FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Hadfield Small Business Loans
Let me know what you think of the Hadfield Small Business Loans
Hadfield unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from the traditional business loan?
It is possible to apply for this Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and funds may be on your account within 24 hours. Traditional company loans are based on an annual interest rate as well as other fees and charges. The company loan is a cash-based loan so you will be aware of the amount you will have to pay, including any fees, charges or charges. This is then broken down into either a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business use, including managing cash flows, company renovations, marketing to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available for personal purposes.
About the Larger Hadfield Business Loans
What is the Larger Hadfield Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to be operating for a minimum of 3 years and generate an annual revenue of $700,000. The applicant must also 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 of proving at the least 12 months of operating.
What can the funding be used for?
A Larger Business Loan is a great option for almost any business use, including business renovations, to purchase equipment or inventory or as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. This is in the form of a charge over assets, and may include the registration of this through the PPSR or making a caveat.
A director’s or personal ensure is a guarantee to repay credit that is general in nature, rather than stipulating the security of a specific asset. The person who signs the ensure is personally liable if the company lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects 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.
The caveat can be described as a formal document lodged to provide notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan of more than $250K it is possible to offer an initial pre-approval in order to ease the process. It is possible to get this done without a credit check, and within six hours of your initial application. This pre-approval is based on an initial assessment, which involves the answer to a series of financial well-being checks. It’s neither an offer nor a guarantee of funds. Acceptance without condition is subject to a full credit assessment and any offer that you may receive may be on different conditions.
The application process
Can I be eligible for funding?
You are eligible to apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of trading (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application in few minutes and a dedicated company loan specialist will contact you to assist you.
To apply for up $100,000 you’ll require the right identification documents (valid Driver’s Licence) and an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Information on the application including credit consent twelve months bank statement, an IRD statement as well as the two most recent years’ financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we can often provide an answer in just one hour if you apply within quality business time and allow us to utilise the bank verification system link to immediately verify your bank account information online. If you choose to submit copies of your bank statements , we are able to provide a decision within just an business day.
For Larger Business Loans ($100K and up) we might be likely to offer you with a conditional pre-approval in around 6 hours. After you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this can be quicker based on the particular circumstances of each application. Some offers have been approved in just 24 hours.
The most efficient method would be to make sure you apply during standard company hours. Also, permit us to use the advanced bank verification system link to instantly check your bank’s information online. If you choose 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 or more) we usually provide an answer in just one hour if you submit your request during standard business timings and allow us to use the bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements, we will be able to offer a decision within an business day.
If you are applying for Larger Business Loans ($100K or more) We may be capable of offer you with a conditional pre-approval within about six hours. Once 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. Certain deals have been approved within 24 hours.
The fastest method can be make sure you apply during standard business hours and allow us to use our advance bank verification to verify your bank information online. If you choose to send us the copies of bank statements it will take a little longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a certain amount, we look at a variety of elements in order to assess the health of your business and the extent of the repayments your company will be able to support. The amount you receive from your loan will depend on the specific circumstances the company.
When you apply for a particular amount, we consider a variety of elements to assess the health of the business and the level of payments your business is able to afford. The amount you receive from your loan will be determined by the particular circumstances the business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to apply for our company loan, we will assess the risk assessment of your company and offer you with a tailored proposal that includes the amount of the loan, the duration and interest rates. A company loan is an upfront cost loan so you will know in advance the total amount you will have to pay, including charges or interest.
What is the factor that determines the price I will be charged?
The interest rates on business loans rates vary due to factors such as the amount that is that is borrowed, what company assets the funds will be used for and the sector the business is in, how long the company has been running as well as whether the company has enough cash flow to cover the loan, and general well-being as well as creditworthiness business.
What are the fees?
There are no hidden costs with our company loans. You’ll know precisely how much you be required to pay and when, starting from the very first day. There’s no compounding interest, and there are no additional charges (as long as you make your payments punctually).
We do not charge an Application Fee. You can get a cash loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the expenses involved with setting up and managing the loan. The only way to pay this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay off the loan in advance?
You may choose to pay back the entire amount of the loan in full at any time.
If you decide to take this route, please speak to our friendly company loan experts. They’ll provide you with the details of your repayment as well as an early payout amount. The figure will be calculated as the sum of the principal amount remaining and the accrued interest up to the time of early payout and 1.5 percent of the remaining principal plus any outstanding fees.
How do you make repayments work?
To help you avoid missing due dates and also to be in line your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from your designated business account.
Security & privacy
Will my information be secure?
Protecting your information, and being clear about the ways we gather information, use it, and exchange it, as well as protect your information, is of paramount importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to customer security and privacy. We use an advanced bank verification system that allows you to immediately verify your bank account information online. This allows us to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a business owner uses the assets they have to obtain a loan. The asset could be an individual property, such as the family home, or a company asset such as a truck as well as a piece of machine.
The vast majority of banks, including the banks with the biggest size, prefer to secure loans against assets. If you’re struggling to pay back the loan then the asset could be offered for sale by the lender. In essence it is means of securing additional financing using the worth of the asset you already have.
What do I require security for a company loan?
For loans that exceed $150,000, it is not necessary to secure assets prior to the loan’s access however, we do need a personal guarantee. If you adhere to the terms of your loan (as specified in your loan contract), asset security will never be required. For loans of over $150,000 generally there is personal ensure and security is provided in the form of an asset charge.