FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Heathwood Small Business Loans
Let me know about the Heathwood Small Business Loans
Heathwood unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from an ordinary company loan?
It is possible to apply for your Small Business Loan in under 10 minutes via the internet or by phone. You will receive an instant response and funds may be in your account within 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. We offer a company loan is a pre-paid loan and you’ll know ahead of time the amount you will have to pay, including any fees, interest or charges. This is then broken down into a daily or weekly payment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company reason, such as the management of cash flow, business remodeling, marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
About Larger Heathwood Business Loans
What is the Larger Heathwood Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are either weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size the company needs to have been 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 and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funds be utilised?
A larger company loan can be used to fund almost all company purpose including company remodeling, buying new equipment or inventory as well as for general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. It is usually as a result of an charge over assets and can include the registration of this on the PPSR or filing as a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is general in nature, rather than defining the security of a specific asset. The person who signs the ensure is personally responsible if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including goods or assets). The PPSR gives the priority of personal property assigned according to the date a security interest has been registered.
A caveat is a legal document that is filed to provide notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re applying for larger business loans that is greater than $250,000 we may be able to provide a preliminary pre-approval to help make the process. It is possible to make this decision without a credit check and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering a few financial health questions. This is neither an offer nor a guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer that you may receive may be based on different terms.
Application process
Are I eligible for funding?
You may be eligible 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)
- you must prove at least 6 months’ worth of transactions (for you to qualify for 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 easy. Complete the online form in few minutes and an experienced company expert in lending will be in touch to guide you.
For a loan of up to $100,000, you’ll require the right identification documents (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least six months worth of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent and 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, as well as interim financials from the current financial year including Aged Payables, Aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we can often provide an answer within one hour – as long as you make your application at quality company times and you allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you choose to send us copies of your bank statements , we are able to provide an answer within just one business day.
For the Larger Business Loan ($100K or more) we may be likely to offer you with pre-approval conditional to your application in around six hours. Once you have signed the 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. Some transactions have received approval in 24 hours.
The quickest method can be make sure you apply during normal business hours, and allow us to use our advanced bank verification system link to verify your bank account information online. If you choose to send us duplicates of your banking accounts, it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we usually provide a response in one hour – as long as you make your application in normal business time and allow us to use the bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your banking statements, we are able to offer an answer 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 offer you with pre-approval conditional to your application in around 6 hours. After you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Some deals have been approved within the space of 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours. You can also let us use the modern bank verification link to check your bank’s information online. If you send us the copies of bank accounts, it will take a little longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a specific amount we will consider a number of elements to determine how much we can lend you well-being of your company and the amount of repayments your company is able to afford. The total amount of the loan will be determined by the specific circumstances the business.
When you make an application for a particular amount, we take into consideration a variety of elements to assess your well-being of your company and the level of payments your company can support. The total amount of your loan will be determined by the particulars for your business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to apply for one of our company loan, we will assess the risk profile that you have for your company and provide you with a customised offer, including the loan amount, the terms and interest rates. The company loan is an upfront priced loan so you will know in advance the total amount you will have to pay, including charges, interest rates or fees.
What determines the amount I’m charged?
Interest rates for business loans rates differ based on various factors such as the amount that is of money borrowed, the company assets the money are used to purchase and the sector the business operates in, how long the company has been running for, whether the business has sufficient cash flow to fund the loan, and the overall well-being or creditworthiness of the business.
What are the fees?
There are no hidden costs for our company loans. You’ll be aware of the amount you’ll need to pay and when, starting from the very first day. There’s not any compounding interest and no additional fees (as as you make your payments on time).
We do not charge an Application Fee. You can get a cash loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee is the cost associated with establishing and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can decide to repay all of your loan in full at any time.
If you choose to pursue this option, please contact our helpful business loans experts. We will offer you with details for repayment and an early payment figure. It will be calculated using the total of the principal balance and any accrued interest at the time of early payout and 1.5% of the principal remaining plus any outstanding fees.
What is the process for repayments?
To make sure you do not miss repayments and to fit in with your cash flow general, we offer repayments that are either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my data be protected?
Protecting your information, and being clear about how we collect, use, exchange and protect your information, is vital and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and security. We employ an exceptionally sophisticated bank verification system to instantly verify your bank account information online, allowing us to provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an business owner uses an asset that they own to obtain the loan. The asset can be an individual property, such as the family home or it could be a company asset such as a truck or piece or equipment.
The vast majority of lending institutions, including the major banks, prefer to guarantee loans against an asset. If you’re struggling to pay back the loan, the asset could be sold by the lender. In essence, it’s the process of securing new financing using the value of what you already have.
Are I require security to get a business loan?
For loans up to $150,000 the requirement for asset security is not required prior to the loan’s access However, we do need a personal guarantee. In the event that you fulfill the loan terms (as stipulated in your loan contract document) Asset security is not needed. If you take out loans in excess of $150K generally, there is an individual ensure and security is provided in the form of a charge over assets.