FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The McLaren Vale Small Business Loans
Let me know about the McLaren Vale Small Business Loans
McLaren Vale unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
How is the Unsecured Loan different from an traditional company loan?
You can apply to the Small Business Loan in under 10 minutes online or by phone. You will receive a same day response and the funds could be on your account within 24 hours. Traditional company loans have an annual rate of interest along with other charges and fees. This business loan is a loan that is priced upfront so you will be aware of the total amount due, which includes the interest, fees and charges. Then, it is divided into a daily or weekly payment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business need, such as control of cash flow company remodeling, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan is not available for personal use.
About Larger McLaren Vale Business Loans
What is the Larger McLaren Vale Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are weekly or fortnightly, depending on your situation.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been in operation for at least 3 years, and have an annual income of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can I use the funding for?
A large business loan can be used for nearly every business purpose including business improvements, purchasing equipment or inventory as well as for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. It is usually as a result of an charge over assets, and may include registering this through the PPSR or registering as a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is general in nature rather than specifying security over a particular asset. The person who signs the guarantee is personally liable in the event that the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests registered in respect of personal property (including goods or assets). The PPSR allows preference over private property assigned depending on the date that a security interest that is registered.
An affidavit is an official form of document to provide the legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking a Larger Business Loan that exceeds $250K it is possible to offer an initial pre-approval that will help make the process. We could be able to make this decision without a credit check and within 6 hours of the initial application. The pre-approval is based upon an initial assessment that includes the answer to a series of financial well-being checks. It’s not an offer or guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer you might receive could be based on different conditions.
The application process
Are I eligible for funding?
You are eligible to apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form in few minutes and an experienced company credit specialist will contact you to guide you.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s License) as well as a valid NZBN/IRD as well as at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details for application including credit consent as well as 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, plus interim financials for the current financial year as well as Aged Payables and Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we typically provide an answer within an hour – as long as you submit your request during quality company hours and let us make use of the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statements we can offer an answer within just 1 company day.
For the Larger Business Loan ($100K to $500K) we may be able to provide you with conditional pre-approval within six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Some agreements have been approved within just 24 hours.
The quickest way to apply can be make sure you apply during standard business hours. Also, permit us to use the advanced bank verification system to confirm your bank details online. If you send us documents from your account statements it will take a little longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) we usually provide a response in one hour, provided you submit your request at normal business times and permit us to make use of the advanced bank verification system link to instantly verify your bank details online. If you opt to submit copies of your bank statements we can provide an answer in just the span of one business day.
For the Larger Business Loans ($100K or more) we could be able to offer you with conditional pre-approval in about six hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this could be shorter based on the particular circumstances of each application. Some offers have been approved in 24 hours.
The quickest method for you to apply is make sure you apply during normal business hours. Also, let us use the advance bank verification to verify your bank account information online. If you opt to upload copies of your bank statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a certain amount we consider a variety of aspects for determining the health of your business and the amount of repayments your business will be able to support. The amount you receive from your loan will be contingent on the specific circumstances of your business.
When you make an application for a particular amount, we will consider a number of variables to determine the well-being of your business and the level of the repayments your business can support. The amount you receive from the loan will be determined by the specifics the business.
Fees & repayments
How much do you charge for an company loan?
When you apply for one of our business financing, we’ll assess the risk assessment of your company and provide you with a tailored offer, including the amount of loan, the term and the interest rates. It is a company loan is an upfront cost loan therefore you will be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What determines the amount I am charged?
The interest rates on business loans rates differ based on various factors such as the amount that is borrowed, the company assets the money will be used for in addition to the industry that the company operates in, how long the business has been running and whether the company has sufficient cash flow to pay for the loan, and also the general well-being or creditworthiness of the business.
What are the costs?
There are no hidden fees for our company loans. You’ll know exactly 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 as long as you pay your payments in time).
We don’t charge an Application Fee. You are able to get a cash loan without any upfront costs or the obligation to take action.
The Origination Fee includes the expenses associated with establishing and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I repay the loan early?
You can repay all of your loan in full at any time.
If you do decide to pursue this option, please speak to our friendly company loans specialists. The professionals will provide you with details for repayment and an early payment figure. It will be calculated using the sum of the principal amount remaining and accrued interest to the time of early payout plus 1.5 percent of the principal amount remaining plus any outstanding fees.
How do you make repayments work?
To help you avoid missing payment dates and to align with your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing the ways we gather information, use it, and exchange it, as well as protect your information, is of huge importance and is an essential aspect 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 sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and security. We utilise a sophisticated bank verification system to instantly verify the bank account details online. This allows us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a company owner makes use of assets they own to make the loan. The asset can be either a personal asset like the family home or an business asset like a truck or piece or equipment.
The majority of lenders, not just the banks with the biggest size, prefer to make loans secured by an asset. If you are having difficulty paying back the loan then your assets could be offered for sale by the lender. In essence, it is a way of securing additional financing taking advantage of the value of what you already own.
Should I need security to secure an company loan?
For loans up to $150K the requirement for asset security is not required before you can access the money but we require a personal guarantee. require an individual guarantee. If you adhere to your loan obligations (as stated in the loan contract) the security of assets will never be needed. For loans over $150K generally there is a personal guarantee and security that is in the form charges on assets.