FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Yamanto Small Business Loans
Tell me more about Yamanto Small Business Loans
Yamanto unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from an ordinary company loan?
The application for the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an answer within the same day and funds may be in your account within 24 hours. Traditional business loans are based on an interest rate per annum plus other fees and charges. This business loan is a loan that is priced upfront and you’ll be aware in advance of the amount you will have to pay, including any fees, charges or charges. This is then broken down into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company reason, such as cash flow management, business remodeling, 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 Yamanto Business Loans
What is the Larger Yamanto 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 over a fixed term up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a credit of this size the business needs to be in operation for at least 3 years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funds be utilised?
A larger company loan can be used to fund almost every company purpose including business renovations, to purchase equipment or inventory, as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. It is usually by taking a charge against assets and can be registered in the PPSR or registering as a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is generally based rather than stating the security for a particular asset. The person signing the guarantee is personally liable if the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including items or assets). The PPSR permits prioritisation over property that is personal to be granted according to the date a security interest that is registered.
The caveat can be described as a formal document filed to offer notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re applying for a Larger Business Loan of $250K or more we may be able to provide a preliminary pre-approval to help ease the process. It is possible to do this without a credit verification and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering some financial well-being checks. This is not an offer or 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
Are I eligible for funding?
You are eligible to apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for the 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 easy. Just complete the online application in few minutes and an experienced business credit specialist will be in touch to guide you through the process.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) as well as an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details for application including credit consent and 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K or more) we typically offer an answer in just one hour if you apply during quality company times and let us use the advanced bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statements , we are able to provide the decision in just an company day.
If you are applying for a Larger Business Loan ($100K and up) we might be likely to offer you with conditional pre-approval within six hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Some deals have been approved within just 24 hours.
The most effective method for you to apply is make sure you apply during standard company hours, and let us use the advance bank verification to instantly verify your bank information online. If you decide to upload duplicates of your banking statement, it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we usually provide an answer within an hour – as long as you submit your request in standard business hours and let us make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your banking statements, we are able to offer the decision in just 1 business day.
For Larger Business Loans ($100K or more) We may be able to provide you with conditional pre-approval within about six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Certain deals have been approved in 24 hours.
The fastest way is to ensure you apply during normal business hours, and allow us to use the modern bank verification to confirm your bank details online. If you send us the copies of bank statements, it takes a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a certain amount we consider a variety of elements to determine how much we can lend you well-being that is your company as well as the amount of payments your business can afford. The total amount of your loan will depend on the specifics of your company.
When you make an application for a certain amount, we will consider a number of aspects to assess how much we can lend you such as well-being of your business and the amount of repayments that your company will be able to support. The amount you receive from your loan will be determined by the specifics for your company.
Fees & repayments
How much do you charge for a company loan?
When you make an application for one of our business credit, we will assess the risk profile for your company and offer you with a customised proposal that includes the loan amount, the terms and the interest rates. This company loan is an upfront-priced loan which means you be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What is the factor that determines the price I pay?
Business loan interest rates depend on a variety of variables like the amount to be that is borrowed, what business assets the money will be used for, the industry the company is operating in, how long the company has been running, whether the company has sufficient cash flow to cover the loan, and general health and creditworthiness of the business.
What are the costs?
There are no hidden fees for our company loans. You’ll know exactly how much it is that you be required to pay and when, right from the very first day. There’s no compounding and no extra fees (as as you make your payments punctually).
We do not charge an Application Fee. You can request a credit loan without any upfront costs or any obligation to sign up.
The Origination Fee is the cost associated in establishing and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can repay the entire amount of your loan in full at any time.
If you decide to pursue this option, please talk to one of our helpful business loan experts. The experts will provide you with details on repayment along with an early payout estimate. This will be calculated as the sum of the principal remaining and accrued interest to the time of early payment plus 1.5% of the principal amount remaining and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing repayments and to fit in your cash flow cycle we provide payments that are either weekly or daily. These are automatically withdrawn from your business account.
Security & privacy
Will my information be protected?
Security of your data, and being upfront about how we collect the information we collect, use, share and ensure the security of your information is crucial and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to the security of our customers as well as their privacy. We make use of an advanced bank verification system that allows you to immediately verify your bank account information online. This allows us to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when a business owner makes use of an asset they own to get the loan. The asset can be either an individual property, such as the family home, or a company asset like a truck as well as a piece of machine.
The vast majority of the lenders even the major banks, prefer to secure loans against assets. If you’re having trouble paying back the loan, your assets could be offered for sale by the lender. In essence, it’s an opportunity to secure additional financing using the value of what you already have.
Do I require security for an business loan?
For loans up to $150K there is no requirement for asset security in advance to gain access to the funds However, we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan obligations (as stated in your loan contract document) and you are able to meet your obligations, asset security will never be needed. For loans of over $150K generally there is a personal guarantee and security that is in the form an asset charge.