FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Ironbank Small Business Loans
Tell me what you think of the Ironbank Small Business Loans
Ironbank unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from an traditional business loan?
You can apply for your Small Business Loan in under 10 minutes online or on the phone. You’ll receive an answer within the same day and have the funds available in just 24 hours. Traditional company loans refer to an annual rate of interest plus other fees and charges. The company loan is a pre-paid loan therefore you’ll be aware in advance of the total amount payable including any fees, charges or charges. This is then broken down into weekly or daily amount to be paid back.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company need, such as managing cash flows, business remodeling, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan is not available for personal reasons.
Concerning Larger Ironbank Business Loans
What is the Larger Ironbank Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large, your company needs to have been in operation for at least 3 years and generate an annual revenue of at least $700K. It is necessary to 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 demonstrate at the least 12 months of operating.
How can the funds be utilised?
A large business loan can be used for almost all business need, including business renovations, purchase of inventory or new equipment as well as 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 necessary to obtain funding above $150,000. This can be done by way of charge over assets, and may include registration on the PPSR or registering a caveat.
A director’s or personal ensure is a commitment to repay credit that is general in nature, rather than specifying the security of a specific asset. The person 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 an online, central register operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including the assets or goods). The PPSR grants preference over private property assigned according to the date a security interest was registered.
The caveat can be described as a formal document filed to offer the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting a Larger Business Loan that is greater than $250K, we may offer an initial pre-approval that will help make the process. It is possible to make this decision without credit checks and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes you answering a few financial health checks. It’s not an offer or guarantee of finance. Acceptance without condition is subject to a full credit assessment and any offer you might receive could be on different conditions.
Application process
Do I have the right to receive funds?
You may apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a few minutes and a dedicated company lending specialist will contact you to guide you.
To apply for up $100,000, you’ll require proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as at least six months of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details for application including credit consent as well as 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) We can usually provide an answer within an hour if you apply within standard company hours and permit us to make use of the advanced bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statement, we’ll offer an answer within one company day.
If you are applying for a Larger Business Loan ($100K and up) we may be likely to offer you with pre-approval conditional to your application in around 6 hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this can be quicker based on the circumstances of each application. Certain agreements have been approved in just 24 hours.
The most effective method can be ensure you apply during standard business hours. Also, allow us to use our advanced bank verification system link to instantly check your bank’s information online. If you choose to upload the copies of bank statement, it can take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) we typically offer a response in one hour – as long as you apply during standard business timings and allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your bank statements we can offer an answer in as little as the span of one business day.
For Larger Business Loans ($100K to $500K) We may be able to provide you with conditional pre-approval in about six hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Certain offers have been approved in just 24 hours.
The fastest method for you to apply is make sure you apply during normal business hours. You can also permit us to use the advanced bank verification system link to instantly verify your bank account information online. If you upload copies of your bank statements it will take a little longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a specific amount we look at a variety of factors to determine how much we can lend you health of the business and the level of the repayments your business can afford. The amount you receive from your loan will be contingent on the specifics that are unique to your business.
When you make an application for a certain amount, we take into consideration a variety of aspects to assess the health of your company and the extent of repayments that your company will be able to support. The amount you receive from the loan will be determined by the particulars that are unique to your company.
Fees & repayments
What is the cost for the cost of a business loan?
If you decide to request the company financing, we’ll assess the risk profile the company and offer you with a customised proposal that includes the amount of loan, the term and the interest rates. It is a business loan is an upfront priced loan therefore you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What determines the rate that I am charged?
Interest rates for company loans rates vary due to factors including the amount borrowed, what business assets the money are used to purchase in addition to the industry that the business is operating in, how long the business has been in operation and what percentage of the business has sufficient cash flow to fund the loan, and the general well-being or financial standing of the company.
What are the fees?
There are no hidden fees with our company loans. You’ll know precisely how much it is that you be required to pay and when, starting from the first day. There’s no compounding and no extra fees (as as you make your payments in time).
We do not charge an Application Fee. You can request a credit loan with with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I repay the loan early?
You can repay the total amount of your loan early at any time.
If you are deciding to do this please contact our helpful company loan experts. They’ll provide you with details for repayment and an early payment figure. The figure will be calculated as the total of the principal balance and any accrued interest at the time of the early payout and 1.5 percent of the principal remaining as well as any outstanding fees.
What are the repayment methods?
To make sure you do not miss payments and to work with your cash flow cycle we offer repayments either weekly or daily. These are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being transparent about how we collect data, process, exchange and ensure the security of your information is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to protecting the security of clients and privacy. We use an advanced bank verification system link to instantly confirm your bank account information online 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 an asset they own to secure a loan. The asset may be an individual asset, such as the family home, or it could be a business property like a truck as well as a piece of machine.
The majority of banks, not just the largest banks, are inclined to guarantee loans against an asset. If you’re having trouble paying back the loan, your assets could be sold by the lender. In essence it is means of securing new financing by making use of the value of what you already have.
What do I require security to get a business loan?
For loans up to $150K the requirement for asset security is not required in advance to gain access to the funds, however we require a personal guarantee. require an individual guarantee. As long as you follow the loan terms (as specified in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans over $150,000 generally there is an individual ensure and security in the form the charge of assets.