FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Yeerongilly Small Business Loans
Tell me more about Yeerongilly Small Business Loans
Yeerongilly unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
What is what makes the Unsecured Loan different from the traditional company loan?
The application to your Small Business Loan in under 10 minutes online or over the phone. You’ll get an answer within the same day and the money could be in your account in 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. The company loan is a pre-paid loan so you will be aware in advance of the total amount due, which includes the interest, fees and charges. This is then broken down into weekly or daily installment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business purpose including control of cash flow business remodels and marketing to purchase inventory, new equipment, as general working capital, and much more. The loan cannot be used for personal reasons.
About larger Yeerongilly Business Loans
What is the Larger Yeerongilly Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range from $100,000 to $500,000 with a term fixed that can last up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your situation.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan that is this large the business needs to be in operation for at least 3 years and generate an annual revenue of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funds for?
A Business Loan of a larger size can be used for nearly all company use, including company remodeling, buying new 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 as a result of an charge over assets, and may include registration on the PPSR or the registration of as a caveat.
A personal or director’s ensure is a promise to pay back a loan that is generally based rather than specifying security over a particular asset. The person signing the ensure is personally responsible if the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including objects or assets). The PPSR allows the priority of personal property assigned depending on the date that a registration of a security interest.
The caveat can be described as a formal document that is filed to offer the legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for an enterprise loan that is greater than $250,000 we can offer an initial pre-approval to make the process. It is possible to get this done without a credit verification and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial well-being questions. It’s in no way an offer, nor is it a guarantee of funds. A conditional approval is subject an assessment of your creditworthiness and any offer that you are offered could be subject to different terms.
Application process
Do I have the right to receive funds?
You are eligible to apply for a business 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)
- can demonstrate at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Complete the online form within a couple minutes, and an experienced company lending specialist will call you to guide you through the process.
For a loan of up to $100,000 you’ll require ID details (valid Driver’s License), an NZBN/IRD that is valid and at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Information on the application including credit consent as well as 12 months of bank statements, IRD statement, last 2 years finalised financial statements, and interim financials from the current financial year such as age-related payables and aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we usually provide an answer within one hour, provided you submit your request at quality business timings and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank statement, we’ll offer the decision in as little as 1 company day.
For Larger Business Loans ($100K and up) we might be likely to provide you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain deals have been approved in 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal company hours. You can also allow us to use the advanced bank verification system link to verify your bank information online. If you choose to upload documents from your account accounts, it can take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K or more) we can often offer a response in one hour – provided you apply in normal business timings and allow us to use the bank verification system link to immediately verify your bank account information online. If you want to upload copies of your bank statements, we are able to provide a decision in as little as an business day.
For the Larger Business Loans ($100K up to $500,000) We may be capable of provide the conditional pre-approval within six hours. Once you’ve signed your pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Certain transactions have received approval in less than 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours and allow us to use the advance bank verification link to instantly confirm your bank details online. If you decide to upload the copies of bank statement, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you submit an application for a certain amount we consider a variety of variables in order to assess what is the health for your company and the extent of repayments that your business will be able to support. The amount you receive from your loan will be contingent on the particular circumstances of your company.
When you apply for a certain amount, we take into consideration a variety of aspects to determine the health of the company and the amount of repayments that your company can afford. The total amount of the loan will be determined by the particular circumstances that are unique to your business.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to request the company loan, we’ll assess the risk profile that you have for your company and offer you with a customised offer that includes the loan amount, the terms and interest rates. It is a business loan is an upfront cost loan which means you know in advance the total amount you will have to pay, including charges or interest.
What determines the amount I pay?
Interest rates for company loans rates depend on several factors including the amount that is borrowed, what business assets the funds are used to purchase in addition to the industry that the company operates in, how long the business is in operation and in the event that the business has enough cash flow to fund the loan, and the general well-being as well as creditworthiness business.
What are the costs?
There are no hidden costs for our company loans, and you’ll be aware of the amount it is that you need to pay and when, right from day one. There’s no compounding and no additional fees (as long as you make your payments in time).
We do not charge an application fee. You can get a cash loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee is the cost associated with establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan earlier?
You can decide to repay the total amount of your loan early at any time.
If you decide to pursue this option, please contact our helpful company credit experts. They’ll provide you with the details of your repayment as well as an early payout amount. This is calculated as the sum of the principal amount remaining and the accrued interest up to the time of early payout in addition to 1.5% of the remaining principal and any outstanding fees.
What are the repayment methods?
To help you avoid missing repayments and to fit in your cash flow cycle we offer repayments either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as making it clear how we collect data, process, exchange and secure your information, is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to security for our customers and security. We make use of an advanced bank verification system link to immediately verify your bank account details online. This allows us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an business owner makes use of the assets they have to secure the funds for a loan. The asset can be a personal asset like the family home, or a business asset such as a vehicle or piece or equipment.
The vast majority of lenders, even the banks with the biggest size, prefer to secure loans against an asset. If you are having difficulty paying back the loan, then your assets could be taken over by the lender. In essence, it is an opportunity to secure new financing by taking advantage of the value of what you already have.
Are I require security to secure an company loan?
Up to $150,000 in loans no asset security is required prior to the loan’s access but we do require an individual guarantee. If you adhere to your loan commitments (as detailed in your loan contract document), asset security is not required. For loans of over $150K generally, you can get an individual guarantee and security that is in the form charges on assets.