FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Highgate Hill Small Business Loans
Let me know more about Highgate Hill Small Business Loans
Highgate Hill unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
What makes what makes the Unsecured Loan different from the traditional business loan?
The application to get the Small Business Loan in under 10 minutes online or on the phone. You’ll receive an instant response and the money could be in your account within 24 hours. Traditional company loans have an annual rate of interest as well as other fees and charges. This business loan is a pre-paid loan which means you be aware in advance of the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into either weekly or daily repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any company need, such as cash flow management, business remodeling, marketing to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal use.
Concerning Larger Highgate Hill Business Loans
What is the Larger Highgate Hill Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to be operating for at least three years, and have an annual income of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funding for?
A Business Loan of a larger size can be used for nearly any business reason, such as company renovations, to purchase new equipment or inventory 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 to access funding over $150,000. It is usually in the form of a charge against assets, and could include registering this in the PPSR or registering a caveat.
A personal or director’s ensure is a promise to repay credit that is generally in nature rather than defining the security for a particular asset. The person who is signing the ensure is personally liable if the company creditor is unable to pay back 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 registered in respect of personal property (including objects or assets). The PPSR grants priority over personal property to be granted in accordance with the date on which a security interest has been registered.
The caveat can be described as a formal document that is filed to offer an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting the Larger Business Loan of $250K or more we can offer an initial pre-approval that will help ease the process. We might be able to get this done without a credit check and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes you answering some financial well-being checks. This is not an offer of credit or guarantee of financing. Unconditional approval is subject to a full credit assessment and any offer that you might receive could be subject to different conditions.
The application process
Can I be eligible for funding?
You may apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for a 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. Complete the online form in just a few minutes, and an experienced company expert in lending will call you to guide you through the process.
To apply for up $100,000 you’ll require the right identification documents (valid Driver’s License), an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Application details including credit consent as well as 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, plus interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we typically offer an answer within an hour, provided you make your application in standard business timings and allow us to utilise the bank verification system link to immediately verify your bank account information online. If you choose to send us copies of your bank statements , we’ll be able to provide an answer in just one business day.
For the Larger Business Loan ($100K or more) we may be able to offer the conditional pre-approval within 6 hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Some transactions have received approval in just 24 hours.
The most efficient method can be ensure you apply during standard company hours. Also, permit us to use the advance bank verification to confirm your bank details online. If you upload documents from your account statement, it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) we usually provide a response in one hour if you apply in standard business hours and you allow us to use the bank verification system to instantly verify your bank details online. If you want to upload copies of your banking statement, we’ll offer an answer in just 1 business day.
For the Larger Business Loans ($100K to $500K) we might be in a position to offer the conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be faster depending on the particular circumstances of each application. Some transactions have received approval in less than 24 hours.
The fastest method can be ensure you apply during standard business hours. Also, let us use the advanced bank verification system to instantly confirm your bank details online. If you send us copies of your bank accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you make an application for a specific amount we look at a variety of variables for determining what is the well-being for your company and the extent of repayments that your business is able to afford. The amount you receive from the loan will be determined by the specific circumstances for your company.
When you make an application for a certain amount, we look at a range of variables to assess how much we can lend you such as health of the business and the amount of payments your company can support. The total amount of the loan will be determined by the specifics of your company.
Fees & repayments
How do you charge for the cost of a business loan?
When you apply for the business credit, we will assess the risk profile for your business and offer you with a tailored offer, including the amount of the loan, the duration and interest rates. A company loan is an upfront-priced loan which means you know the exact amount due, which includes any costs, fees, or interest rates.
What determines the rate that I pay?
Interest rates for business loans rates depend on several factors like the amount of money borrowed, what company assets the money are used to purchase, the industry the company operates in, the long the company has been operating and in the event that the business has sufficient cash flow to support the loan, as well as the overall health as well as creditworthiness company.
What are the cost?
There are no hidden costs with our business loans, and you’ll know precisely how much you’ll be required to pay, and when, right from day one. There’s no compounding and there are no additional charges (as as long as you pay your payments punctually).
We don’t charge an Application Fee. You are able to request a credit loan with no cost upfront or commitment to apply.
The Origination Fee is the cost 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 percentage of the amount of loan.
Can I pay out the loan earlier?
You can decide to repay all of your advance loan at any time.
If you decide to take this route, please speak to our friendly company credit professionals. They’ll provide you with the details of your repayment along with an early payout estimate. It will be calculated using the sum of the principal amount remaining and accrued interest to the date of early payout and 1.5% of the principal balance as well as any outstanding fees.
How do repayments work?
To make sure that you don’t miss repayments and to fit in your cash flow cycle we provide repayments either weekly or daily. These are automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
Protecting your information, and knowing how we collect the information we collect, use, share and ensure the security of your information is of paramount importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their security. We use an advanced bank verification system to immediately verify your bank account details online to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an company owner makes use of an asset that they own to get the funds for a loan. The asset could be an individual asset, such as the family home, or it could be a business asset such as a vehicle or piece or equipment.
The majority of the lenders including the largest banks, are inclined to guarantee loans against an asset. If you have trouble paying back the loan, the asset might be transferred to the lender. In essence it is means of securing new financing using the value of what you already own.
Should I require security to secure an company loan?
For loans of up to $150,000, no asset security is required in advance to gain access to the funds but we require a personal guarantee. require a personal guarantee. As long as you follow the terms of your loan (as specified in your loan contract) Asset security is not needed. For loans of over $150K generally, you can get an individual guarantee and security in the form charges on assets.