FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Hemmant Small Business Loans
Tell me about the Hemmant Small Business Loans
Hemmant unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from a traditional business loan?
It is imaginable to apply for your Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and have the funds on your account within 24 hours. Traditional business loans have an interest rate per annum plus other fees and charges. We offer a business loan is a pre-paid loan so you will know ahead of time the amount you will have to pay, including the interest, fees and charges. Then, it is divided 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 company reason, such as control of cash flow company improvements, advertising to purchase inventory, new equipment, as general working capital, and much more. The loan is not available for personal use.
Concerning Larger Hemmant Business Loans
What is the Larger Hemmant Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount the business needs to be operating for a minimum of 3 years with an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funds be used for?
A Larger Business Loan is a great option for almost every business need, including business remodeling, buying new equipment or inventory or as 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 by way of charge over assets, and may include registration with the PPSR or making as a caveat.
A personal or director’s ensure is a promise to pay back a loan that is generally based rather than stipulating security over an asset. The person who signs the guarantee is personally responsible if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are that are registered for personal property (including goods or assets). The PPSR gives preference over private property granted according to the date a security interest has been registered.
An affidavit is an official document that is filed to provide notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger company loans of $250,000 or more we can offer an initial pre-approval to smooth out the process. We may be able to do this 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 a few financial health checks. This is neither an offer nor a guarantee of financing. Acceptance without condition is subject to an extensive credit evaluation and any offer you may receive may have different terms.
Application process
Do I qualify for funds?
You may apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a couple minutes, and a dedicated business lending specialist will call you to assist you.
To apply for up to $100,000 you’ll need the right identification documents (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent, 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we can often offer an answer in just one hour, provided you submit your request during standard company hours and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statement, we’ll provide a decision in just 1 company day.
For the Larger Business Loan ($100K or more) we could be likely to provide you with conditional pre-approval within about six hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however it could be faster based on the specifics of each application. Certain offers have been approved within 24 hours.
The most effective method would be to ensure you apply during standard business hours. Also, permit us to use the advanced bank verification system link to confirm your bank details online. If you opt to upload duplicates of your banking statements , it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K to $100K) We can usually offer an answer in just one hour – provided you submit your request during standard business hours and you allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statement, we’ll offer an answer in as little as one business day.
For Larger Business Loans ($100K and up) we may be likely to provide you with a conditional pre-approval in around six hours. Once you have signed the pre-approval document, you will require to wait about 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Some agreements have been approved within less than 24 hours.
The fastest way can be make sure you apply during standard business hours. You can also allow us to use our advance bank verification to verify your bank information online. If you send us copies of your bank statements, it takes a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you submit an application for a particular amount, we consider a variety of elements that determine how much we can lend you well-being of your company and the amount of repayments your company will be able to support. The amount you receive from your loan will depend on the specific circumstances that are unique to your company.
If you apply for a specific amount we will consider a number of variables to assess the well-being that is your company as well as the amount of the repayments your business will be able to support. The total amount of the loan will be determined by the particulars the business.
Fees & repayments
How do you charge for an business loan?
If you decide to request our business loans, we’ll assess the risk profile of your company and offer you with a tailored offer that includes the amount of loan, the term and interest rates. The company loan is an upfront-priced loan which means you be aware of the total amount payable including any costs, fees, or interest rates.
What determines the amount I will be charged?
Interest rates for company loans rates vary due to factors like the amount of money borrowed, the business assets the funds are used to purchase, the industry the business operates in, the long the company is in operation as well as what percentage of the business has sufficient cash flow to pay for the loan, and overall health or financial standing of the business.
What are the costs?
There are no hidden fees for our company loans. You’ll be aware of the amount you be required to pay and when, from the first day. There’s no compounding interest, and there are no additional charges (as as you make your payments punctually).
We don’t charge an application fee. You can apply for a loan with without any upfront costs or commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay out the loan in advance?
You can choose to repay the total amount of your loan early at any time.
If you are deciding to take this route, please talk to one of our helpful company loans specialists. They’ll offer you with details on repayment and an early payment figure. The figure will be calculated as the sum of the remaining principal amount plus any accrued interest as of the time of early payout and 1.5 percent of the principal balance as well as any outstanding fees.
How do repayments work?
To make sure you do not miss repayments and to fit in with your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about how we collect the information we collect, use, share and secure your information, is vital and is an essential part 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 qualified for our dedication to the security of our customers as well as their security. We employ a highly sophisticated bank verification system that allows you to instantly verify the bank account details online so we can offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a company owner makes use of the assets they have to secure the funding. The asset may be an individual property, such as the family home or a business property like a truck or other piece of machinery.
The majority of the lenders including the banks with the biggest size, prefer to make loans secured by an asset. If you’re having trouble paying back the loan then your asset may be offered for sale by the lender. In essence, it is the process of securing new financing by using the value of what you already have.
Do I require security to get a business loan?
Up to $150,000 in loans there is no requirement for asset security prior to the loan’s access but we do require an individual guarantee. As long as you follow your loan commitments (as specified in your loan contract document) and you are able to meet your obligations, asset security is not needed. If you take out loans in excess of $150,000 typically, you will need a personal ensure and security in the form of an asset charge.