FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Loganlea Small Business Loans
Tell me what you think of the Loganlea Small Business Loans
Loganlea unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from the traditional business loan?
It is imaginable to apply to the Small Business Loan in under 10 minutes online or over the phone. You’ll get an instant response and have the funds in your account in 24 hours. Traditional business loans refer to an annual interest rate together with additional fees and charges. Our business loan is an upfront priced loan and you’ll be aware in advance of the total amount payable including the interest, fees and charges. This is then broken down into a daily or weekly installment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company need, such as cash flow management, business remodels and marketing for purchasing inventory or new equipment, or as general working capital, and much more. The loan cannot be used for personal reasons.
About larger Loganlea Business Loans
What is the Larger Loganlea Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed up to 36 months. Repayments are either weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the company needs to have been in operation for at least 3 years and have an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be utilised?
A Larger Business Loan can be used for almost every business purpose including company renovations, to purchase equipment or inventory or as general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. It’s by way of charge on assets, and could include registering this on the PPSR or registering a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is general in nature, rather than stipulating the security of a specific asset. The person who is signing the ensure is personally liable if the company creditor 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 lists security interests that are which are registered with respect to personal property (including objects or assets). The PPSR grants the priority of personal property granted in accordance with the date on which a security interest has been registered.
Caveats are legal form of document to offer the legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re applying for larger company loans of $250K or more we may be able to provide an initial pre-approval in order to ease the process. We might be able to apply for this without a credit check and within 6 hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering a few financial well-being checks. It’s not an offer of credit or guarantee of funds. A conditional approval is subject an assessment of your creditworthiness and any offer you are offered could be based on different terms.
Application process
Do I have the right to receive funds?
You may apply for an 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)
- you must prove at least 6 months worth of trade (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form within a few minutes and a dedicated company credit specialist will call you to guide you through the process.
For a loan of up to $100,000, you’ll need the right identification documents (valid Driver’s License) and an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Information on the application including credit consent and 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, and interim financials for the current financial year such as age-related payables and aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we typically offer a response in one hour – as long as you submit your request during quality company timings and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your bank statements , we will be able to provide the decision in as little as one business day.
For the Larger Business Loan ($100K up to $500,000) we may be likely to provide you with pre-approval conditional to your application in around 6 hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending on the particular circumstances of each application. Some transactions have received approval in 24 hours.
The quickest method for you to apply is ensure you apply during normal company hours. Also, permit us to use the modern bank verification to verify your bank information online. If you opt to upload the copies of bank statements it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) We can usually offer a response in one hour if you apply within standard business hours and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your bank statements we can provide a decision in just an business day.
For Larger Business Loans ($100K or more) we could be capable of provide you with conditional pre-approval within six hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this can be faster depending on the specifics of each application. Certain agreements have been approved in 24 hours.
The fastest way can be make sure you apply during standard business hours and let us use the advanced bank verification system to confirm your bank details online. If you send us duplicates of your banking statements it takes a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a specific amount we consider a variety of elements in order to assess the health that is your business and the amount of repayments your business is able to afford. The total amount of the loan will be determined by the particular circumstances for your business.
When you submit an application for a certain amount, we consider a variety of elements to assess your well-being of the company and the amount of the repayments your company can support. The amount you receive from the loan will be determined by the specific circumstances that are unique to your business.
Fees & repayments
How much should you charge for the cost of a business loan?
When you request business loans with us company credit, we will assess the risk assessment of your business and offer you with a customised offer that includes the loan amount, the terms and the interest rates. This business loan is an upfront priced loan therefore you will be aware of the total amount due, which includes any costs, fees, or interest rates.
What determines the amount I pay?
The interest rates on company loans rates depend on several factors like the amount of money borrowed, what company assets the funds are used to purchase as well as the field the business operates in, how long the business has been operating as well as what percentage of the business has sufficient cash flow to cover the loan, and the overall well-being or financial standing of the business.
What are the fees?
There are no hidden fees for our business loans. You’ll know precisely what you be required to pay, and at what time, from day one. There’s no compounding and the loan comes with no additional fees (as long as you make your payments on time).
We don’t charge an Application Fee. You can make an application for loans with no upfront cost or commitment to apply.
The Origination Fee includes the expenses associated with the setting up and management of the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percent of the loan amount.
Do I have the option of paying off the loan in advance?
You may choose to pay back the entire amount of the loan at any point in time.
If you are deciding to pursue this option, please talk to one of our helpful company credit specialists. They’ll offer you with repayment details and an early payout figure. This is calculated as the sum of the principal balance plus any accrued interest as of the time of the early payout and 1.5 percent of the principal amount remaining as well as any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payment dates and to align with your cash flow standard, we provide repayments either daily or weekly. They are automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and being transparent about how we collect the information we collect, use, share and secure your information, is crucial and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their privacy. We use an advanced bank verification system that allows you to immediately confirm your bank account information online. This allows us to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a business owner borrows from an asset they own to make the funds for a loan. The asset can be an asset belonging to the personal, like the family home or an company property like a truck as well as a piece of machine.
The majority of the lenders even the banks with the biggest size, prefer to make loans secured by an asset. If you have trouble paying back the loan then your asset may be offered for sale by the lender. In essence it is the process of securing new financing using the worth of the asset you already have.
Are I require security to get an business loan?
For loans that exceed $150K, there is no requirement for asset security upfront to access the money however, we do need a personal guarantee. If you adhere to the terms of your loan (as specified in your loan contract document), asset security is not required. If you take out loans in excess of $150,000 generally there is the option of a personal guarantee and security that is in the form the charge of assets.