FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Leawood Gardens Small Business Loans
Let me know what you think of the Leawood Gardens Small Business Loans
Leawood Gardens unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What makes what makes the Unsecured Loan different from an traditional company loan?
Apply to this Small Business Loan in under 10 minutes via the internet or over the phone, receive a same day response and the funds could be in your account in 24 hours. Traditional business loans are based on an annual interest rate as well as other fees and charges. The business loan is a loan that is priced upfront and you’ll be aware of the total amount payable including any fees, interest or charges. Then, it is divided into weekly or daily installment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company use, including the management of cash flow, business renovations, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan is not available for personal reasons.
About larger Leawood Gardens Business Loans
What is the Larger Leawood Gardens Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are weekly or fortnightly depending on your cash flow.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, which 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 in this amount the company needs to have been in operation for at least 3 years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funds be used for?
A Larger Business Loan is a great option for almost every company purpose including business improvements, purchasing new equipment or inventory as well as for general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required to access funding over $150,000. This is by way of charge against assets, and could include registration with the PPSR or the registration of a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is general in nature rather than defining security over a particular asset. The person signing the guarantee is personally responsible if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR grants preference over private property assigned in accordance with the date on which a security interest was registered.
Caveats are legal document lodged to offer an official notice of a claim on a property.
What exactly is a preapproval without Credit Check?
If you’re requesting a Larger Business Loan that is greater than $250,000 we may be able to provide an initial pre-approval that will help simplify the process. We could be able to do this without a credit verification and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes answering a couple of financial well-being questions. This is not an offer of credit or guarantee of credit. Unconditional approval is subject to an assessment of your creditworthiness and any offer you receive 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 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application within a couple minutes, and a dedicated business lending specialist will call 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 and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent twelve months bank statement, an IRD statement Last 2 years’ finalised financial statements, and interim current financial year financials as well as Aged Payables and Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) We can usually offer a response in one hour, provided you make your application at standard company time and allow us to utilise the bank verification system to instantly verify your bank’s information online. If you decide to send us copies of your bank statement, we’ll offer the decision within an business day.
If you are applying for a Larger Business Loan ($100K or more) we might be able to offer you with pre-approval conditional to your application within about six hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, it could be faster based upon the circumstances for each application. Some transactions have received approval in just 24 hours.
The fastest way can be ensure you apply during standard company hours. You can also allow us to use the advance bank verification to check your bank’s information online. If you send us documents from your account statement, it can take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) we typically offer an answer in just one hour, provided you submit your request during normal business timings and allow us to use the bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statements we can provide a decision in just 1 business day.
If you are applying for Larger Business Loans ($100K or more) we may be capable of provide you with conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Certain deals have been approved within 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours, and permit us to use the modern bank verification link to instantly verify your bank information online. If you upload duplicates of your banking statement, it can take a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a particular amount, we consider a variety of aspects that determine what is the well-being for your company and the level of payments your business can support. The amount you receive from the loan will be determined by the specifics the business.
When you apply for a set amount, we consider a variety of elements to assess the health that is your company as well as the amount of payments your company will be able to support. The amount you receive from the loan will be determined by the specific circumstances of your business.
Fees & repayments
What is the cost for the cost of a company loan?
If you decide to make an application for the business loan, we’ll assess the risk assessment that you have for your company and provide you with a customised proposal that includes loan amount, term and the interest rates. It is a business loan is a loan that is priced upfront which means you know the exact amount to be paid, including any charges or interest.
What determines the rate that I’m charged?
Interest rates for company loans rates depend on a variety of factors including the amount that is borrowed, what business assets the funds are used to purchase, the industry the company is in, how long the company has been in operation as well as how long the business has enough cash flow to pay for the loan, and overall well-being as well as creditworthiness company.
What are the charges?
There are no hidden costs for our company loans. You’ll be aware of the amount you’ll be required to pay and when, right from the day you sign up. There’s no compounding interest, and no additional fees (as long as you are able to make your payments on time).
We do not charge an Application Fee. You can apply for a loan with with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved with setting up and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I repay the loan earlier?
You can choose to repay the entire amount of the loan in full at any time.
If you choose to take this route, please speak to our friendly company credit experts. The specialists will provide you with details for repayment along with an early payout estimate. The figure will be calculated as the sum of the principal amount remaining plus any accrued interest as of the time of the early payout plus 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 payments and to work with your cash flow cycle we offer repayments that are either weekly or daily. They will be automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being transparent about how we collect data, process, exchange and protect your information, is vital and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their privacy. We employ a highly sophisticated banking verification system to immediately verify your bank account information online, allowing us to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an business owner borrows from the assets they have to secure the loan. The asset can be an individual asset, such as the family home or it could be a business asset like a truck or other piece of machinery.
The majority of lending institutions, including the major banks, prefer to make loans secured by assets. If you are having difficulty paying back the loan, then your assets could be taken over by the lender. In essence it is means of securing additional financing making use of the value of what you already own.
Do I require security to secure a business loan?
For loans that exceed $150K, the requirement for asset security is not required in advance to gain access to the funds, however we do need a personal guarantee. If you adhere to your loan commitments (as stipulated in your loan contract) and you are able to meet your obligations, asset security is not required. For loans of over $150,000 generally, you are able to get an individual guarantee and security in the form an asset charge.