FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Maryknoll Small Business Loans
Tell me about the Maryknoll Small Business Loans
Maryknoll unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What makes what makes the Unsecured Loan different from an ordinary company loan?
It is imaginable to apply to get the Small Business Loan in under 10 minutes online or by phone. You will receive a same day response and the money could be available in just 24 hours. Traditional business loans refer to an annual rate of interest as well as other fees and charges. We offer a company loan is a loan that is priced upfront and you’ll be aware in advance of the total amount due, which includes any interest, fees or charges. Then, it is divided into a daily or weekly installment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company use, including control of cash flow company improvements, advertising for purchasing inventory or new equipment, as general working capital and much more. The loan cannot be used to fund personal expenses.
About Larger Maryknoll Business Loans
What is the Larger Maryknoll Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are scheduled weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the company needs to be 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) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funds for?
A large business loan is a great option for almost any company need, including business improvements, purchasing inventory or new equipment as well as for general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. It’s in the form of a charge against assets, which could also include registering this with the PPSR or making as a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is generally in nature rather than stipulating the security of a specific asset. The person who is signing the ensure is personally liable if the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including goods or assets). The PPSR gives preference over private property granted depending on the date that a security interest was registered.
Caveats are legal document that is filed to provide the legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re applying for larger business loans of $250,000 or more we may be able to provide an initial pre-approval to smooth out the process. We might be able to apply for this without a credit check and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial well-being questions. This is in no way an offer, nor is it a guarantee of finance. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you receive could be on different terms.
Application process
Can I be eligible for funding?
You are eligible to apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a couple minutes, and a dedicated company credit specialist will be in touch to guide you.
For a loan of up to $100,000 you’ll require proof of identity (valid Driver’s License) along with a valid NZBN/IRD and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details for application including credit consent twelve months bank statement, an IRD statements and the last two years’ finalised financial statements, plus interim current financial year financials such as age-related payables and aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) We can usually offer an answer within an hour, provided you make your application during standard company times and you allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to submit copies of your bank statements , we will be able to offer a decision within one business day.
For the Larger Business Loan ($100K to $500K) we may be capable of offer you with pre-approval conditional to your application within about 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this may be quicker depending on the circumstances of each application. Some deals have been approved within the space of 24 hours.
The most efficient method would be to ensure you apply during normal business hours. You can also allow us to use our advanced bank verification system link to verify your bank account information online. If you decide to send us duplicates of your banking statements , it takes a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K and up) we typically offer an answer in just one hour if you submit your request during normal business time and permit us to use the bank verification system to instantly verify your bank information online. If you opt to upload copies of your banking statements, we are able to offer the decision within one business day.
For the Larger Business Loans ($100K and up) we might be able to provide you with pre-approval conditional to your application in about 6 hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, it could be faster based upon the circumstances for each application. Some offers have been approved within less than 24 hours.
The fastest way is to ensure you apply during standard business hours. Also, let us use the modern bank verification link to verify your bank information online. If you choose to upload the copies of bank accounts, it will take a little longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a certain amount we will consider a number of variables in order to assess the health of the business and the level of payments your business can support. The amount you receive from your loan will be contingent on the particular circumstances for your company.
When you make an application for a specific amount we consider a variety of elements to assess the well-being of your company and the amount of repayments that your business can afford. The total amount of your loan will depend on the specific circumstances for your company.
Fees & repayments
How much should you charge for an company loan?
When you request our business loan, we’ll assess the risk profile of your company and offer you with a customised offer including the loan amount, the terms and the interest rates. A company loan is an upfront cost loan therefore you will be aware in advance of the total amount payable including any charges, interest rates or fees.
What is the basis for the rate I am charged?
Business loan interest rates depend on several factors such as the amount that is borrowed, the business assets the money will be used for as well as the field the business operates in, how long the company is in operation, what percentage of the company has enough cash flow to support the loan, as well as the general well-being and creditworthiness of the business.
What are the fees?
There are no hidden fees with our company loans, and you’ll know precisely what you be required to pay and when, from the first day. 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 are able to make an application for loans with with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay off the loan earlier?
You can repay the entire amount of your loan early at any time.
If you decide to do this please speak to our friendly business credit experts. They will provide you with details for repayment and an early payment figure. This will be calculated as the sum of the remaining principal amount and accrued interest to the time of early payout in addition to 1.5 percent of the remaining principal plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payments and to work your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and making it clear the ways we gather, use, exchange and ensure the security of your information is crucial 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 techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We make use of an advanced bank verification system that allows you to immediately verify the bank account details online. This allows us to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner uses an asset that they own to secure the funds for a loan. The asset can be a personal asset like the family home or a company asset such as a vehicle or piece or equipment.
The vast majority of the lenders including the big banks, tend to guarantee loans against assets. If you are having difficulty paying back the loan then the asset might be offered for sale by the lender. In essence it is a way of securing new funding using the value of what you already own.
What do I require security to secure an business loan?
For loans up to $150,000 the requirement for asset security is not required upfront to access the money, however we do require a personal guarantee. So long as you comply with your loan obligations (as stated in your loan contract document) Asset security is not needed. If you take out loans in excess of $150K generally, you can get the option of a personal ensure and security in the form of an asset charge.