FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Munno Para Small Business Loans
Let me know more about Munno Para Small Business Loans
Munno Para unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
What makes what makes the Unsecured Loan different from the traditional company loan?
It is possible to apply for this Small Business Loan in under 10 minutes by phone. You will receive an instant response and funds may be on your account within 24 hours. Traditional business loans reference an interest rate per annum as well as other fees and charges. Our business loan is an upfront priced loan so you will be aware of the total amount to be paid, including any fees, interest or charges. Then, it is broken down into weekly or daily payment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company purpose including cash flow management, business renovations, marketing to purchase inventory, new equipment, as general working capital, and much more. The loan cannot be used for personal use.
About the Larger Munno Para Business Loans
What is the Larger Munno Para Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are either weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit of this size the company needs to have been in operation for at least 3 years with an annual turnover of $700K. It is necessary to 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 to prove at minimum 12 months of continuous trading.
How can the funding be used for?
A large business loan is a great option for almost all business reason, such as company remodeling, buying new equipment or inventory as well as for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. It is usually in the form of a charge against assets and can be registered on the PPSR or making as a caveat.
A personal or director’s guarantee is a promise to repay credit that is generally in nature rather than specifying security over an asset. The person signing the guarantee is personally responsible if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including items or assets). The PPSR allows the priority of personal property assigned depending on the date that a security interest was registered.
The caveat can be described as a formal document lodged to provide the legal claim to property.
What is a pre-approval that does not require Credit Check?
When you’re applying for a Larger Business Loan of $250K or more it is possible to offer an initial pre-approval in order to simplify the process. We might be able to make this decision without a credit check and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes you answering some financial health checks. It is in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to a full credit assessment and any offer you are offered could have different conditions.
The application process
Are I eligible for funding?
You are eligible to apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application in few minutes and a dedicated business loan specialist will contact you to assist you.
To apply for up to $100,000 you’ll require identification details (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Information on the application including credit consent, 12 months of bank statements, IRD statement Last 2 years’ finalised financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) We can usually offer an answer within an hour, provided you apply during quality company times and allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements we can provide a decision within just one business day.
For the Larger Business Loan ($100K to $500K) we might be able to offer you with a conditional pre-approval in around six hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The most effective method would be to make sure you apply during standard company hours. You can also permit us to use the advanced bank verification system to instantly verify your bank information online. If you choose to upload the copies of bank statements it will take a little longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) We can usually provide an answer in just one hour if you apply in standard business time and let us utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statements we can offer an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be capable of provide you with conditional pre-approval within six hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Some deals have been approved in 24 hours.
The fastest way would be to make sure you apply during normal business hours. Also, permit us to use the advanced bank verification system to instantly confirm your bank details online. If you send us the copies of bank statement, it takes a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of aspects that determine what is the well-being of the business and the extent of repayments your company will be able to support. The amount you receive from your loan will be contingent on the particular circumstances for your company.
When you apply for a specific amount we will consider a number of elements to determine your well-being of the company and the extent of payments your company will be able to support. The total amount of your loan will depend on the specific circumstances the business.
Fees & repayments
How much should you charge for a company loan?
If you decide to request business loans with us business financing, we will assess the risk profile that you have for your company and offer an individualised offer, including the amount of loan, the term and the interest rates. It is a business loan is an upfront-priced loan which means you know the exact amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I’m charged?
Business loan interest rates depend on a variety of variables like the amount to be of money borrowed, the company assets the funds will be used for and the sector the business is operating in, how long the company has been operating and in the event that the company has sufficient cash flow to support the loan, and the general health as well as creditworthiness business.
What are the fees?
There are no hidden fees with our company loans, and you’ll know exactly how much you’ll be required to pay and when, starting from the first day. There’s no compounding interest, and there are no additional charges (as long as you make your payments in time).
We do not charge an application fee. You are able to apply for a loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the costs associated with establishing and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan early?
You can repay the entire amount of your loan at any point in time.
If you are deciding to do this please contact our helpful company credit professionals. The experts will offer you with details on repayment along with an early payout estimate. The figure will be calculated as the total of the principal amount remaining and the accrued interest up to the date of early payout, plus 1.5 percent of the remaining principal and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line with your cash flow standard, we offer repayments either daily or weekly. These are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as making it clear the ways we gather, use, exchange and protect your information, is of paramount importance and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to the security of our customers as well as their privacy. We employ an exceptionally sophisticated bank verification system to instantly confirm your bank account information online. This allows us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an business owner utilises assets they own to obtain the loan. The asset can be either an asset belonging to the personal, like the family home or an business property like a truck as well as a piece of machine.
The vast majority of lenders, not just the major banks, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan then the asset could be transferred to the lender. In essence, it’s a way of securing new financing by using the value of what you already have.
Are I require security to secure an business loan?
For loans of up to $150K, no asset security is required upfront to access the money however, we require a personal guarantee. need an individual guarantee. If you adhere to your loan obligations (as detailed in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150K generally, you can get an individual ensure and security is provided in the form of an asset charge.