FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Mount Warren Park Small Business Loans
Let me know more about Mount Warren Park Small Business Loans
Mount Warren Park unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from the traditional business loan?
The application for the Small Business Loan in under 10 minutes via the internet or over the phone, receive an answer within the same day and funds may be in your account within 24 hours. Traditional business loans have an interest rate per annum together with additional fees and charges. Our company loan is a pre-paid loan therefore you’ll be aware of the amount you will have to pay, including any interest, fees or charges. This is then broken down into either a daily or weekly installment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business use, including control of cash flow company improvements, advertising for purchasing inventory or new equipment, for general working capital, and much more. The loan is not available for personal use.
About Larger Mount Warren Park Business Loans
What is the Larger Mount Warren Park Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
A 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 of this size, your company needs to have been trading for at least 3 years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 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 utilised?
A Larger Business Loan can be used to fund almost all business purpose including business renovations, to purchase new equipment or inventory or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. This is by taking a charge against assets, and may be registered through the PPSR or making a caveat.
A director’s or personal guarantee is a commitment to repay credit that is general in nature rather than specifying security over an asset. The person signing the guarantee is personally liable if the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It records security interests that have been registered in respect of personal property (including goods or assets). The PPSR gives priority over personal property to be granted according to the date the security interest was registered.
A caveat is a legal document that is filed to provide an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting the Larger Business Loan that is greater than $250K we can offer a preliminary pre-approval to help ease the process. We may be able to get this done without a credit check, and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial well-being questions. It is not an offer of credit or guarantee of credit. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you may receive may be subject to different terms.
Application process
Do I qualify for funds?
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 demonstrate at minimum 6 months worth of trade (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and simple. Just complete the online application in just a few minutes, and an experienced company credit specialist will contact you to guide you through the process.
To apply for up $100,000 you’ll require identification details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Information on the application including credit consent and 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we can often provide an answer within an hour, provided you submit your request within quality business times and permit us to utilise the bank verification system to instantly verify your bank details online. If you opt to submit copies of your bank statements , we are able to provide the decision within just the span of one company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be capable of provide you with a conditional pre-approval within 6 hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Some offers have been approved 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 advance bank verification to instantly verify your bank information online. If you upload the copies of bank statement, it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we typically offer an answer in just one hour if you make your application at normal business timings and allow us to use the bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your banking statement, we’ll provide an answer in as little as 1 business day.
For Larger Business Loans ($100K or more) we might be in a position to provide the conditional pre-approval in around six hours. Once you’ve signed your pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Some transactions have received approval within less than 24 hours.
The fastest method would be to make sure you apply during normal business hours and let us use the sophisticated bank verification link to instantly confirm your bank details online. If you choose to upload documents from your account accounts, it takes a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a specific amount we consider a variety of aspects in order to assess what is the well-being of the company as well as the amount of payments your company is able to afford. The total amount of your loan will depend on the specifics that are unique to your company.
When you apply for a particular amount, we will consider a number of aspects to determine the well-being of your company as well as the amount of the repayments your business is able to afford. The amount you receive from your loan will be contingent on the specifics that are unique to your business.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to make an application for one of our business loan, we will assess the risk profile of your business and provide you with a tailored offer including the amount of the loan, the duration and the interest rates. The business loan is an upfront priced loan which means you know in advance the total amount payable including any interest rates, fees or charges.
What determines the amount I am charged?
The interest rates on business loans rates vary due to factors such as the amount that is that is borrowed, what business assets the money will be used for, the industry the business operates in, the long the company has been in operation as well as whether the business has enough cash flow to fund the loan, and the general health or creditworthiness of the company.
What are the charges?
There aren’t any hidden charges for our business loans. You’ll know exactly how much you need to pay and when, starting from day one. 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 can apply for a loan with with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay off the loan earlier?
You can decide to repay the total amount of your loan at any point in time.
If you are deciding to take this route, please speak to our friendly company lending specialists. They will offer you with details on repayment and an early payout figure. The figure will be calculated as the sum of the principal balance and any accrued interest at the time of early payment plus 1.5% of the principal balance plus 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 cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your company account.
Security & privacy
Will my information be secure?
Protecting your information, and being upfront about the ways we gather the information we collect, use, share and ensure the security of your information is of paramount importance and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We use an advanced banking verification system to immediately verify the bank account details online, allowing us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the company owner makes use of the assets they have to secure the loan. The asset could be an asset belonging to the personal, like the family home, or an business property like a truck or piece of equipment.
The vast majority of lenders, even the banks with the biggest size, prefer to guarantee loans against an asset. If you have trouble paying back the loan, then the asset might be taken over by the lender. In essence, it is the process of securing additional financing using the worth of the asset you already own.
Do I require security to secure an business loan?
For loans that exceed $150K, no asset security is required prior to the loan’s access but we require a personal guarantee. need an individual guarantee. If you adhere to the loan terms (as specified in the loan contract) and you are able to meet your obligations, asset security is not needed. If you take out loans in excess of $150K generally, you are able to get an individual guarantee and security in the form of an asset charge.