FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Valley Heights Small Business Loans
Let me know about the Valley Heights Small Business Loans
Valley Heights 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 the traditional business loan?
It is possible to apply to this Small Business Loan in under 10 minutes via the internet or over the phone, receive an answer within the same day and the funds could be on your account within 24 hours. Traditional business loans have an interest rate per annum plus other fees and charges. This company loan is an upfront priced loan which means you know ahead of time the total amount to be paid, including the interest, fees and charges. This is then broken down into either weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
A Small Business Loan can be used for almost every business purpose including managing cash flows, business renovations, marketing for purchasing inventory or new equipment, to fund general working capital, and much more. The loan cannot be used to fund personal expenses.
Concerning Larger Valley Heights Business Loans
What is the Larger Valley Heights Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on you cashflow.
How is the Origination Fee determined?
A 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 in this amount the business 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) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A larger company loan can be used for almost any business purpose including company improvements, purchasing equipment or inventory as well as for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. This can be done by way of charge over assets, and may include the registration of this on the PPSR or making a caveat.
A personal or director’s guarantee is a guarantee to pay off a credit line that is general in nature, rather than defining security over an asset. The person signing the ensure is personally liable if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR allows the priority of personal property granted depending on the date that a security interest was registered.
The caveat can be described as a formal document filed to offer notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250K, we may offer an initial pre-approval to simplify the process. We may be able to get this done without a credit check, and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes answering a couple of financial health checks. It’s not an offer or guarantee of credit. Unconditional approval is subject to an extensive credit evaluation and any offer that you are offered could be on different terms.
The application process
Can I be eligible for funding?
You may be eligible for a 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 you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form in just a few minutes, and a dedicated company expert in lending will call you to guide you through the process.
To apply for up $100,000, you’ll need identification details (valid Driver’s License) as well as a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K-$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: Application details including credit consent, 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, and interim financials from the current financial year, Aged Payables and Aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) We can usually offer an answer within an hour, provided you submit your request within quality company hours and you allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your banking statements , we will be able to offer a decision in just the span of one business day.
For Larger Business Loans ($100K and up) we might be capable of offer the conditional pre-approval in around 6 hours. After you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval, however this can be quicker based upon the circumstances for each application. Some deals have been approved in just 24 hours.
The most effective method for you to apply is make sure you apply during normal business hours, and permit us to use the advance bank verification to instantly verify your bank account information online. If you decide to send us the copies of bank statements , it takes a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) We can usually provide an answer within one hour – as long as you submit your request in standard business time and you allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you want to send us copies of your bank statements, we will be able to offer the decision in as little as one business day.
For Larger Business Loans ($100K or more) we might be capable of provide you with a conditional pre-approval within about 6 hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this may be quicker depending on the circumstances of each application. Certain transactions have received approval in just 24 hours.
The fastest way would be to make sure you apply during normal business hours. You can also let us use the sophisticated bank verification link to verify your bank account information online. If you upload duplicates of your banking statements it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you submit an application for a particular amount, we look at a variety of variables that determine how much we can lend you well-being of your business and the extent of payments your company will be able to support. The amount you receive from the loan will be determined by the particular circumstances that are unique to your company.
When you make an application for a set amount, we take into consideration a variety of factors to assess how much we can lend you such as health of the business and the extent of the repayments your company can support. The total amount of your loan will depend on the specific circumstances the business.
Fees & repayments
How much do you charge for the cost of a business loan?
When you make an application for our business loans, we’ll assess the risk assessment of your company and provide you with a tailored offer including the loan amount, the terms and interest rates. This business loan is a loan that is priced upfront which means you know in advance the total amount to be paid, including any charges, interest rates or fees.
What is the factor that determines the price I am charged?
The interest rates on business loans rates differ based on various factors including the amount borrowed, the company assets the funds are used to purchase as well as the field the company is operating in, how long the business has been running as well as what percentage of the company has sufficient cash flow to fund the loan, and the overall health and creditworthiness of the company.
What are the costs?
There are no hidden costs for our company loans. You’ll be aware of the amount you’ll be required to pay, and when, from day one. There’s no compounding and no additional fees (as long as you make your payments punctually).
We don’t charge an application fee. You are able to make an application for loans absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I repay the loan early?
You can decide to repay the entire amount of the loan at any point in time.
If you choose to pursue this option, please call our helpful business lending professionals. They will offer you with repayment details as well as an early payout amount. This will be calculated as the sum of the principal remaining and any accrued interest at the time of the early payout and 1.5% of the principal amount remaining and any fees that remain unpaid.
How do repayments work?
To make sure you do not miss payment dates and to align with your cash flow standard, we offer repayments either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my data be secure?
Security of your data, and being clear about how we collect, use, exchange and ensure the security of your information is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their privacy. We employ an exceptionally sophisticated bank verification system link to instantly verify your bank account details online so we can provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when the business owner borrows from the assets they have to get the funds for a loan. The asset can be an asset belonging to the personal, like the family home, or an company asset such as a vehicle or piece or equipment.
The majority of banks, even the major banks, prefer to make loans secured by assets. If you’re struggling to pay back the loan then your assets could be offered for sale by the lender. In essence it is means of securing new financing using the worth of the asset you already own.
Do I need security to get a business loan?
For loans that exceed $150K, no asset security is required upfront to access the money, however we require a personal guarantee. need the personal guarantee. As long as you follow your loan commitments (as specified in your loan contract document) the security of assets will never be required. For loans that exceed $150,000, generally, there is an individual guarantee and security that is in the form a charge over assets.