FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Lower Plenty Small Business Loans
Tell me about the Lower Plenty Small Business Loans
Lower Plenty unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What makes this Unsecured Loan different from an traditional company loan?
The application to this Small Business Loan in under 10 minutes online or on the phone. You’ll receive a same day response and have the funds on your account within 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. We offer a company loan is an upfront priced loan which means you be aware of the total amount due, which includes any fees, charges or charges. Then, it is broken down into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost any business purpose including control of cash flow business remodeling, marketing to purchase inventory, new equipment, or as general working capital and so much more. The loan is not available for personal use.
About larger Lower Plenty Business Loans
What is the Larger Lower Plenty Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the company needs to have been operating for a minimum of 3 years and generate an annual revenue of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funds be utilised?
A Business Loan of a larger size can be used for nearly any company purpose including business improvements, purchasing new equipment or inventory, as general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. This can be done by taking a charge on assets, and may be registered in the PPSR or the registration of a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is generally based rather than specifying security over a particular asset. The person signing the ensure is personally responsible if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR gives priority over personal property to be assigned in accordance with the date on which a security interest has been registered.
Caveats are legal document filed to provide the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for larger business loans that exceeds $250,000, we may offer an initial pre-approval that will help ease the process. We could be able to do this without a credit verification and within 6 hours of your initial application. This pre-approval is based on a preliminary assessment which includes you answering some financial well-being questions. It is not an offer or guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you may receive may have different conditions.
The application process
Are I eligible for funding?
You may apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application within a few minutes and a dedicated business expert in lending will be in touch to help you.
To be eligible for up to $100,000, you’ll need the right identification documents (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details for application including credit consent and 12 months bank statement, an IRD statement, last 2 years finalised financial statements, in addition to interim financials from the current financial year as well as Aged Payables and Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we typically offer an answer within an hour – as long as you apply in standard business times and allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you opt to send us copies of your bank statements we can offer a decision in as little as the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we could be able to offer you with conditional pre-approval within 6 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. Some deals have been approved within the space of 24 hours.
The quickest way to apply would be to ensure you apply during standard company hours. Also, allow us to use our modern bank verification link to instantly confirm your bank details online. If you send us duplicates of your banking statement, it can take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) We can usually offer an answer in just one hour – as long as you apply within standard business timings and permit us to use the advanced bank verification system link to instantly verify your bank’s information online. If you decide to submit copies of your bank statements, we’ll be able to provide a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we may be in a position to provide you with pre-approval conditional to your application within about 6 hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this may be quicker depending on the circumstances of each application. Certain deals have been approved in 24 hours.
The quickest method for you to apply is make sure you apply during normal business hours, and allow us to use the modern bank verification to instantly verify your bank account information online. If you send us duplicates of your banking statements, it takes a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a certain amount we look at a variety of variables in order to assess how much we can lend you well-being for your company as well as the amount of repayments your company will be able to support. The amount you receive from your loan will be contingent on the specific circumstances the company.
When you apply for a specific amount we will consider a number of aspects to determine how much we can lend you such as health that is your business and the amount of repayments that your business can afford. The total amount of your loan will be determined by the specifics that are unique to your business.
Fees & repayments
What is the cost for the cost of a company loan?
When you apply for one of our company credit, we’ll assess the risk assessment for your business and offer you with a customised offer that includes the amount of loan, the term and the interest rates. The company loan is an upfront-priced loan therefore you will be aware in advance of the total amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I pay?
Business loan interest rates differ based on various factors such as the amount that is borrowed, what business assets the money are used to purchase as well as the field the company is operating in, how long the business has been running and in the event that the business has sufficient cash flow to fund the loan, and also the overall well-being and creditworthiness of the business.
What are the costs?
There are no hidden costs with our company loans, and you’ll be aware of the amount you’ll be required to pay, and at what time, from the day you sign up. There’s no compounding and no additional fees (as as long as you pay your payments on time).
We don’t charge an Application Fee. You are able to make an application for loans no cost upfront or any obligation to sign up.
The Origination Fee covers the expenses involved with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of the loan.
Do I have the option of paying off the loan early?
You can repay the total amount of your loan at any point in time.
If you do decide to pursue this option, please talk to one of our helpful company lending professionals. We will provide you with repayment details as well as an early payout amount. This is calculated as the total of the principal remaining and the accrued interest up to the date of early payout plus 1.5 percent of the principal balance and any outstanding fees.
How do repayments work?
To help you avoid missing payments and to work your cash flow schedule, we provide repayments either weekly or daily. They are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Protecting your information, and making it clear how we collect information, use it, and exchange it, as well as secure your information, is vital and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to customer security and security. We utilise a sophisticated bank verification system that allows you to instantly verify the bank account details online to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a company owner utilises an asset they own to obtain a loan. The asset may be an individual property, such as the family home, or it could be a business property like a truck or piece of equipment.
The majority of the lenders including the banks with the biggest size, prefer to secure loans against an asset. If you’re having trouble paying back the loan, then your asset may be taken over by the lender. In essence, it’s an opportunity to secure additional financing using the value of what you already own.
Are I need security to secure a business loan?
Up to $150,000 in loans the requirement for asset security is not required before you can access the money but we do require an individual guarantee. So long as you comply with the terms of your loan (as stated in your loan contract document) and you are able to meet your obligations, asset security will never be needed. If you take out loans in excess of $150K generally there is the option of a personal ensure and security is provided in the form of charges on assets.