FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Lutwyche Small Business Loans
Let me know what you think of the Lutwyche Small Business Loans
Lutwyche unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What makes how is the Unsecured Loan different from an traditional company loan?
You can apply to this Small Business Loan in under 10 minutes online or over the phone. You’ll get a same day response and the money could be on your account within 24 hours. Traditional business loans have an annual rate of interest along with other charges and fees. We offer a business loan is a loan that is priced upfront which means you be aware of the total amount payable including any fees, charges or charges. This is then broken down into either a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company purpose including the management of cash flow, business remodeling, marketing for purchasing inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal use.
Concerning Larger Lutwyche Business Loans
What is the Larger Lutwyche Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to be in operation for at least 3 years and have an annual turnover of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funding be used for?
A Larger Business Loan can be used for nearly every company need, including company renovations, purchase of new equipment or inventory as well as for general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. It’s as a result of an charge against assets, and may include registering this in the PPSR or making as a caveat.
A director’s or personal ensure is a promise to pay back a loan that is general in nature rather than stating the security for a particular asset. The person signing the guarantee is personally accountable if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including items or assets). The PPSR allows prioritisation over property that is personal to be granted in accordance with the date on which a security interest was registered.
The caveat can be described as a formal form of document to offer an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting larger business loans that is greater than $250,000 it’s possible to offer a preliminary pre-approval to help smooth out the process. We could be able to apply for this without a credit check and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial health questions. It is not an offer of credit or guarantee of credit. The approval of a conditional loan is subject to an exhaustive 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 an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and simple. Complete the online form within a few minutes and an experienced business loan specialist will contact you to assist you.
To apply 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 six months worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details for application including credit consent and 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we usually offer an answer within an hour, provided you apply in quality company hours and permit us to use the advanced bank verification system to instantly verify your bank information online. If you want to send us copies of your bank statements , we are able to provide an answer in just 1 company day.
For Larger Business Loans ($100K up to $500,000) we may be likely to offer the conditional pre-approval in around 6 hours. After you’ve signed the pre-approval form, it will take 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 most effective method would be to make sure you apply during normal company hours and let us use the modern bank verification link to confirm your bank details online. If you send us documents from your account statements it can take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we typically offer an answer in just one hour, provided you make your application during normal business hours and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statements, we’ll be able to provide a decision in just an business day.
For Larger Business Loans ($100K up to $500,000) we may be likely to offer you with a conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Certain transactions have received approval within just 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours, and allow us to use our advanced bank verification system link to instantly verify your bank account information online. If you opt to send us the copies of bank accounts, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a specific amount we look at a variety of aspects to determine how much we can lend you well-being for your company and the level of repayments your business will be able to support. The total amount of your loan will be contingent on the specifics of your business.
If you apply for a specific amount we look at a range of elements to determine how much we can lend you such as well-being of your company as well as the amount of payments your business can support. The total amount of your loan will be determined by the specific circumstances of your business.
Fees & repayments
How do you charge for an company loan?
When you request our company loan, we will assess the risk assessment for your company and offer an individualised offer including the loan amount, the terms and interest rates. A company loan is an upfront priced loan therefore you will know in advance the total amount due, which includes any charges, interest rates or fees.
What is the basis for the rate I will be charged?
The interest rates on business loans rates depend on a variety of factors including the amount of money borrowed, the business assets the money will be used for and the sector the company is in, how long the business has been running as well as how long the business has enough cash flow to cover the loan, and also the general health and creditworthiness of the company.
What are the costs?
There aren’t any hidden charges for our business loans. You’ll know precisely what you be required to pay, and when, starting from the very first day. There’s not any compounding interest and no extra fees (as long as you are able to make your payments punctually).
We do not charge an application fee. You can apply for a loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee includes the expenses associated with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay off the loan earlier?
You can choose to repay the total amount of your loan in full at any time.
If you decide to take this route, please call our helpful business lending experts. We will provide you with details on repayment along with an early payout estimate. The figure will be calculated as the sum of the principal remaining and the accrued interest up to the time of the early payout plus 1.5 percent of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
To make sure you do not miss payments and to work your cash flow cycle we provide repayments either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing how we collect the information we collect, use, share and safeguard your data, is vital and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We make use of an advanced banking verification system to instantly verify your bank account information online, allowing us to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the company owner utilises the assets they have to get a loan. The asset can be either an individual asset, such as the family home or it could be a company asset like a truck or other piece of machinery.
The vast majority of the lenders even the major banks, prefer to make loans secured by assets. If you’re struggling to pay back the loan, then the asset might be taken over by the lender. In essence, it’s means of securing new funding using the value of what you already have.
What do I require security to get an company loan?
For loans up to $150,000 the requirement for asset security is not required prior to the loan’s access However, we do require a personal guarantee. As long as you follow your loan commitments (as stipulated 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 $150,000 generally, you can get the option of a personal guarantee and security in the form of an asset charge.