FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Langwarrin Small Business Loans
Let me know about the Langwarrin Small Business Loans
Langwarrin unsecured loans provides amounts 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.
What makes this Unsecured Loan different from a traditional company loan?
Apply to get the Small Business Loan in under 10 minutes over the phone. You’ll get an instant response and have the funds in your account in 24 hours. Traditional company loans reference an annual interest rate along with other charges and fees. Our company loan is a loan that is priced upfront and you’ll know ahead of time the total amount payable including the interest, fees and charges. This is then divided into a daily or weekly installment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business need, such as cash flow management, business renovations, marketing, to purchase inventory or new equipment, as general working capital and much more. The loan is not available for personal use.
About Larger Langwarrin Business Loans
What is the Larger Langwarrin Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. The repayments are made weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your business needs to be operating for a minimum of 3 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 and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A Business Loan of a larger size can be used for nearly any company use, including company renovations, purchase of new equipment or inventory for general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. It’s by way of charge over assets, and may include registration on the PPSR or filing as a caveat.
A director’s or personal ensure is a promise to repay a loan which is generally in nature rather than defining security over an asset. The person who signs the guarantee is personally responsible if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR gives the priority of personal property granted according to the date the security interest has been registered.
Caveats are legal document filed to provide the legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for a Larger Business Loan of more than $250K, we may offer an initial pre-approval to make the process. It is possible to do this without credit checks and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes you answering some financial well-being questions. It’s not an offer or guarantee of credit. Unconditional approval is subject to an assessment of your creditworthiness and any offer you may receive may be subject to different terms.
The application process
Can I be eligible for funding?
You are eligible to apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for 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 easy. Just fill out the online application in few minutes and a dedicated company credit specialist will call you to guide you.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent and 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer within one hour – as long as you apply at quality company hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statements , we will be able to provide the decision within one business day.
For the Larger Business Loan ($100K and up) we might be in a position to provide you with pre-approval conditional to your application in around six hours. After you’ve signed your pre-approval document, you will require to wait about 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Certain deals have been approved in 24 hours.
The quickest way to apply can be make sure you apply during standard business hours. You can also let us use the modern bank verification link to check your bank’s information online. If you opt to upload documents from your account accounts, it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K to $100K) We can usually offer an answer in just one hour, provided you apply at normal business hours and let us make use of the advanced bank verification system to instantly verify your bank information online. If you opt to send us copies of your bank statements, we are able to offer a decision in as little as one business day.
For Larger Business Loans ($100K and up) We may be likely to provide you with pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Some transactions have received approval within less than 24 hours.
The quickest method can be make sure you apply during standard business hours and allow us to use our advanced bank verification system to instantly confirm your bank details online. If you decide to upload documents from your account statement, it will take a little longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a specific amount we will consider a number of factors in order to assess what is the well-being that is your company and the extent of repayments that your business will be able to support. The amount you receive from your loan will be contingent on the specific circumstances of your company.
If you apply for a set amount, we look at a range of elements to determine how much we can lend you such as health of the company and the amount of repayments that your business can afford. The amount you receive from the loan will be determined by the specific circumstances that are unique to your company.
Fees & repayments
How do you charge for the cost of a business loan?
When you apply for one of our business loans, we will 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. The company loan is a loan that is priced upfront therefore you will be aware in advance of the total amount due, which includes any interest rates, fees or charges.
What is the basis for the rate I will be charged?
Interest rates for company loans rates differ based on various variables like the amount to be that is borrowed, what company assets the money are used to purchase in addition to the industry that the business is in, how long the business is in operation for, what percentage of the company has enough cash flow to cover the loan, and also the overall health or creditworthiness of the company.
What are the costs?
There aren’t any hidden charges for our business loans. You’ll know precisely what you need to pay and at what time, from the first day. There’s not any 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 make an application for loans without any upfront costs or obligation to proceed.
The Origination Fee includes the expenses associated with the setting up and management of the loan. This is only a fee if you decide to take the loan. Our Origination Fee 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 your loan early at any time.
If you are deciding to do this please contact our helpful business credit experts. They’ll provide you with repayment details and an early payout figure. It will be calculated using the sum of the principal amount remaining and accrued interest to the time of early payout in addition to 1.5% of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
In order to help you avoid missing repayments and to fit in with your cash flow routine, we offer repayments either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and being clear about the ways we gather, use, exchange and safeguard your data, is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to security for our customers and privacy. We utilise a sophisticated banking verification system to instantly verify your bank account information online. This allows us to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a business owner makes use of an asset they own to make the funding. The asset can be either an individual asset, such as the family home, or an company asset like a truck or piece or equipment.
The majority of lenders, not just the major banks, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, the asset could be taken over by the lender. In essence, it is the process of securing additional financing using the worth of the asset you already own.
Do I need security for a company loan?
For loans up to $150K there is no requirement for asset security in advance to gain access to the funds but we require a personal guarantee. need the personal guarantee. As long as you follow your loan commitments (as stipulated in your loan contract document) the security of assets is not needed. For loans that exceed $150,000, generally there is an individual ensure and security that is in the form a charge over assets.