FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Hilton Small Business Loans
Tell me what you think of the Hilton Small Business Loans
Hilton unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
How is what makes the Unsecured Loan different from an ordinary company loan?
Apply for this Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an instant response and funds may be in your account in 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. Our company loan is a loan that is priced upfront which means you be aware in advance of the total amount to be paid, including the interest, fees and charges. Then, it is divided into weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business need, such as cash flow management, company renovations, marketing to purchase inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal use.
About larger Hilton Business Loans
What is the Larger Hilton Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size the business needs to have been in operation for at least 3 years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A Larger Business Loan can be used for almost all business reason, such as business renovations, to purchase 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 necessary to access funding over $150,000. It’s in the form of a charge against assets, which could also include registering this on the PPSR or registering as a caveat.
A personal or director’s guarantee is a commitment to pay back a loan that is generally based rather than specifying the security of a specific asset. The person who is signing the ensure is personally accountable if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including goods or assets). The PPSR grants preference over private property granted according to the date the security interest was registered.
Caveats are legal document lodged to provide the public notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re requesting larger business loans of more than $250K we can offer an initial pre-approval to make the process. It is possible to do this without a credit check and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes the answer to a series of financial well-being checks. It is not an offer or guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you receive could be based on different conditions.
The application process
Do I have the right to receive funds?
You are eligible to apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in few minutes and a dedicated business lending specialist will be in touch to guide you through the process.
To be eligible for up to $100,000 you’ll require ID details (valid Driver’s Licence) and a valid NZBN/IRD and at least six months worth of bank statements.
For larger loan sizes, you’ll also need:
$100K-$250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we can often provide an answer within one hour – as long as you apply during quality business time and you allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statement, we’ll offer the decision in just one business day.
For the Larger Business Loan ($100K and up) we might be likely to offer the conditional pre-approval within 6 hours. After you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval, however this can be quicker based on the circumstances of each application. Certain deals have been approved in just 24 hours.
The quickest method is to ensure you apply during normal business hours. You can also permit us to use the modern bank verification to check your bank’s information online. If you choose to upload copies of your bank accounts, it may take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we can often offer an answer in just one hour if you apply in normal business hours and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statements, we will be able to offer an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be able to provide you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Certain deals have been approved in just 24 hours.
The fastest method can be ensure you apply during normal business hours. You can also allow us to use the advance bank verification to instantly verify your bank information online. If you send us copies of your bank statements it can take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you submit an application for a specific amount we consider a variety of factors in order to assess the well-being that is your company as well as the amount of repayments that your company can afford. The amount you receive from your loan will depend on the specifics for your company.
If you apply for a specific amount we take into consideration a variety of factors to determine how much we can lend you such as health of your company and the amount of repayments your business is able to afford. The amount you receive from your loan will depend on the particular circumstances that are unique to your business.
Fees & repayments
How do you charge for an business loan?
When you apply for one of our business loans, we’ll assess the risk assessment that you have for your business and provide an individualised offer that includes loan amount, term and interest rates. A business loan is an upfront-priced loan therefore you will be aware of the total amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I am charged?
Business loan interest rates vary due to factors including the amount that is borrowed, what business assets the money are used to purchase as well as the field the business operates in, the long the company has been running as well as how long the business has sufficient cash flow to cover the loan, and overall health or creditworthiness of the business.
What are the charges?
There aren’t any hidden costs for our business loans, and you’ll be aware of the amount you be required to pay and when, from day one. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments in time).
We don’t charge an Application Fee. You are able to make an application for loans with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5% of the loan amount.
Do I have the option of paying off the loan earlier?
You can repay the entire amount of your advance loan at any time.
If you decide to pursue this option, please speak to our friendly company credit specialists. They’ll offer you with details for repayment and an early payment figure. It will be calculated using the sum of the remaining principal amount and accrued interest to the time of early payment and 1.5% of the principal balance and any fees that remain unpaid.
How do you make repayments work?
To help you avoid missing payment dates and to align with 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 information be secure?
Security of your data, and being transparent about how we collect, use, exchange and protect your information, is crucial and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and privacy. We employ an exceptionally sophisticated bank verification system to instantly verify your bank account information online. This allows us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when the business owner borrows from an asset that they own to get the loan. The asset may be an individual property, such as the family home or an company asset such as a truck or other piece of machinery.
The vast majority of banks, not just the major banks, prefer to guarantee loans against assets. If you are having difficulty paying back the loan then your assets could be transferred to the lender. In essence it is an opportunity to secure additional financing using the value of what you already own.
Do I need security to get an business loan?
For loans up to $150K there is no requirement for asset security before you are able to access the money but we require a personal guarantee. require the personal guarantee. So long as you comply with your loan obligations (as stipulated in the loan contract), asset security is not required. For loans over $150K generally, you are able to get personal guarantee and security in the form of the charge of assets.