FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Albany Creek Small Business Loans
Let me know more about Albany Creek Small Business Loans
Albany Creek unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily 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 via the internet or over the phone, receive an immediate response, and the funds could be available in just 24 hours. Traditional business loans have an annual interest rate plus other fees and charges. The business loan is a cash-based loan which means you know in advance the total amount due, which includes any fees, charges or charges. This is then divided into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company use, including cash flow management, company remodeling, marketing for purchasing inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal purposes.
About the Larger Albany Creek Business Loans
What is the Larger Albany Creek Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term with a maximum of 36 months. The repayments are made weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large the company needs to have been operating for a minimum of 3 years, and have an annual income of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years, 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 funds for?
A Business Loan of a larger size can be used to fund almost any company need, including company improvements, purchasing equipment or inventory for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required 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 registering as a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is general in nature rather than specifying security over an asset. The person signing the guarantee is personally accountable if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including objects or assets). The PPSR grants priority over personal property to be assigned in accordance with the date on which a security interest that is registered.
An affidavit is an official form of document to provide the public notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan of $250,000 or more it’s possible to offer an initial pre-approval in order to make the process. We may be able to apply for this without a credit check, and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves you answering some financial well-being checks. It’s in no way an offer, nor is it a guarantee of financing. A conditional approval is subject an assessment of your creditworthiness and any offer you receive could have different terms.
The application process
Can I be eligible for funding?
You can apply for an company 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 transactions (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form within a few minutes and a dedicated company loan specialist will be in touch to assist you.
For a loan of up to $100,000 you’ll need the right identification documents (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Application details including credit consent twelve months of bank statements, IRD statements Last 2 years’ finalised financial statements, in addition to interim financials for the current financial year as well as Aged Payables and Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we usually provide an answer within one hour, provided you submit your request within quality company timings and allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your banking statements , we are able to provide an answer in just the span of one business day.
For the Larger Business Loan ($100K or more) we could be able to offer you with a conditional pre-approval within six hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this may be quicker depending on the specifics of each application. Some agreements have been approved within 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours. Also, allow us to use our advance bank verification link to verify your bank account information online. If you decide to upload copies of your bank statements , it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) we usually offer a response in one hour – as long as you apply at standard business timings and allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your bank statements, we will be able to provide an answer in as little as an business day.
For the Larger Business Loans ($100K to $500K) we might be likely to provide you with conditional pre-approval in about six hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Some transactions have received approval within the space of 24 hours.
The quickest method is to ensure you apply during normal business hours, and permit us to use the advanced bank verification system link to check your bank’s information online. If you decide to send us copies of your bank statements it will take a little longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a certain amount we take into consideration a range of elements in order to assess what is the well-being of the business and the amount of payments your business can afford. The amount you receive from the loan will be determined by the specifics the company.
When you apply for a specific amount we will consider a number of elements to determine the health for your business and the level of the repayments your company is able to afford. The total amount of your loan will be determined by the specific circumstances the business.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to apply for the business loans, we’ll assess the risk profile for your company and offer an individualised offer including the loan amount, the terms and the interest rates. A business loan is an upfront cost loan and you’ll know the exact amount you will have to pay, including costs, fees, or interest rates.
What determines the amount I am charged?
Business loan interest rates depend on a variety of factors such as the amount that is that is borrowed, what business assets the funds will be used for and the sector the business is operating in, how long the business has been running and whether the business has sufficient cash flow to cover the loan, and also the general well-being or creditworthiness of the company.
What are the fees?
There are no hidden costs for our company loans. You’ll know precisely how much you’ll be required to pay, and at what time, from the very first day. There’s not any compounding interest and no additional fees (as long as you make your payments in time).
We don’t charge an application fee. You are able to get a cash loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay off the loan earlier?
You may choose to pay back the entire amount of your loan early at any time.
If you do decide to pursue this option, please contact our helpful company loan experts. The specialists will provide you with details for repayment as well as an early payout amount. This is calculated as the sum of the principal amount remaining plus any accrued interest as of the time of early payment plus 1.5 percent of the principal balance as well as any outstanding fees.
What is the process for repayments?
To help you avoid missing payment dates and to align your cash flow cycle we provide repayments either weekly or daily. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being clear about how we collect information, use it, and exchange it, as well as secure your information, is vital and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to customer security and privacy. We make use of an advanced bank verification system that allows you to immediately verify your bank account details online, allowing us to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an business owner uses the assets they have to obtain the funds for a loan. The asset could be an individual asset, such as the family home, or an company asset such as a vehicle or piece or equipment.
The majority of the lenders including the banks with the biggest size, prefer to guarantee loans against an asset. If you have trouble paying back the loan then the asset could be transferred to the lender. In essence it is the process of securing new financing by using the worth of the asset you already own.
Do I require security for an company loan?
Up to $150K in loans no asset security is required prior to the loan’s access, however we require a personal guarantee. require an individual guarantee. As long as you follow your loan obligations (as detailed in your loan contract document) Asset security is not needed. If you take out loans in excess of $150K generally there is an individual guarantee and security that is in the form a charge over assets.