FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Marsden Small Business Loans
Let me know how you are able to avail the Marsden Small Business Loans
Marsden unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from a traditional company loan?
It is imaginable to apply to the Small Business Loan in under 10 minutes by phone. You will receive an instant response and funds may be in your account in 24 hours. Traditional company loans reference an annual rate of interest plus other fees and charges. Our business loan is an upfront priced loan and you’ll know ahead of time the total amount due, which includes any interest, fees or charges. This is then divided into weekly or daily payment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business use, including managing cash flows, company renovations, marketing, to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal purposes.
About the Larger Marsden Business Loans
What is the Larger Marsden Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term with a maximum of 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to have been operating for a minimum of 3 years, and have an annual income of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funding be used for?
A Business Loan of a larger size can be used for nearly any business reason, such as company renovations, purchase of new equipment or inventory, as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It is usually by way of charge over assets, and may include registration through the PPSR or registering a caveat.
A personal or director’s ensure is a guarantee to repay credit that is general in nature rather than specifying the security for a particular asset. The person who signs the ensure is personally responsible if the business lender is not able to re-pay 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 that are registered for personal property (including goods or assets). The PPSR allows preference over private property assigned in accordance with the date on which a security interest that is registered.
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 requesting an enterprise loan that exceeds $250K we can offer an initial pre-approval in order to simplify the process. We could be able to get this done without a credit verification and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes the answer to a series of financial well-being checks. This is in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you receive could be subject to different conditions.
The application process
Do I have the right to receive funds?
You are eligible to apply for an business 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 demonstrate at minimum 6 months of business (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 process for applying is fast and simple. Simply complete the online form within a couple minutes, and a dedicated company expert in lending will contact you to assist you.
To apply for up $100,000, you’ll need identification details (valid Driver’s Licence) and an active NZBN/IRD, and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details of the application, including credit consent, 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, plus interim financials for the current financial year as well as Aged Payables and Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we usually offer an answer within one hour – as long as you apply in quality company hours and you allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you choose to submit copies of your bank statement, we’ll provide an answer within an business day.
For the Larger Business Loan ($100K up to $500,000) we may be capable of offer you with a conditional pre-approval within about 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based on the specifics of each application. Some agreements have been approved within less than 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal company hours, and allow us to use the advanced bank verification system to instantly verify your bank account information online. If you upload documents from your account statements it may take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) we can often provide an answer in just one hour – as long as you apply at standard business time and let us utilise the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your banking statements, we will be able to provide a decision within the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be able to offer you with conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Certain offers have been approved within 24 hours.
The most effective method can be make sure you apply during normal business hours. Also, let us use the advanced bank verification system to instantly verify your bank account information online. If you opt to send us the copies of bank statement, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a certain amount, we look at a variety of elements in order to assess how much we can lend you health of the business as well as the amount of repayments that your business is able to afford. The total amount of your loan will be contingent on the specific circumstances for your company.
If you apply for a particular amount, we will consider a number of factors to determine your well-being that is your company and the amount of payments your business can support. The total amount of your loan will depend on the specific circumstances for your company.
Fees & repayments
What is the cost for a company loan?
If you decide to request one of our business loans, we’ll assess the risk assessment for your business and provide you with a customised offer that includes the loan amount, the terms and the interest rates. This company loan is an upfront cost loan so you will be aware in advance of the total amount due, which includes any interest rates, fees or charges.
What determines the rate that I am charged?
Interest rates for business loans rates differ based on various factors such as the amount that is borrowed, the company assets the money are used to purchase in addition to the industry that the company is in, how long the business has been operating as well as whether the business has sufficient cash flow to cover the loan, and also the general health or financial standing of the business.
What are the charges?
There are no hidden fees with our business loans, and you’ll know exactly how much you’ll be required to pay and at what time, from the very first day. There’s not any compounding interest and there are no additional charges (as long as you make your payments on time).
We don’t charge an application fee. You can apply for a loan with with no upfront cost or commitment to apply.
The Origination Fee covers the expenses involved with establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay out the loan in advance?
You can repay the entire amount of your loan at any point in time.
If you do decide to pursue this option, please call our helpful business credit specialists. They’ll provide you with details for repayment and an early payment figure. The figure will be calculated as the sum of the principal remaining and accrued interest to the time of early payout, plus 1.5% of the principal remaining plus any outstanding fees.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line with your cash flow general, we offer repayments either daily or weekly. They are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
Security of your data, and being clear about the ways we gather data, process, exchange and protect your information, is vital and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of clients and security. We make use of an advanced banking verification system to instantly verify your bank account information online. This allows us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the business owner borrows from an asset that they own to make the loan. The asset can be an individual asset, such as the family home or a business property like a truck or piece of equipment.
The majority of lending institutions, including the largest banks, are inclined to guarantee loans against an asset. If you’re struggling to pay back the loan, the asset might be transferred to the lender. In essence, it’s a way of securing new financing using the value of what you already own.
Are I require security for a company loan?
For loans up to $150,000 there is no requirement for asset security prior to the loan’s access however, we require a personal guarantee. require an individual guarantee. So long as you comply with your loan commitments (as detailed in your loan contract document) Asset security is not needed. For loans that exceed $150,000, generally, you are able to get an individual guarantee and security in the form of an asset charge.