FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Nudgee Small Business Loans
Let me know more about Nudgee Small Business Loans
Nudgee unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
How is this Unsecured Loan different from the traditional business loan?
Apply to your Small Business Loan in under 10 minutes online or over the phone, receive an instant response and the funds could be in your account within 24 hours. Traditional company loans refer to an annual rate of interest plus other fees and charges. Our business loan is a loan that is priced upfront which means you know in advance the total amount due, which includes the interest, fees and charges. This is then divided into weekly or daily repayment figure.
What could be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every business reason, such as cash flow management, company improvements, advertising to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Nudgee Business Loans
What is the Larger Nudgee Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit of this size, your business needs to have been in operation for at least 3 years, and have an annual income of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funding for?
A Larger Business Loan is a great option for almost any business need, including company renovations, to purchase inventory or new equipment, as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. It is usually by way of charge against assets, which could also include registration with the PPSR or making as a caveat.
A personal or director’s guarantee is a commitment to repay credit that is general in nature, rather than defining the security of a specific asset. The person who is signing the guarantee is personally liable in the event that the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including objects or assets). The PPSR allows prioritisation over property that is personal to be assigned according to the date a security interest has been registered.
An affidavit is an official form of document to offer an official notice of a claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger business loans that is greater than $250K we can offer an initial pre-approval in order to make the process. We may be able to get this done without a credit verification and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves the answer to a series of financial health questions. It is neither an offer nor a guarantee of finance. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you may receive may have different conditions.
The application process
Do I have the right to receive funds?
You can apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form within a few minutes and an experienced company lending specialist will call you to guide you through the process.
To apply for up $100,000 you’ll need proof of identity (valid Driver’s License), an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent twelve months of bank records, IRD statement as well as the two most recent years’ financial statements, and interim current financial year financials, Aged Payables and Aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K or more) We can usually offer a response in one hour if you make your application at standard business times and you allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you want to submit copies of your bank statements , we will be able to provide a decision in as little as the span of one business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be capable of provide you with pre-approval conditional to your application in around six hours. After you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Certain deals have been approved in just 24 hours.
The quickest way to apply would be to make sure you apply during normal business hours. You can also allow us to use the modern bank verification to instantly verify your bank account information online. If you choose to send us the copies of bank statements , it can take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we typically provide an answer within an hour if you submit your request within normal business hours and allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you want to send us copies of your bank statements, we’ll be able to offer a decision in as little as 1 business day.
For the Larger Business Loans ($100K and up) we might be in a position to provide the conditional pre-approval within 6 hours. After you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain deals have been approved within just 24 hours.
The most efficient method would be to ensure you apply during standard business hours, and allow us to use the sophisticated bank verification link to verify your bank information online. If you opt to upload the copies of bank statements, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a certain amount we look at a variety of aspects to determine what is the health of your company and the extent of repayments that your business is able to afford. The amount you receive from your loan will depend on the particular circumstances that are unique to your company.
When you submit an application for a certain amount, we look at a range of elements to determine how much we can lend you such as health that is your business and the extent of repayments that your business can support. The total amount of your loan will depend on the particulars for your company.
Fees & repayments
How do you charge for an business loan?
If you decide to request one of our business credit, we’ll assess the risk assessment for your business and offer an individualised offer including the loan amount, the terms and the interest rates. The company loan is an upfront-priced loan and you’ll be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What is the factor that determines the price I am charged?
The interest rates on company loans rates depend on several factors like the amount of money borrowed, the business assets the funds will be used for as well as the field the business operates in, how long the company has been operating and how long the company has sufficient cash flow to support the loan, and general health as well as creditworthiness business.
What are the charges?
There aren’t any hidden charges with our business loans. You’ll know exactly how much you’ll be required to pay, and when, right from the very first day. There’s not any compounding interest and no extra fees (as long as you are able to make your payments punctually).
We don’t charge an application fee. You are able to make an application for loans with absolutely no upfront cost and no the obligation to take action.
The Origination Fee includes the expenses 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 percent of the loan amount.
Can I pay off the loan early?
You can repay the entire amount of your loan at any point in time.
If you choose to do this please call our helpful company lending specialists. They will provide you with the details of your repayment as well as an early payout amount. The figure will be calculated as the sum of the principal amount remaining and the accrued interest up to the time of early payment, plus 1.5 percent of the principal balance 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 general, we offer repayments that are either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my information be secure?
Protecting your information, and being upfront about the ways we gather, use, exchange and ensure the security of your information is of huge importance and an integral 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 sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to protecting the security of clients and security. We employ an exceptionally sophisticated bank verification system to instantly confirm your bank account information online, allowing us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where the business owner uses the assets they have to secure the funding. The asset may be an individual asset, such as the family home, or a company asset like a truck or piece or equipment.
The vast majority of banks, even the major banks, prefer to secure loans against assets. If you’re having trouble paying back the loan, your assets could be offered for sale by the lender. In essence it’s means of securing additional financing using the value of what you already own.
Should I need security for an business loan?
For loans up to $150K no asset security is required upfront to access the money, however we require a personal guarantee. need a personal guarantee. As long as you follow your loan obligations (as stated in your loan contract document), asset security is not required. For loans that exceed $150K, typically, you will need the option of a personal ensure and security that is in the form a charge over assets.