FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Mount Cotton Small Business Loans
Tell me how you can avail the Mount Cotton Small Business Loans
Mount Cotton unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from a traditional business loan?
It is possible to apply to get your Small Business Loan in under 10 minutes online or over the phone. You’ll get an answer within the same day and have the funds in your account in 24 hours. Traditional company loans reference an annual rate of interest as well as other fees and charges. This business loan is a loan that is priced upfront so you will know ahead of time the total amount payable including any fees, charges or charges. This is then broken down into either weekly or daily repayment figure.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business need, such as cash flow management, company renovations, marketing for purchasing inventory or new equipment, as general working capital and much more. The loan is not available for personal purposes.
About larger Mount Cotton Business Loans
What is the Larger Mount Cotton Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your business needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, 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 can be used for almost any company reason, such as business remodeling, buying inventory or new equipment as well as for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. It’s as a result of an charge over assets and can include registration with the PPSR or registering a caveat.
A personal or director’s ensure is a commitment to repay a loan which is general in nature, rather than stating security over a particular asset. The person who is signing the guarantee is personally accountable if the company the borrower fails 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 which are registered with respect to personal property (including items or assets). The PPSR allows priority over personal property to be granted according to the date the registration of a security interest.
Caveats are legal document that is filed to provide the legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re seeking larger company loans of $250,000 or more it is possible to offer an initial pre-approval to simplify the process. It is possible to do this without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves you answering a few financial health checks. It is not an offer or guarantee of finance. Acceptance without condition is subject to a full credit assessment and any offer you may receive may be subject to different conditions.
The application process
Do I have the right to receive funds?
You are eligible to apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application within a few minutes and a dedicated business credit specialist will contact you to help you.
To apply for up $100,000, you’ll need ID details (valid Driver’s Licence), a valid NZBN/IRD and at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Information on the application including credit consent twelve months of bank records, IRD statement as well as the two most recent years’ financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) We can usually offer an answer within an hour if you make your application at standard company times and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your banking statements , we are able to offer the decision within just the span of one company day.
For the Larger Business Loan ($100K and up) we may be able to provide you with pre-approval conditional to your application in around six hours. Once you have signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Some offers have been approved in the space of 24 hours.
The fastest way would be to ensure you apply during standard company hours and let us use the advance bank verification link to check your bank’s information online. If you choose to upload duplicates of your banking statements it can take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer in just one hour if you apply during standard business times and permit us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statements, we will be able to offer the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K and up) We may be likely to provide you with conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be faster depending on the specifics of each application. Certain transactions have received approval within the space of 24 hours.
The fastest way would be to ensure you apply during standard business hours and allow us to use the modern bank verification to instantly check your bank’s information online. If you decide to upload duplicates of your banking statements, it takes a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a particular amount, we will consider a number of variables in order to assess your well-being of your company and the amount of repayments that your company will be able to support. The total amount of your loan will be contingent on the particular circumstances the company.
If you apply for a certain amount, we take into consideration a variety of aspects to determine the health of your company and the level of payments your business can support. The amount you receive from your loan will be determined by the specific circumstances for your company.
Fees & repayments
How much should you charge for a company loan?
If you decide to request business loans with us business loans, we will assess the risk assessment for your company and offer you with a customised offer that includes loan amount, term and the interest rates. This business loan is an upfront priced loan therefore 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’m charged?
Interest rates for company loans rates depend on several factors such as the amount that is of money borrowed, the company assets the funds are used to purchase as well as the field the company operates in, how long the company is in operation for, what percentage of the business has enough cash flow to support the loan, and the overall health as well as creditworthiness business.
What are the cost?
There aren’t any hidden costs for our company loans. You’ll be aware of the amount it is that you need to pay and when, starting from the day you sign up. There’s no compounding interest, and there are no additional charges (as as you make your payments in time).
We don’t charge an application fee. You can apply for a loan with no upfront cost or obligation to proceed.
The Origination Fee covers the costs associated in establishing and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Do I have the option of paying off the loan in advance?
You can choose to repay the total amount of your loan at any point in time.
If you choose to pursue this option, please contact our helpful company loans experts. They’ll offer you with details on repayment as well as an early payout amount. It will be calculated using the total of the principal balance and any accrued interest at the time of early payout in addition to 1.5 percent of the remaining principal plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in your cash flow cycle we provide repayments either weekly or daily. These are automatically withdrawn from your company account.
Security & privacy
Will my information be protected?
Security of your data, and being transparent about the ways we gather, use, exchange and safeguard your data, is of paramount importance and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our customers and security. We utilise a sophisticated banking verification system to instantly verify the bank account details online to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an business owner utilises an asset that they own to obtain a loan. The asset may be an individual property, such as the family home, or an company asset such as a truck as well as a piece of machine.
The majority of lending institutions, even the big banks, tend to guarantee loans against an asset. If you’re having trouble paying back the loan, then the asset could be taken over by the lender. In essence it is means of securing new financing taking advantage of the value of what you already have.
Are I need security to get a business loan?
For loans that exceed $150,000, there is no requirement for asset security in advance to gain access to the funds However, we require a personal guarantee. require a personal guarantee. If you adhere to your loan commitments (as detailed in the loan contract) the security of assets will never be needed. For loans of over $150K generally, you are able to get an individual guarantee and security in the form an asset charge.