FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Panorama Small Business Loans
Let me know more about Panorama Small Business Loans
Panorama unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from an traditional business loan?
Apply to 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 along with other charges and fees. We offer a business loan is a pre-paid loan which means you be aware of the amount you will have to pay, including any interest, fees or charges. This is then broken down into either weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
A Small Business Loan can be used for almost every business reason, such as cash flow management, company renovations, marketing for purchasing inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal reasons.
About Larger Panorama Business Loans
What is the Larger Panorama Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are either weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been trading for at least 3 years, and have an annual income of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or 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 funds be used for?
A Business Loan of a larger size can be used to fund almost every business use, including business improvements, purchasing inventory or new equipment or as 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 needed to access funding over $150,000. This is in the form of a charge over assets, and could include registering this on the PPSR or making as a caveat.
A director’s or personal ensure is a commitment to pay back a loan that is generally in nature rather than stating security over a particular asset. The person who signs the guarantee is personally liable in the event that the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It contains security interests that are registered for personal property (including goods or assets). The PPSR allows prioritisation over property that is personal to be granted depending on the date that a security interest that is registered.
An affidavit is an official document lodged to provide the legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan that exceeds $250,000 we can offer an initial pre-approval that will help simplify the process. We might be able to make this decision without credit checks and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves you answering a few financial well-being checks. It’s not an offer or guarantee of finance. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you might receive could be on different terms.
Application process
Can I be eligible for funding?
You can apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for 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 fast and simple. Complete the online form within a couple minutes, and a dedicated company expert in lending will call you to guide you through the process.
To apply for up to $100,000, you’ll need proof of identity (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
For larger loan sizes, you’ll also require:
$100K – $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Information on the application including credit consent and 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, and interim financial statements for the current year as well as Aged Payables and Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) We can usually offer an answer in just one hour – as long as you submit your request during quality business times and you allow us to use the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your bank statements , we will be able to offer the decision within just one business day.
If you are applying for a Larger Business Loan ($100K and up) we could be capable of provide the conditional pre-approval within six hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, it could be faster based on the specifics of each application. Some transactions have received approval within 24 hours.
The quickest way to apply is to ensure you apply during standard business hours. Also, allow us to use our modern bank verification to check your bank’s information online. If you decide to upload copies of your bank statement, it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we typically offer an answer within one hour if you apply during standard business time and let us utilise the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statement, we’ll provide the decision in as little as an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be capable of offer the conditional pre-approval within 6 hours. Once you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Some deals have been approved within the space of 24 hours.
The fastest method would be to ensure you apply during normal business hours, and allow us to use our advance bank verification to verify your bank information online. If you upload the copies of bank statements, it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you submit an application for a certain amount we consider a variety of elements to determine the health of the business and the amount of repayments that your business can support. The amount you receive from your loan will be contingent on the specifics that are unique to your company.
If you apply for a specific amount we look at a range of elements to determine the health for your business and the extent of repayments your business can support. The amount you receive from your loan will be determined by the particular circumstances the company.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to request our business credit, we will assess the risk assessment the business and provide you with a customised offer including the amount of loan, the term and interest rates. It is a business loan is an upfront priced loan and you’ll be aware of the total amount to be paid, including any charges, interest rates or fees.
What is the basis for the rate I’m charged?
The interest rates on business loans rates differ based on various factors like the amount of money that is borrowed, what business assets the money are used to purchase, the industry the business operates in, how long the company has been running as well as in the event that the company has sufficient cash flow to fund the loan, as well as the overall well-being as well as creditworthiness business.
What are the charges?
There aren’t any hidden charges for our business loans. You’ll know precisely how much it is that you need to pay, and when, from the first day. There’s no compounding and there are no additional charges (as as long as you pay your payments on time).
We don’t charge an Application Fee. You are able to apply for a loan with with no upfront cost or commitment to apply.
The Origination Fee covers the expenses involved with the setting up and management of the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I repay the loan in advance?
You can choose to repay all of your advance loan at any time.
If you choose to take this route, please talk to one of our helpful business lending specialists. The specialists will provide you with repayment details and an early payment figure. This will be calculated as the sum of the principal remaining and the accrued interest up to the time of the early payout, plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
In order to help you avoid missing due dates and also to be in line with your cash flow routine, we offer repayments that are either daily or weekly. They are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Protecting your information, and making it clear how we collect data, process, exchange and ensure the security of your information is of huge importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their security. We make use of an advanced bank verification system link to immediately verify the bank account details online to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner makes use of an asset that they own to make the funding. The asset can be either an individual asset, such as the family home or a business property like a truck or piece or equipment.
The majority of banks, even the largest banks, are inclined to secure loans against assets. If you’re having trouble paying back the loan, the asset could be sold by the lender. In essence it’s the process of securing new funding using the worth of the asset you already have.
Should I require security to secure an business loan?
For loans of up to $150K, there is no requirement for asset security before you can access the money but we require a personal guarantee. need the personal guarantee. As long as you follow the loan terms (as stipulated in your loan contract document), asset security is not required. If you take out loans in excess of $150,000 typically, you will need an individual ensure and security in the form charges on assets.