FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Armadale Small Business Loans
Tell me about the Armadale Small Business Loans
Armadale unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from an ordinary company loan?
It is imaginable to apply to get this Small Business Loan in under 10 minutes on the phone. You’ll receive a same day response and the money could be in your account within 24 hours. Traditional company loans refer to an interest rate per annum plus other fees and charges. Our company loan is a cash-based loan and you’ll be aware in advance of the total amount payable including the interest, fees and charges. This is then divided into a daily or weekly repayment figure.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business need, such as cash flow management, company renovations, marketing to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used to fund personal expenses.
Concerning Larger Armadale Business Loans
What is the Larger Armadale Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly depending on your situation.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to have been operating for a minimum of 3 years, and have an annual income of at least $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funds be used for?
A Larger Business Loan can be used to fund almost every company use, including company renovations, purchase of equipment or inventory, as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. This is as a result of an charge against assets and can include registration with the PPSR or making as a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is general in nature, rather than stipulating security over a particular asset. The person who signs the guarantee is personally responsible if the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR allows the priority of personal property assigned in accordance with the date on which a security interest has been registered.
A caveat is a legal document that is filed to offer the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re seeking an enterprise loan of $250,000 or more we can offer an initial pre-approval to smooth out the process. We might be able to do this without credit checks and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes you answering some financial well-being questions. It’s not an offer or guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer that you receive could be based on different terms.
The application process
Do I qualify for funds?
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 business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Complete the online form within a few minutes and an experienced company lending specialist will call you to help you.
For a loan of up to $100,000, you’ll need identification details (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll also need:
$100K – $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: Details of the application, including credit consent as well as 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, plus interim financial statements for the current year such as age-related payables and aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we typically offer a response in one hour if you make your application during quality company hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your banking statement, we’ll provide the decision within an company day.
For the Larger Business Loan ($100K or more) we might be likely to offer the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this can be quicker based upon the circumstances for each application. Certain offers have been approved in the space of 24 hours.
The quickest method can be ensure you apply during standard business hours and allow us to use our advanced bank verification system link to check your bank’s information online. If you upload duplicates of your banking statement, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we usually offer an answer in just one hour if you apply in normal business times and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your banking statements, we’ll be able to provide an answer in as little as 1 business day.
For the Larger Business Loans ($100K up to $500,000) We may be in a position to offer the conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval. However, this may be quicker depending upon the circumstances for each application. Certain deals have been approved in just 24 hours.
The most effective method would be to make sure you apply during standard business hours. You can also permit us to use the modern bank verification to check your bank’s information online. If you send us duplicates of your banking statement, it may take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a certain amount we will consider a number of variables in order to assess how much we can lend you well-being of your company and the extent of payments your company will be able to support. The total amount of your loan will be contingent on the specifics the business.
If you apply for a certain amount, we take into consideration a variety of variables to assess how much we can lend you such as well-being of the company and the level 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 business.
Fees & repayments
How much should you charge for an business loan?
If you decide to apply for business loans with us business loan, we’ll assess the risk profile of your business and provide an individualised proposal that includes the amount of the loan, the duration and interest rates. It is a business loan is a loan that is priced upfront which means you know in advance the total amount payable including any interest rates, fees or charges.
What is the factor that determines the price I’m charged?
Business loan interest rates differ based on various factors including the amount that is borrowed, what business assets the money will be used for and the sector the company is operating in, how long the company has been operating, in the event that the business has sufficient cash flow to fund the loan, and also the general health and creditworthiness of the business.
What are the fees?
There are no hidden fees with our business loans, and you’ll be aware of the amount 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 are able to make your payments punctually).
We don’t charge an Application Fee. You are able to apply for a loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the expenses involved with setting up and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I pay off the loan in advance?
You can decide to repay the entire amount of the loan early at any time.
If you are deciding to pursue this option, please talk to one of our helpful business loan professionals. They’ll offer you with details on repayment and an early payment figure. This will be calculated as the total of the principal balance and any accrued interest at the date of early payout in addition to 1.5% of the principal amount remaining plus any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss repayments and to fit in your cash flow schedule, we offer repayments that are either daily or weekly. They are automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being clear about the ways we gather information, use it, and exchange it, as well as ensure the security of your information is vital and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to security for our clients and security. We use an advanced bank verification system that allows you to instantly verify your bank account information online so we can offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when the company owner makes use of assets they own to make the funds for a loan. The asset can be either an individual asset, such as the family home, or an company asset like a truck or piece or equipment.
The majority of lending institutions, including the major banks, prefer to guarantee loans against assets. If you have trouble paying back the loan then the asset could be offered for sale by the lender. In essence it is an opportunity to secure new financing by using the worth of the asset you already have.
Do I need security to secure a company loan?
For loans of up to $150K, it is not necessary to secure assets prior to the loan’s access however, we require a personal guarantee. need an individual guarantee. If you adhere to your loan obligations (as stated in your loan contract document) Asset security is not needed. For loans that exceed $150,000, generally, you are able to get the option of a personal guarantee and security is provided in the form of charges on assets.