FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Laverton Small Business Loans
Let me know what you think of the Laverton Small Business Loans
Laverton unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
How is this Unsecured Loan different from the traditional company loan?
You can apply to the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an instant response and funds may be in your account in 24 hours. Traditional company loans reference an interest rate per annum plus other fees and charges. The company loan is an upfront priced loan and you’ll be aware in advance of the total amount to be paid, including any fees, interest or charges. This is then broken down into weekly or daily payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business need, such as managing cash flows, company renovations, marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used to fund personal expenses.
About larger Laverton Business Loans
What is the Larger Laverton Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term that can last up to 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size, your business needs to be operating for at least three 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 and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can I use the funds for?
A larger company loan is a great option for almost every company need, including business remodeling, buying equipment or inventory as well as for general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. It’s by taking a charge over assets, and could include registering this through the PPSR or filing a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is general in nature rather than stating security over a particular asset. The person who is signing the ensure is personally accountable if the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including the assets or goods). The PPSR grants priority over personal property to be assigned according to the date a security interest was registered.
The caveat can be described as a formal form of document to offer an official notice of a claim against a property.
What exactly is a preapproval without Credit Check?
When you’re applying for the Larger Business Loan of $250,000 or more we may be able to provide a preliminary pre-approval to help make the process. We could be able to make this decision without credit checks and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes answering a couple of financial health questions. It’s not an offer of credit or guarantee of finance. Acceptance without condition is subject to an extensive credit evaluation and any offer you receive could be on different terms.
Application process
Can I be eligible for funding?
You can apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for a 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 fast and simple. Simply complete the online form within a couple minutes, and an experienced business lending specialist will contact you to assist you.
To apply for up $100,000, you’ll need the right identification documents (valid Driver’s Licence), a valid NZBN/IRD and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K – $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Information on the application including credit consent and 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer within one hour, provided you make your application within standard company time and allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you choose to send us copies of your bank statements we can offer the decision in as little as one company day.
For the Larger Business Loan ($100K and up) we may be able to offer you with a conditional pre-approval in about six hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending upon the circumstances for each application. Certain agreements have been approved in the space of 24 hours.
The fastest way is to ensure you apply during normal business hours. You can also let us use the advance bank verification to instantly check your bank’s information online. If you send us documents from your account statements it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) we typically provide an answer in just one hour – as long as you make your application within standard business hours and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statements we can offer a decision within one business day.
For Larger Business Loans ($100K or more) we may be in a position to offer the conditional pre-approval within 6 hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this could be shorter based on the specifics of each application. Certain deals have been approved within the space of 24 hours.
The fastest method can be make sure you apply during standard business hours, and let us use the modern bank verification to confirm your bank details online. If you upload duplicates of your banking statements it can take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a particular amount, we will consider a number of variables to determine how much we can lend you health of your company and the extent of repayments your business is able to afford. The amount you receive from the loan will be determined by the particular circumstances the company.
When you apply for a specific amount we consider a variety of variables to determine your well-being that is your business and the extent of payments your business can afford. The total amount of your loan will be contingent on the specific circumstances that are unique to your business.
Fees & repayments
How do you charge for a business loan?
If you decide to make an application for one of our company loans, we will assess the risk profile that you have for your business and provide you with a customised offer including the amount of loan, the term and interest rates. The company loan is a loan that is priced upfront which means you know the exact amount to be paid, including any costs, fees, or interest rates.
What determines the amount I’m charged?
Business loan interest rates depend on several factors such as the amount that is that is borrowed, what company assets the money are used to purchase and the sector the business is in, how long the company is in operation and what percentage of the business has enough cash flow to support the loan, and the overall well-being or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges for our business loans, and you’ll know precisely what you be required to pay, and at what time, from day one. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We don’t charge an Application Fee. You can apply for a loan with with no upfront cost or the obligation to take action.
The Origination Fee is the cost associated with setting up and managing the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay out the loan early?
You can choose to repay the entire amount of your advance loan at any time.
If you decide to pursue this option, please call our helpful company lending professionals. We will offer you with the details of your repayment and an early payout figure. The figure will be calculated as the sum of the remaining principal amount plus any accrued interest as of the time of early payment in addition to 1.5 percent of the principal balance plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payments and to work your cash flow schedule, we provide repayments either weekly or daily. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing how we collect data, process, exchange and ensure the security of your information is of paramount importance and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their privacy. We make use of an advanced bank verification system to immediately confirm your bank account information online so we can provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when a company owner borrows from an asset that they own to get a loan. The asset may be a personal asset like the family home or an business asset such as a vehicle or piece of equipment.
The majority of lenders, including the big banks, tend to secure loans against assets. If you are having difficulty paying back the loan then the asset could be taken over by the lender. In essence, it’s an opportunity to secure new financing by using the worth of the asset you already own.
Are I require security for a business loan?
For loans of up to $150K, no asset security is required prior to the loan’s access but we require a personal guarantee. need an individual guarantee. As long as you follow your loan obligations (as specified in your loan contract document) Asset security will never be required. If you take out loans in excess of $150K generally, there is a personal guarantee and security is provided in the form of a charge over assets.