to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a company owner uses assets they own to obtain the funding. The asset can be an individual asset, such as the family home, or an business asset such as a vehicle as well as a piece of machine.
The vast majority of banks, not just the major banks, prefer to secure loans against assets. If you have trouble paying back the loan then the asset could be transferred to the lender. In essence, it is a way of securing new funding taking advantage of the value of what you already have.
What do I require security to secure an company loan?
For loans that exceed $150,000, no asset security is required in advance to gain access to the funds but we require a personal guarantee. require the personal guarantee. If you adhere to your loan commitments (as stated in your loan contract document) the security of assets is not needed. For loans that exceed $150K, generally there is the option of a personal guarantee and security is provided in the form of an asset charge.