FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Nedlands Small Business Loans
Tell me what you think of the Nedlands Small Business Loans
Nedlands unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from the traditional business loan?
You can apply to the Small Business Loan in under 10 minutes online or over the phone, receive a same day response and the funds could be in your account within 24 hours. Traditional company loans have an interest rate per annum as well as other fees and charges. The company loan is a loan that is priced upfront which means you be aware in advance of the total amount to be paid, including any interest, fees or charges. Then, it is broken down into either weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business use, including cash flow management, company remodels and marketing for purchasing inventory or new equipment, for general working capital and much more. The loan is not available for personal use.
Concerning Larger Nedlands Business Loans
What is the Larger Nedlands Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is calculated 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 trading for at least 3 years with an annual turnover of at least $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funding for?
A Larger Business Loan can be used for almost any company need, including business renovations, purchase of equipment or inventory as well as for general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. This is in the form of a charge on assets, which could also include the registration of this in the PPSR or the registration of a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally in nature rather than stating security over a particular asset. The person signing the guarantee is personally liable if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including objects or assets). The PPSR gives prioritisation over property that is personal to be assigned according to the date the security interest was registered.
An affidavit is an official document lodged to provide the legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan that is greater than $250,000 we may be able to provide an initial pre-approval that will help make the process. It is possible to apply for this without a credit verification and within 6 hours of your initial application. This pre-approval is based on a preliminary assessment which includes answering a couple of financial well-being questions. This is in no way an offer, nor is it a guarantee of financing. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you may receive may have different terms.
Application process
Can I be eligible for funding?
You may apply 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)
- must show at least six months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form within a couple minutes, and a dedicated company expert in lending will call you to guide you.
To apply for up to $100,000, you’ll need ID details (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent, 12 months of bank statements, IRD statements, last 2 years finalised financial statements, plus interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we can often provide an answer in just one hour, provided you submit your request within standard company timings and you allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statements we can provide the decision in just an business day.
For the Larger Business Loan ($100K or more) we could be capable of offer you with conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Certain deals have been approved in less than 24 hours.
The quickest way to apply is to ensure you apply during standard business hours and let us use the advanced bank verification system to instantly check your bank’s information online. If you send us duplicates of your banking statements it may take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K to $100K) we usually provide a response in one hour – as long as you apply in standard business time and permit us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statements, we will be able to offer the decision in just one business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be capable of offer the conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval form, it will take about 2-3 days for final approval, however it could be faster based on the circumstances of each application. Some agreements have been approved within 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours and allow us to use our advance bank verification to instantly confirm your bank details online. If you opt to send us copies of your bank statement, it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a certain amount we take into consideration a range of aspects for determining the health of the business and the amount of repayments your company can support. The total amount of your loan will be contingent on the specifics that are unique to your company.
If you apply for a certain amount, we consider a variety of factors to determine the health of your company and the extent of the repayments your company can support. The amount you receive from your loan will be determined by the specifics the business.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to apply for one of our company loan, we’ll assess the risk assessment for your company and offer you with a customised offer that includes loan amount, term and interest rates. This company loan is an upfront cost loan so you will be aware in advance of the total amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I will be charged?
Interest rates for company loans rates depend on a variety of factors including the amount that is borrowed, what company assets the funds are used to purchase, the industry the company is in, how long the company is in operation and whether the company has sufficient cash flow to support the loan, and general health and creditworthiness of the business.
What are the cost?
There are no hidden fees for our company loans. You’ll know exactly how much you’ll be required to pay and when, starting from day one. There’s no compounding interest, and no extra 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 with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. The only way to pay this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I repay the loan early?
You can decide to repay the total amount of your advance loan at any time.
If you are deciding to take this route, please contact our helpful company credit professionals. They will provide you with repayment details and an early payment figure. This is calculated as the total of the remaining principal amount and the accrued interest up to the date of early payout and 1.5% of the principal remaining and any fees that remain unpaid.
What is the process for repayments?
To help you avoid missing payment dates and to align with your cash flow cycle we provide payments that are either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing the ways we gather information, use it, and exchange it, as well as protect your information, is crucial and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to security for our customers and security. We utilise a sophisticated bank verification system to immediately verify your bank account details online to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where a company owner borrows from an asset that they own to secure the loan. The asset can be an individual asset, such as the family home or it could be a business asset such as a truck as well as a piece of machine.
The majority of lenders, including the banks with the biggest size, prefer to make loans secured by an asset. If you’re having trouble paying back the loan then your assets could be taken over by the lender. In essence, it is a way of securing new financing by taking advantage of the value of what you already have.
What do I need security for a business loan?
For loans of up to $150K, the requirement for asset security is not required in advance to gain access to the funds However, we require a personal guarantee. need an individual guarantee. If you adhere to your loan commitments (as stipulated in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans over $150,000 generally, you can get an individual guarantee and security is provided in the form of a charge over assets.