FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Jolimont Small Business Loans
Let me know about the Jolimont Small Business Loans
Jolimont unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from an traditional business loan?
You can apply to this Small Business Loan in under 10 minutes via the internet or over the phone, receive a same day response and have the funds in your account within 24 hours. Traditional business loans are based on an annual rate of interest as well as other fees and charges. Our company loan is a pre-paid loan therefore you’ll be aware of the total amount due, which includes any fees, charges or charges. Then, it is broken down into either a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost any company reason, such as managing cash flows, business renovations, marketing to purchase inventory or new equipment, for general working capital and so much more. The loan is not available for personal reasons.
About Larger Jolimont Business Loans
What is the Larger Jolimont Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount, your business needs to be trading for at least 3 years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can I use the funding for?
A larger business loan can be used for almost every business use, including business improvements, purchasing equipment or inventory, as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. This is as a result of an charge against assets, and could include registering this through the PPSR or making as a caveat.
A director’s or personal ensure is a guarantee to repay credit that is generally based rather than stating security over an asset. The person signing the ensure is personally liable in the event that the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run 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 allows priority over personal property to be assigned depending on the date that a registration of a security interest.
A caveat is a legal form of document to offer the legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re applying for an enterprise loan that exceeds $250,000 we can offer an initial pre-approval in order to simplify the process. We may be able to apply for this without a credit check, and within 6 hours of the initial application. The pre-approval process is based on a preliminary assessment which includes the answer to a series of financial health questions. It is in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you receive could be based on different conditions.
Application process
Can I be eligible for funding?
You may apply for an 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)
- must show at least six months worth of trade (for a unsecured loan $5K – $100K) or three years of 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 company expert in lending will call you to guide you.
To apply for 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 require:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details for application including credit consent as well as 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) We can usually provide a response in one hour, provided you apply in standard company hours and let us utilise the bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statements we can provide an answer within the span of one company day.
For Larger Business Loans ($100K up to $500,000) we may be capable of offer the conditional pre-approval within six hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Certain transactions have received approval within less than 24 hours.
The quickest way to apply is to make sure you apply during standard business hours, and let us use the advanced bank verification system link to instantly confirm your bank details online. If you opt to send us copies of your bank accounts, it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer within an hour – as long as you make your application at normal business hours and permit us to make use of the advanced bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statements we can offer an answer in just 1 business day.
For the Larger Business Loans ($100K and up) We may be likely to offer you with conditional pre-approval within about six hours. Once you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Certain offers have been approved in 24 hours.
The most effective method can be ensure you apply during normal business hours, and allow us to use the modern bank verification link to instantly check your bank’s information online. If you decide to upload documents from your account accounts, it takes a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a particular amount, we consider a variety of factors to determine how much we can lend you health of your company and the level of repayments that your company can afford. The total amount of your loan will be contingent on the specific circumstances the company.
When you submit an application for a certain amount, we take into consideration a variety of elements to determine your well-being that is your company and the level of payments your business will be able to support. The amount you receive from the loan will be determined by the specific circumstances the company.
Fees & repayments
How much do you charge for a company loan?
If you decide to request the business loans, we’ll assess the risk assessment that you have for your business and offer you with a customised offer, including the amount of the loan, the duration and interest rates. This business loan is a loan that is priced upfront which means you be aware of the total amount payable including any interest rates, fees or charges.
What is the basis for the rate I will be charged?
Interest rates for company loans rates depend on several factors such as the amount that is that is borrowed, what business assets the funds will be used for, the industry the business operates in, how long the business has been running as well as in the event that the business has sufficient cash flow to pay for the loan, as well as the general health or creditworthiness of the business.
What are the charges?
There are no hidden fees for our company loans, and you’ll be aware of the amount it is that you need to pay, and when, right 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 punctually).
We do not charge an Application Fee. You are able to request a credit loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee includes the expenses associated with the setting up and management of the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan earlier?
You can choose to repay the total amount of your loan in full at any time.
If you choose to take this route, please speak to our friendly company credit specialists. They’ll provide you with details for repayment and an early payment figure. This will be calculated as the sum of the principal amount remaining and accrued interest to the date of early payout in addition to 1.5% of the principal balance plus any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align your cash flow schedule, we offer repayments that are either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as knowing how we collect the information we collect, use, share and protect your information, is vital and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to protecting the security of customers and security. We employ an exceptionally sophisticated bank verification system to instantly confirm your bank account information online to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a company owner makes use of an asset that they own to obtain the loan. The asset could be an individual asset, such as the family home, or it could be a company property like a truck as well as a piece of machine.
The vast majority of lending institutions, not just the banks with the biggest size, prefer to secure loans against an asset. If you’re having trouble paying back the loan, then your assets could be offered for sale by the lender. In essence it is a way of securing new financing by using the value of what you already own.
Are I need security for a company loan?
For loans that exceed $150K, there is no requirement for asset security prior to the loan’s access however, we do require a personal guarantee. So long as you comply with the terms of your loan (as stipulated in the loan contract) Asset security will never be needed. For loans of over $150K typically, you will need an individual ensure and security in the form of an asset charge.