FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Hawthorn Small Business Loans
Let me know more about Hawthorn Small Business Loans
Hawthorn unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
What makes the Unsecured Loan different from a traditional company loan?
You can apply to your Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and the funds could be in your account in 24 hours. Traditional company loans have an annual rate of interest plus other fees and charges. Our company loan is a pre-paid loan so you will know ahead of time the amount you will have to pay, including any fees, charges or charges. This is then broken down into weekly or daily repayment figure.
What can be 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, company improvements, advertising to purchase inventory or new equipment, as general working capital and much more. The loan is not available for personal purposes.
About the Larger Hawthorn Business Loans
What is the Larger Hawthorn Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. The applicant must also be 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 of proving at minimum 12 months of business.
What can I use the funding for?
A Business Loan of a larger size can be used for nearly all company purpose including business renovations, to purchase equipment or inventory for general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. This is by taking a charge over assets, and could be registered through the PPSR or filing a caveat.
A director’s or personal guarantee is a guarantee to pay off a credit line that is generally in nature rather than stating security over an asset. The person who signs the ensure is personally liable if the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including objects or assets). The PPSR gives the priority of personal property assigned according to the date a security interest was registered.
A caveat is a legal document lodged to offer notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re seeking a Larger Business Loan that exceeds $250,000, we may offer an initial pre-approval to simplify the process. It is possible to get this done without credit checks and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves the answer to a series of financial health checks. It’s not an offer of credit or guarantee of financing. A conditional approval is subject an extensive credit evaluation and any offer that you might receive could be subject to different conditions.
The application process
Can I be eligible for funding?
You can apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form within a couple minutes, and an experienced company credit specialist will contact you to assist you.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s Licence), 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 need:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent as well as 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we typically provide an answer within one hour, provided you make your application at standard company times and allow us to utilise the bank verification system link to instantly verify your bank details online. If you want to upload copies of your banking statement, we’ll offer an answer within just 1 business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be able to provide you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be quicker based upon the circumstances for each application. Certain agreements have been approved within the space of 24 hours.
The quickest way to apply is to ensure you apply during normal company hours. Also, let us use the advanced bank verification system link to instantly verify your bank account information online. If you choose to send us duplicates of your banking statements , it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) we can often offer a response in one hour, provided you apply during normal business times and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your banking statement, we’ll offer the decision within one business day.
If you are applying for Larger Business Loans ($100K or more) We may be likely to provide you with a conditional pre-approval within about six hours. Once you have signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Certain offers have been approved in just 24 hours.
The quickest method can be ensure you apply during standard business hours, and allow us to use the advanced bank verification system link to instantly verify your bank account information online. If you opt to upload documents from your account statement, it can take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a specific amount we consider a variety of variables to determine how much we can lend you well-being of your company and the amount of payments your company is able to afford. The total amount of your loan will depend on the specific circumstances that are unique to your company.
When you make an application for a particular amount, we will consider a number of aspects to determine your well-being of your business and the amount of the repayments your business can afford. The amount you receive from your loan will depend on the specific circumstances that are unique to your company.
Fees & repayments
How much do you charge for a business loan?
When you apply for the business financing, we will assess the risk profile for your business and provide an individualised offer including loan amount, term and interest rates. A company loan is an upfront priced loan therefore you will be aware in advance of the total amount payable including any charges, interest rates or fees.
What determines the amount I’m charged?
Business loan interest rates differ based on various factors such as the amount that is borrowed, what company assets the money are used to purchase, the industry the business operates in, how long the company is in operation for, how long the business has sufficient cash flow to pay for the loan, and also the overall health as well as creditworthiness business.
What are the charges?
There aren’t any hidden costs for our business loans. You’ll be aware of the amount it is that you need to pay and when, right from the very first day. There’s no compounding interest, and there are no additional charges (as as you make 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 covers the costs associated with establishing and managing the loan. This is only a fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay off the loan in advance?
You may choose to pay back the entire amount of the advance loan at any time.
If you choose to do this please call our helpful company credit specialists. The specialists will offer you with repayment details and an early payment figure. The figure will be calculated as the total of the principal amount remaining and any accrued interest at the time of the early payout plus 1.5 percent of the remaining principal and any fees that remain unpaid.
How do you make repayments work?
To help you avoid missing payment dates and to align your cash flow schedule, we provide repayments either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and making it clear how we collect, use, exchange and ensure the security of your information is crucial and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We utilise a sophisticated bank verification system link to immediately confirm your bank account information online so we can offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an business owner borrows from an asset that they own to secure the funding. The asset can be either an individual asset, such as the family home or an company property like a truck or other piece of machinery.
The vast majority of lenders, not just the big banks, tend to secure loans against assets. If you have trouble paying back the loan, the asset could be offered for sale by the lender. In essence it is means of securing new financing by using the value of what you already have.
Should I require security to secure a company loan?
For loans up to $150K the requirement for asset security is not required before you are able to access the money, however we require a personal guarantee. require a personal guarantee. If you adhere to your loan commitments (as stated in the loan contract) and you are able to meet your obligations, asset security is not needed. If you take out loans in excess of $150K generally, there is the option of a personal guarantee and security in the form of charges on assets.