FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Underwood Small Business Loans
Tell me how you can avail the Underwood Small Business Loans
Underwood unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
How is what makes the Unsecured Loan different from an traditional company loan?
Apply to get the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an answer within the same day and the funds could be on your account within 24 hours. Traditional business loans refer to an annual rate of interest along with other charges and fees. The company loan is an upfront priced loan so you will be aware of the total amount to be paid, including the interest, fees and charges. This is then divided into weekly or daily payment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company reason, such as the management of cash flow, company remodeling, marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal use.
About Larger Underwood Business Loans
What is the Larger Underwood Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large the company needs to have been trading for at least 3 years with an annual turnover of $700K. Your company must belong to 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 of proving at least 12 months of trading.
What can the funds be used for?
A Larger Business Loan can be used to fund almost every business purpose including business remodeling, buying equipment or inventory as well as for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. This is as a result of an charge on assets and can include registration on the PPSR or the registration of a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is generally based rather than defining security over a particular asset. The person signing the guarantee is personally responsible if 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 reflects security interests registered in respect of personal property (including items or assets). The PPSR grants preference over private property assigned in accordance with the date on which a security interest was registered.
A caveat is a legal document lodged to offer an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting the Larger Business Loan of $250K or more we may be able to provide an initial pre-approval that will help smooth out 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 that includes the answer to a series of financial health checks. This is in no way an offer, nor is it a guarantee of funds. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you receive could be based on different conditions.
The 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 at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form within a few minutes and an experienced business loan specialist will contact you to assist you.
For a loan of up to $100,000 you’ll need the right identification documents (valid Driver’s License), a valid NZBN/IRD and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Details for application including credit consent and 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, as well as interim current financial year financials including Aged Payables, Aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K and up) we can often offer an answer within an hour if you apply within quality company times and you allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you want to send us copies of your bank statements , we will be able to provide the decision in as little as the span of one business day.
For the Larger Business Loan ($100K to $500K) we could be able to offer the conditional pre-approval within about six hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Certain agreements have been approved within the space of 24 hours.
The most effective method would be to ensure you apply during standard business hours. Also, allow us to use the advanced bank verification system link to instantly check your bank’s information online. If you opt to send us copies of your bank accounts, it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer in just one hour – as long as you apply during normal business hours and let us use the bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statements, we are able to provide an answer in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be capable of provide you with conditional pre-approval within six hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this can be faster depending upon the circumstances for each application. Certain agreements have been approved within just 24 hours.
The fastest way would be to make sure you apply during standard business hours, and permit us to use the modern bank verification to verify your bank account information online. If you opt to upload documents from your account accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of aspects to determine your well-being that is your business and the level of payments your company is able to afford. The amount you receive from the loan will be determined by the specifics the business.
If you apply for a particular amount, we will consider a number of aspects to determine how much we can lend you such as health that is your business and the extent of the repayments your business can support. The total amount of the loan will be determined by the particulars the company.
Fees & repayments
How do you charge for the cost of a business loan?
When you make an application for the business loans, we will assess the risk profile that you have for your business and provide you with a customised offer including the loan amount, the terms and interest rates. A business loan is an upfront-priced loan and you’ll be aware of the total amount payable including any interest rates, fees or charges.
What determines the amount I’m charged?
The interest rates on company loans rates differ based on various factors like the amount of money borrowed, what company assets the funds are used to purchase and the sector the business operates in, how long the company has been running as well as whether the business has enough cash flow to support the loan, and also the general health as well as creditworthiness company.
What are the costs?
There are no hidden costs for our company loans. You’ll know precisely what it is that you need to pay and when, from day one. There’s not any compounding interest and the loan comes with no additional fees (as as long as you pay your payments in time).
We do not charge an Application Fee. You can request a credit loan with no upfront cost or obligation to proceed.
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 choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I repay the loan early?
You can decide to repay the entire amount of the loan at any point in time.
If you choose to pursue this option, please speak to our friendly company credit specialists. The experts will offer you with the details of your repayment and an early payout figure. This will be calculated as the sum of the remaining principal amount and the accrued interest up to the time of the early payout and 1.5% of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
To help you avoid missing repayments and to fit in your cash flow cycle we provide payments that are either daily or weekly. They will be automatically deducted from your company account.
Security & privacy
Will my data be secure?
Security of your data, and being clear about the ways we gather the information we collect, use, share and protect your information, is vital and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to protecting the security of customers and privacy. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account information online to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where a business owner utilises an asset that they own to secure a loan. The asset can be an asset belonging to the personal, like the family home, or a company asset such as a truck or piece or equipment.
The vast majority of banks, even the major banks, prefer to make loans secured by assets. If you’re struggling to pay back the loan, the asset might be sold by the lender. In essence it’s an opportunity to secure additional financing taking advantage of the value of what you already own.
Are I need security to secure a business loan?
For loans up to $150,000 it is not necessary to secure assets upfront to access the money but we do require the personal guarantee. If you adhere to the terms of your loan (as detailed in your loan contract) Asset security is not required. For loans of over $150,000 generally, you are able to get the option of a personal guarantee and security that is in the form the charge of assets.