FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Huntfield Heights Small Business Loans
Tell me about the Huntfield Heights Small Business Loans
Huntfield Heights unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from a traditional business loan?
Apply for the Small Business Loan in under 10 minutes by phone. You will receive an immediate response, and funds may be available in just 24 hours. Traditional business loans refer to an annual rate of interest as well as other fees and charges. This company loan is an upfront priced loan therefore you’ll know ahead of time the total amount payable including any interest, fees or charges. This is then divided into weekly or daily repayment figure.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every company need, such as cash flow management, company remodels and marketing for purchasing inventory or new equipment, for general working capital, and much more. The loan cannot be used for personal purposes.
About the Larger Huntfield Heights Business Loans
What is the Larger Huntfield Heights Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are scheduled weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large, your business needs to have been operating for at least three years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funds be used for?
A Larger Business Loan can be used for almost all company need, including company renovations, purchase of equipment or inventory as well as for general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed to obtain funding above $150,000. It’s by way of charge over assets, and could include registration on the PPSR or the registration of a caveat.
A director’s or personal ensure is a guarantee to repay credit that is generally in nature rather than specifying the security for a particular asset. The person who signs the ensure is personally liable in the event that the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests that are registered for personal property (including the assets or goods). The PPSR allows preference over private property granted in accordance with the date on which a security interest that is registered.
Caveats are legal document lodged to offer the legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re seeking larger business loans that exceeds $250K, we may offer an initial pre-approval that will help make the process. We may be able to make this decision without a credit check, and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves answering a couple of financial health questions. It’s not an offer or guarantee of credit. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you receive could have different terms.
Application process
Are I eligible for funding?
You can apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 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 - $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form within a couple minutes, and a dedicated business loan specialist will call you to guide you through the process.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Information on the application including credit consent as well as 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K and up) we can often provide an answer in just one hour – as long as you apply in quality company timings and let us use the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statements , we’ll be able to offer an answer within the span of one company day.
For the Larger Business Loan ($100K and up) we could be capable of offer the conditional pre-approval within six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this may be quicker depending on the specifics of each application. Some agreements have been approved within the space of 24 hours.
The fastest way would be to make sure you apply during standard business hours, and let us use the advanced bank verification system link to instantly verify your bank account information online. If you decide to upload duplicates of your banking statements it will take a little longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) we can often provide a response in one hour – as long as you apply during normal business time and you allow us to use the bank verification system to instantly verify your bank details online. If you decide to upload copies of your banking statements we can provide a decision in just one business day.
For Larger Business Loans ($100K and up) we may be able to offer you with conditional pre-approval within about six 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. Some agreements have been approved in 24 hours.
The fastest method can be ensure you apply during normal business hours. Also, let us use the advance bank verification to verify your bank account information online. If you opt to send us copies of your bank statements it will take a little longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a particular amount, we consider a variety of elements in order to assess the health of your company and the extent of repayments your company will be able to support. The total amount of the loan will be determined by the specific circumstances of your business.
When you submit an application for a specific amount we consider a variety of variables to assess how much we can lend you such as health of your company and the amount of the repayments your business is able to afford. The total amount of your loan will depend on the particular circumstances that are unique to your business.
Fees & repayments
How much should you charge for a business loan?
When you make an application for business loans with us company financing, we will assess the risk profile that you have for your company and offer you with a tailored proposal that includes loan amount, term and the interest rates. This business loan is an upfront priced loan and you’ll be aware in advance of the total amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I am charged?
Business loan interest rates depend on several factors like the amount of money borrowed, the business assets the money are used to purchase, the industry the company is operating in, how long the business has been in operation and how long the company has sufficient cash flow to fund the loan, as well as the general health or creditworthiness of the company.
What are the fees?
There are no hidden fees with our company loans. You’ll be aware of the amount it is that you need to pay and when, right from the first day. There’s no compounding interest and no additional fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You can request a credit loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the expenses involved with establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of the 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 are deciding to do this please contact our helpful business lending professionals. They’ll offer you with repayment details along with an early payout estimate. This is calculated as the sum of the principal amount remaining plus any accrued interest as of the time of early payout and 1.5 percent of the principal remaining and any outstanding fees.
How do repayments work?
In order to help you avoid missing payment dates and to align with your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from your nominated business account.
Security & privacy
Will my information be secure?
Security of your data, and being transparent about how we collect the information we collect, use, share and safeguard your data, is crucial and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to security for our customers and security. We employ an exceptionally sophisticated bank verification system that allows you to instantly verify the bank account details online, allowing us to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an business owner uses the assets they have to make the funds for a loan. The asset may be an individual asset, such as the family home or an business asset such as a truck or piece or equipment.
The vast majority of banks, not just the major banks, prefer to make loans secured by assets. If you are having difficulty paying back the loan then the asset might be sold by the lender. In essence, it is a way of securing new financing using the value of what you already own.
Should I need security to secure an company loan?
Up to $150,000 in loans no asset security is required in advance to gain access to the funds, however we do require a personal guarantee. So long as you comply with the terms of your loan (as stipulated in your loan contract) and you are able to meet your obligations, asset security is not required. For loans over $150,000 generally, there is the option of a personal ensure and security in the form of an asset charge.