FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Pinkenba Small Business Loans
Let me know more about Pinkenba Small Business Loans
Pinkenba unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from an ordinary business loan?
The application to get your Small Business Loan in under 10 minutes on the internet or by phone. You will receive an immediate response, and have the funds in your account within 24 hours. Traditional business loans reference an interest rate per annum as well as other fees and charges. The company loan is a loan that is priced upfront therefore you’ll know ahead of time the total amount payable including any interest, fees or charges. Then, it is broken down into either weekly or daily repayment figure.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company reason, such as control of cash flow business remodels and marketing for purchasing inventory or new equipment, or as general working capital and so much more. The loan is not available for personal purposes.
About larger Pinkenba Business Loans
What is the Larger Pinkenba Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of for up to 36 months. Repayments are weekly or fortnightly depending on you cashflow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan that is this large the company needs to be trading for at least 3 years, and have an annual income of $700,000. It is necessary to 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 to prove at least 12 months of trading.
How can the funds be used for?
A large business loan can be used to fund almost every company reason, such as company renovations, to purchase inventory or new equipment or as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. This is as a result of an charge on assets and can include the registration of this on the PPSR or making a caveat.
A personal or director’s guarantee is a commitment to pay back a loan that is general in nature rather than defining the security for a particular asset. The person who signs the ensure is personally liable in the event that the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It lists security interests that are that are registered for personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be assigned in accordance with the date on which a security interest was registered.
The caveat can be described as a formal document filed to offer an official notice of a claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for larger company loans that exceeds $250K it is possible to offer an initial pre-approval that will help simplify the process. It is possible to do this without a credit check and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves the answer to a series of financial well-being checks. It’s not an offer of credit or guarantee of funds. A conditional approval is subject an assessment of your creditworthiness and any offer you might receive could be subject to different terms.
The application process
Are I eligible for funding?
You may be eligible for an company 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 demonstrate at minimum 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form within a couple minutes, and a dedicated company expert in lending will call you to guide you through the process.
To be eligible for up to $100,000 you’ll need identification details (valid Driver’s License) and a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details for application including credit consent and 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we usually provide an answer in just one hour if you apply at quality company hours and permit us to make use of the advanced bank verification system link to instantly verify your bank information online. If you want to send us copies of your bank statements we can provide an answer within one company day.
For the Larger Business Loan ($100K and up) we may be likely to provide the conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Certain transactions have received approval within 24 hours.
The fastest way would be to make sure you apply during standard business hours. You can also allow us to use our advanced bank verification system to instantly verify your bank account information online. If you decide to upload copies of your bank statements it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer within an hour – provided you apply within normal business times and you allow us to use the bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your banking statements, we are able to offer a decision within the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be capable of provide you with pre-approval conditional to your application within about six hours. Once you have signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved within just 24 hours.
The most efficient method can be ensure you apply during normal business hours. Also, allow us to use the advanced bank verification system to verify your bank information online. If you send us copies of your bank statements, it will take a little longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you submit an application for a particular amount, we take into consideration a range of factors for determining what is the health that is your company as well as the amount of payments your business can afford. The total amount of the loan will be determined by the particular circumstances for your business.
If you apply for a set amount, we take into consideration a variety of factors to assess the health of the company and the amount of payments your company will be able to support. The total amount of your loan will depend on the specifics for your company.
Fees & repayments
How do you charge for the cost of a company loan?
When you apply for our company loan, we will assess the risk assessment for your business and provide you with a tailored offer that includes loan amount, term and interest rates. A company loan is an upfront-priced loan and you’ll know the exact amount payable including any interest rates, fees or charges.
What is the factor that determines the price I’m charged?
The interest rates on company loans rates vary due to factors including the amount of money borrowed, the business assets the funds will be used for as well as the field the company operates in, the long the company has been in operation, how long the business has sufficient cash flow to pay for the loan, and also the general well-being as well as creditworthiness company.
What are the fees?
There are no hidden fees with our business loans, and you’ll know precisely what it is that you be required to pay and at what time, from the very first day. There’s no compounding and the loan comes with no additional fees (as long as you make your payments punctually).
We do not charge an application fee. You are able to get a cash loan with with no upfront cost or the obligation to take action.
The Origination Fee includes the expenses associated in establishing and managing the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I pay out the loan earlier?
You may choose to pay back the entire amount of the loan in full at any time.
If you are deciding to do this please call our helpful company loan experts. They will offer you with the details of your repayment along with an early payout estimate. This is calculated as the sum of the principal balance and accrued interest to the time of early payment and 1.5% of the principal amount remaining and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payment dates and to align your cash flow schedule, we offer repayments either weekly or daily. They are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Security of your data, and being upfront about how we collect data, process, exchange and secure your information, is vital and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account information online to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an business owner utilises assets they own to get the funding. The asset can be an individual property, such as the family home, or an business property like a truck as well as a piece of machine.
The vast majority of banks, not just the big banks, tend to guarantee loans against an asset. If you’re having trouble paying back the loan, then your assets could be taken over by the lender. In essence it’s an opportunity to secure new financing using the value of what you already own.
Should I require security to get a business loan?
For loans that exceed $150,000, no asset security is required prior to the loan’s access However, we do require an individual guarantee. If you adhere to your loan obligations (as detailed in your loan contract document) Asset security is not needed. For loans of over $150,000 typically, you will need the option of a personal guarantee and security in the form the charge of assets.