FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Mango Hill Small Business Loans
Tell me more about Mango Hill Small Business Loans
Mango Hill unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from an ordinary company loan?
It is imaginable to apply to the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive a same day response and funds may be in your account in 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. This business loan is a loan that is priced upfront and you’ll know in advance the total amount due, which includes the interest, fees and charges. Then, it is broken down into either a daily or weekly payment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company purpose including managing cash flows, company remodeling, 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 Larger Mango Hill Business Loans
What is the Larger Mango Hill Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term that can last up to 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the company needs to have been 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 to demonstrate at least 12 months of trading.
How can the funds be utilised?
A larger company loan can be used for nearly every business purpose including company renovations, to purchase equipment or inventory, 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. This can be done by way of charge over assets, and may include registration with the PPSR or making a caveat.
A director’s or personal guarantee is a promise to repay a loan which is generally in nature rather than defining security over an asset. The person who signs the ensure is personally responsible if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests that are registered for personal property (including the assets or goods). The PPSR gives prioritisation over property that is personal to be assigned according to the date a security interest has been registered.
Caveats are legal document filed to offer an official notice of a claim to property.
What is a pre-approval without Credit Check?
If you’re applying for an enterprise loan of more than $250,000 it’s possible to offer an initial pre-approval in order to smooth out the process. It is possible to get this done without a credit verification 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 questions. It is neither an offer nor a guarantee of funds. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you might receive could be subject to different conditions.
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 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form within a few minutes and a dedicated business expert in lending will contact 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 Licence) and a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Information on the application including credit consent and 12 months bank statement, an IRD statements, last 2 years finalised financial statements, plus interim current financial year financials as well as Aged Payables and Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we typically provide an answer in just one hour, provided you apply within standard business hours and let us make use of the advanced bank verification system link to instantly verify your bank information online. If you opt to submit copies of your bank statement, we’ll offer a decision in as little as 1 company day.
For Larger Business Loans ($100K and up) we could be capable of offer the conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this can be quicker based upon the circumstances for each application. Some offers have been approved within less than 24 hours.
The most efficient method would be to make sure you apply during standard business hours. You can also allow us to use our advance bank verification link to verify your bank information online. If you choose to upload documents from your account statements , it can take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K up to $100,000) We can usually provide a response in one hour, provided you make your application in standard business time and permit us to use the bank verification system link to immediately verify your bank account information online. If you want to send us copies of your bank statement, we’ll provide an answer in just an business day.
For Larger Business Loans ($100K up to $500,000) we could be in a position to offer you with pre-approval conditional to your application within six hours. After you’ve 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 within 24 hours.
The most efficient method is to make sure you apply during normal business hours. You can also allow us to use the advanced bank verification system link to check your bank’s information online. If you opt to upload documents from your account statements, it will take a little longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a certain amount, we look at a variety of aspects for determining your well-being that is your company and the extent of repayments your company is able to afford. The amount you receive from the loan will be determined by the particular circumstances for your company.
When you apply for a specific amount we will consider a number of factors to assess your health of the company and the level of repayments that your company will be able to support. The amount you receive from your loan will be contingent on the specifics that are unique to your company.
Fees & repayments
How do you charge for a company loan?
When you request our business financing, we will assess the risk profile for your company and provide 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 of the total amount due, which includes any charges, interest rates or fees.
What determines the rate that I will be charged?
Interest rates for company loans rates depend on a variety of variables like the amount to be of money borrowed, the business assets the money are used to purchase as well as the field the company operates in, how long the company has been in operation as well as what percentage of the business has enough cash flow to cover the loan, and also the general health or creditworthiness of the company.
What are the costs?
There aren’t any hidden charges for our business loans, and you’ll be aware of the amount you’ll need to pay and when, starting from the first day. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments in time).
We don’t charge an application fee. You can apply for a loan no cost upfront or the obligation to take action.
The Origination Fee includes the expenses associated with setting up and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay out the loan early?
You can repay the entire amount of your advance loan at any time.
If you do decide to do this please call our helpful business lending experts. The specialists will provide you with repayment details and an early payout figure. This is calculated as the total of the principal amount remaining plus any accrued interest as of the date of early payout in addition to 1.5 percent of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing due dates and also to be in line your cash flow cycle we provide payments that are either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Security of your data, and knowing how we collect the information we collect, use, share and secure your information, 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 personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and privacy. We utilise a sophisticated bank verification system to instantly verify your bank account information online, allowing us to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where a company owner uses assets they own to make the funds for 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 guarantee loans against an asset. If you are having difficulty paying back the loan then your assets could be offered for sale by the lender. In essence it’s the process of securing new financing by making use of the value of what you already own.
Do I need security to get a company loan?
For loans of up to $150,000, the requirement for asset security is not required prior to the loan’s access, however we require a personal guarantee. require a personal guarantee. So long as you comply with the loan terms (as stipulated in your loan contract document) Asset security will never be needed. If you take out loans in excess of $150,000 generally, there is the option of a personal guarantee and security in the form an asset charge.