FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Mont Albert Small Business Loans
Let me know how you are able to avail the Mont Albert Small Business Loans
Mont Albert unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What makes how is the Unsecured Loan different from the traditional company loan?
It is possible to apply for your Small Business Loan in under 10 minutes on the internet or over the phone, receive an instant response and have the funds in your account in 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. Our business loan is an upfront priced loan and you’ll know ahead of time the amount you will have to pay, including any fees, interest or charges. This is then divided into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any business need, such as cash flow management, company remodeling, marketing, to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal reasons.
About Larger Mont Albert Business Loans
What is the Larger Mont Albert Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is calculated at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size, your business needs to be operating for at least three years and have an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be utilised?
A Business Loan of a larger size can be used to fund almost all business reason, such as business renovations, purchase of new equipment or inventory as well as for general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed to access funding over $150,000. This can be done by taking a charge against assets, and may include the registration of this in the PPSR or making as a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is general in nature rather than specifying the security of a specific asset. The person signing the ensure is personally responsible if the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including items or assets). The PPSR allows prioritisation over property that is personal to be assigned according to the date a registration of a security interest.
An affidavit is an official form of document to provide notice of a legal claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for the Larger Business Loan of more than $250K we can offer a preliminary pre-approval to help ease the process. We could be able to do this without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes the answer to a series of financial health checks. It’s neither an offer nor a guarantee of financing. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you may receive may be based on different terms.
Application process
Can I be eligible for funding?
You can apply for an 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)
- can demonstrate at least 6 months worth of trade (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form in just a few minutes, and an experienced business loan specialist will be in touch to assist you.
For a loan of up to $100,000, you’ll require ID details (valid Driver’s License), a valid NZBN/IRD as well as at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Information on the application including credit consent and 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, as well as interim current financial year financials including Aged Payables, Aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we usually offer an answer within an hour – as long as you apply during standard company timings and permit us to use the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your bank statements , we will be able to provide an answer in as little as one business day.
If you are applying for a Larger Business Loan ($100K and up) we may be likely to provide you with pre-approval conditional to your application within about 6 hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Certain agreements have been approved within just 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours. Also, allow us to use the advance bank verification to verify your bank account information online. If you choose to send us duplicates of your banking statements it may take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we typically provide a response in one hour – as long as you apply in standard business time and you allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statements, we’ll be able to provide the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K or more) we might be in a position to offer the conditional pre-approval in about 6 hours. Once 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 circumstances of each application. Some agreements have been approved in less than 24 hours.
The fastest way can be make sure you apply during standard business hours, and let us use the sophisticated bank verification to verify your bank account information online. If you send us the copies of bank statements it takes a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a specific amount we take into consideration a range of aspects to determine the well-being for your business as well as the amount of payments your business can support. The total amount of your loan will depend on the specific circumstances of your business.
When you apply for a specific amount we consider a variety of variables to assess your well-being of the business and the level of the repayments your company is able to afford. The amount you receive from the loan will be determined by the specifics for your business.
Fees & repayments
What is the cost for a business loan?
When you request business loans with us business financing, we’ll assess the risk profile the business and provide you with a customised offer including loan amount, term and interest rates. The company loan is an upfront priced loan which means you know the exact amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I will be charged?
Interest rates for company loans rates vary due to variables like the amount to be borrowed, what business assets the funds will be used for in addition to the industry that the business is operating in, how long the company has been in operation for, in the event that the company has sufficient cash flow to pay for the loan, and also the general well-being or creditworthiness of the company.
What are the charges?
There are no hidden costs with our company loans. You’ll know precisely how much you’ll need to pay and at what time, from the first day. There’s no compounding interest and no additional fees (as as long as you pay your payments on time).
We don’t charge an Application Fee. You can apply for a loan with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Do I have the option of paying off the loan earlier?
You may choose to pay back all of your advance loan at any time.
If you do decide to take this route, please speak to our friendly company credit professionals. The professionals will offer you with repayment details as well as an early payout amount. The figure will be calculated as the sum of the remaining principal amount and any accrued interest at the time of early payout and 1.5% of the principal amount remaining and any fees that remain unpaid.
What are the repayment methods?
To help you avoid missing payments and to work with your cash flow general, we offer repayments either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my information be secure?
Security of your data, and being upfront about the ways we gather the information we collect, use, share and secure your information, is crucial and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to security for our customers and privacy. We utilise a sophisticated bank verification system to immediately verify the bank account details online, allowing us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when the company owner uses an asset they own to obtain the funding. The asset could be an individual property, such as the family home or an business property like a truck or piece or equipment.
The vast majority of lenders, even the big banks, tend to secure loans against an asset. If you’re struggling to pay back the loan, the asset could be transferred to the lender. In essence, it’s an opportunity to secure additional financing using the worth of the asset you already have.
Should I need security to secure an business loan?
For loans that exceed $150K, it is not necessary to secure assets prior to the loan’s access, however we require a personal guarantee. require a personal guarantee. So long as you comply with your loan commitments (as stipulated in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150,000 generally, there is an individual guarantee and security that is in the form charges on assets.