FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Lonsdale Small Business Loans
Tell me about the Lonsdale Small Business Loans
Lonsdale unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from an traditional company loan?
The application to get the Small Business Loan in under 10 minutes over the phone, receive an answer within the same day and have the funds in your account in 24 hours. Traditional company loans are based on an annual interest rate along with other charges and fees. We offer a business loan is a pre-paid loan so you will know in advance the total amount payable including any interest, fees or charges. This is then divided into a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company reason, such as cash flow management, company remodeling, marketing, to purchase inventory or new equipment, for general working capital, and much more. The loan cannot be used for personal use.
About the Larger Lonsdale Business Loans
What is the Larger Lonsdale Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term that can last up to 36 months. Repayments are weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size, your business needs to have been trading for at least 3 years, and have an annual income of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old 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 utilised?
A larger company loan can be used for nearly all business reason, such as company remodeling, buying equipment or inventory for general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. This is in the form of a charge on assets and can include registration with the PPSR or registering as a caveat.
A personal or director’s guarantee is a promise to repay credit that is generally based rather than defining the security for a particular asset. The person who is signing the guarantee is personally liable if the company 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 records security interests that have been registered in respect of personal property (including objects or assets). The PPSR grants preference over private property granted according to the date the security interest has been registered.
An affidavit is an official document that is filed to provide notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan that exceeds $250,000 we can offer an initial pre-approval to ease the process. It is possible to apply for this without a credit check, and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes answering a couple of financial health questions. It’s neither an offer nor a guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer that you might receive could be on different conditions.
The application process
Are I eligible for funding?
You can apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months worth of trade (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form within a few minutes and an experienced business credit specialist will be in touch to guide you.
To apply for up $100,000, you’ll need identification details (valid Driver’s Licence), a valid NZBN/IRD and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, in addition to interim financials for the current financial year including Aged Payables, Aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we can often provide a response in one hour if you make your application in standard company time and allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you decide to submit copies of your bank statement, we’ll offer the decision within 1 business day.
If you are applying for a Larger Business Loan ($100K to $500K) we could be able to provide you with pre-approval conditional to your application in about 6 hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Some agreements have been approved in 24 hours.
The quickest method is to make sure you apply during standard business hours and permit us to use the advance bank verification to instantly verify your bank account information online. If you decide to upload copies of your bank accounts, it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we can often offer an answer within one hour – provided you submit your request in standard business time and you allow us to use the bank verification system to instantly verify your bank details online. If you choose to send us copies of your bank statements, we are able to provide a decision in just one business day.
For the Larger Business Loans ($100K to $500K) we might be in a position to provide you with a conditional pre-approval within about six hours. Once you have signed the 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. Certain offers have been approved within less than 24 hours.
The fastest method would be to ensure you apply during normal business hours. You can also let us use the sophisticated bank verification to confirm your bank details online. If you opt to send us the copies of bank statements it takes a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a particular amount, we consider a variety of factors in order to assess what is the health of your business and the amount of the repayments your company can support. The amount you receive from the loan will be determined by the specific circumstances that are unique to your business.
If you apply for a particular amount, we consider a variety of factors to determine your well-being of the company as well as the amount of repayments your company can afford. The amount you receive from the loan will be determined by the specific circumstances that are unique to your business.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to request our company loan, we will assess the risk profile that you have for your business and provide you with a customised proposal that includes loan amount, term and the interest rates. A business loan is an upfront-priced loan which means you be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I’m charged?
Interest rates for company loans rates vary due to factors including the amount borrowed, what business assets the money will be used for as well as the field the business operates in, how long the company has been operating as well as whether the business has sufficient cash flow to cover the loan, and also the overall well-being or creditworthiness of the business.
What are the cost?
There are no hidden costs with our company loans, and you’ll know exactly how much it is that you be required to pay and at what time, from the very first day. There’s no compounding and the loan comes with 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 no cost upfront or commitment to apply.
The Origination Fee covers the costs associated in establishing 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 percent of the amount of the loan.
Can I pay out the loan in advance?
You can decide to repay the entire amount of the loan early at any time.
If you choose to take this route, please contact our helpful company loan specialists. They’ll offer you with details for repayment and an early payout figure. This will be calculated as the sum of the principal remaining and accrued interest to the time of early payout in addition to 1.5 percent of the remaining principal and any fees that remain unpaid.
How do you make repayments work?
To make sure that you don’t miss due dates and also to be in line your cash flow schedule, 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?
The security of your personal information, as well as making it clear how we collect information, use it, and exchange it, as well as ensure the security of your information is crucial and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of clients and privacy. We make use of an advanced banking verification system to immediately verify your bank account information online so we can offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an business owner borrows from an asset they own to secure the loan. The asset can be either an asset belonging to the personal, like the family home or an business asset such as a vehicle or piece or equipment.
The majority of lending institutions, including the largest banks, are inclined to make loans secured by an asset. If you’re having trouble paying back the loan, then your asset may be taken over by the lender. In essence, it is an opportunity to secure additional financing making use of the value of what you already own.
Are I need security for an business loan?
For loans that exceed $150,000, it is not necessary to secure assets prior to the loan’s access However, we require a personal guarantee. require a personal guarantee. If you adhere to the loan terms (as detailed in the loan contract) the security of assets will never be required. For loans over $150,000 generally there is a personal ensure and security in the form charges on assets.