FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Jacana Small Business Loans
Tell me how you can avail the Jacana Small Business Loans
Jacana unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from an traditional company loan?
You can apply for this 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 available in just 24 hours. Traditional company loans are based on an interest rate per annum plus other fees and charges. This business loan is an upfront priced loan which means you know ahead of time the total amount to be paid, including the interest, fees and charges. Then, it is broken down into either weekly or daily payment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business use, including control of cash flow business renovations, marketing, to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available for personal use.
About Larger Jacana Business Loans
What is the Larger Jacana Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your business needs to have been operating for a minimum of 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A large business loan is a great option for almost every company use, including company remodeling, buying inventory or new equipment as well as for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. This is in the form of a charge over assets, which could also include registering this on the PPSR or the registration of as a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally in nature rather than stipulating security over an asset. The person who signs 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 register operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be assigned according to the date a security interest that is registered.
The caveat can be described as a formal document that is filed to provide an official notice of a claim to a property.
What is a pre-approval without Credit Check?
When you’re applying for larger business loans of more than $250,000 it’s possible to offer an initial pre-approval to simplify the process. We may be able to make this decision without a credit check, and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves the answer to a series of financial health checks. It’s in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you are offered could be on different terms.
The application process
Can I be eligible for funding?
You can apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application in just a few minutes, and an experienced company credit specialist will call you to guide you.
To be eligible for up to $100,000, you’ll require the right identification documents (valid Driver’s Licence) and an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Details of the application, including credit consent twelve months of bank records, IRD statements and the last two years’ finalised financial statements, as well as interim financial statements for the current year such as age-related payables and aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) We can usually provide an answer in just one hour – as long as you submit your request during quality company timings and let us utilise the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your banking statements , we are able to offer a decision within just 1 company day.
For the Larger Business Loan ($100K up to $500,000) we might be likely to offer you with conditional pre-approval within 6 hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Certain agreements have been approved in less than 24 hours.
The quickest way to apply can be ensure you apply during standard business hours and permit us to use the modern bank verification link to instantly verify your bank information online. If you upload documents from your account accounts, it takes a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) we can often offer an answer in just one hour if you make your application at standard business times and permit us to use the advanced bank verification system to instantly verify your bank information online. If you choose to send us copies of your bank statements we can provide a decision within an business day.
If you are applying for Larger Business Loans ($100K or more) we might be in a position to offer the conditional pre-approval in around six hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval within just 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours. Also, let us use the advanced bank verification system link to instantly verify your bank account information online. If you upload duplicates of your banking accounts, it will take a little longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a particular amount, we take into consideration a range of aspects that determine the well-being that is your company and the amount of repayments that your company is able to afford. The amount you receive from your loan will be contingent on the specifics for your business.
If you apply for a certain amount, we take into consideration a variety of elements to determine how much we can lend you such as health of the business and the level of repayments your company can afford. The total amount of your loan will depend on the specifics that are unique to your company.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to request business loans with us company credit, we will assess the risk profile the business and offer you with a customised offer, including the loan amount, the terms and the interest rates. It is a company loan is a loan that is priced upfront and you’ll be aware of the total amount to be paid, including any costs, fees, or interest rates.
What determines the amount I am charged?
Business loan interest rates depend on several variables like the amount to be borrowed, what company assets the funds will be used for, the industry the business is in, how long the company has been in operation, what percentage of the company has enough cash flow to fund the loan, and the general well-being or financial standing of the company.
What are the fees?
There are no hidden fees with our company loans, and you’ll know precisely how much you be required to pay and when, from the first day. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments on time).
We do not charge an Application Fee. You can apply for a loan with no cost upfront or the obligation to take action.
The Origination Fee includes the expenses associated in establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I repay the loan earlier?
You can repay the entire amount of your advance loan at any time.
If you do decide to do this please talk to one of our helpful business loans professionals. They will offer you with the details of your repayment and an early payment figure. This is calculated as the sum of the principal remaining plus any accrued interest as of the time of the early payout in addition to 1.5% of the principal amount remaining plus any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss repayments and to fit in your cash flow cycle we provide repayments either daily or weekly. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being clear about how we collect data, process, exchange and protect your information, is of huge importance and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to customer security and privacy. We utilise a sophisticated banking verification system to instantly verify your bank account details online so we can provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner utilises the assets they have to get the funding. The asset could be an asset belonging to the personal, like the family home, or a business property like a truck or piece of equipment.
The majority of the lenders including the major banks, prefer to secure loans against assets. If you have trouble paying back the loan, your assets could be sold by the lender. In essence it is means of securing new financing using the worth of the asset you already have.
Should I need security to get a business loan?
For loans up to $150,000 it is not necessary to secure assets prior to the loan’s access, however we do need an individual guarantee. As long as you follow your loan commitments (as specified in your loan contract document) the security of assets will never be required. For loans that exceed $150,000, generally there is personal guarantee and security in the form of the charge of assets.