FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Logan Village Small Business Loans
Tell me more about Logan Village Small Business Loans
Logan Village unsecured loans provides amounts 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.
What makes this Unsecured Loan different from the traditional company loan?
It is possible to apply to this Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and the funds could be on your account within 24 hours. Traditional company loans have an annual interest rate plus other fees and charges. The business loan is a loan that is priced upfront and you’ll be aware in advance of the amount you will have to pay, including any fees, charges or charges. This is then broken down into weekly or daily repayment figure.
What could the Small Business Loan be used for?
A Small Business Loan can be used for almost every business reason, such as control of cash flow business improvements, advertising, to purchase inventory or new equipment, for general working capital and so much more. The loan is not available for personal purposes.
About Larger Logan Village Business Loans
What is the Larger Logan Village Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee determined?
This 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 that is this large, your business needs to be in operation for at least 3 years, and have an annual income of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funding be used for?
A Larger Business Loan is a great option for almost any company use, including business remodeling, buying new equipment or inventory or as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. It is usually as a result of an charge over assets and can be registered in the PPSR or registering a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is generally based rather than defining the security for a particular asset. The person signing the ensure is personally liable in the event that the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests registered in respect of personal property (including objects or assets). The PPSR gives preference over private property assigned in accordance with the date on which a security interest that is registered.
The caveat can be described as a formal form of document to offer the legal claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for a Larger Business Loan of more than $250,000 we may be able to provide an initial pre-approval in order to smooth out the process. We might be able to apply for this without a credit check, and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves the answer to a series of financial health checks. It’s not an offer of credit or guarantee of credit. Unconditional approval is subject to an assessment of your creditworthiness and any offer you may receive may be on different conditions.
The application process
Do I have the right to receive funds?
You are eligible to apply for a company 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)
- you must prove at least 6 months of business (for for the unsecured loan $5K – $100K) or three years of trade (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 few minutes and an experienced business loan specialist will call you to assist you.
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.
If you’re looking for loans with larger sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent twelve month bank accounts, the IRD statement as well as the two most recent years’ financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we usually offer an answer within an hour if you submit your request in standard company hours and you allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your banking statements , we are able to provide the decision within just an business day.
For the Larger Business Loan ($100K to $500K) we might be able to provide you with a conditional pre-approval in about six hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending on the circumstances of each application. Some deals have been approved within just 24 hours.
The fastest way would be to make sure you apply during standard company hours. Also, allow us to use the advance bank verification link to check your bank’s information online. If you send us documents from your account statements , it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) We can usually offer an answer in just one hour – as long as you submit your request at normal business times and let us utilise the advanced bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statements, we will be able to offer the decision within one business day.
If you are applying for Larger Business Loans ($100K and up) we might be capable of offer you with conditional pre-approval within about six hours. Once you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Some agreements have been approved in 24 hours.
The most efficient method would be to make sure you apply during normal business hours. Also, allow us to use our advanced bank verification system to confirm your bank details online. If you choose to upload duplicates of your banking statements it can take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a certain amount we take into consideration a range of factors for determining the health of the business as well as the amount of the repayments your business can support. The amount you receive from your loan will depend on the specifics for your business.
When you apply for a particular amount, we will consider a number of aspects to assess how much we can lend you such as well-being of your company as well as the amount of the repayments your business can support. The total amount of your loan will be determined by the particular circumstances of your business.
Fees & repayments
How much should you charge for the cost of a company loan?
When you apply for business loans with us company loan, we will assess the risk profile that you have for your business and provide an individualised offer that includes loan amount, term and interest rates. A business loan is an upfront-priced loan therefore you will know the exact amount you will have to pay, including interest rates, fees or charges.
What is the basis for the rate I will be charged?
Business loan interest rates vary due to variables like the amount to be of money borrowed, the company assets the money are used to purchase as well as the field the company operates in, the long the company has been running as well as whether the company has sufficient cash flow to pay for the loan, as well as the general well-being or financial standing of the business.
What are the cost?
There aren’t any hidden charges with our business loans, and you’ll be aware of the amount it is that you be required to pay, and at what time, from the first day. There’s no compounding and no additional fees (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You can make an application for loans absolutely no upfront cost and no obligation to proceed.
The Origination Fee is the cost associated with establishing and managing the loan. This is only a fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay off the loan early?
You can repay the entire amount of the advance loan at any time.
If you choose to do this please talk to one of our helpful business loans professionals. The professionals will provide you with repayment details along with an early payout estimate. This is calculated as the total of the remaining principal amount and accrued interest to the time of the early payout in addition to 1.5% of the principal balance as well as any outstanding fees.
How do repayments work?
To ensure you do not miss payment dates and to align your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being upfront about the ways we gather data, process, exchange and secure your information, is vital and is an essential aspect of our relationship with 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 certified for our commitment to the security of our clients as well as their security. We utilise a sophisticated banking verification system to instantly verify your bank account details online so we can offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where an business owner makes use of an asset that they own to obtain a loan. The asset can be either an asset belonging to the personal, like the family home or a business property like a truck or piece or equipment.
The vast majority of lenders, not just the largest banks, are inclined to secure loans against an asset. If you’re having trouble paying back the loan then your asset may be sold by the lender. In essence it’s the process of securing new financing by using the value of what you already have.
Do I need security to get an company loan?
For loans that exceed $150,000, no asset security is required in advance to gain access to the funds but we do require an individual guarantee. So long as you comply with your loan commitments (as detailed in the loan contract) and you are able to meet your obligations, asset security will never be needed. If you take out loans in excess of $150K generally, you are able to get an individual ensure and security in the form a charge over assets.