FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Logan Reserve Small Business Loans
Tell me how you can avail the Logan Reserve Small Business Loans
Logan Reserve unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer 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 to get the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an instant response and the funds could be in your account within 24 hours. Traditional company loans are based on an annual rate of interest plus other fees and charges. This company loan is a cash-based loan so you will know in advance the amount you will have to pay, including any fees, charges or charges. This is then divided into weekly or daily installment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business use, including managing cash flows, business improvements, advertising to purchase inventory or new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
About the Larger Logan Reserve Business Loans
What is the Larger Logan Reserve Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term that can last up to 36 months. The repayments are made weekly or fortnightly to work with the flow of cash.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan of this size, your company needs to have been operating for at least three years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funding be utilised?
A Larger Business Loan can be used for almost every business reason, such as company renovations, purchase of inventory or new equipment as well as for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. This is as a result of an charge against assets, and could be registered on the PPSR or making as a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is general in nature, rather than stipulating security over a particular asset. The person who signs the ensure is personally liable if the business borrower is unable to re-pay 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 gives prioritisation over property that is personal to be assigned depending on the date that a security interest that is registered.
The caveat can be described as a formal form of document to offer an official notice of a claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking an enterprise loan that is greater than $250,000 we may be able to provide an initial pre-approval that will help simplify the process. We may be able to make this decision without credit checks and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes answering a couple of financial well-being checks. It is neither an offer nor a guarantee of credit. Unconditional approval is subject to a full credit assessment and any offer you are offered could be based on different conditions.
The application process
Do I have the right to receive funds?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application in few minutes and an experienced company credit specialist will call you to help you.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, 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 the loan is greater than $150K).
$250K-$500K: Details for application including credit consent, 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within one hour, provided you apply within quality company times and permit us to utilise the bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statements we can offer the decision within just an company day.
For Larger Business Loans ($100K and up) we may be likely to offer you with conditional pre-approval in about six hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this can be quicker based on the specifics of each application. Certain deals have been approved in just 24 hours.
The quickest method would be to ensure you apply during normal business hours. Also, permit us to use the modern bank verification to check your bank’s information online. If you decide to send us the copies of bank statements it may take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K and up) we typically offer an answer in just one hour – as long as you make your application during normal business hours and allow us to use the advanced bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statement, we’ll provide the decision within the span of one business day.
For the Larger Business Loans ($100K and up) we might be likely to offer you with conditional pre-approval within six hours. Once you’ve signed the 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. Some agreements have been approved in 24 hours.
The fastest way is to ensure you apply during normal business hours and allow us to use the advanced bank verification system link to instantly verify your bank account information online. If you opt to send us copies of your bank accounts, it can take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a particular amount, we take into consideration a range of factors to determine how much we can lend you well-being of the company as well as the amount of repayments your business can afford. The total amount of your loan will depend on the specifics for your business.
When you make an application for a certain amount, we will consider a number of elements to assess the health for your business and the level of the repayments your company can support. The total amount of your loan will be contingent on the specific circumstances for your company.
Fees & repayments
How do you charge for the cost of a company loan?
When you request one of our business credit, we’ll assess the risk profile the business and offer you with a customised offer including the amount of the loan, the duration and interest rates. The business loan is an upfront-priced loan which means you know the exact amount you will have to pay, including charges or interest.
What determines the rate that I’m charged?
The interest rates on business loans rates differ based on various variables like the amount to be of money borrowed, the company assets the money are used to purchase and the sector the company operates in, how long the company has been in operation and in the event that the business has sufficient cash flow to fund the loan, and the overall well-being as well as creditworthiness company.
What are the costs?
There aren’t any hidden charges for our business loans. You’ll know precisely how much you be required to pay, and at what time, from the very first day. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We do not charge an application fee. You can get a cash loan no cost upfront or any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay out the loan earlier?
You may choose to pay back the entire amount of the loan at any point in time.
If you choose to pursue this option, please speak to our friendly company loans specialists. The experts will offer you with repayment details and an early payout figure. This will be calculated as the total of the remaining principal amount plus any accrued interest as of the time of early payment plus 1.5 percent of the remaining principal and 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 repayments either weekly or daily. These are automatically deducted from your company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing how we collect, use, exchange and ensure the security of your information is of huge importance and an integral 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 and other data. Our funders are ISO 27001 qualified for our commitment to protecting the security of clients and security. We make use of an advanced bank verification system link to immediately verify your bank account details online, allowing us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an company owner makes use of an asset that they own to get a loan. The asset could be an individual property, such as the family home or a company asset like a truck as well as a piece of machine.
The vast majority of lenders, not just the big banks, tend to secure loans against an asset. If you’re having trouble paying back the loan, then your assets could be taken over by the lender. In essence, it’s an opportunity to secure additional financing taking advantage of the value of what you already have.
What do I require security to secure a business loan?
For loans up to $150K the requirement for asset security is not required upfront to access the money however, we do need a personal guarantee. So long as you comply with the terms of your loan (as stipulated in your loan contract) and you are able to meet your obligations, asset security will never be needed. For loans over $150,000 generally, you can get the option of a personal ensure and security that is in the form an asset charge.