FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Macgregor Small Business Loans
Tell me more about Macgregor Small Business Loans
Macgregor unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
What makes how is the Unsecured Loan different from a traditional business loan?
The application to your Small Business Loan in under 10 minutes via the internet or over the phone, receive an immediate response, and funds may be in your account in 24 hours. Traditional business loans are based on an annual interest rate as well as other fees and charges. Our company loan is a cash-based loan therefore you’ll be aware in advance of the total amount payable including any fees, charges or charges. Then, it is broken down into either a daily or weekly payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business reason, such as managing cash flows, company remodeling, marketing to purchase inventory, new equipment, for general working capital, and much more. The loan is not available for personal reasons.
About larger Macgregor Business Loans
What is the Larger Macgregor Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the loan amount.
Do I qualify 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. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funding for?
A larger company loan can be used for almost all company use, including business renovations, purchase of equipment or inventory or as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. This can be done in the form of a charge on assets, and could include registering this with the PPSR or making as a caveat.
A personal or director’s ensure is a commitment to pay off a credit line that is general in nature rather than specifying the security for a particular asset. The person who is signing the ensure is personally accountable if the business the borrower fails to make the repayment.
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 granted to individuals who own personal property (including objects or assets). The PPSR gives preference over private property granted according to the date a registration of a security interest.
An affidavit is an official document lodged to offer notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re requesting larger company loans of more than $250,000, we may offer an initial pre-approval that will help simplify the process. We could be able to do this without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves you answering a few financial well-being checks. It is in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer you might receive could be on different terms.
The application process
Do I have the right to receive funds?
You may be eligible for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for the 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 simple. Just complete the online application in just a few minutes, and a dedicated company credit specialist will be in touch to assist you.
To apply for up to $100,000 you’ll require identification details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Details of the application, including credit consent twelve months bank statement, an IRD statement as well as the two most recent years’ financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within one hour – as long as you make your application within quality business times and allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statements we can offer a decision within just an business day.
For Larger Business Loans ($100K up to $500,000) we may be in a position to offer you with a conditional pre-approval in around six hours. Once you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain deals have been approved within 24 hours.
The most efficient method can be make sure you apply during standard business hours, and allow us to use our advanced bank verification system to instantly verify your bank account information online. If you decide to upload duplicates of your banking statement, it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) We can usually offer a response in one hour, provided you make your application at normal business hours and let us make use of the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statements we can provide an answer within 1 business day.
For Larger Business Loans ($100K or more) we might be in a position to offer you with pre-approval conditional to your application in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The fastest method for you to apply is ensure you apply during normal business hours. Also, permit us to use the advance bank verification to instantly check your bank’s information online. If you choose to send us documents from your account statement, it will take a little longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a certain amount we take into consideration a range of aspects in order to assess how much we can lend you well-being that is your company and the extent of repayments your company will be able to support. The total amount of the loan will be determined by the particular circumstances for your business.
When you apply for a set amount, we will consider a number of factors to assess the well-being for your company as well as the amount of repayments your business will be able to support. The amount you receive from your loan will be contingent on the particulars the business.
Fees & repayments
What is the cost for an business loan?
When you apply for the business financing, we will assess the risk profile that you have for your company and provide an individualised proposal that includes the amount of the loan, the duration and interest rates. A company loan is an upfront-priced loan so you will know in advance the total amount you will have to pay, including interest rates, fees or charges.
What determines the rate that I will be charged?
Business loan interest rates vary due to variables like the amount to be borrowed, what company assets the funds are used to purchase as well as the field the business operates in, the long the company is in operation, what percentage of the business has sufficient cash flow to cover the loan, and the general well-being or creditworthiness of the company.
What are the cost?
There are no hidden costs with our company loans, and you’ll know precisely how much you be required to pay and when, starting from the first day. There’s no compounding interest, and no additional fees (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You can make an application for loans without any upfront costs or commitment to apply.
The Origination Fee covers the costs associated with the setting up and management of the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I pay off the loan earlier?
You can repay the entire amount of your loan at any point in time.
If you do decide to do this please contact our helpful business loan experts. The professionals will offer you with repayment details and an early payout figure. The figure will be calculated as the total of the principal balance and accrued interest to the time of early payout plus 1.5% of the principal remaining plus any outstanding fees.
What are the repayment methods?
To ensure you do not miss payment dates and to align with your cash flow routine, we offer repayments that are either daily or weekly. These are automatically withdrawn from your company account.
Security & privacy
Will my information be protected?
Protecting your information, and being transparent about how we collect information, use it, and exchange it, as well as protect your information, is of huge importance and is an essential aspect of our relationship with 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 certified for our commitment to security for our clients and privacy. We make use of an advanced banking verification system to immediately confirm your bank account information online to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where a business owner borrows from an asset they own to obtain the funds for a loan. The asset could be an asset belonging to the personal, like the family home, or it could be a company asset such as a vehicle as well as a piece of machine.
The majority of the lenders not just the big banks, tend to guarantee loans against assets. If you are having difficulty paying back the loan, your asset may be offered for sale by the lender. In essence, it is the process of securing new funding taking advantage of the value of what you already have.
Are I need security to secure a business loan?
For loans up to $150K it is not necessary to secure assets before you are able to access the money but we require a personal guarantee. require an individual guarantee. If you adhere to the loan terms (as specified in your loan contract document) Asset security will never be required. For loans of over $150,000 typically, you will need an individual guarantee and security in the form of the charge of assets.