FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The McLaren Flat Small Business Loans
Tell me more about McLaren Flat Small Business Loans
McLaren Flat unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What is what makes the Unsecured Loan different from an traditional company loan?
The application for the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an immediate response, and the funds could be in your account in 24 hours. Traditional business loans refer to an annual rate of interest plus other fees and charges. The business loan is a pre-paid loan therefore you’ll know in advance the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into a daily or weekly payment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company need, such as cash flow management, company remodels and marketing to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used to fund personal expenses.
Concerning Larger McLaren Flat Business Loans
What is the Larger McLaren Flat Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are either weekly or fortnightly depending on your cash flow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to have been operating for a minimum of 3 years with an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funding be used for?
A larger company loan can be used for almost every company reason, such as company remodeling, buying new equipment or inventory for general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. This is as a result of an charge against assets, and may be registered in the PPSR or making as a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is generally in nature rather than stipulating the security for a particular asset. The person who signs the guarantee is personally accountable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including objects or assets). The PPSR grants priority over personal property to be assigned depending on the date that a security interest was registered.
A caveat is a legal form of document to provide the legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250,000 we may be able to provide a preliminary pre-approval to help make the process. We might be able to do this without a credit verification and within six hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering a few financial health checks. It’s in no way an offer, nor is it a guarantee of funds. The approval of a conditional loan is subject to a full credit assessment and any offer you might receive could be based on different conditions.
The application process
Do I qualify for funds?
You can apply for a 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)
- 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 or $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a couple minutes, and a dedicated company credit specialist will call you to guide you.
For a loan of 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.
For larger loan sizes, you’ll require:
$100K-$250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K or more) we typically offer an answer within an hour – as long as you submit your request at quality company timings and permit us to utilise the bank verification system to instantly verify your bank information online. If you choose to send us copies of your bank statement, we’ll offer the decision within just the span of one business day.
For the Larger Business Loan ($100K and up) we may be capable of provide you with pre-approval conditional to your application within about 6 hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Certain agreements have been approved in just 24 hours.
The most effective method is to make sure you apply during normal business hours. Also, permit us to use the modern bank verification to verify your bank information online. If you decide to send us duplicates of your banking accounts, it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we usually offer a response in one hour, provided you make your application during normal business time and you allow us to use the bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statements we can offer an answer within 1 business day.
For the Larger Business Loans ($100K or more) We may be able to offer you with conditional pre-approval in about six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be faster depending upon the circumstances for each application. Some offers have been approved in just 24 hours.
The fastest method is to ensure you apply during normal business hours and allow us to use the advanced bank verification system to verify your bank account information online. If you decide to send us copies of your bank statements it may take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a particular amount, we consider a variety of factors in order to assess the health of the company as well as the amount of repayments your business can support. The total amount of the loan will be determined by the specifics the business.
When you make an application for a particular amount, we consider a variety of aspects to determine how much we can lend you such as well-being that is your company as well as the amount of repayments your company can afford. The amount you receive from your loan will be determined by the particulars that are unique to your business.
Fees & repayments
What is the cost for the cost of a company loan?
If you decide to apply for our business loan, we will assess the risk profile the business and offer an individualised offer, including the amount of the loan, the duration and interest rates. This business loan is an upfront cost loan so you will be aware of the total amount due, which includes any costs, fees, or interest rates.
What is the factor that determines the price I will be charged?
Business loan interest rates vary due to factors like the amount of money that is borrowed, what business assets the funds will be used for as well as the field the company is in, how long the company has been running, how long the business has sufficient cash flow to cover the loan, and overall health and creditworthiness of the business.
What are the charges?
There are no hidden costs for our business loans, and you’ll know precisely how much it is that you need to pay, and when, from the very first day. There’s no compounding interest and no additional fees (as long as you make your payments punctually).
We do not charge an application fee. You are able to get a cash loan with no upfront cost or obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay out the loan earlier?
You can repay all of your loan in full at any time.
If you do decide to pursue this option, please contact our helpful business loan professionals. We will provide you with the details of your repayment as well as an early payout amount. It will be calculated using the total of the principal balance and accrued interest to the time of early payment, plus 1.5 percent of the remaining principal plus any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align with your cash flow general, we offer repayments either weekly or daily. These are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being upfront about the ways we gather data, process, exchange and secure your information, is of huge importance and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We utilise a sophisticated banking verification system to instantly verify your bank account information online to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where a company owner makes use of an asset that they own to obtain the funds for a loan. The asset can be either an asset belonging to the personal, like the family home, or it could be a business asset such as a vehicle or piece or equipment.
The majority of banks, not just the largest banks, are inclined to guarantee loans against assets. If you have trouble paying back the loan, then your asset may be transferred to the lender. In essence, it’s an opportunity to secure new funding using the value of what you already own.
Are I need security for a business loan?
For loans of up to $150,000, the requirement for asset security is not required before you can access the money, however we require a personal guarantee. require a personal guarantee. So long as you comply with the terms of your loan (as stipulated in the loan contract) Asset security will never be needed. If you take out loans in excess of $150K generally, there is the option of a personal ensure and security in the form charges on assets.