FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Netley Small Business Loans
Tell me how you can avail the Netley Small Business Loans
Netley unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What makes this Unsecured Loan different from an traditional business loan?
Apply to your Small Business Loan in under 10 minutes online or over the phone, receive a same day response and have the funds in your account in 24 hours. Traditional business loans are based on an interest rate per annum plus other fees and charges. Our business loan is a cash-based loan which means you know ahead of time the amount you will have to pay, including any interest, fees or charges. This is then divided into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company reason, such as control of cash flow company remodeling, marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Netley Business Loans
What is the Larger Netley Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are either weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the company needs to be in operation for at least 3 years, and have an annual income of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funding for?
A Business Loan of a larger size can be used for almost every business reason, such as company improvements, purchasing equipment or inventory, as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It’s by way of charge on assets and can include registration in the PPSR or filing as a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is generally based rather than specifying security over a particular asset. The person signing the guarantee is personally responsible if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be granted depending on the date that a security interest has been registered.
An affidavit is an official document lodged to offer the legal claim to a property.
What is a pre-approval without Credit Check?
If you’re applying for larger business loans of more than $250,000 we may be able to provide a preliminary pre-approval to help make the process. We could be able to get this done without a credit check and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial well-being questions. It’s not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you receive could have different terms.
The 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 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application in just a few minutes, and an experienced business lending specialist will contact you to guide you through the process.
For a loan of up to $100,000, you’ll require the right identification documents (valid Driver’s Licence), a valid NZBN/IRD and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Details for application including credit consent as well as 12 months of bank records, IRD statements, last 2 years finalised financial statements, and interim current financial year financials as well as Aged Payables and Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we usually offer an answer in just one hour – as long as you apply at standard company time and allow us to use the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your banking statements we can offer a decision in just an company day.
For the Larger Business Loan ($100K or more) we may be capable of provide you with a conditional pre-approval in about 6 hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however it could be faster based on the specifics of each application. Some agreements have been approved in less than 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours. Also, allow us to use the modern bank verification link to instantly verify your bank account information online. If you choose to upload copies of your bank statements it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) we can often provide a response in one hour – provided you submit your request within standard business times and permit us to utilise the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statement, we’ll provide a decision in as little as the span of one business day.
For the Larger Business Loans ($100K to $500K) we could be likely to offer the conditional pre-approval in around six hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Some transactions have received approval within 24 hours.
The most effective method can be make sure you apply during normal business hours and allow us to use our advance bank verification to instantly check your bank’s information online. If you opt to upload documents from your account statements, it will take a little longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a particular amount, we consider a variety of variables in order to assess your well-being that is your business as well as the amount of repayments your business can afford. The total amount of your loan will depend on the particular circumstances for your company.
When you submit an application for a set amount, we look at a range of elements to determine how much we can lend you such as health of the company and the amount of repayments that your company is able to afford. The total amount of your loan will be determined by the specific circumstances of your business.
Fees & repayments
What is the cost for an company loan?
If you decide to request one of our business loans, we will assess the risk profile the business and offer you with a customised offer that includes the amount of the loan, the duration and interest rates. A business loan is an upfront-priced loan therefore you will know in advance the total amount due, which includes any charges, interest rates or fees.
What determines the amount I will be charged?
Business loan interest rates depend on several factors including the amount that is borrowed, what business assets the funds are used to purchase, the industry the business is in, how long the business has been in operation for, in the event that the business has enough cash flow to cover the loan, and also the general well-being or financial standing of the company.
What are the charges?
There are no hidden costs for our company loans. You’ll know precisely how much you’ll be required to pay and when, right from the day you sign up. There’s no compounding and no additional fees (as as you make your payments on time).
We don’t charge an Application Fee. You can apply for a loan with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved with the setting up and management of the loan. It is only charged for this cost if you take out the loan. Our Origination Fee 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 the loan at any point in time.
If you do decide to take this route, please talk to one of our helpful company loan professionals. We will offer you with details on repayment as well as an early payout amount. The figure will be calculated as the total of the remaining principal amount plus any accrued interest as of the time of the early payout plus 1.5 percent of the principal remaining plus any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss due dates and also to be in line with your cash flow standard, we provide payments that are either weekly or daily. They will be automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing how we collect information, use it, and exchange it, as well as protect your information, is crucial and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal financial information 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 that allows you to instantly verify the bank account details online, allowing us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the company owner makes use of an asset that they own to obtain a loan. The asset can be a personal asset like the family home, or it could be a company property like a truck as well as a piece of machine.
The vast majority of banks, including the major banks, prefer to guarantee loans against assets. If you have trouble paying back the loan then your assets could be offered for sale by the lender. In essence it is the process of securing new financing making use of the value of what you already have.
What do I require security to secure an company loan?
For loans of up to $150,000, there is no requirement for asset security upfront to access the money However, we require a personal guarantee. require an individual guarantee. As long as you follow the loan terms (as stipulated in the loan contract) the security of assets is not needed. If you take out loans in excess of $150,000 typically, you will need an individual ensure and security in the form a charge over assets.