FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Hoppers Crossing Small Business Loans
Tell me about the Hoppers Crossing Small Business Loans
Hoppers Crossing unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from an ordinary business loan?
It is possible to apply for the Small Business Loan in under 10 minutes on the phone. You’ll receive an answer within the same day and the funds could be available in just 24 hours. Traditional business loans are based on an interest rate per annum as well as other fees and charges. Our business loan is an upfront priced loan which means you know ahead of time the total amount due, which includes any interest, fees or charges. This is then broken down into either a daily or weekly repayment figure.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business use, including cash flow management, business improvements, advertising to purchase inventory, new equipment, for general working capital, and much more. The loan cannot be used for personal use.
About the Larger Hoppers Crossing Business Loans
What is the Larger Hoppers Crossing Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to be trading for at least 3 years, and have an annual income of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funds be utilised?
A larger company loan can be used for almost all business purpose including business remodeling, buying equipment or inventory for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. This is as a result of an charge over assets, and may include registering this through the PPSR or filing a caveat.
A director’s or personal guarantee is a commitment to repay credit that is general in nature, rather than stating the security for a particular asset. The person signing the guarantee is personally liable if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including objects or assets). The PPSR grants prioritisation over property that is personal to be granted according to the date a security interest that is registered.
An affidavit is an official document that is filed to offer notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting larger business loans of $250K or more we may be able to provide an initial pre-approval that will help make the process. It is possible to do this without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes the answer to a series of financial health questions. It is not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer you might receive could be subject to different terms.
Application process
Can I be eligible for funding?
You may apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (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 a dedicated business expert in lending will contact you to guide you.
To apply for up $100,000 you’ll need identification details (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll also require:
$100K-$250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Information on the application including credit consent and 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, as well as interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) We can usually offer a response in one hour, provided you submit your request within quality company times and allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you want to send us copies of your bank statements , we are able to provide a decision within an business day.
For the Larger Business Loan ($100K or more) we may be likely to offer you with conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however this may be quicker depending on the specifics of each application. Certain offers have been approved in just 24 hours.
The most efficient method would be to ensure you apply during standard company hours. You can also allow us to use our modern bank verification link to confirm your bank details online. If you choose to send us copies of your bank statements , it will take a little longer.
How soon will I receive the cash?
For the Small Business Loan ($5K up to $100,000) We can usually provide a response in one hour – provided you submit your request in normal business times and permit us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your bank statements, we are able to provide an answer in as little as the span of one business day.
For Larger Business Loans ($100K or more) we might be likely to provide the conditional pre-approval in about six hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Certain agreements have been approved within less than 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours. You can also allow us to use our advanced bank verification system to instantly verify your bank information online. If you opt to send us duplicates of your banking statement, it will take a little longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a certain amount, we take into consideration a range of elements that determine your health for your business and the level of repayments your business can support. The total amount of your loan will be contingent on the specific circumstances the company.
If you apply for a particular amount, we look at a range of aspects to determine your well-being of your company as well as the amount of repayments that your company is able to afford. The total amount of your loan will be determined by the specific circumstances the company.
Fees & repayments
What is the cost for an business loan?
When you make an application for one of our company loans, we’ll assess the risk profile of your business and provide an individualised proposal that includes the amount of loan, the term and the interest rates. The company loan is an upfront-priced loan which means you be aware of the total amount to be paid, including any costs, fees, or interest rates.
What determines the amount I will be charged?
The interest rates on company loans rates vary due to variables like the amount to be of money borrowed, the company assets the funds will be used for as well as the field the company operates in, the long the company is in operation, what percentage of the business has sufficient cash flow to pay for the loan, and the overall health or financial standing of the business.
What are the costs?
There are no hidden fees for our business loans. You’ll be aware of the amount you need to pay and when, starting from the first day. There’s not any compounding interest and the loan comes with no additional fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You are able to get a cash loan without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated in establishing and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay out the loan early?
You can repay the entire amount of the advance loan at any time.
If you do decide to take this route, please speak to our friendly company lending experts. They will provide you with repayment details along with an early payout estimate. This is calculated as the sum of the remaining principal amount and the accrued interest up to the time of early payout in addition to 1.5 percent of the principal amount remaining and any fees that remain unpaid.
What is the process for repayments?
To ensure that you don’t miss payments and to work with your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing the ways we gather, use, exchange and ensure the security of your information is crucial and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to customer security and security. We utilise a sophisticated bank verification system link to instantly confirm your bank account information online to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an company owner uses the assets they have to obtain a loan. The asset can be a personal asset like the family home, or a company asset like a truck or piece or equipment.
The vast majority of lending institutions, even the major banks, prefer to make loans secured by an asset. If you’re struggling to pay back the loan, the asset might be taken over by the lender. In essence, it is a way of securing additional financing using the value of what you already own.
Are I require security for an company loan?
For loans that exceed $150K, the requirement for asset security is not required before you are able to access the money However, we do require the personal guarantee. If you adhere to your loan commitments (as specified in your loan contract) and you are able to meet your obligations, asset security will never be needed. For loans that exceed $150,000, typically, you will need an individual guarantee and security that is in the form the charge of assets.