FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Morphett Vale Small Business Loans
Tell me what you think of the Morphett Vale Small Business Loans
Morphett Vale unsecured loans provides 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 per day or weekly.
What makes this Unsecured Loan different from the traditional business loan?
The application for the Small Business Loan in under 10 minutes by phone. You will receive a same day response and the funds could be available in just 24 hours. Traditional business loans refer to an annual rate of interest as well as other fees and charges. The business loan is a cash-based loan and you’ll know ahead of time the total amount due, which includes any interest, fees or charges. Then, it is broken down into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any company need, such as the management of cash flow, company renovations, marketing for purchasing inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal use.
About Larger Morphett Vale Business Loans
What is the Larger Morphett Vale Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size the business needs to be trading for at least 3 years, and have an annual income of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A Larger Business Loan can be used for nearly any company use, including business remodeling, buying new equipment or inventory for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. It is usually by way of charge over assets, and may include registering this through the PPSR or the registration of a caveat.
A director’s or personal ensure is a commitment to repay a loan which is general in nature, rather than defining security over a particular asset. The person who signs the guarantee is personally accountable if the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including goods or assets). The PPSR gives the priority of personal property granted according to the date the security interest was registered.
The caveat can be described as a formal document filed to provide the public notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan that is greater than $250,000 we can offer an initial pre-approval to make the process. We might be able to do this without a credit check, and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes answering a couple of financial health checks. It’s in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to a full credit assessment and any offer that you receive could be subject to different conditions.
Application process
Can I be eligible for funding?
You are eligible to apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Complete the online form in few minutes and a dedicated company lending specialist will contact you to help you.
To apply for up $100,000 you’ll require ID details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Information on the application including credit consent as well as 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) We can usually provide an answer within one hour – as long as you make your application in standard company times and let us make use of the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your banking statements we can provide a decision within an business day.
For Larger Business Loans ($100K and up) we may be capable of offer the conditional pre-approval in about 6 hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this may be quicker depending on the particular circumstances of each application. Some deals have been approved within the space of 24 hours.
The most effective method can be make sure you apply during normal business hours, and allow us to use the modern bank verification link to confirm your bank details online. If you opt to send us copies of your bank statements , it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K or more) we typically provide an answer in just one hour – as long as you make your application during standard business hours and you allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statements we can offer a decision within an business day.
For the Larger Business Loans ($100K or more) We may be able to offer you with pre-approval conditional to your application in around 6 hours. Once you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Some offers have been approved within less than 24 hours.
The fastest way is to make sure you apply during normal business hours and allow us to use our advance bank verification link to instantly verify your bank account information online. If you decide to upload documents from your account statement, it will take a little longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. When you submit an application for a certain amount, we consider a variety of variables to determine your health that is your company and the amount of the repayments your company can support. The amount you receive from the loan will be determined by the specifics of your business.
When you make an application for a set amount, we look at a range of aspects to assess how much we can lend you such as health that is your business and the extent of the repayments your business can afford. The total amount of the loan will be determined by the specific circumstances of your company.
Fees & repayments
How much should you charge for a business loan?
When you request one of our company credit, we will assess the risk assessment the company and offer you with a tailored proposal that includes the loan amount, the terms and interest rates. The business loan is an upfront priced loan therefore you will know the exact amount due, which includes any interest rates, fees or charges.
What is the basis for the rate I will be charged?
Business loan interest rates depend on a variety of factors including the amount that is borrowed, what company assets the money will be used for in addition to the industry that the company is operating in, how long the company has been operating and in the event that the business has enough cash flow to cover the loan, and also the overall well-being or financial standing of the company.
What are the costs?
There aren’t any hidden costs for our company loans. You’ll know precisely what it is that you be required to pay and when, from the day you sign up. There’s no compounding interest and no additional fees (as long as you make your payments on time).
We don’t charge an Application Fee. You can make an application for loans absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I repay the loan in advance?
You may choose to pay back the total amount of your loan in full at any time.
If you choose to pursue this option, please talk to one of our helpful company credit professionals. We will provide you with details for repayment and an early payout figure. It will be calculated using the total of the remaining principal amount and accrued interest to the time of the early payout plus 1.5% of the principal remaining as well as any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being clear about how we collect the information we collect, use, share and secure your information, is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We utilise a sophisticated bank verification system link to instantly confirm your bank account information online. This allows us to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the company owner uses assets they own to make a loan. The asset can be an individual asset, such as the family home, or it could be a business asset like a truck or piece or equipment.
The vast majority of banks, even the largest banks, are inclined to make loans secured by an asset. If you are having difficulty paying back the loan then the asset might be sold by the lender. In essence, it is the process of securing new financing by using the worth of the asset you already own.
Do I require security to secure an business loan?
For loans that exceed $150K, it is not necessary to secure assets upfront to access the money, however we do need a personal guarantee. In the event that you fulfill your loan commitments (as detailed in your loan contract document) the security of assets is not required. For loans that exceed $150,000, generally, there is the option of a personal ensure and security that is in the form an asset charge.