FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Huntingwood Small Business Loans
Tell me about the Huntingwood Small Business Loans
Huntingwood unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What makes how is the Unsecured Loan different from a traditional business loan?
You can apply to get the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an answer within the same day and have the funds in your account within 24 hours. Traditional business loans refer to an interest rate per annum plus other fees and charges. The business loan is an upfront priced loan therefore you’ll know ahead of time the total amount due, which includes any interest, fees or charges. This is then broken down into either weekly or daily repayment figure.
What can the Small Business Loan be used for?
The Small Business Loan can be used for almost any company purpose including the management of cash flow, business improvements, advertising, to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal use.
Concerning Larger Huntingwood Business Loans
What is the Larger Huntingwood Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term up to 36 months. The repayments are made weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your business needs to be in operation for at least 3 years, and have an annual income of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funds for?
A Business Loan of a larger size can be used to fund almost all company use, including company remodeling, buying equipment or inventory for general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required for accessing funds over $150,000. This can be done by taking a charge against assets, and could be registered on the PPSR or making as a caveat.
A director’s or personal ensure is a promise to repay a loan which is generally in nature rather than specifying the security of a specific asset. The person signing the guarantee is personally liable in the event that the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR allows preference over private property assigned depending on the date that a registration of a security interest.
An affidavit is an official document lodged to provide the public notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
When you’re applying for larger business loans that exceeds $250K we can offer an initial pre-approval to simplify the process. It is possible to make this decision without a credit check and within 6 hours of your initial application. The pre-approval process is based on an initial assessment, which involves the answer to a series of financial health checks. This is neither an offer nor a guarantee of funds. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you might receive could have different terms.
The application process
Are I eligible for funding?
You can apply for an business 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 prove at least 6 months of business (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in just a few minutes, and a dedicated business expert in lending will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll need the right identification documents (valid Driver’s License) and a valid NZBN/IRD and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Information on the application including credit consent, 12 months of bank records, IRD statements, last 2 years finalised financial statements, plus interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we typically provide an answer within an hour – as long as you make your application in quality company time and allow us to utilise the bank verification system link to immediately verify your bank account information online. If you want to send us copies of your bank statements , we are able to provide an answer in as little as the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we may be capable of provide the conditional pre-approval in around 6 hours. After you’ve signed the 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 is to ensure you apply during normal company hours, and permit us to use the modern bank verification to check your bank’s information online. If you opt to send us copies of your bank statements , it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) we can often offer an answer within one hour, provided you submit your request in standard business times and you allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your bank statement, we’ll offer an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K or more) We may be capable of provide you with a conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Certain agreements have been approved in less than 24 hours.
The quickest method is to ensure you apply during normal business hours, and permit us to use the sophisticated bank verification to instantly confirm your bank details online. If you decide to send us copies of your bank statements, it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a specific amount we look at a variety of elements to determine what is the well-being for your business and the extent of payments your business can afford. The amount you receive from your loan will depend on the specific circumstances the company.
When you make an application for a specific amount we will consider a number of variables to assess how much we can lend you such as health of your company as well as the amount of payments your company will be able to support. The total amount of your loan will be determined by the particular circumstances of your business.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to request business loans with us business credit, we will assess the risk profile of your company and provide you with a customised offer including the amount of loan, the term and the interest rates. It is a business loan is a loan that is priced upfront so you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What determines the rate that I am charged?
Business loan interest rates vary due to factors including the amount of money borrowed, the company assets the money will be used for, the industry the business operates in, how long the company has been operating and in the event that the company has sufficient cash flow to cover the loan, and the general well-being as well as creditworthiness business.
What are the cost?
There are no hidden fees for our company loans. You’ll be aware of the amount you be required to pay, and when, starting from the first day. There’s no compounding interest, and there are no additional charges (as long as you make your payments punctually).
We do not charge an application fee. You are able to get a cash loan without any upfront costs or any obligation to sign up.
The Origination Fee covers the expenses involved with setting up and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay off the loan in advance?
You can decide to repay the entire amount of the loan early at any time.
If you choose to do this please speak to our friendly company credit experts. We will offer you with the details of your repayment along with an early payout estimate. This is calculated as the total of the remaining principal amount plus any accrued interest as of the time of the early payout and 1.5% of the principal remaining and any fees that remain unpaid.
What are the repayment methods?
To make sure you do not miss payment dates and to align with your cash flow cycle we provide repayments either weekly or daily. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my data be secure?
Security of your data, and being clear about the ways we gather information, use it, and exchange it, as well as secure your information, is vital 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 personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to customer security and privacy. We utilise a sophisticated banking verification system to immediately verify your bank account information online. This allows us to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an company owner borrows from the assets they have to make the funds for a loan. The asset could be an individual property, such as the family home or an business asset like a truck or piece of equipment.
The vast majority of the lenders not just the big banks, tend to secure loans against an asset. If you’re struggling to pay back the loan then the asset could be sold by the lender. In essence it is an opportunity to secure new financing taking advantage of the value of what you already have.
Are I require security to get a business loan?
For loans of up to $150K, no asset security is required before you are able to access the money but we require a personal guarantee. need an individual guarantee. In the event that you fulfill the terms of your loan (as stipulated in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans over $150K generally, you are able to get the option of a personal guarantee and security that is in the form the charge of assets.