FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Haynes Small Business Loans
Tell me more about Haynes Small Business Loans
Haynes unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
How is the Unsecured Loan different from the traditional company loan?
The application for the Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and funds may be available in just 24 hours. Traditional business loans refer to an annual rate of interest as well as other fees and charges. This company loan is a pre-paid loan which means you know in advance the total amount payable including any interest, fees or charges. This is then broken down into weekly or daily payment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company use, including cash flow management, business remodeling, marketing for purchasing inventory or new equipment, as general working capital, and much more. The loan is not available for personal reasons.
About the Larger Haynes Business Loans
What is the Larger Haynes Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to have been trading for at least 3 years, and have an annual income of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A Larger Business Loan can be used to fund almost any business need, including company renovations, purchase of new equipment or inventory as well as for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It is usually in the form of a charge against assets, and could be registered in the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is generally in nature rather than stipulating security over an asset. The person signing the ensure is personally responsible if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including items or assets). The PPSR grants priority over personal property to be assigned in accordance with the date on which a security interest that is registered.
Caveats are legal document filed to offer notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re requesting an enterprise loan of more than $250K we can offer an initial pre-approval that will help make the process. It is possible 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 you answering some financial well-being checks. It’s not an offer or guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you might receive could be subject to different conditions.
The application process
Do I qualify for funds?
You can apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a couple minutes, and a dedicated company expert in lending will be in touch to help you.
To be eligible for up to $100,000 you’ll need ID details (valid Driver’s Licence) as well as an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll also need:
$100K to $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Information on the application including credit consent as well as 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we typically offer a response in one hour if you submit your request at standard company hours and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you opt to send us copies of your bank statements , we’ll be able to provide a decision within just 1 business day.
For the Larger Business Loan ($100K and up) we could be able to offer you with pre-approval conditional to your application within about six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this can be quicker based on the specifics of each application. Certain agreements have been approved in just 24 hours.
The quickest method can be make sure you apply during standard company hours and let us use the modern bank verification link to instantly confirm your bank details online. If you send us documents from your account accounts, it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer within an hour if you apply at standard business hours and let us utilise the advanced bank verification system to immediately verify your bank account information online. If you decide to upload copies of your bank statement, we’ll offer a decision in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be capable of provide the conditional pre-approval within about six hours. Once you have signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, it could be faster based on the specifics of each application. Some transactions have received approval in the space of 24 hours.
The quickest method would be to ensure you apply during normal business hours and allow us to use the sophisticated bank verification to verify your bank account information online. If you choose to upload duplicates of your banking accounts, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a certain amount we take into consideration a range of variables that determine your well-being of your company and the level of repayments that your company can afford. The total amount of the loan will be determined by the particular circumstances for your company.
When you submit an application for a set amount, we look at a range of variables to assess how much we can lend you such as well-being that is your company and the level of payments your company will be able to support. The total amount of your loan will be determined by the particulars that are unique to your company.
Fees & repayments
How much do you charge for a business loan?
When you apply for the company financing, 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. This company loan is a loan that is priced upfront therefore you will be aware of the total amount payable including any charges, interest rates or fees.
What determines the amount I am charged?
Interest rates for business loans rates depend on several variables like the amount to be borrowed, the business assets the money will be used for as well as the field the business is operating in, how long the company has been operating, whether the company has enough cash flow to pay for the loan, and the general well-being or creditworthiness of the business.
What are the charges?
There are no hidden fees for our business loans. You’ll know precisely how much you be required 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 are able to make your payments in time).
We don’t charge an application fee. You are able to request a credit loan with without any upfront costs or commitment to apply.
The Origination Fee includes the expenses associated in establishing and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I repay the loan early?
You can decide to repay the entire amount of your loan early at any time.
If you choose to take this route, please call our helpful company credit specialists. They’ll offer you with details for repayment along with an early payout estimate. This is calculated as the total of the remaining principal amount and the accrued interest up to the time of early payment in addition to 1.5% of the remaining principal as well as any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss repayments and to fit in with your cash flow cycle we offer repayments that are either daily or weekly. They are automatically deducted from your nominated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being upfront about how we collect, use, exchange and secure your information, is vital and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We utilise a sophisticated bank verification system that allows you to immediately confirm your bank account information online to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an business owner uses an asset they own to secure a loan. The asset can be an individual property, such as the family home, or it could be a business asset such as a vehicle or piece or equipment.
The vast majority of lending institutions, including the largest banks, are inclined to secure loans against assets. If you have trouble paying back the loan then the asset might be offered for sale by the lender. In essence it is means of securing additional financing taking advantage of the value of what you already have.
Do I require security for an company loan?
For loans that exceed $150,000, it is not necessary to secure assets before you can access the money, however we require a personal guarantee. need an individual guarantee. If you adhere to the loan terms (as stipulated in the loan contract) and you are able to meet your obligations, asset security is not needed. If you take out loans in excess of $150,000 generally there is personal guarantee and security that is in the form the charge of assets.