FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Acacia Ridge Small Business Loans
Let me know how you are able to avail the Acacia Ridge Small Business Loans
Acacia Ridge unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
How is this Unsecured Loan different from an traditional company loan?
It is possible to apply for your Small Business Loan in under 10 minutes over the phone, receive an answer within the same day and the money could be in your account within 24 hours. Traditional company loans reference an annual rate of interest along with other charges and fees. We offer a company loan is a pre-paid loan and you’ll know ahead of time the total amount payable including any fees, charges or charges. This is then broken down into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for almost every business use, including managing cash flows, company remodels and marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal use.
About larger Acacia Ridge Business Loans
What is the Larger Acacia Ridge Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are weekly or fortnightly depending on your situation.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to be trading for at least 3 years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be used for?
A large business loan is a great option for almost any business reason, such as business improvements, purchasing inventory or new equipment as well as for 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 to obtain funding above $150,000. This is in the form of a charge over assets, and may include registration through the PPSR or the registration of a caveat.
A personal or director’s guarantee is a promise to repay credit that is generally in nature rather than stating the security for a particular asset. The person signing the guarantee is personally liable in the event that the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including goods or assets). The PPSR permits the priority of personal property assigned depending on the date that a security interest was registered.
Caveats are legal document filed to provide the legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting the Larger Business Loan that is greater than $250,000 it’s possible to offer an initial pre-approval that will help ease the process. We may be able to get this done without credit checks and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves answering a couple of financial health checks. It is neither an offer nor a guarantee of finance. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you receive could have different conditions.
Application process
Are I eligible for funding?
You are eligible to apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for you to qualify for 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. Simply complete the online form within a couple minutes, and a dedicated business expert in lending will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s Licence), a valid NZBN/IRD and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent and 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we typically offer an answer in just one hour if you apply within standard business timings and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you want to send us copies of your bank statement, we’ll offer an answer within one company day.
For the Larger Business Loan ($100K and up) we could be able to provide you with conditional pre-approval within about six hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Certain deals have been approved in just 24 hours.
The quickest way to apply for you to apply is ensure you apply during standard business hours and permit us to use the advanced bank verification system link to instantly check your bank’s information online. If you decide to send us documents from your account statement, it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we can often offer an answer in just one hour if you submit your request in normal business timings and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you opt to submit copies of your bank statement, we’ll offer a decision within the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we could be in a position to provide you with conditional pre-approval within about 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 circumstances of each application. Some transactions have received approval in 24 hours.
The most effective method is to ensure you apply during standard business hours, and permit us to use the sophisticated bank verification to verify your bank information online. If you upload copies of your bank statement, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you make an application for a certain amount we consider a variety of elements to determine the health that is your company 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 particular amount, we will consider a number of elements to assess how much we can lend you such as well-being for your company and the amount of repayments your business is able to afford. The total amount of the loan will be determined by the specifics that are unique to your company.
Fees & repayments
How much should you charge for an company loan?
When you make an application for our business credit, we’ll assess the risk profile that you have for your business and provide an individualised proposal that includes the amount of loan, the term and interest rates. This business loan is a loan that is priced upfront therefore you will be aware of the total amount due, which includes any charges or interest.
What determines the amount I am charged?
Business loan interest rates differ based on various factors including the amount that is borrowed, what business assets the funds will be used for in addition to the industry that the business is in, how long the business has been in operation as well as whether the company has sufficient cash flow to support the loan, and also the general health and creditworthiness of the company.
What are the fees?
There are no hidden costs with our company loans, and you’ll be aware of the amount you need to pay, and at what time, from the day you sign up. There’s no compounding interest and no extra fees (as long as you are able to make your payments on time).
We don’t charge an Application Fee. You can request a credit loan with with no upfront cost or the obligation to take action.
The Origination Fee is the cost associated in establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay off the loan in advance?
You can decide to repay the entire amount of the advance loan at any time.
If you are deciding to pursue this option, please speak to our friendly company loan experts. We will offer you with details on repayment and an early payout figure. It will be calculated using the sum of the principal amount remaining and any accrued interest at the date of early payout plus 1.5 percent of the principal balance and any outstanding fees.
How do repayments work?
To ensure that you don’t miss payment dates and to align your cash flow cycle we provide repayments either weekly or daily. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being upfront about the ways we gather the information we collect, use, share and secure your information, is vital and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to security for our clients and security. We utilise a sophisticated bank verification system to instantly verify the bank account details online to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where an company owner uses the assets they have to secure the loan. The asset could be an individual property, such as the family home, or a business asset like a truck as well as a piece of machine.
The vast majority of lending institutions, even the major banks, prefer to make loans secured by assets. If you’re struggling to pay back the loan, then your assets could be transferred to the lender. In essence, it is the process of securing new funding using the value of what you already have.
Do I require security to secure a company loan?
Up to $150,000 in loans it is not necessary to secure assets before you are able to access the money but we require a personal guarantee. need the personal guarantee. If you adhere to your loan commitments (as stipulated in your loan contract document) and you are able to meet your obligations, asset security will never be needed. For loans of over $150K typically, you will need the option of a personal guarantee and security in the form an asset charge.