FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Hoppers Crossing Small Business Loans
Let me know more about Hoppers Crossing Small Business Loans
Hoppers Crossing unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from an ordinary business loan?
The application to get your Small Business Loan in under 10 minutes over the phone, receive an immediate response, and the funds could be on your account within 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. Our company loan is a pre-paid loan and you’ll be aware of the total amount due, which includes the interest, fees and charges. Then, it is divided into a daily or weekly installment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any company reason, such as cash flow management, company remodels and marketing, to purchase inventory or new equipment, or as general working capital and so much more. The loan is not available to fund personal expenses.
About Larger Hoppers Crossing Business Loans
What is the Larger Hoppers Crossing Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. The repayments are made weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been operating for at least three years and generate an annual revenue of at least $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funding be utilised?
A Business Loan of a larger size can be used to fund almost every company purpose including business remodeling, buying inventory or new equipment for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. It is usually by taking a charge over assets and can be registered in the PPSR or the registration of a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is generally in nature rather than stipulating the security of a specific asset. The person who is signing the ensure is personally accountable if the company borrower is unable to make the repayment.
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 which are registered with respect to personal property (including items or assets). The PPSR allows priority over personal property to be assigned according to the date a registration of a security interest.
Caveats are legal document lodged to offer notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re requesting larger company loans that is greater than $250K, we may offer a preliminary pre-approval to help make the process. It is possible to do this without credit checks and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes the answer to a series of financial well-being questions. It is not an offer of credit or guarantee of financing. A conditional approval is subject an exhaustive credit evaluation, and any offer that you are offered could be on different terms.
The application process
Can I be eligible for funding?
You may be eligible for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a couple minutes, and a dedicated business credit specialist will be in touch to guide you.
To be eligible for up to $100,000, you’ll need the right identification documents (valid Driver’s Licence) and a valid NZBN/IRD and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details for application including credit consent as well as 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, and interim financial statements for the current year such as age-related payables and aged Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we can often offer an answer within one hour, provided you make your application during quality business timings and let us use 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 the decision in as little as one company day.
For Larger Business Loans ($100K up to $500,000) we may be able to provide the conditional pre-approval within about 6 hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Certain deals have been approved within less than 24 hours.
The quickest way to apply is to ensure you apply during normal business hours. You can also allow us to use our modern bank verification link to instantly verify your bank information online. If you opt to send us the copies of bank accounts, it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we usually offer an answer within one hour – as long as you make your application within standard business timings and let us make use of the advanced bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statement, we’ll offer a decision within the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we may be likely to provide the 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 faster depending on the specifics of each application. Certain offers have been approved in the space of 24 hours.
The fastest way is to ensure you apply during standard business hours. You can also allow us to use our sophisticated bank verification link to instantly verify your bank account information online. If you opt to send us documents from your account accounts, it will take a little longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you submit an application for a particular amount, we will consider a number of variables for determining the health for your business and the level of repayments your company can afford. The total amount of the loan will be determined by the specific circumstances that are unique to your company.
When you make an application for a certain amount, we consider a variety of factors to assess how much we can lend you such as well-being of the business and the amount of repayments your business will be able to support. The amount you receive from your loan will depend on the specific circumstances of your company.
Fees & repayments
What is the cost for a business loan?
When you make an application for business loans with us business loan, we will assess the risk assessment the company and offer you with a customised offer including loan amount, term and the interest rates. It is a business loan is a loan that is priced upfront so you will know the exact amount you will have to pay, including interest rates, fees or charges.
What determines the amount I pay?
Interest rates for business loans rates differ based on various factors including the amount that is borrowed, what company assets the funds are used to purchase, the industry the company operates in, the long the company has been in operation for, in the event that the business has enough cash flow to pay for the loan, and the overall well-being or financial standing of the business.
What are the costs?
There aren’t any hidden costs with our business loans, and you’ll know exactly how much you’ll be required to pay, and when, right from the first day. There’s no compounding interest and no additional fees (as long as you are able to make your payments on time).
We don’t charge an Application Fee. You are able to request a credit loan with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved with the setting up and management of the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I repay the loan in advance?
You can decide to repay the entire amount of the loan at any point in time.
If you decide to do this please speak to our friendly company loan professionals. They’ll offer you with the details of your repayment and an early payout figure. This will be calculated as the sum of the remaining principal amount and any accrued interest at the time of the early payout plus 1.5 percent of the principal balance as well as any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align your cash flow cycle we offer repayments either daily or weekly. These are automatically withdrawn from your company account.
Security & privacy
Will my information be protected?
Security of your data, and knowing the ways we gather data, process, exchange and safeguard your data, is of paramount importance and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to security for our clients and security. We use an advanced banking verification system to instantly verify the bank account details online so we can offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when a company owner uses the assets they have to obtain the funds for a loan. The asset can be an individual property, such as the family home or it could be a business asset such as a vehicle or piece of equipment.
The vast majority of banks, even the banks with the biggest size, prefer to make loans secured by assets. If you’re having trouble paying back the loan, your asset may be offered for sale by the lender. In essence, it is a way of securing new financing by using the worth of the asset you already have.
What do I need security to secure a business loan?
For loans that exceed $150,000, it is not necessary to secure assets before you can access the money, however we do require a personal guarantee. As long as you follow the terms of your loan (as stipulated in your loan contract document) Asset security will never be required. If you take out loans in excess of $150,000 generally, you are able to get a personal ensure and security in the form a charge over assets.