FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Moores Pocket Small Business Loans
Tell me about the Moores Pocket Small Business Loans
Moores Pocket unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from the traditional business loan?
Apply for the Small Business Loan in under 10 minutes by phone. You will receive an instant response and the money could be in your account within 24 hours. Traditional business loans are based on an annual interest rate plus other fees and charges. Our business loan is a cash-based loan which means you be aware of the total amount to be paid, including any interest, fees or charges. This is then broken down into a daily or weekly installment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business use, including control of cash flow business remodeling, marketing, to purchase inventory or new equipment, or as general working capital, and much more. The loan cannot be used for personal purposes.
Concerning Larger Moores Pocket Business Loans
What is the Larger Moores Pocket Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size the business needs to have been operating for at least three years and have an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can the funding be used for?
A Larger Business Loan can be used for almost all company need, including company renovations, purchase of equipment or inventory as well as for general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. It is usually in the form of a charge against assets, and could be registered on the PPSR or the registration of a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is generally based rather than specifying the security for a particular asset. The person signing the ensure is personally responsible if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including objects or assets). The PPSR allows prioritisation over property that is personal to be assigned according to the date a registration of a security interest.
Caveats are legal document that is filed to offer notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250,000 it’s possible to offer an initial pre-approval that will help simplify the process. We could be able to make this decision without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering some financial well-being questions. It is not an offer of credit or guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer you might receive could be based on different conditions.
Application process
Are I eligible for funding?
You may apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, 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 trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Complete the online form in just a few minutes, and an experienced company loan specialist will be in touch to guide you.
To apply for up to $100,000 you’ll need ID details (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Information on the application including credit consent twelve months bank statement, an IRD statement and the last two years’ finalised financial statements, and interim financial statements for the current year including Aged Payables, Aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K or more) we usually offer an answer within one hour if you make your application within quality business hours and allow us to use the advanced bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statement, we’ll provide the decision in just 1 business day.
If you are applying for a Larger Business Loan ($100K and up) we may be likely to offer you with pre-approval conditional to your application in around six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however it could be faster based on the circumstances of each application. Some transactions have received approval in less than 24 hours.
The quickest method is to make sure you apply during standard business hours and allow us to use our advance bank verification link to instantly verify your bank information online. If you upload documents from your account accounts, it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) We can usually provide an answer in just one hour – provided you submit your request at standard business timings 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 bank statements, we are able to offer an answer in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be likely to provide you with pre-approval conditional to your application in about six hours. Once you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending on the specifics of each application. Certain agreements have been approved in less than 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours, and permit us to use the sophisticated bank verification to instantly verify your bank information online. If you upload duplicates of your banking statements, it may take a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a certain amount we will consider a number of elements that determine the well-being of your company as well as the amount of payments your business will be able to support. The amount you receive from the loan will be determined by the particular circumstances that are unique to your business.
When you apply for a set amount, we look at a range of elements to determine your well-being for your company and the level of the repayments your business can support. The total amount of your loan will be determined by the particulars of your business.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to request the business loan, we will assess the risk profile that you have for your company and offer you with a customised offer including loan amount, term and the interest rates. A company loan is an upfront priced loan therefore you will know in advance the total amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I pay?
Interest rates for company loans rates differ based on various factors like the amount of money borrowed, the company assets the money are used to purchase as well as the field the company is operating in, how long the company is in operation for, what percentage of the business has enough cash flow to cover the loan, and overall health as well as creditworthiness business.
What are the costs?
There aren’t any hidden charges with our company loans, and you’ll be aware of the amount it is that you be required to pay and when, right from the first day. There’s no compounding interest and the loan comes with no additional fees (as as long as you pay your payments punctually).
We do not charge an Application Fee. You are able to make an application for loans with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee is the cost associated with the setting up and management of the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I repay the loan in advance?
You can choose to repay all of your loan early at any time.
If you are deciding to do this please call our helpful company credit professionals. The professionals will offer you with details on repayment along with an early payout estimate. This is calculated as the sum of the principal remaining and the accrued interest up to the time of early payment, plus 1.5% of the principal amount remaining as well as any outstanding fees.
How do you make repayments work?
To help you avoid missing due dates and also to be in line your cash flow schedule, we provide repayments either weekly or daily. These are automatically deducted from your business account.
Security & privacy
Will my information be protected?
Protecting your information, and being clear about how we collect, use, exchange and protect your information, is crucial and an integral 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 personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to security for our customers and privacy. We utilise a sophisticated bank verification system to immediately verify your bank account information online, allowing us to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where a business owner makes use of the assets they have to obtain a loan. The asset could be an individual property, such as the family home or a business asset such as a vehicle as well as a piece of machine.
The vast majority of the lenders even the banks with the biggest size, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan then the asset could be sold by the lender. In essence it’s an opportunity to secure additional financing making use of the value of what you already own.
What do I need security to get a business loan?
Up to $150K in loans the requirement for asset security is not required before you can access the money, however we require a personal guarantee. require an individual guarantee. If you adhere to the loan terms (as stipulated in the loan contract) the security of assets will never be required. For loans over $150K generally, there is an individual ensure and security in the form an asset charge.