FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Viewbank Small Business Loans
Tell me how you can avail the Viewbank Small Business Loans
Viewbank unsecured loans offers the range of $5,000 to $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 what makes the Unsecured Loan different from an ordinary company loan?
Apply for your Small Business Loan in under 10 minutes online or over the phone. You’ll get an instant response and funds may be in your account within 24 hours. Traditional business loans refer to an annual rate of interest as well as other fees and charges. We offer a business loan is an upfront priced loan and you’ll know in advance the total amount due, which includes the interest, fees and charges. This is then divided into a daily or weekly payment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every company need, such as control of cash flow business remodeling, marketing to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available to fund personal expenses.
About the Larger Viewbank Business Loans
What is the Larger Viewbank Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your cash flow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan of this size the company needs to be trading for at least 3 years and generate an annual revenue of $700,000. 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 demonstrate at least 12 months of trading.
What can the funding be used for?
A large business loan can be used for nearly any company use, including business remodeling, buying inventory or new equipment as well as for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. This can be done by way of charge against assets, and could include registering this in the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is generally in nature rather than defining security over a particular asset. The person signing the guarantee is personally responsible if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests that are registered for personal property (including objects or assets). The PPSR permits prioritisation over property that is personal to be assigned in accordance with the date on which a registration of a security interest.
Caveats are legal document lodged to provide an official notice of a claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan that exceeds $250,000 it is possible to offer an initial pre-approval that will help smooth out the process. It is possible to make this decision without credit checks and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering a few financial well-being checks. It’s in no way an offer, nor is it a guarantee of credit. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you may receive may be based on different conditions.
Application process
Are I eligible for funding?
You are eligible to apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and simple. Just fill out the online application within a few minutes and an experienced business lending specialist will be in touch to guide you through the process.
For a loan of up to $100,000 you’ll need identification details (valid Driver’s License) as well as an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details of the application, including credit consent, 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, in addition to interim current financial year financials 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 can usually offer an answer in just one hour – as long as you make your application in quality business hours and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statements , we will be able to provide a decision within just an company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we could be capable of provide the conditional pre-approval within six hours. After you’ve signed your pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this can be quicker based upon the circumstances for each application. Certain offers have been approved within less than 24 hours.
The quickest way to apply would be to make sure you apply during standard business hours and allow us to use our advance bank verification link to verify your bank information online. If you choose to upload the copies of bank statements , it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer within one hour, provided you apply at normal business times and let us use the advanced bank verification system to instantly verify your bank’s information online. If you decide to send us copies of your bank statements, we will be able to provide an answer in as little as an business day.
If you are applying for Larger Business Loans ($100K or more) We may be in a position to provide you with pre-approval conditional to your application within six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this could be shorter based on the particular circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The quickest method can be make sure you apply during normal business hours. You can also let us use the advanced bank verification system link to verify your bank information online. If you send us copies of your bank accounts, it may take a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a specific amount we look at a variety of variables that determine how much we can lend you health that is your business and the amount of payments your business is able to afford. The total amount of your loan will depend on the specific circumstances of your company.
When you apply for a set amount, we will consider a number of variables to determine the well-being for your business and the amount of payments your business can afford. The total amount of your loan will be contingent on the particulars of your company.
Fees & repayments
How do you charge for the cost of a company loan?
When you apply for business loans with us company credit, we will assess the risk assessment of your company and provide you with a customised offer, including the amount of the loan, the duration and the interest rates. It is a company loan is an upfront priced loan which means you be aware in advance of the total amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I’m charged?
Business loan interest rates differ based on various factors like the amount of money that is borrowed, what company assets the money will be used for and the sector the business operates in, how long the business has been in operation, in the event that the company has enough cash flow to support the loan, as well as the general well-being or creditworthiness of the company.
What are the fees?
There are no hidden fees for our company loans, and you’ll know precisely what it is that you be required to pay, and when, right from day one. There’s no compounding interest, and no extra fees (as long as you make your payments on time).
We don’t charge an Application Fee. You are able to get a cash loan with with no upfront cost or obligation to proceed.
The Origination Fee is the cost associated with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay off the loan in advance?
You can repay the entire amount of your loan at any point in time.
If you do decide to pursue this option, please talk to one of our helpful business credit experts. The specialists will provide you with repayment details and an early payout figure. This will be calculated as the sum of the principal balance and accrued interest to the time of the early payout in addition to 1.5% of the principal balance and any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss repayments and to fit in your cash flow schedule, we provide repayments either weekly or daily. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Security of your data, and being clear about how we collect information, use it, and exchange it, as well as secure your information, is crucial and is an essential part 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 personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their privacy. We utilise a sophisticated bank verification system that allows you to immediately verify your bank account details online to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when a business owner uses the assets they have to obtain the funding. The asset can be an individual property, such as the family home or a business property like a truck or other piece of machinery.
The vast majority of lending institutions, even the largest banks, are inclined to guarantee loans against an asset. If you’re having trouble paying back the loan, the asset could be taken over by the lender. In essence it is the process of securing new financing taking advantage of the value of what you already have.
What do I need security to secure an company loan?
For loans up to $150,000 there is no requirement for asset security prior to the loan’s access, however we do need a personal guarantee. If you adhere to your loan obligations (as stated in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans over $150,000 generally, you can get an individual guarantee and security in the form of an asset charge.