FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The McCrae Small Business Loans
Tell me how you can avail the McCrae Small Business Loans
McCrae unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from a traditional business loan?
Apply for this Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and funds may be in your account within 24 hours. Traditional company loans have an interest rate per annum along with other charges and fees. Our business loan is a pre-paid loan so you will be aware in advance of the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into either a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business purpose including the management of cash flow, company remodeling, marketing to purchase inventory, new equipment, to fund general working capital and much more. The loan is not available to fund personal expenses.
About larger McCrae Business Loans
What is the Larger McCrae Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
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 of this size the business needs to be operating for a minimum of 3 years, and have an annual income of $700K. You must 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 minimum 12 months of continuous trading.
What can the funding be used for?
A Larger Business Loan can be used to fund almost every business reason, such as company improvements, purchasing new equipment or inventory as well as for general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. This can be done by taking a charge against assets, and could include registration with the PPSR or registering as a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is general in nature, rather than stipulating the security of a specific asset. The person who signs the guarantee is personally liable in the event that the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including the assets or goods). The PPSR gives prioritisation over property that is personal to be granted in accordance with the date on which a security interest was registered.
A caveat is a legal form of document to provide an official notice of a claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan that is greater than $250,000 it’s possible to offer a preliminary pre-approval to help ease the process. It is possible to make this decision without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes the answer to a series of financial health checks. It’s not an offer or guarantee of funds. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you receive could be on different terms.
The application process
Do I have the right to receive funds?
You are eligible to apply for an business 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)
- can demonstrate at least 6 months worth of trade (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 an experienced company credit specialist will contact you to guide you.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s Licence) along with a valid NZBN/IRD and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K – $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details for application including credit consent and 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, in addition to interim financials from the current financial year, Aged Payables and Aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we usually provide an answer within one hour, provided you make your application in standard company time and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your banking statements , we are able to provide a decision within 1 company day.
For Larger Business Loans ($100K to $500K) we may be able to provide the conditional pre-approval within six hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending upon the circumstances for each application. Certain transactions have received approval within 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours. Also, allow us to use the modern bank verification to instantly check your bank’s information online. If you upload documents from your account statements , it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer within an hour if you apply during normal business time and you allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your banking statement, we’ll offer a decision in just one business day.
For the Larger Business Loans ($100K to $500K) We may be capable of provide you with a conditional pre-approval within six hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this can be faster depending on the specifics of each application. Certain transactions have received approval within the space of 24 hours.
The fastest method can be ensure you apply during normal business hours. Also, permit us to use the advance bank verification to verify your bank information online. If you decide to send us the copies of bank accounts, it can take a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a certain amount we look at a variety of variables to determine the health of your company and the extent of repayments your company will be able to support. The amount you receive from the loan will be determined by the particular circumstances of your business.
When you make an application for a particular amount, we look at a range of variables to assess your health for your business and the amount of the repayments your company can support. The total amount of your loan will be contingent on the specifics that are unique to your business.
Fees & repayments
What is the cost for a business loan?
If you decide to make an application for business loans with us company financing, we will assess the risk assessment of your business and offer you with a tailored offer, including the amount of the loan, the duration and interest rates. The business loan is a loan that is priced upfront which means you be aware of the total amount payable including any charges or interest.
What is the basis for the rate I’m charged?
Interest rates for business loans rates vary due to factors including the amount that is borrowed, what company assets the funds will be used for as well as the field the company operates in, the long the company has been operating as well as how long the company has enough cash flow to cover the loan, and also the overall well-being or financial standing of the business.
What are the charges?
There aren’t any hidden costs with our business loans, and you’ll know exactly how much you be required to pay, and when, from the first day. There’s no compounding interest, and there are no additional charges (as as long as you pay your payments punctually).
We do not charge an application fee. You are able to request a credit loan no cost upfront or commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I repay the loan in advance?
You can repay the entire amount of the advance loan at any time.
If you decide to take this route, please speak to our friendly company lending professionals. They’ll provide you with repayment details along with an early payout estimate. The figure will be calculated as the sum of the principal balance and accrued interest to the time of early payment plus 1.5 percent of the principal balance as well as any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payment dates and to align with your cash flow routine, we offer repayments either daily or weekly. They are automatically deducted from your company account.
Security & privacy
Will my data be secure?
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 vital and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to customer security and security. We employ an exceptionally sophisticated bank verification system that allows you to immediately verify the bank account details online. This allows us to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the business owner borrows from an asset that they own to obtain the funds for a loan. The asset could be an individual property, such as the family home or a company property like a truck or piece of equipment.
The majority of lenders, even the big banks, tend to secure loans against an asset. If you have trouble paying back the loan then your asset may be transferred to the lender. In essence it is the process of securing new financing using the worth of the asset you already have.
What do I need security to secure an business loan?
For loans of up to $150,000, there is no requirement for asset security before you can access the money However, we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan commitments (as stipulated in your loan contract) the security of assets will never be required. For loans over $150,000 generally, there is the option of a personal guarantee and security that is in the form an asset charge.