FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Mount Ommaney Small Business Loans
Let me know what you think of the Mount Ommaney Small Business Loans
Mount Ommaney unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from an traditional business loan?
The application for this Small Business Loan in under 10 minutes via the internet or over the phone, receive a same day response and the money could be in your account within 24 hours. Traditional company loans are based on an annual rate of interest together with additional fees and charges. This business loan is a cash-based loan therefore you’ll know in advance the total amount due, which includes the interest, fees and charges. This is then divided into a daily or weekly repayment figure.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company use, including managing cash flows, business improvements, advertising, to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available to fund personal expenses.
About larger Mount Ommaney Business Loans
What is the Larger Mount Ommaney Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range from $100,000 to $500,000 over a fixed term that can last up to 36 months. The repayments are made weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to be trading for at least 3 years and have an annual turnover of at least $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can the funding be used for?
A large company loan is a great option for almost every company use, including company remodeling, buying new equipment or inventory or as general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. This can be done in the form of a charge on assets and can include the registration of this with the PPSR or registering as a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is generally in nature rather than stipulating security over a particular asset. The person who signs the guarantee is personally liable in the event that the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including goods or assets). The PPSR gives the priority of personal property granted according to the date the security interest was registered.
A caveat is a legal document that is filed to offer the public notice of a legal claim on a 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 smooth out the process. We might be able to get this done without a credit verification and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes the answer to a series of financial well-being questions. This is in no way an offer, nor is it a guarantee of finance. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you may receive may have different conditions.
The application process
Can I be eligible for funding?
You are eligible to apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and easy. Just complete the online application in just a few minutes, and an experienced company expert in lending will be in touch to help you.
To be eligible for up to $100,000 you’ll need ID details (valid Driver’s License), an active NZBN/IRD, and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K to $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Information on the application including credit consent, 12 months of bank records, IRD statement and the last two years’ finalised financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K and up) we usually provide an answer in just one hour – as long as you make your application within standard company time and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you want to submit copies of your bank statement, we’ll offer the decision in as little as the span of one company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be able to offer the conditional pre-approval in around 6 hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however it could be faster based upon the circumstances for each application. Some transactions have received approval within less than 24 hours.
The quickest method is to make sure you apply during standard company hours and let us use the modern bank verification to verify your bank information online. If you choose to upload duplicates of your banking statement, it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we typically offer a response in one hour if you apply during normal business time and you allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you want to send us copies of your bank statement, we’ll provide an answer in as little as 1 business day.
For the Larger Business Loans ($100K and up) we could be in a position to offer the conditional pre-approval within 6 hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this can be faster depending on the circumstances of each application. Certain offers have been approved within 24 hours.
The fastest method for you to apply is make sure you apply during standard business hours. Also, allow us to use our advance bank verification to instantly confirm your bank details online. If you choose to send us documents from your account statement, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a certain amount we look at a variety of factors for determining your well-being of your business and the level of repayments that your company can afford. The amount you receive from your loan will depend on the particular circumstances the company.
When you make an application for a particular amount, we look at a range of aspects to assess your health that is your business and the amount of the repayments your company will be able to support. The total amount of your loan will be contingent on the specifics the company.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to request business loans with us company financing, we will assess the risk assessment that you have for your company and offer you with a tailored offer, including the amount of loan, the term and the interest rates. It is a business loan is an upfront priced loan which means you know in advance the total amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I pay?
Business loan interest rates vary due to variables like the amount to be borrowed, the business assets the funds are used to purchase as well as the field the business operates in, the long the business has been in operation as well as in the event that the business has sufficient cash flow to pay for the loan, as well as the overall health or financial standing of the business.
What are the fees?
There are no hidden fees with our business loans. You’ll know precisely how much you’ll be required to pay and when, starting from the day you sign up. There’s no compounding interest and no additional fees (as as long as you pay your payments in time).
We don’t charge an Application Fee. You are able to apply for a loan without any upfront costs or commitment to apply.
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 percentage of the loan amount.
Can I repay the loan early?
You can repay the entire amount of the loan in full at any time.
If you are deciding to do this please call our helpful business credit specialists. They will offer you with details on repayment and an early payout figure. It will be calculated using the sum of the principal amount remaining and any accrued interest at the time of early payment plus 1.5 percent of the principal balance as well as any outstanding fees.
What is the process for repayments?
To ensure you do not miss payments and to work with your cash flow cycle we provide payments that are either weekly or daily. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being transparent about the ways we gather information, use it, and exchange it, as well as ensure the security of your information is crucial and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We use an advanced bank verification system that allows you to instantly verify your bank account details online so we can provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when a company owner borrows from assets they own to obtain the funds for a loan. The asset can be either an individual property, such as the family home, or an business property like a truck or other piece of machinery.
The vast majority of banks, even the major banks, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, then the asset could be transferred to the lender. In essence it’s an opportunity to secure new funding using the worth of the asset you already have.
Do I need security for a business loan?
Up to $150,000 in loans no asset security is required before you can access the money but we do need an individual guarantee. As long as you follow the terms of your loan (as specified in your loan contract document) Asset security will never be required. For loans of over $150,000 generally there is an individual ensure and security is provided in the form of the charge of assets.