FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Pullenvale Small Business Loans
Tell me how you can avail the Pullenvale Small Business Loans
Pullenvale unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from a traditional business loan?
It is possible to apply for this Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and have the funds in your account in 24 hours. Traditional company loans are based on an annual rate of interest plus other fees and charges. Our business loan is an upfront priced loan therefore you’ll be aware of the total amount payable including the interest, fees and charges. Then, it is broken down into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company purpose including cash flow management, business remodeling, marketing to purchase inventory, new equipment, as general working capital, and much more. The loan is not available to fund personal expenses.
About larger Pullenvale Business Loans
What is the Larger Pullenvale 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 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to be operating for at least three years and generate an annual revenue of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can I use the funds for?
A larger business loan can be used for nearly every business purpose including business renovations, to purchase new equipment or inventory or as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This is as a result of an charge against assets, and may include registration through the PPSR or filing a caveat.
A director’s or personal ensure is a commitment to pay off a credit line that is general in nature rather than specifying security over an asset. The person who signs the ensure is personally liable if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR allows prioritisation over property that is personal to be granted depending on the date that a security interest has been registered.
A caveat is a legal document filed to provide the public notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan of $250K or more we may be able to provide an initial pre-approval to smooth out the process. We may be able to make this decision without a credit verification and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial well-being questions. This is in no way an offer, nor is it a guarantee of funds. A conditional approval is subject a full credit assessment and any offer you receive could be based on different terms.
Application process
Do I qualify for funds?
You are eligible to apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and easy. Just complete the online application in few minutes and an experienced company credit specialist will be in touch to guide you through the process.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Details for application including credit consent twelve months of bank records, IRD statements as well as the two most recent years’ financial statements, plus interim financials from the current financial year as well as Aged Payables and Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) we usually provide an answer within an hour if you apply within quality business times and let us utilise the bank verification system link to instantly verify your bank details online. If you opt to send us copies of your bank statement, we’ll provide a decision within the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we may be able to provide the conditional pre-approval within about six hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however it could be faster based on the circumstances of each application. Certain transactions have received approval in less than 24 hours.
The quickest way to apply can be ensure you apply during normal business hours. Also, permit us to use the advanced bank verification system to instantly verify your bank account information online. If you decide to send us documents from your account statement, it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically offer an answer within one hour, provided you submit your request during normal business hours and let us use the bank verification system link to instantly verify your bank’s information online. If you decide to send us copies of your bank statements, we’ll be able to offer a decision within an business day.
If you are applying for Larger Business Loans ($100K or more) we could be capable of provide you with a conditional pre-approval within 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 particular circumstances of each application. Some agreements have been approved within the space of 24 hours.
The most efficient method would be to ensure you apply during normal business hours, and let us use the advanced bank verification system link to instantly check your bank’s information online. If you choose to upload documents from your account statements it takes a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a certain amount we look at a variety of elements to determine what is the well-being for your business and the amount of repayments your company will be able to support. The total amount of your loan will be contingent on the particular circumstances the company.
When you submit an application for a particular amount, we look at a range of variables to determine the health of your company as well as the amount of the repayments your business is able to afford. The amount you receive from your loan will be contingent on the specifics the company.
Fees & repayments
How much should you charge for an business loan?
When you apply for business loans with us business financing, we’ll assess the risk assessment for your company and offer you with a tailored offer that includes loan amount, term and the interest rates. The business loan is an upfront-priced loan so you will be aware of the total amount to be paid, including any costs, fees, or interest rates.
What determines the amount I pay?
The interest rates on business loans rates depend on several factors such as the amount that is that is borrowed, what business assets the funds are used to purchase as well as the field the company operates in, how long the company is in operation for, in the event that the business has sufficient cash flow to cover the loan, and overall well-being or financial standing of the business.
What are the charges?
There are no hidden costs with our company loans. You’ll know exactly how much you’ll need to pay and when, right from the first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments in time).
We do not charge an Application Fee. You are able to apply for a loan no cost upfront or the obligation to take action.
The Origination Fee covers the expenses involved with establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay out the loan early?
You may choose to pay back the entire amount of the advance loan at any time.
If you decide to take this route, please contact our helpful business credit professionals. We will provide you with the details of your repayment and an early payout figure. It will be calculated using the sum of the remaining principal amount plus any accrued interest as of the time of the early payout plus 1.5% of the remaining principal and any fees that remain unpaid.
How do repayments work?
To ensure that you don’t miss repayments and to fit in with your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about the ways we gather the information we collect, use, share and ensure the security of your information is of paramount importance and is an essential part 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 personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to customer security and privacy. We make use of an advanced bank verification system that allows you to immediately verify your bank account details online so we can provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when the company owner borrows from the assets they have to get a loan. The asset may be an individual property, such as the family home, or it could be a business asset such as a vehicle or piece or equipment.
The vast majority of lending institutions, not just the largest banks, are inclined to secure loans against an asset. If you’re having trouble paying back the loan, your assets could be taken over by the lender. In essence it’s the process of securing new financing using the worth of the asset you already own.
Should I require security to get a business loan?
For loans of up to $150K, it is not necessary to secure assets before you can access the money but we require a personal guarantee. require an individual guarantee. In the event that you fulfill the loan terms (as stipulated in your loan contract document) Asset security is not needed. For loans over $150,000 generally there is a personal ensure and security is provided in the form of the charge of assets.