FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Jindalee Small Business Loans
Tell me more about Jindalee Small Business Loans
Jindalee unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from a traditional business loan?
The application to get the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get a same day response and have the funds on your account within 24 hours. Traditional company loans are based on an interest rate per annum together with additional fees and charges. Our company loan is an upfront priced loan and you’ll know in advance the total amount due, which includes any fees, charges or charges. This is then divided into weekly or daily installment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every business use, including cash flow management, company remodels and marketing, to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used for personal purposes.
About the Larger Jindalee Business Loans
What is the Larger Jindalee Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
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.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount the business needs to have been operating for at least three years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can I use the funds for?
A large business loan can be used for nearly every business use, including business renovations, to purchase equipment or inventory, as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. This can be done by taking a charge against assets, which could also include registering this with the PPSR or registering as a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is generally based rather than defining security over an asset. The person who is signing the guarantee is personally responsible if the company borrower is unable to repay 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 that are registered for personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be assigned according to the date a registration of a security interest.
The caveat can be described as a formal document lodged to offer the legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan of $250K or more we can offer a preliminary pre-approval to help make the process. It is possible to do this without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial health questions. It is neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to a full credit assessment and any offer you might receive could be on different conditions.
Application process
Do I qualify for funds?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application within a couple minutes, and an experienced business expert in lending will call you to help you.
To be eligible for up to $100,000 you’ll require ID details (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent twelve months of bank records, IRD statement, last 2 years finalised financial statements, plus interim financials for the current financial year including Aged Payables, Aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) We can usually offer a response in one hour – as long as you make your application within standard company timings and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you want to send us copies of your bank statements we can offer an answer within one company day.
For Larger Business Loans ($100K or more) we may be capable of provide you with conditional pre-approval within about 6 hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this could be shorter based on the specifics of each application. Certain offers have been approved within just 24 hours.
The fastest way is to make sure you apply during normal business hours and let us use the modern bank verification link to instantly verify your bank information online. If you opt to upload documents from your account accounts, it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we can often offer a response in one hour, provided you make your application at normal business time and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank statements we can offer the decision in just one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be in a position to offer you with a conditional pre-approval within 6 hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Certain offers have been approved within just 24 hours.
The fastest way would be to make sure you apply during standard business hours, and permit us to use the advanced bank verification system to check your bank’s information online. If you choose to upload documents from your account statements, it takes a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a specific amount we take into consideration a range of variables for determining what is the well-being of the company and the level of repayments that your business can afford. The amount you receive from your loan will be contingent on the specific circumstances that are unique to your business.
When you apply for a particular amount, we will consider a number of variables to determine your well-being that is your business and the level of repayments that your company can afford. The amount you receive from your loan will depend on the particulars the business.
Fees & repayments
How much should you charge for a company loan?
If you decide to make an application for our business credit, we’ll assess the risk profile of your company and offer you with a customised offer including the loan amount, the terms and interest rates. The company loan is an upfront cost loan which means you know the exact amount due, which includes any costs, fees, or interest rates.
What is the factor that determines the price I pay?
The interest rates on business loans rates depend on several factors including the amount that is borrowed, what business assets the funds will be used for, the industry the company is operating in, how long the company has been operating as well as whether the business has sufficient cash flow to fund the loan, and also the overall health or creditworthiness of the business.
What are the cost?
There are no hidden fees for our business loans, and you’ll know precisely how much you need to pay and when, starting from the very first day. There’s no compounding and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You are able to apply for a loan absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. It is only charged for 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 in advance?
You may choose to pay back the entire amount of your loan at any point in time.
If you choose to do this please call our helpful company loans experts. They will provide you with details on repayment along with an early payout estimate. It will be calculated using the total of the remaining principal amount and any accrued interest at the date of early payout and 1.5 percent of the principal balance as well as any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payments and to work your cash flow schedule, we offer repayments either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my information be secure?
Security of your data, and being upfront about the ways we gather, use, exchange and secure 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 make use of industry-standard encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account details online, allowing us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the business owner uses the assets they have to secure the funding. The asset can be either an individual asset, such as the family home, or it could be a business asset such as a vehicle or piece or equipment.
The majority of banks, including the major banks, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, then your assets could be sold by the lender. In essence, it’s a way of securing new funding taking advantage of the value of what you already own.
Do I need security to secure an business loan?
For loans up to $150K the requirement for asset security is not required prior to the loan’s access but we do require the personal guarantee. So long as you comply with the loan terms (as detailed in your loan contract) the security of assets will never be required. For loans of over $150,000 generally there is personal ensure and security is provided in the form of the charge of assets.