FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Aldinga Small Business Loans
Let me know how you can avail the Aldinga Small Business Loans
Aldinga unsecured loans provides amounts 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 makes how is the Unsecured Loan different from an traditional business loan?
Apply to the 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 company loans are based on an annual interest rate as well as other fees and charges. Our company loan is a loan that is priced upfront and you’ll be aware in advance of the total amount due, which includes any fees, charges or charges. Then, it is broken down into a daily or weekly installment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any business need, such as cash flow management, company 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 Larger Aldinga Business Loans
What is the Larger Aldinga Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your company needs to have been trading for at least 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funding for?
A Larger Business Loan can be used for almost every business purpose including business renovations, purchase of inventory or new equipment as well as for general working capital and much more. The loan cannot be used for personal use.
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 against assets, which could also include registration in the PPSR or registering a caveat.
A director’s or personal guarantee is a commitment to repay credit that is general in nature, rather than stipulating the security of a specific asset. The person who is signing the guarantee is personally liable in the event that the business creditor is unable to re-pay 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 which are registered with respect to personal property (including objects or assets). The PPSR grants preference over private property assigned in accordance with the date on which a security interest has been registered.
The caveat can be described as a formal document lodged to provide the public notice of a legal claim to a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan of $250,000 or more it is possible to offer an initial pre-approval to smooth out the process. It is possible to apply for this without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves you answering a few financial health checks. It’s not an offer of credit or guarantee of funds. A conditional approval is subject an extensive credit evaluation and any offer you are offered could have different terms.
Application process
Can I be eligible for funding?
You may apply for an business 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)
- can demonstrate at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a couple minutes, and a dedicated company lending specialist will be in touch to assist you.
To be eligible for up to $100,000 you’ll require ID details (valid Driver’s License) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent twelve month bank accounts, the IRD statement and the last two years’ finalised financial statements, as well as interim financial statements for the current year including Aged Payables, Aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K or more) we usually provide an answer in just one hour – as long as you make your application in standard business times and allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your bank statement, we’ll offer the decision in as little as one business day.
For the Larger Business Loan ($100K or more) we could be likely to offer you with conditional pre-approval within about six hours. After you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Some agreements have been approved in 24 hours.
The quickest method would be to ensure you apply during standard company hours. Also, permit us to use the modern bank verification to instantly verify your bank account information online. If you decide to upload copies of your bank accounts, it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) we can often provide an answer within an hour if you make your application at standard business timings and permit us to utilise the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your banking statements, we are able to provide the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K or more) we may be likely to provide the conditional pre-approval within 6 hours. After you’ve 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 circumstances of each application. Some agreements have been approved within less than 24 hours.
The fastest 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 confirm your bank details online. If you opt to send us documents from your account statements, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a certain amount, we consider a variety of factors for determining how much we can lend you health of your business and the amount of repayments your business can support. The amount you receive from your loan will depend on the particular circumstances of your business.
When you apply for a certain amount, we take into consideration a variety of aspects to assess how much we can lend you such as well-being for your company as well as the amount of repayments your company can support. The amount you receive from the loan will be determined by the specific circumstances the company.
Fees & repayments
What is the cost for the cost of a business loan?
If you decide to apply for the business loan, we’ll assess the risk profile of your business and offer you with a customised offer including the loan amount, the terms and the interest rates. This company loan is an upfront-priced loan therefore you will be aware in advance of the total amount to be paid, including any charges or interest.
What is the factor that determines the price I am charged?
Business loan interest rates vary due to factors including the amount of money borrowed, the company assets the funds are used to purchase as well as the field the business is in, how long the company has been operating for, what percentage of the business has sufficient cash flow to fund the loan, and the overall well-being or creditworthiness of the company.
What are the cost?
There are no hidden costs for our company loans, and you’ll be aware of the amount you be required to pay, and at what time, from the very first day. There’s no compounding interest and no additional fees (as as you make your payments in time).
We do not charge an application fee. You are able to make an application for loans with without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with setting up and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I repay the loan early?
You can decide to repay the total amount of your loan at any point in time.
If you decide to pursue this option, please talk to one of our helpful business credit experts. They will provide you with the details of your repayment and an early payment figure. This is calculated as the sum of the principal remaining plus any accrued interest as of the time of the early payout plus 1.5% of the principal remaining as well as any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payment dates and to align with your cash flow routine, we provide repayments either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear how we collect information, use it, and exchange it, as well as safeguard your data, is of huge importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to security for our customers and security. We employ an exceptionally sophisticated bank verification system to immediately confirm your bank account information online to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the company owner uses assets they own to make the funding. The asset can be an individual property, such as the family home or an business asset like a truck or other piece of machinery.
The majority of lenders, including the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan, your asset may be offered for sale by the lender. In essence it’s an opportunity to secure new financing using the value of what you already own.
Should I need security for an company loan?
Up to $150K in loans the requirement for asset security is not required prior to the loan’s access however, we require a personal guarantee. need a personal guarantee. So long as you comply with the loan terms (as stipulated in your loan contract document) and you are able to meet your obligations, asset security will never be required. For loans of over $150K generally there is personal guarantee and security in the form a charge over assets.