FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Heathmont Small Business Loans
Let me know how you can avail the Heathmont Small Business Loans
Heathmont unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
How is the Unsecured Loan different from the traditional business loan?
The application to your Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an immediate response, and funds may be on your account within 24 hours. Traditional company loans reference an annual interest rate as well as other fees and charges. This business loan is a loan that is priced upfront which means you know ahead of time the amount you will have to pay, including the interest, fees and charges. Then, it is divided 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 almost any company need, such as the management of cash flow, company remodels and marketing, to purchase inventory or new equipment, for general working capital and much more. The loan is not available for personal purposes.
About larger Heathmont Business Loans
What is the Larger Heathmont Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to have been in operation for at least 3 years with an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funds be utilised?
A Larger Business Loan can be used for nearly any business purpose including company renovations, purchase of new equipment or inventory or as general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This is by taking a charge against assets, and may include the registration of this through the PPSR or filing as a caveat.
A director’s or personal ensure is a commitment to repay a loan which is generally based rather than specifying the security for a particular asset. The person signing the guarantee is personally responsible if the company creditor is unable to re-pay 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 granted to individuals who own personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be assigned depending on the date that a security interest that is registered.
The caveat can be described as a formal document that is filed to provide notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250K we may be able to provide a preliminary pre-approval to help smooth out the process. We may be able to make this decision without a credit verification and within six hours of your initial application. This pre-approval is made based on an initial assessment, which involves the answer to a series of financial health questions. It is not an offer of credit or guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer you might receive could be based on different terms.
Application process
Do I have the right to receive funds?
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)
- must show at least six months’ worth of transactions (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. Simply complete the online form in just a few minutes, and an experienced company lending specialist will contact you to guide you.
For a loan of up to $100,000 you’ll need the right identification documents (valid Driver’s License), an active NZBN/IRD, and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K-$250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent, 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, in addition to interim financial statements for the current year as well as Aged Payables and Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we usually provide an answer in just one hour if you make your application in standard business time and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statement, we’ll offer an answer in as little as one company day.
For Larger Business Loans ($100K or more) we might be in a position to offer you with pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Some deals have been approved in less than 24 hours.
The most effective method can be make sure you apply during standard business hours and permit us to use the advance bank verification link to confirm your bank details online. If you opt to upload duplicates of your banking statements it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer in just one hour, provided you make your application in standard business time and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statements, we’ll be able to provide the decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we could be in a position to offer you with pre-approval conditional to your application within about six hours. After you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this can be faster depending upon the circumstances for each application. Some agreements have been approved within less than 24 hours.
The fastest method is to ensure you apply during normal business hours. Also, let us use the advanced bank verification system link to verify your bank account information online. If you choose to send us duplicates of your banking statements it may take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. When you make an application for a certain amount, we consider a variety of factors to determine the well-being of your business and the level of payments your company is able to afford. The amount you receive from your loan will be contingent on the particular circumstances the business.
When you make an application for a particular amount, we will consider a number of aspects to assess how much we can lend you such as well-being that is your business and the amount of the repayments your business can support. The amount you receive from your loan will be determined by the particulars for your company.
Fees & repayments
What is the cost for a company loan?
If you decide to apply for one of our business credit, we’ll assess the risk assessment for your business and offer you with a tailored offer including the amount of loan, the term and interest rates. A business loan is an upfront priced loan so you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What determines the rate that I am charged?
Interest rates for business loans rates vary due to variables like the amount to be of money borrowed, the company assets the money are used to purchase as well as the field the business operates in, the long the company has been running, whether the business has enough cash flow to cover the loan, and also the general well-being or financial standing of the company.
What are the costs?
There are no hidden costs for our company loans, and you’ll know exactly how much you need to pay, and when, starting 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 make an application for loans with without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved in establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay out the loan early?
You can decide to repay all of your advance loan at any time.
If you choose to do this please call our helpful business loans professionals. They’ll offer you with details on repayment along with an early payout estimate. This is calculated as the sum of the remaining principal amount and accrued interest to the time of the early payout plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss payments and to work your cash flow cycle we provide repayments either weekly or daily. These are automatically deducted from your company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing the ways we gather the information we collect, use, share and protect your information, is vital and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to protecting the security of clients and privacy. We make use of an advanced banking verification system to immediately verify the bank account details online, allowing us to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the company owner makes use of an asset they own to get a loan. The asset can be either an asset belonging to the personal, like the family home or an business asset such as a truck or other piece of machinery.
The majority of lending institutions, not just the banks with the biggest size, prefer to guarantee loans against assets. If you have trouble paying back the loan, the asset could be transferred to the lender. In essence it is a way of securing additional financing taking advantage of the value of what you already have.
Should I need security for a business loan?
For loans up to $150K it is not necessary to secure assets upfront to access the money but we do require the personal guarantee. In the event that you fulfill the loan terms (as specified in the loan contract), asset security will never be needed. For loans of over $150K typically, you will need the option of a personal ensure and security is provided in the form of an asset charge.