FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Newtown Small Business Loans
Let me know how you are able to avail the Newtown Small Business Loans
Newtown unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from an ordinary company loan?
The application to get this Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and have the funds in your account in 24 hours. Traditional company loans refer to an annual rate of interest plus other fees and charges. Our company loan is an upfront priced loan therefore you’ll be aware of the total amount payable including any fees, charges or charges. Then, it is divided into weekly or daily amount to be paid back.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business reason, such as the management of cash flow, business improvements, advertising to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal use.
Concerning Larger Newtown Business Loans
What is the Larger Newtown Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are either weekly or fortnightly, depending on you cashflow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan that is this large, your company needs to have been trading for at least 3 years and generate an annual revenue of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
How can the funds be utilised?
A Larger Business Loan can be used for nearly any company purpose including company remodeling, buying inventory or new equipment, as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. This is by taking a charge on assets, and could include registering this on the PPSR or making as a caveat.
A personal or director’s guarantee is a guarantee to pay back a loan that is generally based rather than defining security over an asset. The person who is signing the guarantee is personally liable if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests that are registered for personal property (including objects or assets). The PPSR gives the priority of personal property granted according to the date a registration of a security interest.
Caveats are legal document filed to provide notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
When you’re applying for larger business loans of more than $250K we can offer an initial pre-approval in order to ease the process. We might be able to make this decision without a credit verification 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 health checks. It’s in no way an offer, nor is it a guarantee of financing. A conditional approval is subject a full credit assessment and any offer that you receive could be based on different conditions.
Application process
Can I be eligible for funding?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for the 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 fill out the online application in just a few minutes, and a dedicated company lending specialist will be in touch to guide you through the process.
To be eligible for up to $100,000 you’ll require proof of identity (valid Driver’s License) as well as a valid NZBN/IRD and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details of the application, including credit consent twelve month bank accounts, the IRD statements as well as the two most recent years’ financial statements, and interim financials for the current financial year such as age-related payables and aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we typically provide an answer within one hour if you apply in quality company time and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you want to submit copies of your bank statements , we are able to provide an answer within one business day.
For the Larger Business Loan ($100K and up) we might be in a position to offer you with a conditional pre-approval within about 6 hours. Once you’ve 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 in the space of 24 hours.
The quickest way to apply is to ensure you apply during standard business hours, and permit us to use the modern bank verification to instantly check your bank’s information online. If you send us copies of your bank statement, it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we can often offer a response in one hour, provided you make your application during standard business times and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your banking statements, we are able to offer an answer in as little as an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be able to provide the conditional pre-approval within 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based on the circumstances of each application. Certain transactions have received approval within the space of 24 hours.
The fastest way is to make sure you apply during normal business hours. You can also permit us to use the modern bank verification to instantly verify your bank information online. If you send us copies of your bank statements, it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a certain amount, we look at a variety of factors for determining your well-being of the business and the level of repayments that your company will be able to support. The amount you receive from your loan will depend on the specific circumstances that are unique to your company.
When you apply for a particular amount, we will consider a number of variables to assess your health for your business and the amount of repayments that your company will be able to support. The amount you receive from the loan will be determined by the particulars that are unique to your business.
Fees & repayments
How much do you charge for the cost of a business loan?
When you make an application for the business loans, we will assess the risk profile that you have for your company and provide you with a customised proposal that includes the amount of loan, the term and the interest rates. It is a company loan is an upfront-priced loan and you’ll be aware in advance of the total amount to be paid, including any charges, interest rates or fees.
What determines the rate that I will be charged?
Business loan interest rates vary due to factors like the amount of money borrowed, the business assets the money will be used for in addition to the industry that the business operates in, how long the business has been running and in the event that the business has sufficient cash flow to support the loan, and overall health as well as creditworthiness business.
What are the costs?
There are no hidden costs with our company loans, and you’ll know exactly how much it is that you be required to pay, and when, starting from the day you sign up. There’s no compounding and the loan comes with no additional fees (as long as you are able to make your payments on time).
We do not charge an Application Fee. You can get a cash loan with without any upfront costs or any obligation to sign up.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I repay the loan in advance?
You can decide to repay the total amount of your loan in full at any time.
If you choose to do this please call our helpful business lending experts. We will offer you with repayment details along with an early payout estimate. This is calculated as the total of the principal balance and the accrued interest up to the time of early payout in addition to 1.5% of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing repayments and to fit in with your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from your nominated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as making it clear the ways we gather the information we collect, use, share and secure your information, is of paramount importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We make use of an advanced bank verification system link to instantly verify your bank account information online. This allows us to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a company owner utilises assets they own to make the loan. The asset may be a personal asset like the family home, or a business asset such as a truck or piece of equipment.
The vast majority of lenders, not just the banks with the biggest size, prefer to make loans secured by an asset. If you are having difficulty paying back the loan then the asset might be transferred to the lender. In essence it’s an opportunity to secure new funding making use of the value of what you already own.
Do I need security for an company loan?
Up to $150,000 in loans the requirement for asset security is not required before you can access the money, however we require a personal guarantee. need a personal guarantee. As long as you follow your loan obligations (as stipulated in your loan contract), asset security will never be needed. For loans over $150K generally, there is an individual ensure and security that is in the form a charge over assets.