FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Munno Para West Small Business Loans
Tell me what you think of the Munno Para West Small Business Loans
Munno Para West unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from an traditional business loan?
Apply for the Small Business Loan in under 10 minutes over the phone, receive an immediate response, and have the funds in your account in 24 hours. Traditional business loans refer to an interest rate per annum as well as other fees and charges. We offer a business loan is a cash-based loan and you’ll know in advance the total amount to be paid, including any interest, fees or charges. This is then divided into weekly or daily installment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost any company purpose including managing cash flows, company renovations, marketing to purchase inventory or new equipment, as general working capital and so much more. The loan is not available for personal purposes.
About Larger Munno Para West Business Loans
What is the Larger Munno Para West Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to be in operation for at least 3 years, and have an annual income of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funds be used for?
A larger business loan can be used for almost any business reason, such as business renovations, to purchase new equipment or inventory or as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. It is usually in the form of a charge against assets, which could also include the registration of this with the PPSR or the registration of a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is general in nature, rather than stipulating the security for a particular asset. The person signing the guarantee is personally liable in the event that the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including the assets or goods). The PPSR grants preference over private property assigned depending on the date that a registration of a security interest.
An affidavit is an official form of document to provide an official notice of a claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan of $250,000 or more we may be able to provide a preliminary pre-approval to help simplify the process. We might be able to make this decision without a credit verification and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves answering a couple of financial health checks. It is not an offer or guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer that you receive could have different terms.
The application process
Do I qualify for funds?
You can apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form in few minutes and an experienced company loan specialist will call you to guide you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s License), an NZBN/IRD that is valid and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent, 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, plus interim financial statements for the current year as well as Aged Payables and Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we typically offer an answer within an hour – as long as you make your application in quality company time and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your bank statements , we’ll be able to offer an answer in as little as one company day.
For the Larger Business Loan ($100K or more) we could be in a position to offer you with a conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this can be quicker based on the specifics of each application. Some offers have been approved within less than 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours, and permit us to use the modern bank verification link to confirm your bank details online. If you decide to send us the copies of bank statement, it takes a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K or more) we can often provide an answer in just one hour – as long as you submit your request at standard business time and permit us to use the bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your bank statements we can offer a decision in as little as one business day.
For the Larger Business Loans ($100K up to $500,000) we may be in a position to provide you with conditional pre-approval in about six hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be faster depending on the particular circumstances of each application. Certain transactions have received approval in less than 24 hours.
The quickest method is to ensure you apply during normal business hours, and let us use the advanced bank verification system to verify your bank account information online. If you decide to upload duplicates of your banking statements it may take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a certain amount, we take into consideration a range of variables that determine your well-being for your company as well as the amount of repayments your business can support. The amount you receive from the loan will be determined by the specific circumstances that are unique to your company.
When you submit an application for a specific amount we will consider a number of factors to determine your health of the business as well as the amount of payments your company can afford. The amount you receive from your loan will be contingent on the specific circumstances of your company.
Fees & repayments
How do you charge for a company loan?
If you decide to apply for the company loan, we will assess the risk assessment the company and provide you with a customised offer including the amount of loan, the term and interest rates. It is a company loan is an upfront-priced loan and you’ll be aware in advance of the total amount payable including any interest rates, fees or charges.
What determines the amount I will be charged?
Business loan interest rates depend on several factors like the amount of money that is borrowed, what company assets the money are used to purchase and the sector the business operates in, how long the company has been running, in the event that the company has enough cash flow to cover the loan, and the general well-being or financial standing of the business.
What are the fees?
There aren’t any hidden costs for our business loans, and you’ll be aware of the amount you need to pay, and at what time, from the day you sign up. There’s no compounding interest, and there are no additional charges (as long as you make your payments punctually).
We do not charge an Application Fee. You can make an application for loans no cost upfront or the obligation to take action.
The Origination Fee covers the expenses involved with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay off the loan early?
You can choose to repay the total amount of your loan in full at any time.
If you do decide to take this route, please speak to our friendly company loan specialists. They’ll offer you with repayment details and an early payment figure. This will be calculated as the sum of the principal amount remaining and the accrued interest up to the date of early payout, plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
To help you avoid missing payments and to work with your cash flow general, we offer repayments that are either daily or weekly. They will be automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about the ways we gather data, process, exchange and ensure the security of your information is of huge importance and is a crucial 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 protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to security for our customers and security. We employ a highly sophisticated bank verification system that allows you to immediately verify your bank account information online so we can provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an company owner uses the assets they have to obtain the funds for a loan. The asset can be an asset belonging to the personal, like the family home or an company asset such as a truck or other piece of machinery.
The vast majority of lending institutions, even the banks with the biggest size, prefer to guarantee loans against an asset. If you’re struggling to pay back the loan, then your asset may be taken over by the lender. In essence, it is the process of securing new financing by making use of the value of what you already have.
Are I need security to secure a company loan?
For loans of up to $150K, no asset security is required before you can access the money however, we require a personal guarantee. need the personal guarantee. If you adhere to the loan terms (as stipulated in your loan contract document) and you are able to meet your obligations, asset security will never be needed. For loans that exceed $150,000, typically, you will need personal ensure and security in the form of charges on assets.