FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Luscombe Small Business Loans
Let me know more about Luscombe Small Business Loans
Luscombe unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
How is how is the Unsecured Loan different from an ordinary business loan?
Apply for this Small Business Loan in under 10 minutes on the internet or over the phone, receive an instant response and funds may be on your account within 24 hours. Traditional business loans are based on an interest rate per annum as well as other fees and charges. Our company loan is a cash-based loan therefore you’ll be aware of the total amount due, which includes any interest, fees or charges. This is then divided into a daily or weekly installment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company purpose including control of cash flow business renovations, marketing, to purchase inventory or new equipment, or as general working capital and so much more. The loan is not available to fund personal expenses.
About the Larger Luscombe Business Loans
What is the Larger Luscombe Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are either weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your business needs to be trading for at least 3 years and have an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can I use the funding for?
A large business loan can be used to fund almost all company reason, such as company improvements, purchasing inventory or new equipment as well as for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. It’s in the form of a charge against assets, which could also be registered on the PPSR or registering as a caveat.
A personal or director’s ensure is a guarantee to repay credit that is general in nature, rather than stating the security for a particular asset. The person who is signing the ensure is personally responsible if the business lender is not able to pay back the debt.
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 registered in respect of personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be assigned according to the date a registration of a security interest.
The caveat can be described as a formal document filed to provide the legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan that exceeds $250,000, we may offer an initial pre-approval to simplify the process. We could be able to do this without a credit check, and within 6 hours of your initial application. The pre-approval process is based on an initial assessment, which involves answering a couple of financial well-being checks. It is in no way an offer, nor is it a guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer that you may receive may be based on different terms.
The application process
Do I qualify for funds?
You may apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (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 easy. Just complete the online application in just a few minutes, and a dedicated company lending specialist will call you to help you.
To be eligible for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) 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 require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent and 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) We can usually offer a response in one hour, provided you apply within quality business timings and allow us to use the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statements we can offer an answer in as little as 1 business day.
If you are applying for a Larger Business Loan ($100K to $500K) we could be in a position to offer you with a conditional pre-approval in about 6 hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this may be quicker depending on the particular circumstances of each application. Some agreements have been approved within less than 24 hours.
The quickest method for you to apply is make sure you apply during normal business hours. Also, let us use the modern bank verification link to instantly verify your bank account information online. If you decide to upload duplicates of your banking accounts, it can take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we typically offer an answer within one hour – provided you submit your request in standard business timings and allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your banking statements, we are able to provide an answer in just one business day.
For the Larger Business Loans ($100K to $500K) we might be likely to provide you with a conditional pre-approval in about six hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Some deals have been approved within 24 hours.
The most effective method can be make sure you apply during normal business hours. You can also allow us to use the modern bank verification link to verify your bank information online. If you opt to send us documents from your account accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a specific amount we take into consideration a range of aspects in order to assess what is the well-being of the company and the extent of payments your company can support. The amount you receive from the loan will be determined by the specific circumstances of your company.
When you submit an application for a set amount, we consider a variety of variables to assess how much we can lend you such as well-being for your business and the level of repayments that your company will be able to support. The amount you receive from your loan will depend on the particulars for your business.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to request the business loans, we will assess the risk assessment the business and offer an individualised proposal that includes the amount of loan, the term and interest rates. It is a business loan is an upfront-priced loan so you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I will be charged?
Interest rates for business loans rates vary due to factors such as the amount that is borrowed, the company assets the money are used to purchase as well as the field the business is in, how long the business is in operation for, what percentage of the company has enough cash flow to fund the loan, and also the overall health or financial standing of the company.
What are the costs?
There are no hidden fees for our company loans, and you’ll know precisely what you’ll need to pay and when, right from the day you sign up. There’s not any compounding interest and there are no additional charges (as long as you make your payments on time).
We don’t charge an Application Fee. You can request a credit loan with no upfront cost or any obligation to sign up.
The Origination Fee covers the expenses involved with the setting up and management of the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan early?
You can choose to repay the entire amount of your loan early at any time.
If you are deciding to do this please speak to our friendly company credit specialists. We will offer you with details on repayment and an early payment figure. It will be calculated using the total of the principal amount remaining and accrued interest to the time of early payment plus 1.5% of the principal amount remaining plus any outstanding fees.
How do repayments work?
To ensure that you don’t miss payments and to work with your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from your designated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being clear about how we collect data, process, exchange and protect your information, is of huge importance and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We utilise a sophisticated bank verification system link to instantly verify your bank account information online so we can provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when a business owner makes use of an asset that they own to make the funding. The asset can be an individual property, such as the family home or an business property like a truck or piece of equipment.
The majority of lending institutions, not just the major banks, prefer to secure loans against assets. If you’re having trouble paying back the loan, the asset could be transferred to the lender. In essence it is means of securing new financing making use of the value of what you already have.
Do I need security to secure an company loan?
For loans up to $150K there is no requirement for asset security in advance to gain access to the funds however, we do need a personal guarantee. In the event that you fulfill the terms of your loan (as specified in your loan contract document), asset security will never be needed. If you take out loans in excess of $150,000 generally there is an individual guarantee and security is provided in the form of an asset charge.