FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Arana Hills Small Business Loans
Let me know more about Arana Hills Small Business Loans
Arana Hills 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 that are either daily or weekly.
What makes the Unsecured Loan different from a traditional business loan?
The application to this Small Business Loan in under 10 minutes online or by phone. You will receive an answer within the same day and have the funds on your account within 24 hours. Traditional business loans refer to an annual interest rate as well as other fees and charges. Our company loan is a pre-paid loan and you’ll be aware in advance of the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business reason, such as control of cash flow company remodeling, marketing, to purchase inventory or new equipment, as general working capital and much more. The loan is not available for personal use.
Concerning Larger Arana Hills Business Loans
What is the Larger Arana Hills Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the business needs to be trading for at least 3 years, and have an annual income of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funding be utilised?
A large business loan can be used to fund almost all business need, including company renovations, to purchase inventory or new equipment or as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. It’s in the form of a charge against assets and can include registration through the PPSR or filing a caveat.
A director’s or personal guarantee is a promise to repay credit that is general in nature rather than defining the security for a particular asset. The person who is signing the guarantee is personally liable if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including objects or assets). The PPSR grants the priority of personal property assigned in accordance with the date on which a security interest has been registered.
Caveats are legal form of document to provide the public notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan of more than $250,000 it is possible to offer an initial pre-approval in order to make the process. We may be able to get this done without a credit verification and within six hours of your initial application. This pre-approval is based on an initial assessment that includes you answering some financial health checks. This is in no way an offer, nor is it a guarantee of finance. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you may receive may have different terms.
The application process
Do I qualify for funds?
You are eligible to apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (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 fast and simple. Simply complete the online form within a couple minutes, and a dedicated company lending specialist will contact you to help you.
To apply for up to $100,000, you’ll need the right identification documents (valid Driver’s License) along with a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent, 12 months of bank records, IRD statement, last 2 years finalised financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K and up) we can often provide an answer in just one hour if you make your application during quality company time and you allow us to utilise the bank verification system to instantly verify your bank information online. If you decide to send us copies of your bank statements , we are able to provide a decision in as little as an business day.
If you are applying for a Larger Business Loan ($100K and up) we might be able to provide the conditional pre-approval in about six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Certain agreements have been approved within just 24 hours.
The fastest way for you to apply is make sure you apply during normal company hours. Also, let us use the advanced bank verification system link to verify your bank account information online. If you send us duplicates of your banking accounts, it can take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K or more) We can usually provide a response in one hour – provided you apply at normal business timings and permit us to use the bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statements we can offer the decision in as little as an business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be in a position to provide you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Certain transactions have received approval within the space of 24 hours.
The quickest method would be to ensure you apply during standard business hours. You can also allow us to use the sophisticated bank verification link to check your bank’s information online. If you send us copies of your bank accounts, it may take a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you submit an application for a particular amount, we will consider a number of elements that determine the well-being for your business and the extent of payments your business can support. The amount you receive from your loan will depend on the specifics of your business.
When you make an application for a specific amount we take into consideration a variety of factors to assess your health that is your business and the level of payments your company will be able to support. The total amount of the loan will be determined by the particulars for your company.
Fees & repayments
How much should you charge for a business loan?
When you request business loans with us company loans, we will assess the risk profile the business and offer an individualised offer including loan amount, term and interest rates. This business loan is an upfront-priced loan so you will know in advance the total amount payable including any charges or interest.
What determines the rate that I am charged?
The interest rates on business loans rates differ based on various variables like the amount to be that is borrowed, what company assets the money will be used for in addition to the industry that the company is in, how long the business has been operating as well as whether the company has sufficient cash flow to pay for the loan, and also the general health or financial standing of the business.
What are the charges?
There are no hidden costs with our company loans, and you’ll know precisely what you 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 on time).
We don’t charge an application fee. You are able to get a cash loan with no cost upfront or obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay off the loan earlier?
You can choose to repay the entire amount of your advance loan at any time.
If you decide to do this please speak to our friendly business loan specialists. They’ll offer you with details for repayment as well as an early payout amount. It will be calculated using the sum of the remaining principal amount and accrued interest to the time of early payment plus 1.5% of the principal balance plus any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payment dates and to align with your cash flow cycle we offer repayments that are either weekly or daily. They are automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Security of your data, and knowing the ways we gather data, process, exchange and protect your information, is vital and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and security. We utilise a sophisticated bank verification system that allows you to immediately verify your bank account information online to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the business owner utilises the assets they have to get the loan. The asset can be an individual property, such as the family home or it could be a business property like a truck or other piece of machinery.
The majority of lenders, not just the banks with the biggest size, prefer to secure loans against an asset. If you have trouble paying back the loan, the asset might be offered for sale by the lender. In essence it’s the process of securing new financing by making use of the value of what you already own.
Should I require security to secure a company loan?
Up to $150K in loans it is not necessary to secure assets upfront to access the money but we do need an individual guarantee. In the event that you fulfill the loan terms (as detailed in your loan contract), asset security will never be required. For loans that exceed $150,000, generally, you are able to get the option of a personal guarantee and security is provided in the form of an asset charge.