FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Leawood Gardens Small Business Loans
Tell me how you can avail the Leawood Gardens Small Business Loans
Leawood Gardens unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from an traditional company loan?
The application for the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and have the funds available in just 24 hours. Traditional company loans refer to an annual interest rate as well as other fees and charges. This business loan is a cash-based loan therefore you’ll be aware of the total amount due, which includes any interest, fees or charges. Then, it is broken down into weekly or daily repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business use, including control of cash flow business remodels and marketing for purchasing inventory or new equipment, or as general working capital, and much more. The loan is not available for personal use.
About larger Leawood Gardens Business Loans
What is the Larger Leawood Gardens 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 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your situation.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size the company needs to have been operating for a minimum of 3 years and generate an annual revenue of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funding for?
A Business Loan of a larger size can be used to fund almost all business need, including business improvements, purchasing inventory or new equipment, as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. It’s by way of charge on assets, and may include registration on the PPSR or the registration of a caveat.
A personal or director’s guarantee is a commitment to pay back a loan that is general in nature rather than stating security over a particular asset. The person who is signing the ensure is personally liable in the event that the business the borrower fails 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 records security interests that have been 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 a security interest was registered.
An affidavit is an official document that is filed to provide an official notice of a claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for an enterprise loan of $250K or more, we may offer an initial pre-approval that will help ease the process. We might be able to get this done without a credit check, and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes the answer to a series of financial well-being questions. It is not an offer or guarantee of finance. Unconditional approval is subject to an assessment of your creditworthiness and any offer you may receive may be subject to different conditions.
The application process
Do I have the right to receive funds?
You are eligible to apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form within a couple minutes, and an experienced company expert in lending will contact you to guide you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s Licence), a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent and 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we typically offer an answer in just one hour, provided you apply during quality company times and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statements we can provide a decision in as little as one company day.
For the Larger Business Loan ($100K to $500K) we may be likely to provide you with pre-approval conditional to your application in about six hours. After you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Certain transactions have received approval within just 24 hours.
The most effective method would be to make sure you apply during normal business hours and let us use the modern bank verification link to confirm your bank details online. If you decide to send us copies of your bank statement, it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we usually provide an answer in just one hour if you apply within normal business hours and let us use the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your bank statement, we’ll provide an answer in as little as one business day.
For Larger Business Loans ($100K up to $500,000) we could be in a position to provide you with a conditional pre-approval in around 6 hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however it could be faster based on the particular circumstances of each application. Some offers have been approved within the space of 24 hours.
The fastest method is to ensure you apply during standard business hours and let us use the advance bank verification to confirm your bank details online. If you opt to send us the copies of bank statement, it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you submit an application for a certain amount, we will consider a number of aspects for determining your well-being for your company and the amount of payments your business is able to afford. The total amount of the loan will be determined by the specific circumstances the business.
When you make an application for a particular amount, we take into consideration a variety of variables to assess the health for your company and the extent of the repayments your business can afford. The amount you receive from your loan will be contingent on the specific circumstances of your company.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to make an application for our business loan, we’ll assess the risk profile for your company and provide an individualised offer that includes the amount of the loan, the duration and interest rates. A company loan is a loan that is priced upfront so you will be aware of the total amount due, which includes any costs, fees, or interest rates.
What determines the amount I am charged?
Interest rates for business loans rates depend on a variety of variables like the amount to be of money borrowed, the company assets the funds will be used for and the sector the business operates in, the long the business has been operating, whether the company has enough cash flow to cover the loan, and also the overall well-being and creditworthiness of the company.
What are the costs?
There are no hidden fees with our company loans, and you’ll know exactly how much you’ll need to pay and when, starting from the first day. There’s not any compounding interest and no extra fees (as long as you are able to make your payments in time).
We do not charge an application fee. You are able to request a credit loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan earlier?
You can decide to repay all of your loan early at any time.
If you choose to pursue this option, please speak to our friendly company loan specialists. The experts will offer you with repayment details as well as an early payout amount. It will be calculated using the sum of the remaining principal amount and the accrued interest up to the time of early payout in addition to 1.5 percent of the principal remaining and any fees that remain unpaid.
What is the process for repayments?
In order to help you avoid missing payment dates and to align your cash flow cycle we provide repayments either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being transparent about the ways we gather information, use it, and exchange it, as well as secure your information, is vital 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 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 employ an exceptionally sophisticated bank verification system link to immediately verify the bank account details online to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an company owner utilises an asset that they own to secure the funding. The asset may be an asset belonging to the personal, like the family home, or a business property like a truck or piece or equipment.
The majority of lending institutions, not just the big banks, tend to secure loans against assets. If you have trouble paying back the loan, then your asset may be transferred to the lender. In essence it is means of securing additional financing making use of the value of what you already have.
Are I need security to secure a business loan?
For loans of up to $150,000, it is not necessary to secure assets in advance to gain access to the funds but we require a personal guarantee. need the personal guarantee. If you adhere to your loan commitments (as stipulated in your loan contract) the security of assets will never be required. If you take out loans in excess of $150,000 generally, there is personal guarantee and security that is in the form charges on assets.