FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Logan Reserve Small Business Loans
Let me know more about Logan Reserve Small Business Loans
Logan Reserve unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What is what makes the Unsecured Loan different from an traditional company loan?
Apply for your Small Business Loan in under 10 minutes by phone. You will receive an immediate response, and the funds could be available in just 24 hours. Traditional company loans refer to an annual interest rate together with additional fees and charges. This business loan is a cash-based loan therefore you’ll be aware in advance of the amount you will have to pay, including the interest, fees and charges. This is then broken down into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company use, including managing cash flows, business remodeling, marketing, to purchase inventory or new equipment, as general working capital and so much more. The loan cannot be used to fund personal expenses.
About larger Logan Reserve Business Loans
What is the Larger Logan Reserve Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range between $100,000 and $500,000 with a term fixed for up to 36 months. The repayments are made weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your business needs to be trading for at least 3 years, and have an annual income of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funding be used for?
A Larger Business Loan can be used for almost every company purpose including company remodeling, buying equipment or inventory for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required for accessing funds over $150,000. It is usually by way of charge over assets, which could also be registered through the PPSR or the registration of a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is general in nature, rather than stating the security for a particular asset. The person who is signing the ensure is personally responsible if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including items or assets). The PPSR gives preference over private property granted in accordance with the date on which a registration of a security interest.
A caveat is a legal document that is filed to provide an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for larger business loans that exceeds $250,000 we may be able to provide a preliminary pre-approval to help ease the process. We might be able to apply for this without a credit verification and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes the answer to a series of financial well-being questions. This is not an offer or guarantee of funds. Acceptance without condition is subject to a full credit assessment and any offer you might receive could be subject to different conditions.
The application process
Do I qualify for funds?
You may apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $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 company credit specialist will call you to help you.
To apply for up $100,000 you’ll require the right identification documents (valid Driver’s Licence) along with a valid NZBN/IRD and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, in addition to interim financials for the current financial year as well as Aged Payables and Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we typically offer an answer within an hour if you apply in standard company time and allow us to utilise the bank verification system to instantly verify your bank details online. If you decide to upload copies of your banking statements , we will be able to provide the decision within one business day.
For the Larger Business Loan ($100K or more) we might be likely to offer you with pre-approval conditional to your application in around six hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Some transactions have received approval in the space of 24 hours.
The quickest way to apply for you to apply is make sure you apply during standard company hours, and allow us to use the advanced bank verification system to instantly check your bank’s information online. If you choose to upload duplicates of your banking statement, it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we typically provide a response in one hour if you make your application in standard business hours and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you want to send us copies of your bank statements, we’ll be able to provide an answer in as little as one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be capable of offer the conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Some transactions have received approval in the space of 24 hours.
The most efficient method would be to make sure you apply during normal business hours and allow us to use our modern bank verification to instantly confirm your bank details online. If you choose to send us duplicates of your banking statements it can take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you make an application for a certain amount, we consider a variety of variables for determining your health that is your company as well as the amount of repayments your company is able to afford. The amount you receive from the loan will be determined by the particular circumstances for your business.
When you apply for a set amount, we will consider a number of variables to determine how much we can lend you such as health for your business and the level of the repayments your business is able to afford. The amount you receive from your loan will be contingent on the specifics for your company.
Fees & repayments
How much do you charge for a business loan?
If you decide to request the company credit, we will assess the risk assessment for your business and provide you with a customised proposal that includes loan amount, term and interest rates. The business loan is an upfront priced loan therefore you will know the exact amount due, which includes any interest rates, fees or charges.
What determines the rate that I’m charged?
Business loan interest rates depend on a variety of variables like the amount to be of money borrowed, the company assets the funds will be used for, the industry the company operates in, the long the company has been operating for, in the event that the business has enough cash flow to cover the loan, and the general health and creditworthiness of the company.
What are the costs?
There aren’t any hidden costs for our company loans. You’ll know precisely how much it is that you be required to pay, and at what time, from the very first day. There’s not any compounding interest and no extra fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You are able to apply for a loan no cost upfront or commitment to apply.
The Origination Fee is the cost associated with establishing 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% of the loan amount.
Can I pay off the loan in advance?
You can decide to repay the entire amount of your loan at any point in time.
If you choose to do this please call our helpful company lending experts. They’ll offer you with details on repayment and an early payout figure. This will be calculated as the sum of the principal amount remaining plus any accrued interest as of the time of early payment and 1.5% of the principal amount remaining and any fees that remain unpaid.
What is the process for repayments?
In order to help you avoid missing payment dates and to align your cash flow schedule, we provide repayments either daily or weekly. They are automatically deducted from your company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and knowing how we collect the information we collect, use, share and ensure the security of your information is of huge importance 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 standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We use an advanced bank verification system to instantly verify your bank account details online, allowing us to offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a business owner makes use of an asset they own to make the loan. The asset can be an individual property, such as the family home or a business property like a truck or piece or equipment.
The majority of lenders, including the banks with the biggest size, prefer to secure loans against an asset. If you are having difficulty paying back the loan then your asset may be taken over by the lender. In essence it is a way of securing additional financing making use of the value of what you already own.
Should I require security to get a business loan?
For loans that exceed $150K, there is no requirement for asset security prior to the loan’s access However, we require a personal guarantee. require an individual guarantee. As long as you follow your loan obligations (as stated in the loan contract) Asset security will never be needed. For loans over $150K generally there is personal guarantee and security in the form charges on assets.