FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Medindie Gardens Small Business Loans
Tell me what you think of the Medindie Gardens Small Business Loans
Medindie Gardens unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from the traditional company loan?
You can apply to this Small Business Loan in under 10 minutes over the phone. You’ll get an instant response and funds may be on your account within 24 hours. Traditional company loans are based on an interest rate per annum as well as other fees and charges. Our company loan is a loan that is priced upfront and you’ll know ahead of time the total amount due, which includes any interest, fees or charges. Then, it is divided into weekly or daily repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company need, such as the management of cash flow, company renovations, marketing, to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal reasons.
About larger Medindie Gardens Business Loans
What is the Larger Medindie Gardens Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee calculated?
The 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 be eligible for a credit that is this large the company needs to be operating for at least three years, and have an annual income of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can the funding be used for?
A larger company loan is a great option for almost all company reason, such as company remodeling, buying inventory or new equipment, as general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required for accessing funds over $150,000. It’s by taking a charge against assets, and may include the registration of this in the PPSR or making as a caveat.
A director’s or personal ensure is a promise to repay credit that is general in nature rather than specifying security over a particular asset. The person signing the guarantee is personally liable if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests that are registered for personal property (including goods or assets). The PPSR grants prioritisation over property that is personal to be assigned according to the date the security interest was registered.
A caveat is a legal document that is filed to offer the legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re seeking the Larger Business Loan of $250K or more it is possible to offer an initial pre-approval that will help make the process. It is possible to get this done without credit checks and within six hours of your initial application. This pre-approval is made based on an initial assessment, which involves you answering some financial health checks. This is not an offer or guarantee of financing. A conditional approval is subject an exhaustive credit evaluation, and any offer you might receive could have different terms.
Application process
Are I eligible for funding?
You may be eligible for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form in just a few minutes, and an experienced business loan specialist will call you to guide you.
To apply for up $100,000, you’ll require ID details (valid Driver’s Licence) along with a valid NZBN/IRD and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Application details including credit consent as well as 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, plus interim financial statements for the current year as well as Aged Payables and Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) We can usually offer an answer in just one hour – as long as you make your application at quality business hours and allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your banking statements we can offer a decision within 1 company day.
For Larger Business Loans ($100K up to $500,000) we may be in a position to offer you with a conditional pre-approval in around 6 hours. After you’ve signed your pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however this could be shorter based on the circumstances of each application. Some deals have been approved in less than 24 hours.
The quickest method is to ensure you apply during normal business hours. You can also permit us to use the modern bank verification to instantly check your bank’s information online. If you opt to upload copies of your bank accounts, it can take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer in just one hour if you submit your request at standard business time and let us use the bank verification system to instantly verify your bank information online. If you want to submit copies of your bank statements, we are able to provide a decision within the span of one business day.
For Larger Business Loans ($100K to $500K) we may be capable of offer the conditional pre-approval within six hours. Once you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this can be faster depending on the particular circumstances of each application. Certain offers have been approved in the space of 24 hours.
The fastest method would be to make sure you apply during normal business hours, and allow us to use our modern bank verification to instantly confirm your bank details online. If you opt to upload duplicates of your banking statements it may take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a certain amount, we look at a variety of aspects for determining the well-being for your business and the level of repayments that your company is able to afford. The amount you receive from the loan will be determined by the specific circumstances the company.
If you apply for a particular amount, we will consider a number of elements to assess the well-being of the business and the extent of the repayments your business will be able to support. The total amount of your loan will be contingent on the specific circumstances that are unique to your business.
Fees & repayments
How do you charge for an company loan?
If you decide to make an application for our business loans, we’ll assess the risk assessment for your business and offer you with a tailored offer including the loan amount, the terms and interest rates. It is a company loan is an upfront-priced loan and you’ll know in advance the total amount payable including any charges or interest.
What is the factor that determines the price I pay?
Business loan interest rates vary due to factors including the amount borrowed, the company assets the funds will be used for and the sector the company operates in, how long the business has been in operation for, how long the business has sufficient cash flow to cover the loan, and also the overall health as well as creditworthiness business.
What are the charges?
There are no hidden costs for our business loans, and you’ll know exactly how much you’ll 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 apply for a loan no cost upfront or the obligation to take action.
The Origination Fee is the cost associated in establishing and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I repay the loan earlier?
You can choose to repay the entire amount of your loan in full at any time.
If you choose to do this please contact our helpful company lending experts. They will offer you with repayment details along with an early payout estimate. This is calculated as the sum of the principal balance and any accrued interest at the time of early payment plus 1.5 percent of the principal remaining plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in your cash flow cycle we offer repayments either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Security of your data, and making it clear the ways we gather the information we collect, use, share and secure your information, is crucial and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and privacy. We make use of an advanced bank verification system link to instantly confirm your bank account information online, allowing us to provide 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 borrows from an asset they own to obtain a loan. The asset may be an individual property, such as the family home or it could be a company asset like a truck or piece or equipment.
The vast majority of banks, not just the major banks, prefer to secure loans against an asset. If you have trouble paying back the loan, then your asset may be sold by the lender. In essence, it’s a way of securing new financing by taking advantage of the value of what you already own.
Are I need security to get an company loan?
Up to $150,000 in loans the requirement for asset security is not required in advance to gain access to the funds however, we do need a personal guarantee. In the event that you fulfill your loan commitments (as specified in your loan contract document) Asset security will never be required. For loans over $150,000 generally, you are able to get an individual ensure and security is provided in the form of the charge of assets.