FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Loganholm Small Business Loans
Tell me about the Loganholm Small Business Loans
Loganholm unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from an ordinary company loan?
You can apply to get this Small Business Loan in under 10 minutes over the phone. You’ll get an instant response and have the funds in your account in 24 hours. Traditional company loans reference an interest rate per annum plus other fees and charges. The company loan is a loan that is priced upfront therefore you’ll know ahead of time the total amount due, which includes any fees, charges or charges. This is then broken down into either weekly or daily installment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business use, including managing cash flows, business renovations, marketing to purchase inventory, new equipment, as general working capital, and much more. The loan cannot be used for personal reasons.
About the Larger Loganholm Business Loans
What is the Larger Loganholm Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a credit of this size the company needs to have been trading for at least 3 years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funding be utilised?
A larger business loan is a great option for almost every business use, including company renovations, purchase of new equipment or inventory, as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. It is usually as a result of an charge against assets, which could also include the registration of this in the PPSR or making as 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 guarantee is personally accountable if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests that are registered for personal property (including goods or assets). The PPSR allows the priority of personal property assigned according to the date the registration of a security interest.
An affidavit is an official document filed to offer the legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger business loans of more than $250K it is possible to offer an initial pre-approval in order to make the process. We may be able to do this without a credit check, and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves you answering a few financial well-being questions. It’s not an offer of credit or guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer that you might receive could have 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 over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a few minutes and a dedicated business loan specialist will contact you to assist you.
To be eligible for up to $100,000 you’ll require proof of identity (valid Driver’s License) as well as an NZBN/IRD that is valid and at least 6 months’ worth 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 credit is over $150K).
$250K-$500K: Application details including credit consent and 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer in just one hour if you make your application in standard company time and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your bank statements , we’ll be able to offer an answer within just 1 company day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to offer you with pre-approval conditional to your application in about six hours. After you’ve signed your pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this could be shorter based upon the circumstances for each application. Some deals have been approved within just 24 hours.
The fastest way can be make sure you apply during normal business hours, and allow us to use the advanced bank verification system to instantly verify your bank information online. If you decide to send us copies of your bank statement, it can take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K to $100K) we typically offer an answer within one hour, provided you apply within standard business timings and let us use the bank verification system to instantly verify your bank’s information online. If you want to upload copies of your banking statements, we are able to provide a decision in just one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be likely to provide you with pre-approval conditional to your application within about 6 hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Certain offers have been approved in just 24 hours.
The fastest method for you to apply is ensure you apply during standard business hours. You can also permit us to use the sophisticated bank verification link to confirm your bank details online. If you choose to upload documents from your account statements it will take a little longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a specific amount we look at a variety of aspects in order to assess your well-being of your business and the amount of repayments your company can support. The total amount of the loan will be determined by the specifics of your company.
When you make an application for a particular amount, we will consider a number of elements to determine your health of the company as well as the amount of the repayments your company is able to afford. The amount you receive from your loan will be contingent on the specifics the business.
Fees & repayments
How do you charge for a company loan?
If you decide to make an application for business loans with us company loans, we will assess the risk assessment that you have for your company and offer an individualised offer that includes the amount of the loan, the duration and the interest rates. This company loan is an upfront-priced loan therefore you will be aware of the total amount due, which includes any charges or interest.
What is the basis for the rate I pay?
The interest rates on company loans rates vary due to factors such as the amount that is borrowed, the company assets the money will be used for and the sector the business is operating in, how long the company has been operating for, what percentage of the company has enough cash flow to support the loan, and also the general health or financial standing of the business.
What are the fees?
There are no hidden costs for our company loans, and you’ll know precisely how much you need to pay and when, right from day one. There’s no compounding and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We don’t charge an application fee. You are able to apply for a loan absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the costs associated in establishing and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan earlier?
You can choose to repay the entire amount of the loan at any point in time.
If you choose to pursue this option, please talk to one of our helpful business loan specialists. The specialists will offer you with the details of your repayment along with an early payout estimate. This is calculated as the total of the principal remaining and accrued interest to the time of early payout plus 1.5 percent of the principal remaining plus any outstanding fees.
How do you make repayments work?
To help you avoid missing payment dates and to align with your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear the ways we gather, use, exchange and secure your information, is of huge importance and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to customer security and privacy. We utilise a sophisticated bank verification system link to immediately verify your bank account details online. This allows us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where the business owner uses an asset they own to get the funding. The asset can be either an individual asset, such as the family home or a business asset such as a vehicle as well as a piece of machine.
The vast majority of lenders, including the banks with the biggest size, prefer to secure loans against an asset. If you’re having trouble paying back the loan then the asset might be offered for sale by the lender. In essence, it’s an opportunity to secure new financing by using the worth of the asset you already own.
What do I need security to secure a company loan?
Up to $150K in loans the requirement for asset security is not required before you can access the money however, we do require a personal guarantee. If you adhere to your loan commitments (as stated in the loan contract) and you are able to meet your obligations, asset security will never be needed. For loans that exceed $150K, typically, you will need a personal guarantee and security is provided in the form of an asset charge.