FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Highgate Hill Small Business Loans
Let me know about the Highgate Hill Small Business Loans
Highgate Hill unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from an traditional business loan?
Apply for your Small Business Loan in under 10 minutes online or on the phone. You’ll receive a same day response and the money could be on your account within 24 hours. Traditional company loans have an annual rate of interest as well as other fees and charges. Our business loan is a loan that is priced upfront so you will be aware of the total amount to be paid, including any fees, charges or charges. Then, it is broken down into weekly or daily payment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every business need, such as cash flow management, business remodels and marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan is not available for personal purposes.
About Larger Highgate Hill Business Loans
What is the Larger Highgate Hill Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range from $100,000 to $500,000 with a term fixed that can last up to 36 months. Repayments are weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your company needs to have been trading for at least 3 years, and have an annual income of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A large business loan can be used for almost all company reason, such as company renovations, to purchase 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 needed to access funding over $150,000. This is by way of charge over assets and can include registering this in the PPSR or making a caveat.
A personal or director’s ensure is a promise to pay back a loan that is general in nature, rather than defining security over a particular asset. The person signing the ensure is personally liable in the event that the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including items or assets). The PPSR permits priority over personal property to be assigned according to the date a registration of a security interest.
A caveat is a legal document filed to provide notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re requesting a Larger Business Loan that exceeds $250,000, we may offer an initial pre-approval to make the process. We may be able to apply for this without credit checks and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves the answer to a series of financial health checks. This is in no way an offer, nor is it a guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer that you are offered could be on different conditions.
Application process
Are I eligible for funding?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Just complete the online application within a couple minutes, and a dedicated company expert in lending will be in touch to guide you through the process.
To be eligible for up to $100,000 you’ll require proof of identity (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Application details including credit consent, 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, as well as interim current financial year financials, Aged Payables and Aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we typically provide an answer within an hour if you submit your request within standard business timings and you allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your banking statement, we’ll provide an answer in just the span of one business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we might be capable of offer you with pre-approval conditional to your application within about six hours. Once you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Some agreements have been approved within the space of 24 hours.
The fastest way is to ensure you apply during standard business hours. Also, allow us to use our modern bank verification link to instantly verify your bank information online. If you opt to send us the copies of bank accounts, it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer in just one hour – provided you submit your request within standard business times and allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statement, we’ll offer an answer within the span of one business day.
For the Larger Business Loans ($100K and up) we may be likely to offer you with pre-approval conditional to your application within about six hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Some agreements have been approved in less than 24 hours.
The fastest method would be to make sure you apply during normal business hours, and allow us to use the advance bank verification to confirm your bank details online. If you send us copies of your bank statements it will take a little longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a certain amount, we take into consideration a range of factors that determine what is the well-being of your business and the amount of repayments your company is able to afford. The amount you receive from the loan will be determined by the particular circumstances that are unique to your company.
When you submit an application for a certain amount, we will consider a number of factors to determine how much we can lend you such as well-being that is your company as well as the amount of repayments that your business can support. The amount you receive from your loan will be contingent on the particular circumstances the business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to apply for the company credit, we will assess the risk profile of your business and offer an individualised proposal that includes loan amount, term and the interest rates. This company loan is an upfront priced loan which means you know in advance the total amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I pay?
Interest rates for company loans rates depend on a variety of factors including the amount borrowed, what company assets the money will be used for as well as the field the company is operating in, how long the business is in operation as well as in the event that the business has sufficient cash flow to pay for the loan, and also the general well-being or financial standing of the company.
What are the cost?
There are no hidden costs for our company loans, and you’ll know exactly how much you need to pay and when, right from the very first day. There’s no compounding and there are no additional charges (as as you make your payments punctually).
We do not charge an application fee. You are able to request a credit loan no cost upfront or any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. The only way to pay this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I repay the loan in advance?
You may choose to pay back the total amount of your loan in full at any time.
If you do decide to do this please call our helpful business credit professionals. They will provide you with the details of your repayment along with an early payout estimate. This is calculated as the total of the principal balance and the accrued interest up to the time of the early payout plus 1.5 percent of the principal balance plus any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payments and to work with your cash flow cycle we provide repayments either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my information be secure?
Protecting your information, and making it clear how we collect the information we collect, use, share and ensure the security of your information is of paramount importance and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their privacy. We utilise a sophisticated banking verification system to instantly verify your bank account details online. This allows us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a business owner makes use of the assets they have to obtain the funding. The asset can be either a personal asset like the family home, or an company asset such as a truck or piece of equipment.
The majority of lenders, including the largest banks, are inclined to guarantee loans against an asset. If you are having difficulty paying back the loan then the asset could be taken over by the lender. In essence, it is means of securing new financing by taking advantage of the value of what you already have.
Should I require security to get an business loan?
Up to $150K in loans it is not necessary to secure assets upfront to access the money However, we do require an individual guarantee. So long as you comply with your loan commitments (as stated in the loan contract) and you are able to meet your obligations, asset security will never be required. If you take out loans in excess of $150,000 generally there is personal guarantee and security is provided in the form of an asset charge.