FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Lilydale Small Business Loans
Tell me how you are able to avail the Lilydale Small Business Loans
Lilydale unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from the traditional company loan?
You can apply to get the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an immediate response, and the funds could be in your account in 24 hours. Traditional company loans reference an annual interest rate plus other fees and charges. The business loan is a loan that is priced upfront and you’ll know ahead of time the amount you will have to pay, including any fees, charges or charges. Then, it is divided into weekly or daily payment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company purpose including managing cash flows, company improvements, advertising, to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal reasons.
About Larger Lilydale Business Loans
What is the Larger Lilydale Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size the business needs to be in operation for at least 3 years with an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funds for?
A Business Loan of a larger size can be used for nearly all business need, including company remodeling, buying inventory or new equipment as well as for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. This is as a result of an charge on assets, and could include registration through the PPSR or the registration of a caveat.
A personal or director’s ensure is a promise to pay back a loan that is general in nature rather than stipulating security over an asset. The person signing the ensure is personally liable in the event that the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including items or assets). The PPSR gives prioritisation over property that is personal to be assigned according to the date a security interest was registered.
A caveat is a legal document that is filed to provide the legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting the Larger Business Loan of $250,000 or more, we may offer a preliminary pre-approval to help ease the process. We might be able to make this decision without credit checks and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering a few financial health questions. This is neither an offer nor a guarantee of financing. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you are offered could be based on different conditions.
The application process
Do I have the right to receive funds?
You can 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 business (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 trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application in just a few minutes, and a dedicated business credit specialist will contact you to guide you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s Licence), an active NZBN/IRD, and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent, 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, plus interim financials from the current financial year as well as Aged Payables and Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) We can usually offer a response in one hour, provided you make your application at quality company hours and allow us to utilise the bank verification system link to instantly verify your bank information online. If you opt to submit copies of your bank statement, we’ll provide a decision within just an business day.
For the Larger Business Loan ($100K to $500K) we may be capable of offer you with pre-approval conditional to your application in about 6 hours. After you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Certain offers have been approved within just 24 hours.
The fastest way is to ensure you apply during standard business hours. You can also permit us to use the modern bank verification link to instantly verify your bank information online. If you decide to send us copies of your bank statements it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) we usually provide a response in one hour, provided you make your application in normal business times and you allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your bank statements, we are able to provide an answer in as little as 1 business day.
For the Larger Business Loans ($100K and up) we may be capable of offer you with conditional pre-approval in around six hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Certain offers have been approved in 24 hours.
The fastest way can be ensure you apply during normal business hours, and permit us to use the sophisticated bank verification link to confirm your bank details online. If you decide to upload copies of your bank accounts, it will take a little longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a specific amount we take into consideration a range of aspects in order to assess your well-being of the company and the level of the repayments your business is able to afford. The total amount of the loan will be determined by the particular circumstances the business.
When you submit an application for a set amount, we take into consideration a variety of variables to assess the well-being for your business and the level of repayments that your company can afford. The total amount of your loan will be contingent on the particulars the business.
Fees & repayments
How much should you charge for an business loan?
If you decide to apply for the company credit, we will assess the risk profile the company and offer you with a tailored proposal that includes the amount of the loan, the duration and interest rates. A company loan is an upfront priced loan therefore you will know the exact amount to be paid, including any charges or interest.
What determines the amount I will be charged?
Business loan interest rates depend on several factors including the amount that is borrowed, what company assets the funds are used to purchase, the industry the company operates in, the long the company has been running as well as whether the company has enough cash flow to support the loan, and general well-being and creditworthiness of the company.
What are the charges?
There aren’t any hidden costs with our business loans. You’ll know exactly how much you need to pay and when, starting from the first day. There’s not any compounding interest and no extra fees (as as you make your payments on time).
We do not charge an application fee. You can request a credit loan with with no upfront cost or obligation to proceed.
The Origination Fee covers the costs associated with setting up 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 repay the loan early?
You can decide to repay the total amount of your loan at any point in time.
If you choose to take this route, please call our helpful business loan professionals. We will offer you with repayment details as well as an early payout amount. It will be calculated using the total of the remaining principal amount and accrued interest to the date of early payout, plus 1.5 percent of the principal remaining and any fees that remain unpaid.
How do you make repayments work?
In order to help you avoid missing repayments and to fit in with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my information be secure?
Security of your data, and being upfront about how we collect the information we collect, use, share and safeguard your data, is of paramount importance and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We make use of an advanced banking verification system to immediately verify your bank account information online so we can offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an business owner utilises assets they own to obtain the funds for a loan. The asset can be either a personal asset like the family home or an company asset such as a truck or piece or equipment.
The majority of lending institutions, not just the major banks, prefer to secure loans against assets. If you have trouble paying back the loan then the asset might be sold by the lender. In essence, it’s means of securing new financing making use of the value of what you already have.
What do I require security to secure an business loan?
For loans up to $150K there is no requirement for asset security in advance to gain access to the funds but we require a personal guarantee. require a personal guarantee. So long as you comply with your loan obligations (as stipulated in your loan contract document), asset security is not needed. If you take out loans in excess of $150K generally there is an individual ensure and security that is in the form the charge of assets.