FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Abbotsford Small Business Loans
Tell me what you think of the Abbotsford Small Business Loans
Abbotsford unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What makes how is the Unsecured Loan different from the traditional company loan?
Apply to the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and funds may be available in just 24 hours. Traditional company loans reference an interest rate per annum plus other fees and charges. Our business loan is a cash-based loan which means you know ahead of time the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into weekly or daily installment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company use, including managing cash flows, business remodels and marketing to purchase inventory, new equipment, for general working capital and much more. The loan is not available to fund personal expenses.
About Larger Abbotsford Business Loans
What is the Larger Abbotsford Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your business needs to have been operating for a minimum of 3 years and have an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funding for?
A Business Loan of a larger size can be used for almost every business reason, such as company renovations, purchase of inventory or new equipment for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. It is usually as a result of an charge on assets, and may include registering this through the PPSR or making as a caveat.
A personal or director’s guarantee is a promise to pay back a loan that is general in nature rather than specifying security over an asset. The person who signs 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 run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR gives preference over private property granted according to the date the security interest was registered.
An affidavit is an official form of document to offer the public notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re seeking larger company loans of more than $250K, we may offer a preliminary pre-approval to help make the process. We may be able to apply for this without a credit verification and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves you answering some financial well-being checks. This is not an offer of credit or guarantee of financing. Acceptance without condition is subject to an extensive credit evaluation and any offer you are offered could be based on different terms.
The application process
Are I eligible for funding?
You may be eligible for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form within a few minutes and an experienced company credit specialist will contact you to help you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger 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: Information on the application including credit consent, 12 months bank statement, an IRD statement, last 2 years finalised financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we can often offer an answer within one hour if you apply at standard business hours and you allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you opt to submit copies of your bank statements , we are able to provide the decision within just 1 business day.
For the Larger Business Loan ($100K to $500K) we may be in a position to offer you with conditional pre-approval in around six hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Certain offers have been approved in the space of 24 hours.
The fastest way for you to apply is make sure you apply during normal business hours. Also, allow us to use the modern bank verification link to verify your bank account information online. If you choose to send us documents from your account statements , it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) We can usually provide an answer in just one hour, provided you submit your request at normal business time and permit us to utilise the advanced bank verification system to instantly verify your bank details online. If you choose to send us copies of your bank statement, we’ll offer the decision in just one business day.
For Larger Business Loans ($100K or more) we might be likely to offer you with conditional pre-approval within about six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this can be faster depending on the circumstances of each application. Some agreements have been approved within just 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours and let us use the advance bank verification link to instantly confirm your bank details online. If you opt to upload duplicates of your banking accounts, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a specific amount we look at a variety of variables to determine how much we can lend you health for your company as well as the amount of repayments that your company will be able to support. The amount you receive from the loan will be determined by the particular circumstances the company.
When you apply for a particular amount, we look at a range of factors to determine how much we can lend you such as health for your company as well as the amount of the repayments your company can afford. The total amount of your loan will be contingent on the particular circumstances the company.
Fees & repayments
How much should you charge for a business loan?
If you decide to request business loans with us business loans, we will assess the risk profile for your business and offer you with a customised offer that includes the amount of the loan, the duration and the interest rates. The business loan is an upfront cost loan and you’ll know in advance the total amount payable including any charges, interest rates or fees.
What is the basis for the rate I’m charged?
Interest rates for business loans rates differ based on various factors like the amount of money that is borrowed, what business assets the money will be used for, the industry the company is in, how long the company has been running as well as what percentage of the company has sufficient cash flow to support the loan, and the general health or creditworthiness of the business.
What are the costs?
There aren’t any hidden costs for our business loans. You’ll know precisely how much you’ll need to pay, and when, right from day one. There’s no 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 make an application for loans with without any upfront costs or the obligation to take action.
The Origination Fee includes the expenses associated with the setting up and management of the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan in advance?
You may choose to pay back the entire amount of your loan at any point in time.
If you do decide to do this please talk to one of our helpful company lending experts. They will provide you with repayment details along with an early payout estimate. This is calculated as the total of the principal remaining and any accrued interest at the time of the early payout and 1.5 percent of the principal amount remaining plus any outstanding fees.
How do repayments work?
To ensure that you don’t miss due dates and also to be in line with your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from your business account.
Security & privacy
Will my data be secure?
Security of your data, and being upfront about how we collect the information we collect, use, share and protect your information, is of huge importance and a vital part 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 financial information and our funders are ISO 27001 certified for our dedication to customer security and security. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account information online to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an company owner uses an asset they own to get a loan. The asset could be an individual property, such as the family home, or a company property like a truck as well as a piece of machine.
The vast majority of lenders, not just the largest banks, are inclined to secure loans against assets. If you have trouble paying back the loan, your assets could be sold by the lender. In essence it’s means of securing additional financing taking advantage of the value of what you already own.
What do I require security for an company loan?
For loans up to $150,000 the requirement for asset security is not required in advance to gain access to the funds but we do require the personal guarantee. As long as you follow your loan obligations (as stated in your loan contract) Asset security is not required. For loans that exceed $150K, typically, you will need the option of a personal guarantee and security is provided in the form of the charge of assets.