FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Archerfield Small Business Loans
Let me know more about Archerfield Small Business Loans
Archerfield unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from a traditional business loan?
It is imaginable to apply for the Small Business Loan in under 10 minutes on the phone. You’ll receive an answer within the same day and the funds could be in your account in 24 hours. Traditional business loans have an annual rate of interest plus other fees and charges. Our company loan is a pre-paid loan therefore you’ll know in advance the total amount payable including any fees, interest or charges. This is then broken down into either 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 every business use, including control of cash flow company improvements, advertising for purchasing inventory or new equipment, to fund general working capital and much more. The loan is not available for personal reasons.
About larger Archerfield Business Loans
What is the Larger Archerfield Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the company needs to have been in operation for at least 3 years with an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can the funds be used for?
A Larger Business Loan can be used for almost all business reason, such as company renovations, purchase of new 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 needed for accessing funds over $150,000. This can be done by way of charge on assets and can include registration on the PPSR or filing a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is generally in nature rather than stating the security for a particular asset. The person signing the guarantee is personally liable if the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR gives priority over personal property to be assigned according to the date a registration of a security interest.
Caveats are legal document that is filed to provide the legal claim against a property.
What is a pre-approval without Credit Check?
When you’re applying for the Larger Business Loan that exceeds $250K we may be able to provide an initial pre-approval in order to make the process. We might be able to apply for this without a credit verification and within 6 hours of your initial application. The pre-approval is based upon an initial assessment, which involves you answering some financial well-being checks. It’s neither an offer nor a guarantee of funds. Acceptance without condition is subject to a full credit assessment and any offer that you might receive could be subject to different terms.
The application process
Do I qualify for funds?
You are eligible to apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for the 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 simple and simple. Complete the online form within a few minutes and an experienced business lending specialist will be in touch to help you.
To be eligible for up to $100,000, you’ll need proof of identity (valid Driver’s Licence), a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Information on the application including credit consent as well as 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, as well as interim current financial year financials such as age-related payables and aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we can often offer a response in one hour, provided you make your application during standard business time and permit us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statement, we’ll offer a decision in as little as the span of one business day.
For the Larger Business Loan ($100K to $500K) we may be able to offer the conditional pre-approval within about 6 hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this could be shorter based on the particular circumstances of each application. Some transactions have received approval within less than 24 hours.
The quickest way to apply would be to make sure you apply during normal company hours and allow us to use our advance bank verification link to instantly verify your bank information online. If you choose to send us documents from your account statements it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) we typically provide an answer within one hour – as long as you submit your request in normal business times and permit us to make use of the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your bank statements, we are able to provide a decision within one business day.
For the Larger Business Loans ($100K or more) we may be in a position to provide you with conditional pre-approval within about six hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Certain deals have been approved in just 24 hours.
The fastest way can be ensure you apply during normal business hours. You can also let us use the sophisticated bank verification to instantly confirm your bank details online. If you upload duplicates of your banking statement, it can take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a specific amount we look at a variety of aspects that determine your health that is your company as well as the amount of the repayments your company will be able to support. The amount you receive from the loan will be determined by the particular circumstances of your business.
When you apply for a set amount, we consider a variety of factors to assess how much we can lend you such as health that is your business and the extent of repayments your company is able to afford. The total amount of your loan will depend on the specifics for your business.
Fees & repayments
How much should you charge for a business loan?
If you decide to request one of our business loan, we will assess the risk profile of your business and provide you with a customised proposal that includes the loan amount, the terms and interest rates. This company loan is a loan that is priced upfront and you’ll be aware in advance of the total amount payable including any charges or interest.
What determines the rate that I pay?
Interest rates for company loans rates depend on several factors such as the amount that is of money borrowed, the company assets the money will be used for, the industry the business is operating in, how long the company has been in operation, what percentage of the company has enough cash flow to cover the loan, and also the general well-being and creditworthiness of the business.
What are the costs?
There aren’t any hidden costs with 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 no compounding interest and the loan comes with no additional fees (as as you make your payments on time).
We do not charge an application fee. You are able to make an application for loans with absolutely no upfront cost and no commitment to apply.
The Origination Fee is the cost associated with establishing and managing the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan in advance?
You can repay all of your loan early at any time.
If you choose to do this please speak to our friendly company lending experts. The professionals will provide you with details for repayment and an early payment figure. This will be calculated as the sum of the principal remaining plus any accrued interest as of the time of early payment and 1.5% of the principal remaining as well as any outstanding fees.
How do you make repayments work?
To help you avoid missing payments and to work your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being upfront about how we collect information, use it, and exchange it, as well as safeguard your data, is crucial and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We make use of an advanced bank verification system link to immediately verify your bank account details online so we can provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a company owner makes use of assets they own to obtain the loan. The asset may be an individual property, such as the family home or an company asset such as a truck or piece or equipment.
The vast majority of the lenders including the banks with the biggest size, prefer to secure loans against an asset. If you have trouble paying back the loan, then your asset may be offered for sale by the lender. In essence, it’s a way of securing new funding making use of the value of what you already own.
Should I require security to secure a company loan?
For loans up to $150,000 it is not necessary to secure assets before you are able to access the money but we require a personal guarantee. require a personal guarantee. So long as you comply with your loan commitments (as detailed in your loan contract document) the security of assets will never be needed. For loans that exceed $150K, generally there is a personal guarantee and security in the form of the charge of assets.