FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Pinjarra Hills Small Business Loans
Let me know how you are able to avail the Pinjarra Hills Small Business Loans
Pinjarra Hills unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from an traditional company loan?
It is imaginable to apply to get your Small Business Loan in under 10 minutes over the phone, receive an instant response and have the funds in your account within 24 hours. Traditional company loans reference an annual rate of interest along with other charges and fees. We offer a business loan is a cash-based loan therefore you’ll know ahead of time the amount you will have to pay, including any fees, interest or charges. Then, it is divided into weekly or daily payment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost any business reason, such as cash flow management, business remodeling, marketing to purchase inventory, new equipment, as general working capital, and much more. The loan is not available for personal purposes.
About larger Pinjarra Hills Business Loans
What is the Larger Pinjarra Hills Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the loan amount.
Am I eligible 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. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funds for?
A Business Loan of a larger size can be used for nearly all company need, including company renovations, to purchase inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed for accessing funds over $150,000. This is in the form of a charge against assets, and could include registration on the PPSR or filing a caveat.
A director’s or personal ensure is a promise to repay credit that is general in nature, rather than stating the security of a specific asset. The person signing the guarantee is personally liable in the event that the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests registered in respect of personal property (including items or assets). The PPSR grants preference over private property granted according to the date the security interest that is registered.
A caveat is a legal document filed to offer notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking larger business loans that is greater than $250,000, we may offer an initial pre-approval in order to simplify the process. We may be able to make this decision without a credit verification and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves you answering some financial well-being checks. This is in no way an offer, nor is it a guarantee of credit. A conditional approval is subject a full credit assessment and any offer that you are offered could have different terms.
Application process
Do I have the right to receive funds?
You may apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and simple. Complete the online form in few minutes and an experienced company expert in lending will be in touch to assist you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s License) along with an active NZBN/IRD, and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent, 12 months bank statement, an IRD statements, last 2 years finalised financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K or more) we usually provide an answer within an hour – as long as you make your application within quality company timings and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you decide to upload copies of your banking statements , we’ll be able to offer the decision in as little as 1 company day.
For the Larger Business Loan ($100K to $500K) we might be able to provide you with a conditional pre-approval within six hours. Once you have signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however this could be shorter based upon the circumstances for each application. Certain deals have been approved within less than 24 hours.
The quickest method is to ensure you apply during standard business hours and allow us to use the modern bank verification to verify your bank account information online. If you opt to upload copies of your bank statements it takes a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we can often provide an answer in just one hour if you make your application during normal business hours and allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you decide to send us copies of your bank statement, we’ll provide an answer within an business day.
For the Larger Business Loans ($100K up to $500,000) we might be in a position to offer you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this can be faster depending upon the circumstances for each application. Certain agreements have been approved in just 24 hours.
The fastest way can be make sure you apply during standard business hours, and permit us to use the advanced bank verification system to verify your bank account information online. If you send us documents from your account statements, it can take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a certain amount we will consider a number of elements for determining what is the well-being for your company as well as the amount of repayments your company will be able to support. The amount you receive from your loan will depend on the specific circumstances of your business.
When you make an application for a particular amount, we look at a range of variables to determine how much we can lend you such as well-being of the company as well as the amount of repayments that your business will be able to support. The amount you receive from your loan will be contingent on the specific circumstances of your company.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to request our business loans, we’ll assess the risk profile that you have for your company and offer you with a customised offer including loan amount, term and interest rates. The company loan is an upfront cost loan which means you be aware of the total amount due, which includes any charges, interest rates or fees.
What determines the rate that I pay?
Interest rates for company loans rates differ based on various factors such as the amount that is that is borrowed, what company assets the money will be used for, the industry the company operates in, the long the company has been in operation, what percentage of the business has enough cash flow to support the loan, and overall well-being as well as creditworthiness business.
What are the costs?
There are no hidden costs for our business loans. You’ll know exactly how much you need to pay and when, right from the day you sign up. There’s not any compounding interest and no additional fees (as long as you make your payments in time).
We do not charge an application fee. You can make an application for loans with no cost upfront or commitment to apply.
The Origination Fee is the cost associated with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Do I have the option of paying off the loan early?
You may choose to pay back the entire amount of your advance loan at any time.
If you are deciding to take this route, please call our helpful business loan specialists. They’ll offer you with the details of your repayment along with an early payout estimate. This will be calculated as the total of the principal remaining and the accrued interest up to the time of the early payout in addition to 1.5 percent of the principal remaining as well as any outstanding fees.
How do repayments work?
In order to help you avoid missing repayments and to fit in with your cash flow standard, we provide payments that are either daily or weekly. They are automatically deducted from your 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 ensure the security of your information is of paramount importance and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to security for our customers and privacy. We use an advanced banking verification system to immediately verify your bank account details online. This allows us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the company owner utilises assets they own to obtain the loan. The asset could be an individual asset, such as the family home, or an company asset such as a truck or piece of equipment.
The majority of lenders, including the largest banks, are inclined to make loans secured by assets. If you have trouble paying back the loan then your assets could be sold by the lender. In essence it is an opportunity to secure additional financing making use of the value of what you already own.
Should I need security to get a business loan?
For loans that exceed $150,000, there is no requirement for asset security prior to the loan’s access However, we do require the personal guarantee. In the event that you fulfill the loan terms (as specified in your loan contract document) the security of assets will never be needed. For loans of over $150,000 generally, you are able to get an individual ensure and security that is in the form an asset charge.