FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Hendra Small Business Loans
Tell me about the Hendra Small Business Loans
Hendra unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from a traditional company loan?
You can apply to get this Small Business Loan in under 10 minutes online or over the phone, receive an instant response and funds may be on your account within 24 hours. Traditional company loans have an interest rate per annum along with other charges and fees. This business loan is a pre-paid loan and you’ll know in advance the total amount due, which includes any fees, charges or charges. Then, it is broken down into either weekly or daily repayment figure.
What can the Small Business Loan be used for?
A Small Business Loan can be used for almost any business reason, such as control of cash flow business improvements, advertising to purchase inventory, new equipment, to fund general working capital and so much more. The loan cannot be used for personal use.
About larger Hendra Business Loans
What is the Larger Hendra Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of for up to 36 months. Repayments are weekly or fortnightly to work with the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size the business needs to be operating for at least three years with an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funds be utilised?
A large business loan is a great option for almost every company purpose including business remodeling, buying inventory or new equipment for general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. It is usually by way of charge over assets, and could include the registration of this through the PPSR or registering a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is general in nature, rather than stating the security for a particular asset. The person who signs the ensure is personally accountable if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR allows the priority of personal property assigned according to the date the registration of a security interest.
The caveat can be described as a formal form of document to provide the public notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
When you’re applying for the Larger Business Loan of more than $250K we can offer an initial pre-approval that will help smooth out the process. We might be able to get this done without credit checks and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes answering a couple of financial well-being questions. This is in no way an offer, nor is it a guarantee of finance. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you are offered could be based on different conditions.
Application process
Are I eligible for funding?
You are eligible to apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of trading (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application in few minutes and a dedicated business loan specialist will call you to assist you.
To be eligible for up to $100,000, you’ll require ID details (valid Driver’s License) along with an active NZBN/IRD, and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K-$250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Details for application including credit consent twelve months of bank records, IRD statement Last 2 years’ finalised financial statements, in addition to interim current financial year financials, Aged Payables and Aged Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) We can usually offer a response in one hour, provided you apply at standard business times and allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your banking statements , we are able to provide a decision in just the span of one company day.
For Larger Business Loans ($100K and up) we may be likely to offer the conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be quicker based on the specifics of each application. Certain agreements have been approved in the space of 24 hours.
The most effective method is to make sure you apply during normal business hours, and allow us to use our modern bank verification link to instantly confirm your bank details online. If you decide to upload copies of your bank statements it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K or more) We can usually offer an answer within an hour – provided you apply in normal business time and permit us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your bank statements we can offer a decision within 1 business day.
For the Larger Business Loans ($100K and up) we may be likely to offer the conditional pre-approval in about six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Some agreements have been approved in 24 hours.
The quickest method can be ensure you apply during normal business hours, and let us use the sophisticated bank verification link to verify your bank information online. If you choose to upload documents from your account statements it may take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a certain amount we look at a variety of factors to determine your health that is your company as well as the amount of repayments that your business is able to afford. The amount you receive from the loan will be determined by the specifics the company.
When you submit an application for a particular amount, we will consider a number of factors to assess your well-being of your business and the amount of payments your company can afford. The total amount of your loan will be contingent on the particulars for your company.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to apply for the business loans, we’ll assess the risk assessment for your company and provide you with a customised proposal that includes the loan amount, the terms and the interest rates. A business loan is an upfront cost loan and you’ll be aware of the total amount due, which includes any costs, fees, or interest rates.
What determines the rate that I will be charged?
Interest rates for company loans rates depend on a variety of factors such as the amount that is borrowed, what company assets the money will be used for in addition to the industry that the business is operating in, how long the business has been running as well as in the event that the business has sufficient cash flow to cover the loan, as well as the overall well-being and creditworthiness of the business.
What are the fees?
There are no hidden costs with our company loans, and you’ll know exactly how much you’ll need to pay and when, right from the first day. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We do not charge an Application Fee. You can request a credit loan with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved with the setting up and management of the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay out the loan early?
You can repay the total amount of your loan at any point in time.
If you decide to take this route, please call our helpful business loan experts. They’ll offer you with details on repayment and an early payout figure. This is calculated as the total of the principal amount remaining and the accrued interest up to the time of early payment, plus 1.5 percent of the remaining principal plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payment dates and to align with your cash flow general, we provide payments that are either weekly or daily. These are automatically withdrawn from your company account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing how we collect the information we collect, use, share and safeguard your data, is of huge importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We make use of an advanced banking verification system to instantly verify your bank account information online to provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an business owner uses assets they own to get a loan. The asset could be an asset belonging to the personal, like the family home, or a company property like a truck or other piece of machinery.
The vast majority of lenders, including the major banks, prefer to make loans secured by assets. If you’re having trouble paying back the loan, then your assets could be taken over by the lender. In essence it is the process of securing new funding taking advantage of the value of what you already own.
Are I require security for an company loan?
For loans that exceed $150K, no asset security is required upfront to access the money however, we do need a personal guarantee. As long as you follow the terms of your loan (as stipulated in your loan contract) and you are able to meet your obligations, asset security is not needed. For loans that exceed $150K, generally, you can get a personal ensure and security in the form of charges on assets.