FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Leichhardt Small Business Loans
Let me know how you are able to avail the Leichhardt Small Business Loans
Leichhardt unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
How is what makes the Unsecured Loan different from the traditional company loan?
The application for the Small Business Loan in under 10 minutes by phone. You will receive an immediate response, and the funds could be in your account within 24 hours. Traditional business loans have an annual interest rate along with other charges and fees. Our business loan is an upfront priced loan and you’ll know in advance the total amount to be paid, including any fees, charges or charges. Then, it is broken down into either weekly or daily installment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business use, including cash flow management, business remodeling, marketing, to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
Concerning Larger Leichhardt Business Loans
What is the Larger Leichhardt Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee that 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 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) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can I use the funding for?
A Larger Business Loan is a great option for almost any business reason, such as company renovations, purchase of equipment or inventory or as general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. This is as a result of an charge over assets and can include registration through the PPSR or registering as a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is general in nature rather than specifying the security of a specific asset. The person who signs the guarantee is personally responsible if the company 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 records security interests that have been that are registered for personal property (including items or assets). The PPSR grants the priority of personal property granted depending on the date that a security interest that is registered.
The caveat can be described as a formal document that is filed to provide the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan that is greater than $250K, we may offer an initial pre-approval to simplify the process. We might be able to apply for this without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves you answering a few financial well-being questions. It is in no way an offer, nor is it a guarantee of funds. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you are offered could be on different conditions.
Application process
Do I have the right to receive funds?
You can apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate 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 application process is simple and easy. Just complete the online application within a couple minutes, and a dedicated business lending specialist will be in touch to help you.
To apply for up $100,000, you’ll need identification details (valid Driver’s Licence), a valid NZBN/IRD and at least six months worth of bank statements.
For larger loan 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 to $500K: Application details including credit consent as well as 12 months of bank records, IRD statements, last 2 years finalised financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we typically offer an answer within an hour – as long as you apply during quality business timings and allow us to utilise the bank verification system to immediately verify your bank account information online. If you decide to upload copies of your bank statements , we’ll be able to provide a decision within one business day.
For the Larger Business Loan ($100K to $500K) we may be in a position to offer the conditional pre-approval within about six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however it could be faster based on the particular circumstances of each application. Some agreements have been approved within just 24 hours.
The most effective method for you to apply is make sure you apply during normal company hours. Also, allow us to use the advanced bank verification system link to check your bank’s information online. If you send us duplicates of your banking accounts, it can take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually offer a response in one hour – as long as you make your application during normal business hours and permit us to make use of the advanced bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statements, we are able to offer an answer in just one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be capable of provide you with a conditional pre-approval in around six hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain agreements have been approved within just 24 hours.
The fastest method for you to apply is make sure you apply during standard business hours and allow us to use our modern bank verification to instantly check your bank’s information online. If you opt to send us the copies of bank accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a certain amount, we look at a variety of factors in order to assess what is the health for your company as well as the amount of repayments your company will be able to support. The total amount of your loan will depend on the specifics for your business.
If you apply for a set amount, we look at a range of aspects to determine how much we can lend you such as health that is your business as well as the amount of the repayments your company can support. The total amount of your loan will depend on the specifics the business.
Fees & repayments
What is the cost for a company loan?
If you decide to make an application for one of our business loans, we’ll assess the risk profile the business and provide you with a customised offer, including loan amount, term and the interest rates. The business loan is a loan that is priced upfront and you’ll know the exact amount you will have to pay, including charges or interest.
What determines the amount I will be charged?
Business loan interest rates depend on several factors including the amount of money borrowed, the company assets the funds are used to purchase as well as the field the business operates in, how long the business has been running, what percentage of the business has sufficient cash flow to pay for the loan, and also the overall health or creditworthiness of the company.
What are the fees?
There are no hidden fees for our company loans. You’ll know exactly how much you be required to pay and when, right from the day you sign up. There’s no compounding interest and there are no additional charges (as long as you make your payments punctually).
We do not charge an application fee. You can get a cash loan without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with setting up and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can decide to repay the total amount of your loan at any point in time.
If you are deciding to pursue this option, please contact our helpful company credit specialists. The experts will provide you with details on repayment along with an early payout estimate. This is calculated as the total of the principal amount remaining plus any accrued interest as of the time of the early payout and 1.5 percent of the principal remaining plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Security of your data, and being upfront about how we collect information, use it, and exchange it, as well as safeguard your data, is of huge importance and is a crucial 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 and financial data and our funders are ISO 27001 qualified for our commitment to protecting the security of customers and privacy. We utilise a sophisticated bank verification system link to immediately verify the bank account details online. This allows us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a company owner borrows from assets they own to make the funding. The asset could be an individual asset, such as the family home or it could be a business asset like a truck or piece of equipment.
The vast majority of lenders, including the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan, the asset could be offered for sale by the lender. In essence, it is an opportunity to secure new financing by using the value of what you already have.
Do I need security to get an business loan?
Up to $150,000 in loans the requirement for asset security is not required prior to the loan’s access however, we do need the personal guarantee. In the event that you fulfill the loan terms (as stipulated in your loan contract document) the security of assets is not required. For loans over $150,000 generally, you are able to get personal ensure and security in the form the charge of assets.