FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Lathlain Small Business Loans
Tell me about the Lathlain Small Business Loans
Lathlain unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
What makes this Unsecured Loan different from an ordinary company loan?
You can apply to get your Small Business Loan in under 10 minutes via the internet or by phone. You will receive an instant response and funds may be in your account in 24 hours. Traditional company loans have an annual interest rate as well as other fees and charges. This business loan is a pre-paid loan and you’ll be aware in advance of the total amount due, which includes the interest, fees and charges. Then, it is broken down into either a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business need, such as managing cash flows, company improvements, advertising to purchase inventory, new equipment, or as general working capital and much more. The loan is not available for personal purposes.
Concerning Larger Lathlain Business Loans
What is the Larger Lathlain Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount, your company needs to have been operating for a minimum of 3 years and generate an annual revenue of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be utilised?
A Larger Business Loan is a great option for almost every business purpose including business improvements, purchasing new equipment or inventory or as general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This is in the form of a charge over assets, which could also include the registration of this in the PPSR or making as a caveat.
A director’s or personal ensure is a promise to pay back a loan that is general in nature, rather than specifying security over a particular asset. The person signing the ensure is personally liable in the event that the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR allows priority over personal property to be assigned according to the date the security interest has been registered.
Caveats are legal document that is filed to offer an official notice of a claim on a property.
What is a pre-approval without Credit Check?
If you’re requesting a Larger Business Loan that is greater than $250,000, we may offer an initial pre-approval in order to smooth out the process. We might be able to get this done without a credit verification and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial well-being checks. This is in no way an offer, nor is it a guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer that you might receive could be on different terms.
Application process
Do I qualify for funds?
You can apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application within a couple minutes, and an experienced business lending specialist will call you to help you.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s Licence) and a valid NZBN/IRD and at least six months of bank statements.
For larger loan sizes, you’ll also require:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details for application including credit consent, 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, as well as interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K or more) we can often provide an answer within one hour – as long as you make your application during quality business times and permit us to utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your bank statements we can provide an answer within the span of one company day.
For the Larger Business Loan ($100K and up) we might be able to offer the conditional pre-approval in around 6 hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Some offers have been approved in just 24 hours.
The quickest method is to make sure you apply during normal company hours. You can also let us use the advance bank verification to instantly check your bank’s information online. If you opt to send us copies of your bank statements , it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer within an hour – provided you submit your request in normal business hours and let us use the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your bank statements, we’ll be able to provide a decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we might be likely to provide the conditional pre-approval within six hours. Once you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this can be faster depending on the particular circumstances of each application. Certain offers have been approved in less than 24 hours.
The fastest method for you to apply is ensure you apply during standard business hours, and permit us to use the modern bank verification to instantly confirm your bank details online. If you choose to upload duplicates of your banking statements it will take a little 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 certain amount we will consider a number of aspects for determining how much we can lend you health of the business and the level of payments your company can support. The amount you receive from your loan will be contingent on the particular circumstances that are unique to your company.
When you submit an application for a specific amount we consider a variety of elements to determine your health that is your company and the extent of repayments that your business is able to afford. The total amount of your loan will be contingent on the specifics the company.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to apply for our company credit, we’ll assess the risk profile for your company and provide you with a customised offer, including loan amount, term and interest rates. A company loan is an upfront cost loan therefore you will know the exact amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I am charged?
The interest rates on company loans rates depend on several factors including the amount of money borrowed, the company assets the funds are used to purchase as well as the field the company operates in, the long the company has been running as well as how long the company has enough cash flow to cover the loan, and general health or creditworthiness of the business.
What are the costs?
There aren’t any hidden costs with our business loans, and you’ll know precisely what you’ll be required to pay, and when, right from the day you sign up. There’s no compounding and there are no additional charges (as long as you are able to make your payments on time).
We don’t charge an Application Fee. You are able to get a cash loan with no upfront cost or any obligation to sign up.
The Origination Fee covers the expenses involved in establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the loan amount.
Do I have the option of paying off the loan in advance?
You may choose to pay back the total amount of your advance loan at any time.
If you choose to take this route, please speak to our friendly business lending specialists. They will offer you with the details of your repayment along with an early payout estimate. The figure will be calculated as the total of the remaining principal amount and the accrued interest up to the time of the early payout, plus 1.5 percent of the principal amount remaining plus any outstanding fees.
What are the repayment methods?
To help you avoid missing payment dates and to align with your cash flow cycle we offer repayments either weekly or daily. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my information be secure?
Protecting your information, and making it clear how we collect data, process, exchange and protect your information, is of paramount importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We utilise a sophisticated bank verification system to instantly verify 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 an company owner uses the assets they have to secure a loan. The asset may be an individual asset, such as the family home, or a business property like a truck as well as a piece of machine.
The vast majority of banks, not just the big banks, tend to guarantee loans against assets. If you have trouble paying back the loan then your asset may be sold by the lender. In essence, it’s the process of securing new financing taking advantage of the value of what you already have.
Should I need security to get a company loan?
For loans of up to $150,000, the requirement for asset security is not required prior to the loan’s access, however we require a personal guarantee. require a personal guarantee. As long as you follow the terms of your loan (as stipulated in the loan contract) the security of assets is not required. For loans of over $150K typically, you will need an individual ensure and security in the form of charges on assets.