FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Albion Small Business Loans
Let me know more about Albion Small Business Loans
Albion unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
How is the Unsecured Loan different from a traditional company loan?
Apply to your Small Business Loan in under 10 minutes online or over the phone. You’ll get a same day response and the funds could be available in just 24 hours. Traditional company loans are based on an annual rate of interest as well as other fees and charges. This company loan is a pre-paid loan therefore you’ll be aware in advance of the total amount to be paid, including any fees, charges or charges. Then, it is broken down into either weekly or daily repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company need, such as the management of cash flow, business improvements, advertising to purchase inventory or new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
Concerning Larger Albion Business Loans
What is the Larger Albion Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan of this size, your company needs to have been operating for a minimum of 3 years, and have an annual income of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
What can the funding be used for?
A Larger Business Loan is a great option for almost any company use, including company improvements, purchasing new equipment or inventory for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This is as a result of an charge over assets, and could include the registration of this through the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is general in nature, rather than stating the security of a specific asset. The person who signs the guarantee is personally responsible if the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including objects or assets). The PPSR allows prioritisation over property that is personal to be granted according to the date a security interest has been registered.
An affidavit is an official document lodged to offer the legal claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking the Larger Business Loan of $250,000 or more it’s possible to offer an initial pre-approval that will help smooth out the process. We could be able to apply for this without credit checks and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes the answer to a series of financial health questions. It’s neither an offer nor a guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer you may receive may have different terms.
Application process
Do I have the right to receive funds?
You may apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months worth of trade (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application within a few minutes and a dedicated company credit specialist will contact you to help you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s License) and an active NZBN/IRD, and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details for application including credit consent as well as 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, and interim current financial year financials, Aged Payables and Aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) we typically offer an answer in just one hour, provided you make your application during standard company timings and let us utilise the advanced bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your banking statement, we’ll provide the decision within just 1 company day.
For the Larger Business Loan ($100K or more) we may be in a position to provide you with conditional pre-approval within six hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Some deals have been approved in just 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours, and allow us to use the advanced bank verification system to verify your bank account information online. If you opt to upload duplicates of your banking statements it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) we can often provide an answer within an hour – provided you apply within normal business time and permit us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statements we can provide a decision in just 1 business day.
For Larger Business Loans ($100K to $500K) we may be capable of provide the conditional pre-approval within about six hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Some offers have been approved in less than 24 hours.
The quickest method can be ensure you apply during standard business hours. Also, permit us to use the advance bank verification to confirm your bank details online. If you opt to upload copies of your bank statements, it may take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a certain amount we will consider a number of factors that determine how much we can lend you health that is your company as well as the amount of repayments your business can afford. The amount you receive from your loan will depend on the specifics that are unique to your business.
When you submit an application for a certain amount, we consider a variety of aspects to determine the well-being of the business and the level of repayments your company will be able to support. The amount you receive from your loan will be determined by the particular circumstances that are unique to your company.
Fees & repayments
How much should you charge for a business loan?
If you decide to apply for our business loan, we’ll assess the risk assessment that you have for your company and provide you with a customised offer including the loan amount, the terms and the interest rates. A business loan is a loan that is priced upfront and you’ll be aware of the total amount due, which includes any interest rates, fees or charges.
What is the basis for the rate I am charged?
The interest rates on company loans rates depend on several factors such as the amount that is borrowed, the business assets the money will be used for and the sector the business operates in, how long the company has been in operation, how long the company has enough cash flow to cover the loan, as well as the general well-being as well as creditworthiness company.
What are the costs?
There aren’t any hidden costs with our business loans. You’ll know precisely what it is that you be required to pay, and when, from the very first day. There’s no compounding interest and no additional fees (as as you make your payments on time).
We do not charge an application fee. You are able to request a credit loan with without any upfront costs or any obligation to sign up.
The Origination Fee is the cost associated with setting up and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay off the loan earlier?
You may choose to pay back the entire amount of your advance loan at any time.
If you are deciding to take this route, please speak to our friendly company lending experts. They’ll provide you with the details of your repayment and an early payment figure. This will be calculated as the total of the principal remaining and accrued interest to the time of early payout, plus 1.5 percent of the principal remaining and any fees that remain unpaid.
What are the repayment methods?
To make sure you do not miss repayments and to fit in your cash flow schedule, we provide repayments either weekly or daily. They are automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Protecting your information, and making it clear the ways we gather data, process, exchange and protect your information, is vital and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to protecting the security of clients and security. We utilise a sophisticated bank verification system that allows you to immediately verify the bank account details online so we can provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the business owner utilises the assets they have to make the funds for a loan. The asset can be either an individual property, such as the family home, or it could be a business asset like a truck or other piece of machinery.
The majority of lending institutions, including the banks with the biggest size, prefer to guarantee loans against assets. If you’re struggling to pay back the loan, your assets could be taken over by the lender. In essence it’s means of securing new funding taking advantage of the value of what you already have.
Do I require security to secure an business loan?
Up to $150K in loans there is no requirement for asset security in advance to gain access to the funds but we do require the personal guarantee. So long as you comply with your loan obligations (as detailed in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans of over $150K typically, you will need personal ensure and security is provided in the form of an asset charge.