FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The One Mile Small Business Loans
Let me know more about One Mile Small Business Loans
One Mile unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from an traditional business loan?
It is imaginable to apply for the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an instant response and the money could be in your account within 24 hours. Traditional company loans are based on an annual interest rate together with additional fees and charges. Our business loan is a pre-paid loan therefore you’ll know ahead of time the total amount to be paid, including the interest, fees and charges. Then, it is broken down into weekly or daily payment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business need, such as control of cash flow business remodels and marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan is not available for personal purposes.
About the Larger One Mile Business Loans
What is the Larger One Mile Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are scheduled weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan of this size, your company needs to be trading for at least 3 years and generate an annual revenue of $700,000. You must be 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 of proving at the least 12 months of operating.
How can the funding be utilised?
A Business Loan of a larger size can be used to fund almost any company use, including business improvements, purchasing new equipment or inventory as well as for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. It’s as a result of an charge on assets, and may include registering this with the PPSR or filing as a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is generally based rather than specifying security over a particular asset. The person signing the ensure is personally liable in the event that the company the borrower fails 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 that are registered for personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be assigned according to the date a registration of a security interest.
An affidavit is an official document filed to provide notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan of $250K or more we can offer a preliminary pre-approval to help smooth out the process. It is possible to do this without a credit check, and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes you answering some financial well-being checks. It’s not an offer or guarantee of funds. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you may receive may be based on different conditions.
The application process
Do I have the right to receive funds?
You can apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application within a few minutes and an experienced business credit specialist will contact you to guide you through the process.
To apply for up $100,000 you’ll need the right identification documents (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K-$250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent as well as 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we typically provide a response in one hour if you apply within quality business hours and allow us to utilise the bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statements , we’ll be able to offer an answer within an business day.
For Larger Business Loans ($100K to $500K) we may be able to provide the conditional pre-approval within about 6 hours. After you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Some transactions have received approval in the space of 24 hours.
The quickest method is to make sure you apply during standard business hours. You can also permit us to use the advance bank verification link to verify your bank information online. If you choose to send us copies of your bank statements , it will take a little longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) we typically offer an answer within an hour if you submit your request at standard business timings and you allow us to use the advanced bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements, we are able to provide the decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be able to provide you with pre-approval conditional to your application in about six hours. Once you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this can be faster depending on the specifics of each application. Certain deals have been approved in the space of 24 hours.
The most effective method can be ensure you apply during standard business hours. You can also let us use the advanced bank verification system to check your bank’s information online. If you opt to send us documents from your account accounts, it can take a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a specific amount we look at a variety of variables for determining your health of the company as well as the amount of repayments that your business is able to afford. The total amount of your loan will depend on the specific circumstances for your company.
If you apply for a set amount, we take into consideration a variety of elements to assess how much we can lend you such as health that is your business as well as the amount of repayments your company is able to afford. The total amount of your loan will be contingent on the particular circumstances of your company.
Fees & repayments
How do you charge for an company loan?
When you apply for the business loan, we’ll assess the risk profile of your business and offer you with a customised offer that includes the amount of the loan, the duration and interest rates. The business loan is an upfront-priced loan so you will be aware of the total amount payable including any costs, fees, or interest rates.
What determines the amount I am charged?
Business loan interest rates depend on several factors such as the amount that is borrowed, the company assets the money will be used for in addition to the industry that the business is operating in, how long the company has been operating, in the event that the business has sufficient cash flow to fund the loan, as well as the overall health or creditworthiness of the company.
What are the costs?
There aren’t any hidden charges for our business loans. You’ll know exactly how much it is that you be required to pay, and at what time, from the first day. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments on time).
We do not charge an Application Fee. You can apply for a loan with with no upfront cost or commitment to apply.
The Origination Fee covers the costs associated with the setting up and management of the loan. It is only charged for this fee if you decide to take 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 in advance?
You can decide to repay the entire amount of your loan in full at any time.
If you choose to do this please speak to our friendly business credit experts. We will offer you with details on repayment and an early payout figure. The figure will be calculated as the sum of the principal remaining plus any accrued interest as of the time of early payment plus 1.5% of the remaining principal as well as any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss payment dates and to align your cash flow schedule, we offer repayments either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and knowing how we collect the information we collect, use, share and protect your information, is vital and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to customer security and privacy. We use an advanced bank verification system that allows you to immediately verify the bank account details online, allowing us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an business owner makes use of assets they own to get a loan. The asset can be an asset belonging to the personal, like the family home, or an company asset such as a truck or piece or equipment.
The vast majority of lenders, not just the largest banks, are inclined to guarantee loans against assets. If you are having difficulty paying back the loan, the asset might be offered for sale by the lender. In essence it’s means of securing new financing using the value of what you already own.
Should I need security to get an business loan?
For loans up to $150K it is not necessary to secure assets prior to the loan’s access However, we require a personal guarantee. need an individual guarantee. In the event that you fulfill the terms of your loan (as stated in your loan contract document) Asset security is not needed. For loans that exceed $150,000, generally, you are able to get a personal ensure and security that is in the form an asset charge.