FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Priestdale Small Business Loans
Let me know how you are able to avail the Priestdale Small Business Loans
Priestdale unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
What is what makes the Unsecured Loan different from an traditional business loan?
Apply to get this Small Business Loan in under 10 minutes online or by phone. You will receive an instant response and funds may be in your account in 24 hours. Traditional business loans are based on an annual rate of interest along with other charges and fees. This business loan is a pre-paid loan therefore you’ll know in advance the total amount due, which includes any interest, fees or charges. This is then broken down into either weekly or daily installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business reason, such as the management of cash flow, company remodeling, marketing, to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal purposes.
About the Larger Priestdale Business Loans
What is the Larger Priestdale Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan of this size the company needs to be operating for a minimum of 3 years, and have an annual income of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can the funds be used for?
A larger business loan is a great option for almost all business purpose including business renovations, to purchase inventory or new equipment for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. It is usually by way of charge over assets, and could be registered with the PPSR or making as a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is general in nature, rather than specifying the security for a particular asset. The person who is signing the ensure is personally liable in the event that the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including goods or assets). The PPSR permits priority over personal property to be granted according to the date a security interest was registered.
A caveat is a legal form of document to provide the legal claim to a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger business loans that exceeds $250K, we may offer an initial pre-approval to simplify the process. We may be able to make this decision without credit checks and within 6 hours of your initial application. The pre-approval process is based on an initial assessment, which involves you answering a few financial well-being checks. It’s in no way an offer, nor is it a guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer you receive could be subject to different terms.
Application process
Do I qualify for funds?
You are eligible to apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application within a couple minutes, and a dedicated business credit specialist will call you to assist you.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s License) and an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Application details including credit consent, 12 months bank statement, an 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.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) We can usually offer an answer within one hour, provided you apply during standard company times and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your bank statements , we are able to offer an answer within just 1 business day.
For the Larger Business Loan ($100K to $500K) we may be capable of offer you with conditional pre-approval within about six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Certain agreements have been approved within the space of 24 hours.
The most effective method can be ensure you apply during standard business hours. You can also let us use the advance bank verification to verify your bank account information online. If you opt to upload copies of your bank statement, it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K or more) we usually provide an answer in just one hour – provided you make your application within standard business timings and allow us to use 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 will be able to offer the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be capable of provide you with pre-approval conditional to your application in around 6 hours. Once you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this can be faster depending on the particular circumstances of each application. Certain agreements have been approved in just 24 hours.
The fastest method can be make sure you apply during normal business hours, and allow us to use the sophisticated bank verification to instantly verify your bank information online. If you opt to upload documents from your account statements, it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a specific amount we consider a variety of elements to determine your well-being for your company and the amount of the repayments your business can support. The total amount of your loan will depend on the specific circumstances of your business.
If you apply for a specific amount we consider a variety of factors to determine your well-being of the company and the level of the repayments your business can afford. The amount you receive from the loan will be determined by the particular circumstances of your business.
Fees & repayments
How do you charge for a company loan?
If you decide to request our company loans, we’ll assess the risk profile for your business and offer you with a customised offer including the amount of the loan, the duration and the interest rates. A business loan is an upfront priced loan therefore you will know in advance the total amount you will have to pay, including charges, interest rates or fees.
What is the factor that determines the price I pay?
Business loan interest rates differ based on various factors like the amount of money borrowed, the company assets the funds will be used for in addition to the industry that the company is operating in, how long the company has been running and how long the company has enough cash flow to fund the loan, and general well-being as well as creditworthiness company.
What are the charges?
There aren’t any hidden charges for our company loans. You’ll know precisely how much you’ll need to pay, and when, from the very first day. There’s no compounding interest and no extra fees (as long as you are able to make your payments on time).
We don’t charge an Application Fee. You can apply for a loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee includes the expenses associated with the setting up and management of the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I repay the loan early?
You can decide to repay the entire amount of the loan early at any time.
If you choose to do this please talk to one of our helpful company credit experts. The specialists will offer you with the details of your repayment and an early payment figure. The figure will be calculated as the total of the principal balance and any accrued interest at the date of early payout in addition to 1.5 percent of the principal amount remaining and any fees that remain unpaid.
How do you make repayments work?
To ensure you do not miss payments and to work your cash flow schedule, we provide repayments either daily or weekly. These are automatically deducted from your business account.
Security & privacy
Will my data be secure?
Security of your data, and being clear about how we collect, use, exchange and safeguard your data, is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to the security of our customers as well as their privacy. We use an advanced bank verification system to immediately confirm your bank account information online, allowing us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an company owner borrows from the assets they have to make the funding. The asset can be either an asset belonging to the personal, like the family home, or a business asset such as a truck as well as a piece of machine.
The majority of banks, even the banks with the biggest size, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, then your assets could be offered for sale by the lender. In essence, it is means of securing additional financing using the value of what you already own.
What do I need security to get an business loan?
For loans of up to $150,000, there is no requirement for asset security in advance to gain access to the funds, however we require a personal guarantee. require an individual guarantee. As long as you follow your loan obligations (as specified in your loan contract document) Asset security will never be needed. For loans over $150,000 typically, you will need personal ensure and security in the form of an asset charge.