FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Mitcham Small Business Loans
Let me know how you are able to avail the Mitcham Small Business Loans
Mitcham unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from a traditional company loan?
You can apply to get the Small Business Loan in under 10 minutes on the phone. You’ll receive an instant response and funds may be in your account within 24 hours. Traditional company loans are based on an interest rate per annum together with additional fees and charges. We offer a company loan is a cash-based loan therefore you’ll know ahead of time the total amount to be paid, including any fees, interest or charges. Then, it is divided into weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company need, such as control of cash flow company renovations, marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal use.
About larger Mitcham Business Loans
What is the Larger Mitcham Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are scheduled weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your business needs to have been trading for at least 3 years and generate an annual revenue of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funding for?
A Larger Business Loan can be used for almost every company reason, such as business renovations, to purchase inventory or new equipment, as 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 needed to obtain funding above $150,000. This is by way of charge over assets and can include the registration of this on the PPSR or the registration of a caveat.
A director’s or personal ensure is a commitment to repay credit that is general in nature, rather than defining security over a particular asset. The person signing the guarantee is personally liable in the event that the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests registered in respect of personal property (including objects or assets). The PPSR permits prioritisation over property that is personal to be granted according to the date a security interest was registered.
An affidavit is an official document that is filed to provide notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for an enterprise loan that is greater than $250,000 we may be able to provide an initial pre-approval in order to make the process. We could be able to apply for this without a credit check, and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves you answering some financial health questions. This is not an offer or guarantee of credit. Unconditional approval is subject to a full credit assessment and any offer you receive could have different terms.
The application process
Do I qualify for funds?
You can apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application in few minutes and a dedicated business credit specialist will contact you to help you.
For a loan of up to $100,000 you’ll need identification details (valid Driver’s License), an NZBN/IRD that is valid and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent as well as 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K and up) We can usually provide a response in one hour, provided you make your application during quality business timings and permit us to make use of the advanced bank verification system link to instantly verify your bank details online. If you want to send us copies of your bank statements we can provide an answer in as little as one company day.
For the Larger Business Loan ($100K and up) we might be capable of offer the conditional pre-approval within 6 hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, it could be faster based on the specifics of each application. Certain deals have been approved in just 24 hours.
The fastest way is to make sure you apply during normal business hours, and allow us to use the advanced bank verification system link to check your bank’s information online. If you opt to upload duplicates of your banking statements , it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we can often provide a response in one hour – provided you submit your request in standard business times and let us utilise the advanced bank verification system link to instantly verify your bank information online. If you want to send us copies of your bank statements, we will be able to offer a decision in just 1 business day.
For the Larger Business Loans ($100K up to $500,000) we might be in a position to offer the conditional pre-approval within about six hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Certain agreements have been approved within just 24 hours.
The quickest method is to ensure you apply during standard business hours, and permit us to use the sophisticated bank verification to instantly verify your bank account information online. If you decide to upload the copies of bank statements, it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a particular amount, we consider a variety of variables for determining the health for your company as well as the amount of the repayments your company can afford. The total amount of your loan will depend on the particular circumstances the business.
When you make an application for a particular amount, we will consider a number of variables to determine how much we can lend you such as health of your company and the extent of repayments your business will be able to support. The amount you receive from the loan will be determined by the specific circumstances for your business.
Fees & repayments
What is the cost for an company loan?
If you decide to request one of our business financing, we will assess the risk assessment that you have for your company and provide you with a tailored offer, including loan amount, term and interest rates. This company loan is an upfront priced loan so you will know in advance the total amount due, which includes any interest rates, fees or charges.
What determines the rate that I pay?
Business loan interest rates depend on a variety of variables like the amount to be that is borrowed, what business assets the funds are used to purchase as well as the field the company is in, how long the company is in operation, whether the company has sufficient cash flow to pay for the loan, and the overall well-being and creditworthiness of the business.
What are the cost?
There aren’t any hidden charges for our business loans. You’ll know exactly how much you need to pay, and when, starting from the very first day. There’s no compounding and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We do not charge an application fee. You are able to apply for a loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan in advance?
You may choose to pay back the entire amount of your loan in full at any time.
If you are deciding to take this route, please talk to one of our helpful company credit specialists. They’ll offer you with repayment details as well as an early payout amount. This is calculated as the sum of the principal balance and accrued interest to the time of the early payout plus 1.5% of the principal amount remaining and any fees that remain unpaid.
How do repayments work?
To ensure you do not miss payment dates and to align with your cash flow cycle we provide repayments either weekly or daily. They are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as making it clear how we collect the information we collect, use, share and ensure the security of your information is of paramount importance and is a crucial 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 sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We make use of an advanced banking verification system to immediately verify the bank account details online. This allows us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a company owner utilises an asset that they own to make the funds for a loan. The asset may be a personal asset like the family home, or it could be a business property like a truck or other piece of machinery.
The majority of lenders, even the big banks, tend to secure loans against an asset. If you’re struggling to pay back the loan, then your assets could be transferred to the lender. In essence it is an opportunity to secure additional financing taking advantage of the value of what you already have.
Do I require security to get an company loan?
Up to $150,000 in loans no asset security is required upfront to access the money but we do require the personal guarantee. As long as you follow your loan obligations (as stipulated in your loan contract document), asset security will never be needed. For loans over $150K generally, you are able to get the option of a personal ensure and security that is in the form an asset charge.