FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Priestdale Small Business Loans
Let me know what you think of the Priestdale Small Business Loans
Priestdale 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 that are either per day or weekly.
What is how is the Unsecured Loan different from an ordinary company loan?
You can apply to your Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and the money could be in your account within 24 hours. Traditional business loans have an annual rate of interest together with additional fees and charges. This company loan is a loan that is priced upfront and you’ll know ahead of time the amount you will have to pay, including any fees, charges or charges. This is then broken down into weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost every business use, including managing cash flows, company remodels and marketing to purchase inventory, new equipment, to fund general working capital, and much more. The loan is not available for personal reasons.
About larger Priestdale Business Loans
What is the Larger Priestdale Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to have been operating for at least three years and generate an annual revenue of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can the funding be used for?
A larger company loan is a great option for almost every company reason, such as business renovations, purchase of new equipment or inventory, as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. This is by way of charge on assets, and may include registration through the PPSR or filing a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is general in nature rather than stipulating the security of a specific asset. The person who is signing the guarantee is personally responsible if the company creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR grants priority over personal property to be assigned depending on the date that a registration of a security interest.
The caveat can be described as a formal document filed to offer the legal claim to a property.
What is a pre-approval minus Credit Check?
When you’re applying for the Larger Business Loan of $250K or more, we may offer an initial pre-approval in order to make the process. It is possible to apply for this without a credit check, and within 6 hours of the initial application. This pre-approval is based on an initial assessment that includes the answer to a series of financial well-being questions. This is not an offer or guarantee of finance. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you are offered could have different conditions.
Application process
Can I be eligible for funding?
You are eligible to apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application in few minutes and an experienced company lending specialist will contact you to guide you.
To apply for up to $100,000 you’ll require identification details (valid Driver’s License), a valid NZBN/IRD as well as at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Application details including credit consent twelve month bank accounts, the IRD statement Last 2 years’ finalised financial statements, and interim financial statements for the current year such as age-related payables and aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we typically offer an answer in just one hour – as long as you submit your request at quality business times and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your bank statements we can provide the decision in as little as an business day.
For the Larger Business Loan ($100K or more) we could be in a position to provide the conditional pre-approval within six hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Certain offers have been approved within less than 24 hours.
The quickest way to apply is to ensure you apply during normal business hours. Also, allow us to use our advanced bank verification system link to instantly check your bank’s information online. If you choose to upload the copies of bank statements it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K and up) we can often provide an answer in just one hour – as long as you submit your request within normal business hours and let us make use of the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your banking statements, we are able to offer a decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K or more) We may be in a position to offer you with conditional pre-approval within six hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Some offers have been approved within the space of 24 hours.
The quickest method would be to ensure you apply during normal business hours. You can also allow us to use our sophisticated bank verification to verify your bank account information online. If you opt to upload copies of your bank statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a particular amount, we consider a variety of factors that determine what is the well-being that is your company and the extent of repayments your company is able to afford. The total amount of your loan will be contingent on the specific circumstances that are unique to your business.
When you submit an application for a specific amount we look at a range of aspects to assess the well-being of your company as well as the amount of payments your business is able to afford. The total amount of your loan will be contingent on the specifics the business.
Fees & repayments
How much should you charge for the cost of a company loan?
When you apply for one of our company financing, we will assess the risk profile of your company and offer you with a tailored offer that includes the amount of loan, the term and interest rates. The business loan is an upfront-priced loan and you’ll know in advance the total amount due, which includes any charges, interest rates or fees.
What determines the amount I will be charged?
Business loan interest rates differ based on various factors such as the amount that is that is borrowed, what business assets the money are used to purchase in addition to the industry that the company operates in, how long the company has been in operation as well as what percentage of the company has sufficient cash flow to fund the loan, and also the overall well-being or financial standing of the company.
What are the costs?
There are no hidden costs with our business loans. You’ll know precisely what you’ll need to pay and at what time, from the first day. There’s no compounding interest and no extra fees (as as long as you pay your payments punctually).
We don’t charge an Application Fee. You are able to make an application for loans with no upfront cost or commitment to apply.
The Origination Fee covers the expenses involved with the setting up and management of the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I repay the loan earlier?
You can choose to repay the entire amount of your advance loan at any time.
If you decide to pursue this option, please speak to our friendly company loan specialists. They will offer you with the details of your repayment as well as an early payout amount. This will be calculated as the sum of the principal remaining and accrued interest to the date of early payout and 1.5 percent of the principal amount remaining and any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss payments and to work your cash flow schedule, we offer repayments that are either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing the ways we gather, use, exchange and secure your information, is crucial and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to protecting the security of customers and security. We utilise a sophisticated bank verification system to immediately verify the bank account details online to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where a company owner borrows from an asset they own to obtain a loan. The asset may be an individual property, such as the family home or an company property like a truck or piece or equipment.
The vast majority of lending institutions, including the banks with the biggest size, prefer to guarantee loans against an asset. If you’re struggling to pay back the loan then your asset may be taken over by the lender. In essence it’s an opportunity to secure new financing by using the worth of the asset you already own.
Should I need security for a business loan?
For loans up to $150,000 it is not necessary to secure assets in advance to gain access to the funds however, we do need an individual guarantee. In the event that you fulfill your loan obligations (as detailed in your loan contract document) the security of assets is not needed. For loans of over $150K generally, you can get an individual guarantee and security in the form a charge over assets.