FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Pitt Town Small Business Loans
Tell me more about Pitt Town Small Business Loans
Pitt Town unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from an ordinary company loan?
It is possible to apply for this Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and the money could be available in just 24 hours. Traditional company loans have an annual rate of interest along with other charges and fees. We offer a company loan is a cash-based loan which means you be aware in advance of the total amount due, which includes any fees, interest or charges. This is then divided into a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company purpose including cash flow management, business remodeling, marketing for purchasing inventory or new equipment, for general working capital, and much more. The loan is not available for personal purposes.
About the Larger Pitt Town Business Loans
What is the Larger Pitt Town Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of for up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large, your company needs to have been trading for at least 3 years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funding for?
A Larger Business Loan can be used for almost any business reason, such as business remodeling, buying inventory or new equipment as well as for general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. This can be done in the form of a charge on assets, and may include registering this through the PPSR or making a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is general in nature, rather than specifying security over an asset. The person signing the ensure is personally liable if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including objects or assets). The PPSR permits priority over personal property to be granted according to the date the registration of a security interest.
The caveat can be described as a formal document lodged to provide an official notice of a claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking larger business loans of $250K or more, we may offer an initial pre-approval that will help simplify the process. We could be able to get this done without credit checks and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering a few financial health questions. This is in no way an offer, nor is it a guarantee of financing. Unconditional approval is subject to an extensive credit evaluation and any offer that you may receive may be based on different terms.
Application process
Can I be eligible for funding?
You are eligible to apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form within a few minutes and a dedicated company lending specialist will be in touch to guide you.
To apply for up to $100,000 you’ll need identification details (valid Driver’s Licence), a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent twelve months of bank records, IRD statements, last 2 years finalised financial statements, and interim financial statements for the current year as well as Aged Payables and Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) We can usually provide an answer within one hour – as long as you make your application in quality company timings and you allow us to utilise the bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your banking statements , we will be able to provide an answer within the span of one business day.
If you are applying for a Larger Business Loan ($100K or more) we may be able to offer you with pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this could be shorter based upon the circumstances for each application. Certain agreements have been approved in less than 24 hours.
The fastest way can be make sure you apply during standard company hours, and allow us to use the advance bank verification to instantly confirm your bank details online. If you opt to upload documents from your account accounts, it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer in just one hour – provided you submit your request at normal business time and let us use the advanced bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statement, we’ll provide an answer within one business day.
For the Larger Business Loans ($100K to $500K) We may be likely to offer you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this can be faster depending upon the circumstances for each application. Some transactions have received approval within 24 hours.
The fastest way is to ensure you apply during standard business hours, and let us use the advance bank verification to verify your bank account information online. If you opt to send us the copies of bank accounts, it will take a little longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a particular amount, we look at a variety of elements to determine the well-being of the business and the level of repayments your company can support. The total amount of your loan will depend on the particular circumstances the company.
When you make an application for a certain amount, we consider a variety of elements to determine how much we can lend you such as health that is your business as well as the amount of the repayments your business can support. The total amount of the loan will be determined by the specific circumstances of your business.
Fees & repayments
How much should you charge for a company loan?
When you request one of our company financing, we will assess the risk profile of your business and offer you with a tailored offer including loan amount, term and the interest rates. A company loan is an upfront-priced loan and you’ll be aware of the total amount you will have to pay, including charges or interest.
What determines the amount I will be charged?
Interest rates for business loans rates depend on several factors like the amount of money borrowed, the business assets the funds will be used for, the industry the business is in, how long the company has been in operation for, in the event that the business has sufficient cash flow to cover the loan, as well as the overall well-being or creditworthiness of the company.
What are the charges?
There aren’t any hidden costs with our business loans. You’ll be aware of the amount you’ll need to pay, and when, from the very first day. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We do not charge an application fee. You are able to get a cash loan without any upfront costs or obligation to proceed.
The Origination Fee is the cost associated with setting up and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I repay the loan in advance?
You may choose to pay back the entire amount of your advance loan at any time.
If you choose to do this please speak to our friendly company credit professionals. They will offer you with details for repayment along with an early payout estimate. This is calculated as the sum of the principal remaining and any accrued interest at the date of early payout in addition to 1.5 percent of the remaining principal and any outstanding fees.
What is the process for repayments?
To help you avoid missing due dates and also to be in line with your cash flow cycle we provide repayments either weekly or daily. They are automatically deducted from your nominated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being upfront about how we collect, use, exchange and secure your information, is of paramount importance and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our customers and privacy. We utilise a sophisticated bank verification system to instantly verify your bank account details online. This allows us to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where the business owner borrows from assets they own to secure the loan. The asset can be an asset belonging to the personal, like the family home or an company asset like a truck or other piece of machinery.
The vast majority of the lenders even the major banks, prefer to secure loans against assets. If you are having difficulty paying back the loan, then your asset may be offered for sale by the lender. In essence, it is a way of securing additional financing taking advantage of the value of what you already own.
Are I require security to secure an business loan?
For loans that exceed $150,000, it is not necessary to secure assets upfront to access the money however, we require a personal guarantee. require an individual guarantee. If you adhere to your loan commitments (as stated in your loan contract) the security of assets will never be needed. For loans of over $150K typically, you will need the option of a personal ensure and security in the form an asset charge.