FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Mount Lawley Small Business Loans
Tell me more about Mount Lawley Small Business Loans
Mount Lawley unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from an ordinary company loan?
Apply to the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an immediate response, and have the funds in your account in 24 hours. Traditional company loans have an annual rate of interest along with other charges and fees. Our company loan is a loan that is priced upfront so you will be aware of the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into either a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for almost any company use, including managing cash flows, company remodels and marketing for purchasing inventory or new equipment, or as general working capital, and much more. The loan is not available for personal reasons.
About the Larger Mount Lawley Business Loans
What is the Larger Mount Lawley Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to have been operating for at least three years with an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can I use the funds for?
A Business Loan of a larger size can be used for nearly any business reason, such as business improvements, purchasing new equipment or inventory for general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. It’s as a result of an charge on assets, which could also include registration in the PPSR or registering a caveat.
A personal or director’s guarantee is a commitment to pay off a credit line that is generally based rather than stipulating security over a particular asset. The person signing the ensure is personally liable in the event that the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It reflects security interests that are registered for personal property (including goods or assets). The PPSR grants the priority of personal property assigned depending on the date that a security interest was registered.
The caveat can be described as a formal document that is filed to offer notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting larger business loans of more than $250K, we may offer an initial pre-approval that will help ease the process. We might be able to get this done 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 well-being questions. It is in no way an offer, nor is it a guarantee of funds. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you receive could be subject to different conditions.
The application process
Can I be eligible for funding?
You may be eligible for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate 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 up to $500K)
How do I apply?
The application process is fast and easy. Complete the online form in just a few minutes, and an experienced company credit specialist will call you to assist you.
To apply for up $100,000 you’ll need the right identification documents (valid Driver’s License) and an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K-$250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Application details including credit consent as well as 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we typically offer an answer within one hour if you make your application in quality company hours and permit us to utilise 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 can offer an answer within the span of one business day.
If you are applying for a Larger Business Loan ($100K or more) we could be likely to provide you with a conditional pre-approval in around six hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this could be shorter based on the particular circumstances of each application. Some agreements have been approved in the space of 24 hours.
The quickest way to apply would be to make sure you apply during standard company hours. You can also allow us to use the advanced bank verification system to check your bank’s information online. If you opt to upload duplicates of your banking accounts, it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) we usually offer an answer within an hour if you make your application in standard business timings and you allow us to use the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your banking statements we can offer an answer within 1 business day.
If you are applying for Larger Business Loans ($100K and up) we might be in a position to offer you with conditional pre-approval within about six hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain deals have been approved within less than 24 hours.
The quickest method is to ensure you apply during normal business hours. You can also allow us to use the sophisticated bank verification link to instantly verify your bank account information online. If you choose to send us duplicates of your banking accounts, it takes a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. When you submit an application for a certain amount we will consider a number of elements that determine your health of your business and the level of repayments your company will be able to support. The amount you receive from the loan will be determined by the specifics of your business.
When you submit an application for a set amount, we consider a variety of aspects to determine how much we can lend you such as health for your company and the amount of repayments that your business can afford. The total amount of your loan will be determined by the particular circumstances of your company.
Fees & repayments
How much do you charge for an business loan?
If you decide to make an application for our business loan, we will assess the risk profile that you have for your company and provide you with a customised offer that includes loan amount, term and the interest rates. It is a business loan is an upfront-priced loan which means you know in advance the total amount to be paid, including any costs, fees, or interest rates.
What is the factor that determines the price I’m charged?
Business loan interest rates depend on a variety of variables like the amount to be of money borrowed, the company assets the money are used to purchase as well as the field the company operates in, the long the company has been operating for, what percentage of the company has sufficient cash flow to cover the loan, and also the overall health and creditworthiness of the company.
What are the costs?
There aren’t any hidden charges for our company loans, and you’ll be aware of the amount you be required to pay, and when, starting from the day you sign up. There’s no compounding interest, and the loan comes with no additional fees (as long as you are able to make your payments in time).
We do not 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 costs associated with establishing and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan earlier?
You can choose to repay the entire amount of your loan in full at any time.
If you are deciding to pursue this option, please call our helpful business lending specialists. We will offer you with details on repayment as well as an early payout amount. This will be calculated as the total of the principal remaining and accrued interest to the time of early payout plus 1.5% of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in with your cash flow standard, we provide payments that are either daily or weekly. They are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as making it clear how we collect data, process, exchange and safeguard your data, is crucial and is an essential 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 personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of clients and security. We employ an exceptionally sophisticated bank verification system link to instantly verify your bank account information online so we can offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the company owner borrows from an asset that they own to get the funds for a loan. The asset can be either an individual property, such as the family home or an company property like a truck as well as a piece of machine.
The majority of lending institutions, including the banks with the biggest size, prefer to guarantee loans against assets. If you are having difficulty paying back the loan, the asset might be taken over by the lender. In essence it is an opportunity to secure new financing by using the value of what you already have.
Do I need security to get an business loan?
Up to $150,000 in loans there is no requirement for asset security prior to the loan’s access however, we require a personal guarantee. require an individual guarantee. If you adhere to your loan obligations (as stated in the loan contract) the security of assets is not needed. For loans of over $150K generally, there is an individual ensure and security in the form an asset charge.