FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Newport Small Business Loans
Let me know more about Newport Small Business Loans
Newport unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
How is this Unsecured Loan different from an ordinary business loan?
Apply for this Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and funds may be available in just 24 hours. Traditional business loans reference an annual rate of interest together with additional fees and charges. The company loan is a cash-based loan so you will be aware in advance of the total amount to be paid, including any fees, interest or charges. This is then broken down into weekly or daily repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every company need, such as cash flow management, business remodels and marketing to purchase inventory, new equipment, or as general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Newport Business Loans
What is the Larger Newport Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range from $100,000 to $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large, your company needs to have been trading for at least 3 years and have an annual turnover of $700,000. 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 company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A large business loan can be used for almost any company use, including business improvements, purchasing new equipment or inventory 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 needed to obtain funding above $150,000. This is by taking a charge over assets, and may include registration in the PPSR or filing a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is general in nature, rather than stating the security for a particular asset. The person who is signing the guarantee is personally accountable if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR allows prioritisation over property that is personal to be granted according to the date a registration of a security interest.
An affidavit is an official document filed to offer notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan that exceeds $250,000 we may be able to provide a preliminary pre-approval to help smooth out the process. It is possible to apply for this without a credit check, and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves the answer to a series of financial health questions. It is not an offer or guarantee of credit. A conditional approval is subject an extensive credit evaluation and any offer you are offered could have different conditions.
The application process
Are I eligible for funding?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just complete the online application in just a few minutes, and an experienced business credit specialist will call you to assist you.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s License) along with a valid NZBN/IRD and at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details for application including credit consent twelve months of bank statements, IRD statements as well as the two most recent years’ financial statements, and interim financial statements for the current year as well as Aged Payables and Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) We can usually provide a response in one hour – as long as you make your application at standard business times and you allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your banking statements , we will be able to offer an answer within an business day.
For the Larger Business Loan ($100K up to $500,000) we could be in a position to offer you with conditional pre-approval in about 6 hours. Once you have signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Certain agreements have been approved in less than 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours and permit us to use the modern bank verification link to instantly check your bank’s information online. If you decide to upload duplicates of your banking statements , it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer within an hour – provided you apply within normal business timings and let us use the bank verification system to immediately verify your bank account information online. If you choose to upload copies of your bank statements, we will be able to offer the decision within 1 business day.
For the Larger Business Loans ($100K and up) we could be capable of provide the conditional pre-approval within six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this could be shorter based on the particular circumstances of each application. Some deals have been approved within just 24 hours.
The fastest way can be ensure you apply during normal business hours. Also, allow us to use the modern bank verification link to instantly check your bank’s information online. If you opt to upload the copies of bank statement, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a particular amount, we will consider a number of factors to determine what is the well-being that is your business and the level of repayments your company is able to afford. The total amount of the loan will be determined by the particular circumstances the business.
If you apply for a specific amount we will consider a number of factors to assess your well-being that is your company and the extent of the repayments your company can support. The amount you receive from your loan will be contingent on the particulars for your company.
Fees & repayments
What is the cost for a company loan?
If you decide to apply for our business loan, we’ll assess the risk profile of your company and offer you with a customised offer that includes loan amount, term and the interest rates. The company loan is an upfront cost loan which means you know the exact amount payable including any costs, fees, or interest rates.
What determines the rate that I am charged?
The interest rates on company loans rates differ based on various factors like the amount of money of money borrowed, the business assets the money are used to purchase as well as the field the business is in, how long the company has been in operation as well as how long the business has sufficient cash flow to fund the loan, and the overall well-being and creditworthiness of the business.
What are the fees?
There are no hidden costs for our business loans, and you’ll be aware of the amount you’ll need to pay and when, from the very first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments on time).
We don’t charge an Application Fee. You can apply for a loan no cost upfront or the obligation to take action.
The Origination Fee includes the expenses associated in establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Do I have the option of paying off the loan early?
You can decide to repay the entire amount of your loan early at any time.
If you decide to pursue this option, please talk to one of our helpful business credit specialists. They’ll provide you with repayment details along with an early payout estimate. The figure will be calculated as the total of the principal remaining plus any accrued interest as of the time of early payment in addition to 1.5% of the remaining principal and any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss repayments and to fit in your cash flow schedule, we offer repayments either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing how we collect, use, exchange and secure your information, is vital and is an essential 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 secure your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to protecting the security of customers and security. We make use of an advanced banking verification system to instantly verify your bank account details online so we can provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a company owner utilises assets they own to obtain the loan. The asset could be a personal asset like the family home or a business asset such as a truck or piece of equipment.
The majority of lenders, including the largest banks, are inclined to secure loans against assets. If you’re having trouble paying back the loan, the asset could be transferred to the lender. In essence, it is means of securing additional financing using the worth of the asset you already have.
Do I require security for a business loan?
Up to $150K in loans no asset security is required upfront to access the money However, we do need a personal guarantee. So long as you comply with the loan terms (as stated in the loan contract) the security of assets will never be required. If you take out loans in excess of $150K typically, you will need personal ensure and security in the form of a charge over assets.