FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Mansfield Small Business Loans
Tell me more about Mansfield Small Business Loans
Mansfield unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from an traditional business loan?
Apply to get this Small Business Loan in under 10 minutes online or by phone. You will receive an answer within the same day and the money could be in your account in 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. Our business loan is a loan that is priced upfront and you’ll know ahead of time the total amount payable including any fees, interest or charges. This is then divided into weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business reason, such as cash flow management, company remodeling, marketing to purchase inventory or new equipment, for general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger Mansfield Business Loans
What is the Larger Mansfield 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 with a term fixed for up to 36 months. The repayments are made weekly or fortnightly, depending on you cashflow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is determined at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size the company needs to have been operating for at least three years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funds for?
A Business Loan of a larger size is a great option for almost any business purpose including company remodeling, buying new equipment or inventory as well as for general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It’s as a result of an charge against assets, which could also be registered with the PPSR or filing a caveat.
A director’s or personal ensure is a commitment to repay a loan which is general in nature rather than specifying the security for a particular asset. The person who is signing the guarantee is personally responsible if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including goods or assets). The PPSR gives priority over personal property to be assigned depending on the date that a security interest has been registered.
Caveats are legal document that is filed to provide notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger business loans that exceeds $250,000 we may be able to provide an initial pre-approval that will help ease the process. It is possible to apply for this without a credit verification and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes answering a couple of financial health checks. It’s neither an offer nor a guarantee of funds. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you might receive could be subject to different terms.
Application process
Do I have the right to receive funds?
You may be eligible for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application in few minutes and a dedicated company loan specialist will call you to assist you.
For a loan of up to $100,000, you’ll require proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Application details including credit consent and 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, plus interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we can often offer an answer in just one hour, provided you submit your request during quality company hours and allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statements we can provide the decision within just one company day.
If you are applying for a Larger Business Loan ($100K and up) we might be able to offer you with a conditional pre-approval within about 6 hours. After you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Some agreements have been approved within less than 24 hours.
The most effective method is to make sure you apply during normal company hours. Also, let us use the modern bank verification to instantly confirm your bank details online. If you decide to upload copies of your bank accounts, it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically offer an answer within one hour if you submit your request in normal business hours and permit us to use the bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your bank statements, we’ll be able to provide the decision within an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be likely to offer you with pre-approval conditional to your application in about six hours. After 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 specifics of each application. Certain transactions have received approval within less than 24 hours.
The most effective method is to make sure you apply during normal business hours and let us use the sophisticated bank verification to instantly verify your bank account information online. If you upload duplicates of your banking accounts, it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you submit an application for a particular amount, we look at a variety of elements in order to assess the well-being of the business and the level of the repayments your business can support. The total amount of the loan will be determined by the specific circumstances that are unique to your business.
When you make an application for a particular amount, we consider a variety of elements to assess your well-being of your business and the amount of the repayments your company will be able to support. The total amount of your loan will be determined by the particular circumstances the company.
Fees & repayments
What is the cost for a company loan?
If you decide to make an application for the company loans, we will assess the risk profile of your business and offer you with a customised offer that includes the amount of loan, the term and interest rates. It is a business loan is an upfront priced loan therefore you will know the exact amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I am charged?
Interest rates for company loans rates depend on several factors like the amount of money borrowed, what business assets the funds are used to purchase in addition to the industry that the company operates in, the long the company has been running for, whether the company has enough cash flow to cover the loan, as well as the overall health and creditworthiness of the business.
What are the fees?
There are no hidden costs with our company loans, and you’ll know precisely how much you’ll need to pay and when, starting from the very first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments in time).
We do not charge an application fee. You can make an application for loans with no cost upfront or commitment to apply.
The Origination Fee is the cost associated in establishing 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 the loan.
Can I repay the loan earlier?
You can decide to repay the entire amount of your loan in full at any time.
If you are deciding to take this route, please contact our helpful business credit experts. We will offer you with details for repayment and an early payout figure. This will be calculated as the sum of the remaining principal amount plus any accrued interest as of the time of early payout in addition to 1.5% of the principal remaining as well as any outstanding fees.
How do repayments work?
To ensure that you don’t miss payments and to work your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from your nominated business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being transparent about the ways we gather data, process, exchange and safeguard your data, is crucial and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to protecting the security of customers and privacy. We use an advanced banking verification system to immediately verify the bank account details online, allowing us to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the business owner borrows from assets they own to obtain a loan. The asset can be a personal asset like the family home or a company asset like a truck or other piece of machinery.
The majority of banks, not just the big banks, tend to guarantee loans against assets. If you are having difficulty paying back the loan, your asset may be sold by the lender. In essence it is means of securing new financing by using the value of what you already own.
Should I need security for a company loan?
Up to $150,000 in loans it is not necessary to secure assets before you can access the money however, we do require an individual guarantee. As long as you follow the loan terms (as stated in the loan contract) the security of assets is not required. For loans over $150,000 generally there is the option of a personal ensure and security that is in the form an asset charge.