FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Newport Small Business Loans
Let me know about the Newport Small Business Loans
Newport unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from a traditional company loan?
Apply for your Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an immediate response, and the funds could be in your account within 24 hours. Traditional company loans are based on an annual rate of interest plus other fees and charges. The business loan is a cash-based loan therefore you’ll be aware in advance of the total amount to be paid, including any fees, charges or charges. This is then divided into weekly or daily repayment figure.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company use, including cash flow management, business remodels and marketing to purchase inventory, new equipment, as general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger Newport Business Loans
What is the Larger Newport Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the business needs to be in operation for at least 3 years with an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can I use the funds for?
A larger company loan can be used to fund almost any company use, including company improvements, purchasing equipment or inventory as well as for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. This is by way of charge over assets and can be registered with the PPSR or the registration of a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is generally in nature rather than specifying security over a particular asset. The person signing the ensure is personally liable in the event that the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including items or assets). The PPSR gives priority over personal property to be assigned in accordance with the date on which a security interest that is registered.
An affidavit is an official document lodged to offer an official notice of a claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking larger business loans of $250K or more we can offer a preliminary pre-approval to help make the process. We might be able to apply for this without a credit verification and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering some financial well-being questions. It is neither an offer nor a guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you receive could be based on different conditions.
The application process
Can I be eligible for funding?
You are eligible to apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for for the 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 quick and easy. Just fill out the online application in just a few minutes, and an experienced business loan specialist will call you to help you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s Licence) and a valid NZBN/IRD as well as at least six months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K to $250K: Information about the application 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 months of bank records, IRD statement as well as the two most recent years’ financial statements, as well as interim financial statements for the current year including Aged Payables, Aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within an hour – as long as you make your application at quality company hours and allow us to utilise the bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statements , we will be able to offer a decision within just one business day.
For the Larger Business Loan ($100K and up) we might be capable of offer you with conditional pre-approval in about six hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based upon the circumstances for each application. Certain transactions have received approval in less than 24 hours.
The quickest way to apply would be to make sure you apply during normal business hours and allow us to use our advanced bank verification system link to verify your bank account information online. If you choose to send us copies of your bank statement, it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) We can usually offer a response in one hour – as long as you apply during normal business timings and let us use the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statements, we will be able to provide the decision in as little as an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be able to offer the conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval. However, this can be faster depending on the particular circumstances of each application. Some transactions have received approval within just 24 hours.
The fastest method is to ensure you apply during normal business hours. You can also let us use the modern bank verification to verify your bank information online. If you upload documents from your account accounts, it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. If you apply for a specific amount we will consider a number of aspects to determine the health for your business and the extent of payments your company can support. The amount you receive from your loan will depend on the specific circumstances that are unique to your company.
When you apply for a specific amount we consider a variety of elements to assess your well-being of the business and the extent of repayments your company can support. The amount you receive from the loan will be determined by the specific circumstances for your business.
Fees & repayments
How much should you charge for an company loan?
If you decide to apply for our company loan, we will assess the risk profile the company and provide you with a customised offer including the amount of loan, the term and the interest rates. It is a company loan is an upfront priced loan so you will know in advance the total amount to be paid, including any interest rates, fees or charges.
What determines the amount I am charged?
Business loan interest rates differ based on various factors such as the amount that is borrowed, what business assets the funds are used to purchase and the sector the business operates in, how long the business has been in operation, what percentage of the business has sufficient cash flow to fund the loan, and the general health as well as creditworthiness company.
What are the charges?
There are no hidden fees for our business loans, and you’ll know precisely what you be required to pay, and when, right from the day you sign up. There’s no compounding interest, and there are no additional charges (as as long as you pay your payments on time).
We do not charge an application fee. You are able to make an application for loans with no upfront cost or commitment to apply.
The Origination Fee covers the costs associated with establishing and managing the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan in advance?
You can repay the total amount of your loan at any point in time.
If you are deciding to pursue this option, please contact our helpful company lending experts. They’ll offer you with details on repayment and an early payout figure. It will be calculated using the total of the principal balance and the accrued interest up to the time of early payment plus 1.5 percent of the principal balance and any fees that remain unpaid.
How do you make repayments work?
To make sure you do not miss payment dates and to align with your cash flow general, we provide repayments either daily or weekly. They will be automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Security of your data, and knowing the ways we gather, use, exchange and secure your information, is of paramount importance and is an essential element 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 qualified for our commitment to security for our clients and security. We make use of an advanced bank verification system that allows you to instantly verify the bank account details online. This allows us to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a company owner utilises an asset that they own to secure the funds for a loan. The asset may be an individual property, such as the family home or it could be a business asset such as a truck or piece of equipment.
The vast majority of lending institutions, even the major banks, prefer to guarantee loans against assets. If you’re struggling to pay back the loan, then the asset might be offered for sale by the lender. In essence it is an opportunity to secure new funding making use of the value of what you already own.
Do I need security to secure a company loan?
For loans that exceed $150,000, the requirement for asset security is not required prior to the loan’s access however, we require a personal guarantee. require an individual guarantee. In the event that you fulfill your loan commitments (as stated in your loan contract document), asset security will never be needed. For loans that exceed $150K, generally, you can get a personal guarantee and security in the form of an asset charge.