FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Meadowbrook Small Business Loans
Let me know more about Meadowbrook Small Business Loans
Meadowbrook unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from an ordinary business loan?
You can apply for the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an instant response and the funds could be on your account within 24 hours. Traditional business loans are based on an annual rate of interest together with additional fees and charges. We offer a company loan is a pre-paid loan so you will know in advance the total amount payable including any fees, interest or charges. This is then divided into weekly or daily payment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for almost any company need, such as the management of cash flow, business renovations, marketing for purchasing inventory or new equipment, for general working capital, and much more. The loan cannot be used for personal purposes.
Concerning Larger Meadowbrook Business Loans
What is the Larger Meadowbrook Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. The repayments are made weekly or fortnightly depending on your cash flow.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large the company needs to have been trading for at least 3 years with an annual turnover of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 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.
What can the funds be used for?
A Larger Business Loan is a great option for almost all company purpose including company renovations, to purchase new equipment or inventory for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. This is in the form of a charge over assets, which could also be registered with the PPSR or registering as a caveat.
A personal or director’s ensure is a commitment to pay off a credit line that is generally in nature rather than stipulating security over an asset. The person who signs the guarantee is personally accountable if the business creditor is unable 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 granted to individuals who own personal property (including objects or assets). The PPSR gives prioritisation over property that is personal to be granted in accordance with the date on which a security interest has been registered.
Caveats are legal document filed to provide an official notice of a claim to property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger business loans that is greater than $250,000 we may be able to provide an initial pre-approval in order to ease the process. We may be able to make this decision without a credit check and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial health questions. It’s not an offer of credit or guarantee of financing. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you receive could be on different conditions.
Application process
Can I be eligible for funding?
You may be eligible for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application within a few minutes and a dedicated business credit specialist will be in touch to assist you.
To be eligible for up to $100,000 you’ll need ID details (valid Driver’s Licence) and a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Information on the application including credit consent and 12 months of bank records, IRD statements and the last two years’ finalised financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer in just one hour if you apply within quality company times and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statements we can offer the decision in as little as one business day.
For the Larger Business Loan ($100K up to $500,000) we may be likely to provide you with conditional pre-approval within six hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be quicker based upon the circumstances for each application. Certain agreements have been approved within the space of 24 hours.
The most effective method can be ensure you apply during standard company hours. You can also allow us to use our advance bank verification to instantly check your bank’s information online. If you choose to upload the copies of bank statement, it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer within one hour – as long as you submit your request within standard business times and allow us to use the bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statements we can offer a decision in just 1 business day.
For Larger Business Loans ($100K and up) we may be in a position to provide the conditional pre-approval within 6 hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain deals have been approved within the space of 24 hours.
The most effective method would be to ensure you apply during normal business hours and let us use the advance bank verification link to instantly check your bank’s information online. If you decide to upload the copies of bank statements, it will take a little longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you submit an application for a certain amount we will consider a number of aspects to determine the well-being for your company and the amount of repayments that your business will be able to support. The amount you receive from your loan will depend on the specifics the company.
When you apply for a set amount, we will consider a number of elements to assess the health of your business and the level of payments your company will be able to support. The total amount of your loan will be determined by the particular circumstances that are unique to your company.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to request the business financing, we will assess the risk profile the company and offer you with a tailored offer that includes the loan amount, the terms and interest rates. A business loan is an upfront priced loan therefore you will know in advance the total amount payable including any charges or interest.
What determines the amount I pay?
The interest rates on business loans rates depend on several factors including the amount that is borrowed, what company assets the funds will be used for in addition to the industry that the business is in, how long the company has been running, how long the company has sufficient cash flow to cover the loan, as well as the general health or creditworthiness of the company.
What are the fees?
There aren’t any hidden costs with our company loans. You’ll know precisely what you’ll need to pay and when, right from the day you sign up. There’s not any compounding interest and there are no additional charges (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You are able to apply for a loan without any upfront costs or the obligation to take action.
The Origination Fee includes the expenses associated in establishing and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I repay the loan earlier?
You may choose to pay back the total amount of your loan early at any time.
If you do decide to do this please talk to one of our helpful company loan professionals. The specialists will provide you with repayment details and an early payment figure. It will be calculated using the sum of the principal amount remaining and accrued interest to the time of early payout plus 1.5 percent of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
To help you avoid missing payment dates and to align with your cash flow cycle we offer repayments either daily or weekly. They are automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and making it clear how we collect the information we collect, use, share and ensure the security of your information is of paramount importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to security for our customers and security. We utilise a sophisticated banking verification system to immediately verify the bank account details online so we can offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when the business owner makes use of an asset that they own to get a loan. The asset can be either an individual asset, such as the family home or it could be a business asset like a truck as well as a piece of machine.
The majority of banks, even the major banks, prefer to make loans secured by assets. If you’re struggling to pay back the loan, then the asset could be transferred to the lender. In essence it’s an opportunity to secure new financing by making use of the value of what you already own.
Should I need security to get an business loan?
For loans that exceed $150,000, the requirement for asset security is not required in advance to gain access to the funds, however we do require the personal guarantee. As long as you follow your loan obligations (as stated in your loan contract) the security of assets is not needed. For loans of over $150,000 generally, you are able to get the option of a personal guarantee and security that is in the form an asset charge.