FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Magill Small Business Loans
Tell me what you think of the Magill Small Business Loans
Magill unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from an traditional business loan?
It is imaginable to apply for this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an immediate response, and the money could be on your account within 24 hours. Traditional company loans have an annual interest rate as well as other fees and charges. This business loan is a cash-based loan which means you be aware of the total amount to be paid, including any fees, charges or charges. Then, it is broken down into either weekly or daily installment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly every business need, such as the management of cash flow, business remodels and marketing for purchasing inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal reasons.
About Larger Magill Business Loans
What is the Larger Magill Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed that can last up to 36 months. Repayments are scheduled weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to have been trading for at least 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can the funds be used for?
A Larger Business Loan is a great option for almost all business use, including business renovations, purchase of inventory or new equipment as well as for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is necessary for accessing funds over $150,000. This can be done as a result of an charge on assets and can be registered in the PPSR or the registration of a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is general in nature rather than stating the security for a particular asset. The person signing the guarantee is personally accountable if the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It lists security interests that are that are registered for personal property (including the assets or goods). The PPSR gives the priority of personal property assigned according to the date the registration of a security interest.
Caveats are legal document lodged to provide an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking a Larger Business Loan that is greater than $250K we can offer an initial pre-approval in order to simplify the process. We could be able to make this decision without a credit verification and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves answering a couple of financial health questions. It’s in no way an offer, nor is it a guarantee of finance. 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
Do I qualify for funds?
You may be eligible 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’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and easy. Just complete the online application within a few minutes and an experienced company expert in lending will be in touch to guide you.
To apply for up to $100,000, you’ll need the right identification documents (valid Driver’s License) along with an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details for application including credit consent as well as 12 months of bank records, IRD statements, last 2 years finalised financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) We can usually offer an answer within an hour, provided you submit your request at standard business times and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statements we can provide a decision in as little as 1 business day.
If you are applying for a Larger Business Loan ($100K or more) we may be likely to offer you with pre-approval conditional to your application in around six hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this may be quicker depending on the circumstances of each application. Certain transactions have received approval within the space of 24 hours.
The most efficient method is to make sure you apply during normal business hours. You can also allow us to use the advanced bank verification system link to verify your bank information online. If you decide to upload copies of your bank statements , it takes a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K and up) We can usually provide an answer within one hour – provided you make your application during standard business times and permit us to use the bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statement, we’ll provide a decision in just one business day.
For Larger Business Loans ($100K up to $500,000) We may be able to provide you with a conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the specifics of each application. Certain agreements have been approved in just 24 hours.
The quickest method would be to ensure you apply during standard business hours. You can also allow us to use the advanced bank verification system to verify your bank account information online. If you decide to upload documents from your account accounts, 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 in order to assess what is the health for your business as well as the amount of repayments your company can afford. The total amount of the loan will be determined by the particular circumstances of your company.
When you submit an application for a set amount, we consider a variety of elements to assess your health that is your company and the level of repayments that your company is able to afford. The total amount of your loan will depend on the particulars of your business.
Fees & repayments
What is the cost for a company loan?
When you make an application for our company loans, we’ll assess the risk profile for your company and offer you with a customised offer that includes the amount of the loan, the duration and the interest rates. The company loan is a loan that is priced upfront therefore you will know in advance the total amount to be paid, including any costs, fees, or interest rates.
What is the factor that determines the price I pay?
Business loan interest rates depend on several variables like the amount to be borrowed, the business assets the funds will be used for, the industry the company operates in, how long the company has been in operation and how long the business has sufficient cash flow to fund the loan, and also the general health or financial standing of the business.
What are the fees?
There aren’t any hidden costs for our company loans, and you’ll know exactly how much you need to pay, and at what time, from the day you sign up. There’s no compounding interest, and the loan comes with no additional fees (as long as you are able to make your payments on time).
We do not charge an application fee. You are able to get a cash loan with no cost upfront or the obligation to take action.
The Origination Fee is the cost associated with setting up and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan earlier?
You can decide to repay all of your advance loan at any time.
If you are deciding to do this please speak to our friendly company lending experts. We will offer you with the details of your repayment as well as an early payout amount. This is calculated as the total of the remaining principal amount plus any accrued interest as of the date of early payout and 1.5% of the principal remaining plus any outstanding fees.
What is the process for repayments?
To help you avoid missing payments and to work with your cash flow routine, we provide payments that are either daily or weekly. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and knowing how we collect the information we collect, use, share and protect your information, is vital and is an essential element 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 financial and other data. Our funders are ISO 27001 qualified for our dedication to customer security and privacy. We use an advanced bank verification system to immediately confirm your bank account information online. This allows us to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an business owner uses assets they own to secure a loan. The asset may be an individual property, such as the family home or it could be a business asset like a truck as well as a piece of machine.
The vast majority of the lenders not just the largest banks, are inclined to secure loans against assets. If you have trouble paying back the loan, then the asset might be sold by the lender. In essence it is a way of securing new financing by taking advantage of the value of what you already own.
Should I require security to get a business loan?
For loans of up to $150K, the requirement for asset security is not required prior to the loan’s access However, we do require a personal guarantee. So long as you comply with your loan obligations (as detailed in the loan contract) and you are able to meet your obligations, asset security is not required. For loans over $150K generally, there is personal ensure and security in the form of charges on assets.