FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Mornington Small Business Loans
Let me know more about Mornington Small Business Loans
Mornington unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What makes this Unsecured Loan different from an ordinary business loan?
The application to get this Small Business Loan in under 10 minutes by phone. You will receive an answer within the same day and have the funds available in just 24 hours. Traditional company loans have an interest rate per annum together with additional fees and charges. Our company loan is a loan that is priced upfront which means you be aware in advance of the total amount payable including any fees, interest or charges. Then, it is broken down into either weekly or daily amount to be paid back.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business purpose including control of cash flow company remodeling, marketing, to purchase inventory or new equipment, as general working capital and much more. The loan is not available to fund personal expenses.
About larger Mornington Business Loans
What is the Larger Mornington Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to have been operating for at least three years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can I use the funding for?
A large business loan can be used to fund almost every company use, including business improvements, purchasing inventory or new equipment, as general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. This can be done as a result of an charge over assets, which could also include registration with the PPSR or making as a caveat.
A director’s or personal ensure is a commitment to repay a loan which is generally based rather than stating the security of a specific asset. The person who is signing the ensure is personally responsible if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests registered in respect of personal property (including items or assets). The PPSR allows priority over personal property to be assigned depending on the date that a security interest was registered.
The caveat can be described as a formal document lodged to provide the public notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for the Larger Business Loan of more than $250,000 we may be able to provide a preliminary pre-approval to help smooth out the process. We could be able to get this done without credit checks and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering some financial health checks. It is not an offer or guarantee of finance. Acceptance without condition is subject to an extensive credit evaluation and any offer you might receive could be based on different conditions.
Application process
Do I have the right to receive funds?
You are eligible to apply for a business 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)
- you must prove at least 6 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. Simply complete the online form within a few minutes and an experienced company expert in lending will call you to guide you.
To be eligible for up to $100,000 you’ll require proof of identity (valid Driver’s Licence), a valid NZBN/IRD as well as at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details of the application, including credit consent twelve month bank accounts, the IRD statements as well as the two most recent years’ financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) We can usually offer an answer in just one hour if you submit your request at quality business timings and let us utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to submit copies of your bank statements we can offer an answer in just the span of one business day.
If you are applying for a Larger Business Loan ($100K or more) we might be capable of offer you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this could be shorter based upon the circumstances for each application. Some transactions have received approval within the space of 24 hours.
The quickest way to apply would be to ensure you apply during normal company hours, and 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 accounts, it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we can often offer an answer within an hour – provided you make your application in normal business times and permit us to use the bank verification system link to instantly verify your bank details online. If you want to upload copies of your banking statements, we are able to offer a decision in as little as an business day.
For the Larger Business Loans ($100K or more) we might be able to offer you with pre-approval conditional to your application within six hours. Once you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some offers have been approved within just 24 hours.
The quickest method would be to make sure you apply during normal business hours. You can also let us use the modern bank verification to instantly confirm your bank details online. If you opt to upload duplicates of your banking statements, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you submit an application for a specific amount we consider a variety of elements in order to assess your health of the business and the level of repayments your business can afford. The amount you receive from the loan will be determined by the specific circumstances that are unique to your company.
When you make an application for a particular amount, we take into consideration a variety of elements to determine the health that is your company as well as the amount of the repayments your company is able to afford. The amount you receive from your loan will be contingent on the particulars the company.
Fees & repayments
How do you charge for a company loan?
When you apply for the business financing, we’ll assess the risk assessment of your business and offer you with a customised offer, including loan amount, term and interest rates. This business loan is an upfront cost loan and you’ll 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 depend on a variety of factors like the amount of money borrowed, what company assets the money will be used for as well as the field the company is in, how long the business has been running for, how long the business has sufficient cash flow to support the loan, as well as the general health and creditworthiness of the business.
What are the charges?
There are no hidden costs for our company loans, and you’ll be aware of the amount it is that you need to pay and at what time, from day one. There’s not any compounding interest and no extra fees (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You are able to get a cash loan no cost upfront or commitment to apply.
The Origination Fee covers the costs associated with setting up and managing the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan earlier?
You can repay the entire amount of the loan in full at any time.
If you do decide to take this route, please call our helpful business credit professionals. They will provide you with repayment details along with an early payout estimate. This will be calculated as the sum of the principal amount remaining and accrued interest to the time of the early payout in addition to 1.5% of the principal balance and any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss due dates and also to be in line with your cash flow standard, we provide payments that are either daily or weekly. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear the ways we gather data, process, exchange and protect your information, is vital and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to customer security and security. We employ an exceptionally sophisticated bank verification system that allows you to instantly confirm your bank account information online, allowing us to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an business owner borrows from an asset they own to get the funds for a loan. The asset can be either an individual asset, such as the family home or an business asset like a truck as well as a piece of machine.
The majority of lenders, not just the major banks, prefer to make loans secured by an asset. If you have trouble paying back the loan then the asset could be taken over by the lender. In essence it is the process of securing new funding using the worth of the asset you already have.
What do I need security to secure an business loan?
For loans that exceed $150K, the requirement for asset security is not required before you can access the money however, we do require the personal guarantee. As long as you follow the loan terms (as stipulated in your loan contract) and you are able to meet your obligations, asset security is not needed. For loans that exceed $150K, generally there is a personal guarantee and security that is in the form an asset charge.