FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Holland Park West Small Business Loans
Tell me about the Holland Park West Small Business Loans
Holland Park West unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What makes what makes the Unsecured Loan different from an ordinary company loan?
The application to the Small Business Loan in under 10 minutes over the phone, receive an immediate response, and the funds could be on your account within 24 hours. Traditional company loans are based on an annual rate of interest together with additional fees and charges. Our company loan is a pre-paid loan and you’ll be aware of the total amount due, which includes any fees, charges or charges. Then, it is divided into a daily or weekly repayment figure.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business reason, such as the management of cash flow, business remodels and marketing, to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used to fund personal expenses.
Concerning Larger Holland Park West Business Loans
What is the Larger Holland Park West Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to be operating for at least three years and have an annual turnover of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funds be used for?
A Larger Business Loan can be used for almost every company purpose including company remodeling, buying new equipment or inventory, 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. This is by taking a charge over assets and can include registration through 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 of a specific asset. The person who is signing the guarantee is personally responsible if the business creditor is unable to make the repayment.
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 objects or assets). The PPSR permits priority over personal property to be granted depending on the date that a security interest has been registered.
Caveats are legal document filed to offer the public notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan of $250K or more we can offer an initial pre-approval to ease the process. It is possible to apply for this without a credit check and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering some financial health checks. It is neither an offer nor a guarantee of credit. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you receive could be subject to different terms.
The application process
Can I be eligible for funding?
You can apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a couple minutes, and a dedicated business lending specialist will call you to guide you through the process.
To apply for up $100,000, you’ll require identification details (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent, 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, in addition to interim financials for the current financial year as well as Aged Payables and Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we can often offer an answer in just one hour if you submit your request at standard company time and let us utilise the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your bank statement, we’ll provide a decision within one business day.
For the Larger Business Loan ($100K up to $500,000) we may be able to provide you with conditional pre-approval within six hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Some offers have been approved in 24 hours.
The quickest method can be ensure you apply during normal company hours. You can also let us use the modern bank verification to instantly confirm your bank details online. If you opt to upload duplicates of your banking statements it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer within an hour – as long as you apply during normal business times and let us use the advanced bank verification system link to immediately verify your bank account information online. If you opt to send us copies of your bank statement, we’ll offer an answer in as little as the span of one business day.
For the Larger Business Loans ($100K to $500K) We may be able to offer you with pre-approval conditional to your application within six hours. Once you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this can be faster depending on the particular circumstances of each application. Certain offers have been approved within the space of 24 hours.
The fastest way is to make sure you apply during standard business hours and allow us to use our sophisticated bank verification link to check your bank’s information online. If you opt to send us duplicates of your banking statement, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a certain amount we look at a variety of variables for determining the health that is your business and the level of the repayments your business can support. The total amount of your loan will be contingent on the particular circumstances that are unique to your business.
If you apply for a particular amount, we take into consideration a variety of aspects to assess your health that is your business and the level of repayments your company will be able to support. The amount you receive from the loan will be determined by the specific circumstances the business.
Fees & repayments
How much do you charge for a business loan?
If you decide to make an application for one of our company credit, we’ll assess the risk profile for your business and offer you with a customised proposal that includes the amount of loan, the term and interest rates. A business loan is an upfront priced loan and you’ll know the exact amount to be paid, including any charges or interest.
What is the factor that determines the price I pay?
Business loan interest rates differ based on various factors such as the amount that is borrowed, what business assets the funds are used to purchase in addition to the industry that the company operates in, the long the business has been running for, in the event that the business has enough cash flow to fund the loan, and the general well-being or financial standing of the company.
What are the costs?
There are no hidden fees for our business loans. You’ll be aware of the amount you’ll need to pay, and when, starting from the first day. There’s no compounding and there are no additional charges (as as you make your payments on time).
We don’t charge an Application Fee. You can apply for a loan with with no upfront cost or commitment to apply.
The Origination Fee is the cost associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan early?
You can decide to repay the entire amount of your loan in full at any time.
If you do decide to take this route, please call our helpful company loans experts. The specialists will provide you with the details of your repayment along with an early payout estimate. This is calculated as the sum of the principal amount remaining plus any accrued interest as of the time of early payment, plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
How do you make repayments work?
To help you avoid missing payment dates and to align your cash flow cycle we provide repayments either weekly or daily. They are automatically deducted from your company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as making it clear how we collect data, process, exchange and protect your information, is crucial and an integral 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 commitment to protecting the security of customers and security. We make use of an advanced banking verification system to instantly verify your bank account information online to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a business owner borrows from the assets they have to get the funds for a loan. The asset can be a personal asset like the family home, or an company asset like a truck as well as a piece of machine.
The vast majority of banks, including the largest banks, are inclined to make loans secured by an asset. If you’re having trouble paying back the loan then your asset may be sold by the lender. In essence it is means of securing additional financing using the worth of the asset you already own.
Are I need security to get a business loan?
Up to $150,000 in loans the requirement for asset security is not required in advance to gain access to the funds, however we require a personal guarantee. need an individual guarantee. If you adhere to the terms of your loan (as stipulated in your loan contract) Asset security is not needed. For loans that exceed $150,000, typically, you will need a personal ensure and security that is in the form an asset charge.