FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Mcdowall Small Business Loans
Tell me how you are able to avail the Mcdowall Small Business Loans
Mcdowall unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from an traditional business loan?
It is imaginable to apply for your Small Business Loan in under 10 minutes online or over the phone. You’ll get an instant response and funds may be in your account in 24 hours. Traditional business loans refer to an annual interest rate plus other fees and charges. This company loan is a cash-based loan therefore you’ll know in advance the total amount to be paid, including any fees, interest or charges. This is then broken down into either a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business reason, such as control of cash flow business improvements, advertising, to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available for personal purposes.
About the Larger Mcdowall Business Loans
What is the Larger Mcdowall Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
This 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 be eligible for a loan in this amount the business needs to be in operation for at least 3 years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funds be used for?
A Business Loan of a larger size is a great option for almost every company use, including company renovations, purchase of inventory or new equipment or as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. It’s by taking a charge over assets and can include registering this through the PPSR or filing as a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is general in nature rather than defining the security for a particular asset. The person who is signing the ensure is personally accountable if the company creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including items or assets). The PPSR allows the priority of personal property granted according to the date the security interest that is registered.
A caveat is a legal document that is filed to provide an official notice of a claim on a property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan of $250,000 or more it is possible to offer an initial pre-approval in order to simplify the process. We could be able to get this done without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves you answering some financial well-being checks. It’s in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer you might receive could have different terms.
Application process
Do I qualify for funds?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, 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 trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a couple minutes, and a dedicated company lending specialist will call you to guide you through the process.
To apply for up to $100,000 you’ll require proof of identity (valid Driver’s Licence) and an NZBN/IRD that is valid and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we can often provide an answer within an hour, provided you apply during standard business time and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statements , we are able to provide a decision in just 1 company day.
For Larger Business Loans ($100K up to $500,000) we could be able to provide you with conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however it could be faster based on the particular circumstances of each application. Certain transactions have received approval in 24 hours.
The most effective method can be ensure you apply during normal business hours, and permit us to use the advanced bank verification system to verify your bank account information online. If you opt to send us the copies of bank statements it will take a little longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) we typically offer a response in one hour – as long as you apply within standard business hours and you allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you opt to submit copies of your bank statements, we’ll be able to provide a decision within one business day.
For Larger Business Loans ($100K or more) we could be in a position to provide you with pre-approval conditional to your application within about six hours. Once you have signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this can be faster depending on the specifics of each application. Some transactions have received approval in 24 hours.
The quickest method would be to make sure you apply during standard business hours. You can also allow us to use the advanced bank verification system link to instantly verify your bank account information online. If you choose to upload documents from your account statements, it will take a little longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of aspects in order to assess the health for your company and the extent of repayments your business can support. The amount you receive from the loan will be determined by the particular circumstances the company.
When you apply for a particular amount, we will consider a number of elements to determine the health that is your company and the amount of repayments that your business will be able to support. The amount you receive from the loan will be determined by the specifics for your company.
Fees & repayments
How do you charge for the cost of a business loan?
When you make an application for the company financing, we will assess the risk assessment the company and provide you with a tailored offer that includes the loan amount, the terms and the interest rates. The company loan is an upfront priced loan and you’ll be aware of the total amount to be paid, including any charges or interest.
What determines the amount I will be charged?
The interest rates on business loans rates depend on a variety of factors including the amount borrowed, the business assets the funds are used to purchase and the sector the company is operating in, how long the business is in operation and whether the business has sufficient cash flow to support the loan, and general well-being or creditworthiness of the business.
What are the cost?
There are no hidden costs for our company loans. You’ll know exactly how much it is that you be required to pay and when, starting from day one. There’s no compounding and no extra fees (as long as you make your payments in time).
We don’t charge an Application Fee. You are able to request a credit loan with with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated with the setting up and management of the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I repay the loan in advance?
You can repay the entire amount of the loan early at any time.
If you choose to take this route, please call our helpful business loan experts. They’ll offer you with details on repayment along with an early payout estimate. The figure will be calculated as the total of the principal remaining plus any accrued interest as of the time of early payment, plus 1.5 percent of the principal remaining plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payment dates and to align your cash flow cycle we provide repayments either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being clear about the ways we gather information, use it, and exchange it, as well as ensure the security of 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 protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to security for our clients and security. We make use of an advanced bank verification system that allows you to immediately confirm your bank account information online to offer a fast 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 secure a loan. The asset could be an individual property, such as the family home or a business asset such as a truck or piece of equipment.
The vast majority of lending institutions, even the banks with the biggest size, prefer to guarantee loans against an asset. If you’re struggling to pay back the loan, the asset could be offered for sale by the lender. In essence, it’s means of securing new financing making use of the value of what you already own.
Do I require security to secure a business loan?
For loans up to $150,000 there is no requirement for asset security prior to the loan’s access However, we do need a personal guarantee. So long as you comply with your loan obligations (as detailed in the loan contract), asset security is not required. For loans over $150K generally, there is a personal guarantee and security in the form the charge of assets.