FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Lyons Small Business Loans
Tell me what you think of the Lyons Small Business Loans
Lyons unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from the traditional company loan?
The application for the Small Business Loan in under 10 minutes by phone. You will receive an answer within the same day and the money could be on your account within 24 hours. Traditional business loans are based on an annual interest rate as well as other fees and charges. The company loan is a cash-based loan and you’ll know ahead of time the amount you will have to pay, including any fees, charges or charges. This is then divided into weekly or daily payment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every company use, including control of cash flow company remodeling, marketing, to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available for personal reasons.
Concerning Larger Lyons Business Loans
What is the Larger Lyons Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. The repayments are made weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a credit of this size the business needs to be trading for at least 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can the funding be used for?
A Business Loan of a larger size can be used for nearly every company use, including company improvements, purchasing new equipment or inventory or as general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed to obtain funding above $150,000. It is usually by taking a charge against assets, and could be registered with the PPSR or filing as a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is general in nature, rather than stipulating the security of a specific asset. The person signing the ensure is personally liable if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including objects or assets). The PPSR gives prioritisation over property that is personal to be assigned depending on the date that a registration of a security interest.
An affidavit is an official form of document to provide an official notice of a claim to property.
What exactly is a preapproval without Credit Check?
If you’re seeking an enterprise loan of more than $250,000 it is possible to offer a preliminary pre-approval to help simplify the process. We could be able to apply for this without credit checks and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial well-being questions. This is not an offer or guarantee of finance. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you may receive may be on different terms.
Application process
Do I have the right to receive funds?
You can apply for a company 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)
- must show at least six months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application in few minutes and an experienced business lending specialist will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll need the right identification documents (valid Driver’s License) as well as an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent and 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, in addition to interim financial statements for the current year as well as Aged Payables and Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we typically provide a response in one hour if you make your application within quality company time and you allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you opt to send us copies of your bank statements we can offer the decision in just 1 company day.
For Larger Business Loans ($100K and up) we might be likely to provide the conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this can be quicker based on the circumstances of each application. Some deals have been approved in less than 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours and let us use the modern bank verification to instantly verify your bank information online. If you decide to upload copies of your bank accounts, it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K or more) we usually offer an answer in just one hour – provided you apply during normal business timings and you allow us to use the bank verification system to instantly verify your bank information online. If you opt to upload copies of your banking statements we can offer a decision in as little as 1 business day.
For the Larger Business Loans ($100K up to $500,000) We may be able to provide you with a conditional pre-approval within 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 upon the circumstances for each application. Certain offers have been approved in less than 24 hours.
The quickest method would be to make sure you apply during standard business hours. You can also allow us to use our modern bank verification link to instantly check your bank’s information online. If you choose to upload copies of your bank statements, it may 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 particular amount, we consider a variety of factors that determine your health of the business and the level of repayments that your business can support. The amount you receive from the loan will be determined by the specific circumstances that are unique to your company.
When you apply for a set amount, we consider a variety of aspects to assess the well-being of your company and the level of repayments your company will be able to support. The amount you receive from your loan will be determined by the specific circumstances for your business.
Fees & repayments
How do you charge for a business loan?
When you apply for one of our company financing, we’ll assess the risk profile the business and offer you with a customised offer including the amount of loan, the term and interest rates. A company loan is an upfront priced loan and you’ll know in advance the total amount to be paid, including any charges or interest.
What is the basis for the rate I am charged?
Interest rates for business loans rates vary due to factors like the amount of money borrowed, the company assets the funds are used to purchase in addition to the industry that the business is in, how long the business has been in operation, whether the business has enough cash flow to support the loan, and also the general health or creditworthiness of the business.
What are the costs?
There aren’t any hidden costs for our business loans. You’ll know precisely how much it is that you be required to pay, and when, starting from day one. There’s no compounding and no additional fees (as long as you make your payments on time).
We do not charge an application fee. You are able to apply for a loan without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay out the loan in advance?
You can decide to repay the total amount of your loan at any point in time.
If you do decide to take this route, please call our helpful business lending specialists. They will offer you with the details of your repayment and an early payment figure. It will be calculated using the total of the principal remaining and accrued interest to the time of the early payout and 1.5 percent of the principal balance as well as any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss due dates and also to be in line your cash flow schedule, 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?
Security of your data, and being clear about the ways we gather the information we collect, use, share and protect 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 utilise industry-recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to protecting the security of customers and privacy. We make use of an advanced bank verification system that allows you to instantly verify your bank account information online. This allows us to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a company owner uses the assets they have to obtain a loan. The asset may be an individual asset, such as the family home or it could be a company asset like a truck or piece of equipment.
The majority of banks, even the largest banks, are inclined to secure loans against assets. If you’re struggling to pay back the loan, your assets could be offered for sale by the lender. In essence, it’s the process of securing new financing by using the value of what you already own.
Do I require security for a company loan?
For loans that exceed $150,000, no asset security is required before you can access the money However, we require a personal guarantee. need an individual guarantee. As long as you follow your loan commitments (as stipulated in the loan contract) Asset security is not required. For loans over $150K generally, you can get an individual guarantee and security in the form of an asset charge.