FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Augustine Heights Small Business Loans
Let me know how you are able to avail the Augustine Heights Small Business Loans
Augustine Heights unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
How is what makes the Unsecured Loan different from the traditional business loan?
Apply to your Small Business Loan in under 10 minutes online or on the phone. You’ll receive an answer within the same day and funds may be on your account within 24 hours. Traditional company loans have an annual interest rate as well as other fees and charges. This business loan is a loan that is priced upfront therefore you’ll be aware in advance of the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into either weekly or daily payment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for almost any company need, such as the management of cash flow, company remodeling, marketing for purchasing inventory or new equipment, or as general working capital, and much more. The loan is not available to fund personal expenses.
Concerning Larger Augustine Heights Business Loans
What is the Larger Augustine Heights Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are scheduled weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to be trading for at least 3 years, and have an annual income of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funding be utilised?
A larger business loan can be used for almost all business need, including 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 reasons.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. It is usually by way of charge over assets, and could be registered in the PPSR or making a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is general in nature, rather than stipulating the security for a particular asset. The person who signs the guarantee is personally liable if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including goods or assets). The PPSR allows the priority of personal property granted in accordance with the date on which a security interest has been registered.
A caveat is a legal document filed to offer an official notice of a claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting the Larger Business Loan of more than $250,000, we may offer an initial pre-approval that will help smooth out the process. We could be able to do this without credit checks and within 6 hours of the initial application. The pre-approval is based upon an initial evaluation that involves answering a couple of financial health questions. It is not an offer or guarantee of funds. The approval of a conditional loan is subject to a full credit assessment and any offer that you are offered could be subject to different conditions.
Application process
Do I have the right to receive funds?
You are eligible to apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for the 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 easy. Just fill out the online application within a couple minutes, and an experienced company loan specialist will call you to guide you.
To apply for up to $100,000 you’ll need ID details (valid Driver’s Licence) along with a valid NZBN/IRD and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details for application including credit consent as well as 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, plus interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we can often provide a response in one hour if you apply during quality company time and let us use the advanced bank verification system to instantly verify your bank details online. If you decide to send us copies of your bank statements we can offer a decision in as little as one company day.
If you are applying for a Larger Business Loan ($100K and up) we could be likely to offer you with conditional pre-approval within about six hours. After you’ve signed your pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this can be quicker based on the circumstances of each application. Certain deals have been approved in less than 24 hours.
The fastest way for you to apply is make sure you apply during normal business hours. Also, allow us to use the advanced bank verification system link to confirm your bank details online. If you choose to send us duplicates of your banking statements it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) We can usually offer a response in one hour – as long as you submit your request at standard business time and allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you decide to submit copies of your bank statements, we are able to provide a decision within the span of one business day.
If you are applying for Larger Business Loans ($100K and up) We may be likely to offer the conditional pre-approval within 6 hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this may be quicker depending on the circumstances of each application. Some offers have been approved in just 24 hours.
The fastest way can be ensure you apply during standard business hours. You can also allow us to use our advanced bank verification system to check your bank’s information online. If you decide to upload documents from your account statements, it takes a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a particular amount, we take into consideration a range of variables that determine what is the health of your company as well as the amount of repayments that your company can support. The total amount of your loan will depend on the specific circumstances the company.
When you apply for a certain amount, we look at a range of factors to determine the health that is your company as well as the amount of repayments that your business will be able to support. The amount you receive from your loan will depend on the particular circumstances of your company.
Fees & repayments
What is the cost for an company loan?
If you decide to make an application for one of our company loans, we will assess the risk assessment of your business and provide an individualised offer that includes the amount of the loan, the duration and the interest rates. A company loan is an upfront priced loan and you’ll be aware in advance of the total amount you will have to pay, including charges, interest rates or fees.
What is the factor that determines the price I will be charged?
Business loan interest rates depend on a variety of factors such as the amount that is borrowed, what company assets the money are used to purchase, the industry the business operates in, how long the business has been in operation as well as in the event that the company has sufficient cash flow to cover the loan, and the general health or creditworthiness of the business.
What are the fees?
There are no hidden fees with our business loans. You’ll know exactly how much you’ll be required to pay and at what time, from the first day. There’s not any compounding interest and the loan comes with no additional fees (as long as you make your payments punctually).
We do not charge an application fee. You can apply for a loan with no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay out the loan earlier?
You can decide to repay the entire amount of the advance loan at any time.
If you decide to do this please speak to our friendly company lending experts. The experts will offer you with repayment details and an early payment figure. This will be calculated as the sum of the remaining principal amount and any accrued interest at the time of early payout plus 1.5% of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss repayments and to fit in with your cash flow standard, we provide payments that are either weekly or daily. These are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Security of your data, and being upfront about how we collect information, use it, and exchange it, as well as protect your information, is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to protecting the security of clients and privacy. We use an advanced banking verification system to instantly verify your bank account details online. This allows us to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where an company owner makes use of an asset that they own to get a loan. The asset can be either an asset belonging to the personal, like the family home or a business property like a truck or other piece of machinery.
The majority of lenders, including the major banks, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan then your asset may be transferred to the lender. In essence it is the process of securing new financing making use of the value of what you already have.
What do I need security for an company loan?
For loans that exceed $150K, the requirement for asset security is not required before you are able to access the money However, we require a personal guarantee. need the personal guarantee. If you adhere to the terms of your loan (as stated in the loan contract) the security of assets is not needed. For loans that exceed $150,000, generally, there is personal ensure and security in the form the charge of assets.