FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Lightsview Small Business Loans
Tell me more about Lightsview Small Business Loans
Lightsview unsecured loans offers 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 per day or weekly.
How is the Unsecured Loan different from a traditional company loan?
You can apply to your Small Business Loan in under 10 minutes by phone. You will receive an answer within the same day and the money could be in your account within 24 hours. Traditional business loans have an annual rate of interest plus other fees and charges. This business loan is a loan that is priced upfront therefore you’ll be aware in advance of the total amount to be paid, including the interest, fees and charges. This is then broken down into either a daily or weekly payment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business use, including cash flow management, business renovations, marketing, to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal reasons.
About Larger Lightsview Business Loans
What is the Larger Lightsview 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 over a fixed term for up to 36 months. The repayments are made weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your company needs to be operating for at least three years, and have an annual income of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A large business loan is a great option for almost every business purpose including business improvements, purchasing equipment or inventory for general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. This is in the form of a charge against assets, and may be registered with the PPSR or filing a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is general in nature, rather than stating the security of a specific asset. The person who is signing the ensure is personally accountable if the company creditor is unable 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 lists security interests that are that are registered for personal property (including goods or assets). The PPSR gives priority over personal property to be granted according to the date a security interest that is registered.
The caveat can be described as a formal document that is filed to provide the legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking larger business loans of more than $250K we can offer an initial pre-approval in order to make the process. It is possible to make this decision without a credit check, and within 6 hours of your initial application. This pre-approval is based on a preliminary assessment which includes answering a couple of financial well-being questions. This is in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you may receive may be based on different conditions.
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 at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a few minutes and an experienced business loan specialist will contact you to guide you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s License) and a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Information on the application including credit consent, 12 months bank statement, an IRD statements, last 2 years finalised financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) We can usually offer a response in one hour – as long as you make your application within quality company hours and let us utilise the bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statement, we’ll provide an answer in as little as the span of one business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we might be likely to provide you with conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this can be quicker based on the particular circumstances of each application. Some deals have been approved in the space of 24 hours.
The quickest way to apply can be make sure you apply during standard company hours, and allow us to use our modern bank verification link to instantly confirm your bank details online. If you upload copies of your bank accounts, it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we usually provide an answer in just one hour – as long as you apply within standard business hours and you 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 statement, we’ll offer an answer in just 1 business day.
For the Larger Business Loans ($100K or more) we might be able to provide you with conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some offers have been approved within less than 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours. You can also allow us to use the advanced bank verification system link to instantly check your bank’s information online. If you choose to upload documents from your account accounts, it takes 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 certain amount we will consider a number of factors that determine what is the well-being that is your business and the level of payments your company can afford. The total amount of your loan will be contingent on the particular circumstances of your business.
When you make an application for a particular amount, we will consider a number of elements to determine your well-being of the company and the amount of repayments that your business will be able to support. The amount you receive from the loan will be determined by the particulars for your business.
Fees & repayments
How do you charge for the cost of a company loan?
When you request our company financing, we’ll assess the risk assessment the business and offer you with a customised offer including the loan amount, the terms and the interest rates. This business loan is a loan that is priced upfront therefore you will be aware in advance of the total amount to be paid, including any charges or interest.
What is the basis for the rate I will be charged?
The interest rates on business loans rates depend on several factors including the amount borrowed, what business assets the funds will be used for in addition to the industry that the business is in, how long the company has been running as well as in the event that the company has sufficient cash flow to cover the loan, and also the overall well-being or financial standing of the company.
What are the fees?
There are no hidden costs for our company loans. You’ll be aware of the amount you’ll be required to pay and when, starting from the day you sign up. There’s not any compounding interest and no extra 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 no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I repay the loan earlier?
You can repay all of your loan early at any time.
If you choose to do this please speak to our friendly business loans specialists. They’ll provide you with details on repayment along with an early payout estimate. The figure will be calculated as the sum of the principal remaining plus any accrued interest as of the time of early payout plus 1.5% of the principal balance and any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payment dates and to align with your cash flow cycle we offer repayments either daily or weekly. They are automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Protecting your information, and making it clear the ways we gather, use, exchange and safeguard your data, is of huge importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to customer security and security. We make use of an advanced bank verification system to immediately verify the bank account details online. This allows us to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner makes use of the assets they have to get the funding. The asset could be a personal asset like the family home or an business asset such as a vehicle or other piece of machinery.
The majority of the lenders not just the major banks, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, then the asset could be offered for sale by the lender. In essence it is means of securing new financing making use of the value of what you already own.
What do I require security to get an business loan?
For loans of up to $150,000, the requirement for asset security is not required before you are able to access the money however, we do need an individual guarantee. In the event that you fulfill your loan commitments (as stated in your loan contract) Asset security is not required. For loans that exceed $150K, typically, you will need the option of a personal ensure and security in the form of an asset charge.