FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Pyrmont Small Business Loans
Let me know how you are able to avail the Pyrmont Small Business Loans
Pyrmont unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from the traditional business loan?
It is imaginable to apply for your Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and have the funds in your account within 24 hours. Traditional company loans have an annual rate of interest as well as other fees and charges. We offer a business loan is an upfront priced loan therefore you’ll know ahead of time the total amount to be paid, including the interest, fees and charges. This is then broken down into weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every business need, such as the management of cash flow, company remodeling, marketing to purchase inventory or new equipment, for general working capital and much more. The loan is not available for personal use.
About larger Pyrmont Business Loans
What is the Larger Pyrmont Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is determined at 2.5% 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, your business needs to be in operation for at least 3 years with an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funds be utilised?
A large business loan can be used for almost all business reason, such as business improvements, purchasing 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 a secured loan?
Asset security is required for accessing funds over $150,000. This can be done in the form of a charge over 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 repay a loan which is generally in nature rather than stipulating the security of a specific asset. The person signing the guarantee is personally liable if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR gives preference over private property granted according to the date a registration of a security interest.
Caveats are legal document lodged to offer an official notice of a claim to a property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250,000 it is possible to offer an initial pre-approval that will help ease the process. We may be able to get this done without a credit check, and within 6 hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering a few financial well-being questions. It’s neither an offer nor a guarantee of financing. Unconditional approval is subject to an extensive credit evaluation and any offer you might receive could be subject to different conditions.
The application process
Do I qualify for funds?
You may be eligible for an 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)
- can demonstrate at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Just complete the online application in just a few minutes, and an experienced company loan specialist will call you to help you.
To be eligible for up to $100,000 you’ll require proof of identity (valid Driver’s License) and a valid NZBN/IRD and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Application details including credit consent as well as 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, in addition to interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) We can usually offer a response in one hour if you make your application in quality company timings and allow us to use the advanced bank verification system link to instantly verify your bank details online. If you want to send us copies of your bank statement, we’ll offer an answer in as little as the span of one business day.
For the Larger Business Loan ($100K and up) we may be able to provide you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Certain transactions have received approval in just 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal company hours. You can also let us use the advance bank verification link to confirm your bank details online. If you choose to upload documents from your account statements , it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) We can usually offer an answer within an hour, provided you submit your request during normal business hours and let us make use of the advanced bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statements, we are able to offer the decision within one business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be likely to provide you with conditional pre-approval within about six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this can be faster depending on the specifics of each application. Certain offers have been approved within less than 24 hours.
The fastest way would be to make sure you apply during normal business hours. Also, permit us to use the advance bank verification link to instantly confirm your bank details online. If you send us documents from your account statements, it will take a little longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a specific amount we consider a variety of elements that determine how much we can lend you health for your company and the level of payments your business is able to afford. The total amount of the loan will be determined by the particular circumstances of your company.
If you apply for a set amount, we will consider a number of aspects to assess your well-being for your company and the amount of repayments that your company is able to afford. The amount you receive from the loan will be determined by the specific circumstances that are unique to your business.
Fees & repayments
How do you charge for an business loan?
When you request the company financing, we will assess the risk profile the company and offer you with a customised offer, including loan amount, term and the interest rates. It is a business loan is an upfront cost loan therefore you will know the exact amount you will have to pay, including charges, interest rates or fees.
What determines the amount I pay?
Interest rates for business loans rates depend on a variety of factors such as the amount that is of money borrowed, the company assets the funds will be used for as well as the field the company is operating in, how long the business has been in operation for, in the event that the business has enough cash flow to pay for the loan, as well as the overall health and creditworthiness of the business.
What are the cost?
There aren’t any hidden charges for our business loans, and you’ll know precisely what it is that you be required to pay, and when, starting from day one. There’s no compounding interest, and there are no additional charges (as long as you make your payments punctually).
We do not charge an Application Fee. You can apply for a loan with with no upfront cost or the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay out the loan earlier?
You can choose to repay all of your loan at any point in time.
If you do decide to take this route, please contact our helpful company loans professionals. The professionals will provide you with details on repayment and an early payment figure. It will be calculated using the sum of the principal balance and the accrued interest up to the time of the early payout, plus 1.5% of the remaining principal and any fees that remain unpaid.
What is the process for repayments?
To ensure that you don’t miss due dates and also to be in line your cash flow schedule, we provide repayments either daily or weekly. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear the ways we gather, use, exchange and ensure the security of your information is vital and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We make use of an advanced banking verification system to immediately verify your bank account information online, allowing us to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when a business owner borrows from an asset that they own to obtain a loan. The asset may be an individual asset, such as the family home or a company asset such as a truck as well as a piece of machine.
The majority of lenders, including the big banks, tend to make loans secured by assets. If you’re struggling to pay back the loan then the asset might be taken over by the lender. In essence it’s the process of securing new financing making use of the value of what you already own.
Should I need security to get a business loan?
For loans that exceed $150K, the requirement for asset security is not required in advance to gain access to the funds however, we require a personal guarantee. require the personal guarantee. In the event that you fulfill the loan terms (as stated in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans of over $150,000 generally, there is an individual ensure and security is provided in the form of charges on assets.