FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Hallett Cove Small Business Loans
Tell me about the Hallett Cove Small Business Loans
Hallett Cove unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from the traditional business loan?
Apply to get this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an answer within the same day and have the funds on your account within 24 hours. Traditional company loans have an annual interest rate along with other charges and fees. We offer a business loan is a loan that is priced upfront so you will be aware in advance of the total amount due, which includes the interest, fees and charges. Then, it is divided into weekly or daily payment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business use, including the management of cash flow, business remodels and marketing to purchase inventory, new equipment, or as general working capital and much more. The loan cannot be used for personal reasons.
About larger Hallett Cove Business Loans
What is the Larger Hallett Cove Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are weekly or fortnightly, depending on your situation.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a credit in this amount the business needs to be operating for a minimum of 3 years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funds be utilised?
A larger company loan can be used for almost every business use, including business improvements, purchasing equipment or inventory for general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. This is as a result of an charge against assets, and could include registering this on the PPSR or registering as a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is generally based rather than defining the security for a particular asset. The person who is signing the ensure is personally accountable if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests that are registered for personal property (including goods or assets). The PPSR allows prioritisation over property that is personal to be assigned according to the date the security interest has been registered.
Caveats are legal document that is filed to offer notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger company loans that exceeds $250K we may be able to provide an initial pre-approval that will help ease the process. It is possible to apply for this without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves you answering some financial well-being checks. This is neither an offer nor a guarantee of financing. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you may receive may be based on different terms.
The application process
Can I be eligible for funding?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for a 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 simple. Simply complete the online form within a couple minutes, and an experienced company credit specialist will call you to guide you through the process.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Information on the application including credit consent as well as 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, plus interim current financial year financials including Aged Payables, Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) We can usually offer an answer within one hour if you make your application in standard business time and let us make use of the advanced bank verification system to instantly verify your bank information online. If you decide to send us copies of your bank statements , we are able to offer an answer in just an company day.
For Larger Business Loans ($100K to $500K) we may be able to offer you with pre-approval conditional to your application in about 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this may be quicker depending on the circumstances of each application. Some deals have been approved in less than 24 hours.
The fastest way would be to ensure you apply during normal company hours and allow us to use our modern bank verification link to verify your bank information online. If you choose to send us copies of your bank statements it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) we can often provide a response in one hour – as long as you submit your request within normal business times and let us make use of the advanced bank verification system link to instantly verify your bank information online. If you opt to send us copies of your bank statement, we’ll offer an answer in as little as one business day.
For the Larger Business Loans ($100K and up) we could be able to offer you with a conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this can be faster depending upon the circumstances for each application. Certain deals have been approved in 24 hours.
The fastest way can be ensure you apply during normal business hours. Also, permit us to use the advanced bank verification system to instantly check your bank’s information online. If you upload duplicates of your banking accounts, it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a certain amount we take into consideration a range of aspects that determine the health that is your company as well as the amount of the repayments your business is able to afford. The amount you receive from the loan will be determined by the specific circumstances that are unique to your business.
When you make an application for a certain amount, we take into consideration a variety of factors to determine how much we can lend you such as health that is your company and the level of the repayments your business can afford. The amount you receive from your loan will depend on the specifics the company.
Fees & repayments
How much should you charge for an company loan?
When you apply for the company financing, we’ll assess the risk profile of your business and provide you with a customised offer that includes the loan amount, the terms and interest rates. A company loan is an upfront priced loan so you will be aware in advance of the total amount payable including any interest rates, fees or charges.
What is the factor that determines the price I’m charged?
The interest rates on business loans rates depend on a variety of factors like the amount of money of money borrowed, the company assets the funds will be used for in addition to the industry that the business is operating in, how long the company has been running as well as in the event that the business has sufficient cash flow to support the loan, and 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 need to pay, and when, from the very first day. There’s no compounding and the loan comes with no additional fees (as long as you make your payments in time).
We do not charge an Application Fee. You can request a credit loan with without any upfront costs or any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a fee if you decide to take 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 decide to repay the entire amount of the loan early at any time.
If you choose to take this route, please talk to one of our helpful business lending professionals. We will provide you with details for repayment along with an early payout estimate. This will be calculated as the total of the principal balance and accrued interest to the time of early payment and 1.5% of the principal remaining and any fees that remain unpaid.
How do you make repayments work?
In order to help you avoid missing payments and to work with your cash flow general, we provide payments that are either weekly or daily. They will be automatically deducted from your nominated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and making it clear the ways we gather data, process, exchange and secure your information, is of huge importance and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to customer security and security. We utilise a sophisticated bank verification system link to immediately verify the bank account details online, allowing us to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where an business owner makes use of assets they own to obtain a loan. The asset may be an individual property, such as the family home or it could be a company property like a truck as well as a piece of machine.
The vast majority of the lenders not just the big banks, tend to make loans secured by assets. If you’re struggling to pay back the loan, the asset could be transferred to the lender. In essence, it is an opportunity to secure new financing taking advantage of the value of what you already have.
Should I require security to secure an company loan?
Up to $150K in loans the requirement for asset security is not required in advance to gain access to the funds, however we require a personal guarantee. require a personal guarantee. In the event that you fulfill the terms of your loan (as specified in the loan contract) Asset security will never be required. For loans over $150,000 generally there is an individual guarantee and security that is in the form the charge of assets.