FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Pasadena Small Business Loans
Let me know what you think of the Pasadena Small Business Loans
Pasadena unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
How is the Unsecured Loan different from an traditional company loan?
Apply to get the Small Business Loan in under 10 minutes on the internet or by phone. You will receive an answer within the same day and the money could be in your account within 24 hours. Traditional business loans refer to an interest rate per annum along with other charges and fees. Our business loan is a pre-paid loan and you’ll be aware of the total amount to be paid, including any fees, interest or charges. Then, it is divided into weekly or daily payment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business reason, such as cash flow management, business improvements, advertising to purchase inventory or new equipment, for general working capital and much more. The loan is not available for personal reasons.
Concerning Larger Pasadena Business Loans
What is the Larger Pasadena 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 for a fixed period of with a maximum of 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount the company needs to be operating for a minimum of 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 as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funding be utilised?
A large business loan can be used to fund almost all business use, including company remodeling, buying equipment or inventory or as general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. It’s by way of charge on assets, which could also include the registration of this on the PPSR or filing a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is general in nature rather than stipulating the security for a particular asset. The person who is signing the guarantee is personally responsible if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests registered in respect of personal property (including objects or assets). The PPSR allows priority over personal property to be granted according to the date the security interest was registered.
A caveat is a legal document filed to provide an official notice of a claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for a Larger Business Loan of $250,000 or more it’s possible to offer an initial pre-approval that will help ease the process. It is possible to do this without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering some financial health checks. This is neither an offer nor a guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you may receive may be on different conditions.
Application process
Can I be eligible for funding?
You may apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Complete the online form in few minutes and an experienced company loan specialist will be in touch to assist you.
To be eligible for up to $100,000 you’ll require ID details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least six months of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K – $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details for application including credit consent and 12 months of bank records, IRD statement and the last two years’ finalised financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we can often provide an answer in just one hour if you submit your request in quality company hours and permit us to utilise the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your bank statements , we’ll be able to offer a decision within 1 company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we could be capable of provide you with a conditional pre-approval in around 6 hours. After you’ve signed your pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this can be quicker based on the particular circumstances of each application. Some deals have been approved within less than 24 hours.
The quickest way to apply would be to ensure you apply during standard company hours. You can also allow us to use the advance bank verification to check your bank’s information online. If you send us documents from your account statement, it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we can often offer a response in one hour if you apply within normal business times and permit us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your bank statements we can offer an answer in as little as one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be in a position to provide you with a conditional pre-approval in around six 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 circumstances of each application. Some deals have been approved in less than 24 hours.
The fastest method can be ensure you apply during normal business hours. You can also permit us to use the sophisticated bank verification to verify your bank information online. If you decide to send us the copies of bank statements it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a certain amount we take into consideration a range of factors that determine your health that is your business and the amount of payments your business will be able to support. The total amount of the loan will be determined by the specifics that are unique to your company.
If you apply for a specific amount we take into consideration a variety of elements to assess the well-being that is your company as well as the amount of repayments that your business will be able to support. The total amount of your loan will be contingent on the specific circumstances for your business.
Fees & repayments
How much should you charge for the cost of a company loan?
When you apply for business loans with us business credit, we’ll assess the risk profile for your company and provide an individualised offer that includes loan amount, term and interest rates. This company loan is a loan that is priced upfront therefore you will be aware of the total amount payable including any costs, fees, or interest rates.
What determines the rate that I’m charged?
Business loan interest rates vary due to factors including the amount borrowed, the company assets the money will be used for in addition to the industry that the company is in, how long the business has been operating and in the event that the company has sufficient cash flow to pay for the loan, and overall health and creditworthiness of the company.
What are the costs?
There aren’t any hidden costs for our business loans, and you’ll know precisely how much you need to pay, and when, right from the first day. There’s no compounding interest, and no extra fees (as long as you make your payments punctually).
We do not charge an application fee. You are able to request a credit loan without any upfront costs or commitment to apply.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can decide to repay the entire amount of the loan in full at any time.
If you decide to do this please talk to one of our helpful company credit experts. We will offer you with details on repayment and an early payment figure. This is calculated as the sum of the principal amount remaining and any accrued interest at the time of early payment plus 1.5% of the remaining principal and any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss repayments and to fit in your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing how we collect the information we collect, use, share and ensure the security of your information is of paramount importance and a vital part 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 as well as financial data. Our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their security. We make use of an advanced bank verification system link to instantly verify the bank account details online to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where an business owner borrows from an asset they own to obtain the funds for a loan. The asset can be either an asset belonging to the personal, like the family home or a company asset such as a vehicle or other piece of machinery.
The majority of the lenders even the banks with the biggest size, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, then the asset might be sold by the lender. In essence, it’s an opportunity to secure new financing using the worth of the asset you already have.
Do I require security for a business loan?
Up to $150,000 in loans no asset security is required prior to the loan’s access but we do need a personal guarantee. So long as you comply with your loan obligations (as stipulated in your loan contract document) and you are able to meet your obligations, asset security is not required. If you take out loans in excess of $150,000 generally there is a personal guarantee and security is provided in the form of an asset charge.