FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Yeerongilly Small Business Loans
Tell me about the Yeerongilly Small Business Loans
Yeerongilly unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from the traditional company loan?
It is possible to apply to your Small Business Loan in under 10 minutes online or by phone. You will receive an instant response and funds may be available in just 24 hours. Traditional business loans are based on an interest rate per annum together with additional fees and charges. The company loan is a cash-based loan therefore you’ll be aware of the total amount payable including any fees, charges or charges. This is then divided into weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company reason, such as cash flow management, company improvements, advertising for purchasing inventory or new equipment, or as general working capital and much more. The loan cannot be used to fund personal expenses.
About larger Yeerongilly Business Loans
What is the Larger Yeerongilly Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term with a maximum of 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan in this amount the company needs to be operating for a minimum of 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funding for?
A Larger Business Loan can be used for nearly all company use, including company remodeling, buying new equipment or inventory, as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. It is usually as a result of an charge on assets and can be registered in the PPSR or making as a caveat.
A personal or director’s ensure is a commitment 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 accountable if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be assigned depending on the date that a registration of a security interest.
Caveats are legal document that is filed to provide notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re applying for an enterprise loan that exceeds $250,000 we can offer a preliminary pre-approval to help simplify the process. It is possible to apply for this without credit checks and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves answering a couple of financial health questions. This is not an offer of credit or guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you receive could be on different terms.
The application process
Can I be eligible for funding?
You can apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have 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 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application in just a few minutes, and a dedicated company credit specialist will contact you to assist you.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence) as well as an active NZBN/IRD, and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Application details including credit consent and 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we typically provide an answer in just one hour – as long as you apply within quality company time and let us utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statement, we’ll offer an answer in just the span of one company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we might be capable of offer you with pre-approval conditional to your application within 6 hours. After you’ve signed your pre-approval document, you will require to wait about 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Some deals have been approved within 24 hours.
The quickest way to apply can be ensure you apply during standard company hours, and let us use the advance bank verification to check your bank’s information online. If you opt to send us copies of your bank statement, it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) we typically provide an answer within one hour if you make your application in standard business times and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statement, we’ll offer a decision in just an business day.
For the Larger Business Loans ($100K and up) we could be capable of offer you with pre-approval conditional to your application within about 6 hours. Once you’ve signed your pre-approval document, you will require to wait about 2-3 days for final approval. However, this can be faster depending on the particular circumstances of each application. Some agreements have been approved within 24 hours.
The fastest method would be to ensure you apply during normal business hours. You can also let us use the sophisticated bank verification link to instantly verify your bank account information online. If you opt to send us duplicates of your banking accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a certain amount we look at a variety of variables in order to assess how much we can lend you health of the company as well as the amount of repayments that your business will be able to support. The amount you receive from your loan will be contingent on the specifics that are unique to your business.
When you submit an application for a certain amount, we take into consideration a variety of factors to assess how much we can lend you such as health for your company and the extent of payments your business can afford. The amount you receive from your loan will depend on the specifics for your company.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to make an application for our business loan, we’ll assess the risk profile for your company and offer you with a customised proposal that includes loan amount, term and interest rates. It is a business loan is an upfront-priced loan therefore you will know in advance the total amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I’m charged?
Business loan interest rates differ based on various factors including the amount borrowed, what business assets the money will be used for as well as the field the business is in, how long the business is in operation and in the event that the company has enough cash flow to fund the loan, and general well-being as well as creditworthiness business.
What are the costs?
There are no hidden fees with our company loans, and you’ll be aware of the amount you need to pay, and at what time, from the very first day. There’s no compounding interest, and there are no additional charges (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You can apply for a loan with no upfront cost or the obligation to take action.
The Origination Fee includes the expenses associated with setting up and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I pay out the loan early?
You can decide to repay all of your loan in full at any time.
If you are deciding to do this please contact our helpful company credit specialists. We will offer you with details for repayment and an early payment figure. It will be calculated using the sum of the remaining principal amount plus any accrued interest as of the time of the early payout in addition to 1.5% of the principal amount remaining and any fees that remain unpaid.
How do repayments work?
To make sure you do not miss due dates and also to be in line your cash flow schedule, we provide payments that are either weekly or daily. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be protected?
Security of your data, and being clear about the ways we gather information, use it, and exchange it, as well as secure your information, is of huge importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to protecting the security of customers and security. We use an advanced bank verification system that allows you to instantly verify your bank account information online, allowing us to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an business owner utilises the assets they have to obtain the loan. The asset could be an asset belonging to the personal, like the family home, or an business asset such as a vehicle as well as a piece of machine.
The vast majority of lenders, including the banks with the biggest size, prefer to secure loans against assets. If you’re struggling to pay back the loan, then your asset may be transferred to the lender. In essence, it is means of securing new financing taking advantage of the value of what you already own.
Are I require security for a company loan?
Up to $150,000 in loans it is not necessary to secure assets before you can access the money However, we require a personal guarantee. require the personal guarantee. If you adhere to the terms of your loan (as stipulated in the loan contract) the security of assets will never be needed. For loans of over $150,000 generally there is a personal ensure and security in the form of the charge of assets.