FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Newstead Small Business Loans
Let me know more about Newstead Small Business Loans
Newstead unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
What is how is the Unsecured Loan different from an ordinary business loan?
Apply for this Small Business Loan in under 10 minutes online or over the phone. You’ll get an immediate response, and have the funds in your account within 24 hours. Traditional company loans refer to an annual rate of interest along with other charges and fees. We offer a business loan is a loan that is priced upfront and you’ll be aware of the total amount payable including any fees, charges or charges. Then, it is divided into a daily or weekly repayment figure.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly any business reason, such as control of cash flow company renovations, marketing to purchase inventory, new equipment, or as general working capital and so much more. The loan is not available for personal use.
Concerning Larger Newstead Business Loans
What is the Larger Newstead Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your business needs to have been trading for at least 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can I use the funding for?
A large business loan can be used for nearly every business reason, such as company remodeling, buying new equipment or inventory, as general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It is usually by taking a charge on assets, and may include registration on the PPSR or the registration of as a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is generally based rather than stating security over an asset. The person who is signing the ensure is personally liable if the company creditor 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 contains security interests which are registered with respect to personal property (including items or assets). The PPSR allows priority over personal property to be assigned according to the date a security interest that is registered.
The caveat can be described as a formal document lodged to provide the legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re requesting larger company loans of $250,000 or more it’s possible to offer a preliminary pre-approval to help ease the process. It is possible to apply for this without credit checks and within 6 hours of the initial application. The pre-approval process is based on a preliminary assessment which includes you answering a few financial well-being checks. It is not an offer or guarantee of finance. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you might receive could be based on different terms.
Application process
Can I be eligible for funding?
You can apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form in just a few minutes, and a dedicated company loan specialist will contact you to assist you.
To apply for up $100,000 you’ll require ID details (valid Driver’s License) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K-$250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, as well as interim current financial year financials such as age-related payables and aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer within an hour if you make your application within standard company timings and permit us to make use of the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your banking statements , we are able to offer an answer within just one company day.
For the Larger Business Loan ($100K up to $500,000) we could be able to provide you with a conditional pre-approval within 6 hours. After you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain deals have been approved within less than 24 hours.
The most efficient method is to make sure you apply during normal business hours, and permit us to use the advance bank verification link to instantly check your bank’s information online. If you decide to upload duplicates of your banking statements it can take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K to $100K) we usually provide a response in one hour – provided you submit your request in standard business times and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you opt to send us copies of your bank statement, we’ll provide a decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K and up) we might be likely to provide you with pre-approval conditional to your application in around 6 hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be faster depending on the circumstances of each application. Certain deals have been approved in less than 24 hours.
The quickest method is to ensure you apply during standard business hours. You can also allow us to use our advance bank verification to check your bank’s information online. If you opt to upload the copies of bank accounts, it will take a little longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a specific amount we consider a variety of elements that determine how much we can lend you health of the business as well as the amount of repayments that your company can support. The amount you receive from your loan will depend on the specifics of your business.
If you apply for a particular amount, we will consider a number of variables to assess the well-being that is your business and the amount of repayments that your business will be able to support. The total amount of the loan will be determined by the particular circumstances of your business.
Fees & repayments
How much do you charge for an business loan?
When you apply for business loans with us business loans, we will assess the risk profile the company and provide you with a customised offer, including the loan amount, the terms and interest rates. This business loan is an upfront-priced loan which means you be aware of the total amount payable including any interest rates, fees or charges.
What determines the amount I’m charged?
Business loan interest rates depend on a variety of factors such as the amount that is borrowed, what business assets the money are used to purchase in addition to the industry that the business is in, how long the company has been running for, how long the company has enough cash flow to pay for the loan, and overall health and creditworthiness of the business.
What are the charges?
There are no hidden costs with our business loans, and you’ll be aware of the amount you’ll need to pay, and when, from day one. There’s no compounding interest, and the loan comes with no additional fees (as long as you make your payments on time).
We do not charge an application fee. You can request a credit loan with with no upfront cost or commitment to apply.
The Origination Fee covers the expenses involved with the setting up and management of the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I repay the loan in advance?
You may choose to pay back the entire amount of the loan in full at any time.
If you do decide to take this route, please talk to one of our helpful company credit specialists. They’ll provide you with repayment details and an early payment figure. It will be calculated using the total of the principal amount remaining and the accrued interest up to the time of the early payout and 1.5% of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
To ensure you do not miss payments and to work your cash flow schedule, we offer repayments either weekly or daily. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and being upfront about the ways we gather, use, exchange and secure your information, is of huge importance 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 techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their security. We employ a highly sophisticated bank verification system that allows you to instantly confirm your bank account information online. This allows us to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a company owner makes use of an asset they own to obtain a loan. The asset can be either an individual asset, such as the family home, or an company asset like a truck as well as a piece of machine.
The vast majority of lenders, not just the major banks, prefer to guarantee loans against assets. If you’re struggling to pay back the loan then the asset might be sold by the lender. In essence, it’s an opportunity to secure new funding using the worth of the asset you already own.
What do I require security to get an business loan?
For loans up to $150,000 no asset security is required prior to the loan’s access, however we require a personal guarantee. need a personal guarantee. So long as you comply with your loan obligations (as stipulated in the loan contract), asset security will never be required. If you take out loans in excess of $150K generally there is a personal guarantee and security in the form the charge of assets.