FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Luddenham Small Business Loans
Let me know about the Luddenham Small Business Loans
Luddenham unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What is what makes the Unsecured Loan different from the traditional business loan?
Apply to the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an instant response and the funds could be in your account within 24 hours. Traditional business loans are based on an annual interest rate plus other fees and charges. This business loan is a loan that is priced upfront and you’ll know in advance the amount you will have to pay, including the interest, fees and charges. This is then broken down into a daily or weekly payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business reason, such as managing cash flows, business remodeling, marketing to purchase inventory or new equipment, or as general working capital and much more. The loan is not available for personal purposes.
About the Larger Luddenham Business Loans
What is the Larger Luddenham Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the business needs to have been trading for at least 3 years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A Business Loan of a larger size can be used to fund almost every company use, including company renovations, to purchase new equipment or inventory for general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It is usually by way of charge against assets, which could also include the registration of this with the PPSR or the registration of a caveat.
A director’s or personal ensure is a promise to pay back a loan that is generally based rather than stipulating security over a particular asset. The person who signs the guarantee is personally liable in the event that the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including goods or assets). The PPSR grants the priority of personal property assigned according to the date the security interest was registered.
The caveat can be described as a formal form of document to provide the public notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re requesting a Larger Business Loan that is greater than $250K, we may offer an initial pre-approval to make the process. We may be able to get this done without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves you answering some financial health checks. It’s not an offer of credit or guarantee of credit. A conditional approval is subject a full credit assessment and any offer that you receive could be on different conditions.
Application process
Are I eligible for funding?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (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 trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form in few minutes and a dedicated business credit specialist will call you to help you.
To apply for up to $100,000, you’ll require identification details (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Details for application including credit consent as well as 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, and interim financial statements for the current year, Aged Payables and Aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) We can usually provide an answer within an hour – as long as you make your application at quality business time and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statements , we will be able to offer an answer in as little as the span of one business day.
For Larger Business Loans ($100K to $500K) we might be in a position to provide you with pre-approval conditional to your application in around 6 hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval. However, this can be quicker based on the specifics of each application. Certain agreements have been approved within the space of 24 hours.
The quickest way to apply for you to apply is make sure you apply during normal business hours, and allow us to use the modern bank verification link to check your bank’s information online. If you send us duplicates of your banking statements it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we can often provide an answer within one hour – as long as you submit your request within normal business time and let us utilise the advanced bank verification system to instantly verify your bank information online. If you choose to send us copies of your bank statements we can provide the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be likely to provide you with pre-approval conditional to your application within about six hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this may be quicker depending on the particular circumstances of each application. Some deals have been approved within less than 24 hours.
The fastest method for you to apply is ensure you apply during normal business hours, and permit us to use the sophisticated bank verification to instantly verify your bank information online. If you decide to upload documents from your account statements, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a specific amount we consider a variety of variables in order to assess the well-being for your company and the amount of payments your company can support. The total amount of your loan will be contingent on the particular circumstances for your business.
When you submit an application for a specific amount we consider a variety of factors to assess your health for your company as well as the amount of the repayments your business can afford. The amount you receive from your loan will be contingent on the particulars that are unique to your company.
Fees & repayments
How much should you charge for a company loan?
If you decide to request business loans with us business financing, we will assess the risk profile of your company and provide you with a customised offer including the amount of loan, the term and interest rates. The business loan is an upfront-priced loan so you will know in advance the total amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I pay?
The interest rates on company loans rates depend on a variety of factors such as the amount that is that is borrowed, what company assets the money are used to purchase in addition to the industry that the business operates in, how long the company has been in operation for, what percentage of the business has sufficient cash flow to cover the loan, and overall well-being as well as creditworthiness business.
What are the cost?
There are no hidden costs for our business loans. You’ll be aware of the amount you need to pay, and when, right 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 in time).
We don’t charge an Application Fee. You can make an application for loans absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses associated in establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay out the loan earlier?
You can repay the entire amount of your advance loan at any time.
If you do decide to do this please speak to our friendly business credit professionals. We will offer you with details for repayment along with an early payout estimate. The figure will be calculated as the sum of the principal amount remaining and accrued interest to the time of early payment plus 1.5 percent of the principal amount remaining 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 your cash flow schedule, we provide payments that are either weekly or daily. These are automatically deducted from your company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being clear about the ways we gather information, use it, and exchange it, as well as protect your information, is of huge importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to customer security and privacy. We employ an exceptionally sophisticated bank verification system link to instantly verify your bank account details online so we can offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the business owner uses the assets they have to get a loan. The asset can be either an asset belonging to the personal, like the family home or it could be a business asset such as a vehicle as well as a piece of machine.
The vast majority of lenders, even the banks with the biggest size, prefer to make loans secured by assets. If you are having difficulty paying back the loan, 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 own.
Should I require security for an company loan?
For loans of up to $150K, it is not necessary to secure assets upfront to access the money however, we require a personal guarantee. require the personal guarantee. If you adhere to your loan obligations (as detailed in your loan contract) and you are able to meet your obligations, asset security will never be required. If you take out loans in excess of $150K typically, you will need personal guarantee and security in the form of a charge over assets.