FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Merricks North Small Business Loans
Tell me how you can avail the Merricks North Small Business Loans
Merricks North unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from the traditional company loan?
It is possible to apply to get this Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and have the funds available in just 24 hours. Traditional company loans refer to an annual rate of interest together with additional 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, interest or charges. Then, it is broken down into a daily or weekly installment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost any company use, including the management of cash flow, business remodeling, marketing, to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal use.
About larger Merricks North Business Loans
What is the Larger Merricks North Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term with a maximum of 36 months. Repayments are weekly or fortnightly depending on you cashflow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to have been operating for at least three years with an annual turnover of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funding be utilised?
A Business Loan of a larger size can be used for almost any company need, including business renovations, purchase of inventory or new equipment, as general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. This is in the form of a charge against assets, and could be registered through the PPSR or making a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is generally in nature rather than stating the security for a particular asset. The person who signs the guarantee is personally liable if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including the assets or goods). The PPSR grants the priority of personal property assigned depending on the date that a security interest has been registered.
Caveats are legal document lodged to offer an official notice of a claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan that exceeds $250K we can offer an initial pre-approval in order to simplify the process. It is possible to make this decision without a credit check, and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes answering a couple of financial well-being questions. It’s not an offer of credit or guarantee of financing. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you are offered could be based on different conditions.
The application process
Do I have the right to receive funds?
You are eligible to apply for a 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)
- you must prove at least 6 months of trading (for you to qualify for 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 fast and easy. Just complete the online application within a few minutes and an experienced company credit specialist will be in touch to assist you.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s License) and a valid NZBN/IRD and at least 6 months 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 loan above $150K).
$250K to $500K: Details for application including credit consent twelve months bank statement, an IRD statement and the last two years’ finalised financial statements, and interim current financial year financials such as age-related payables and aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we can often provide an answer within one hour if you make your application in quality business times and permit us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your bank statements , we will be able to provide an answer within just the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we might be in a position to offer you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved within 24 hours.
The fastest way can be ensure you apply during normal business hours, and allow us to use our modern bank verification to instantly check your bank’s information online. If you decide to send us copies of your bank accounts, it may take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) we can often offer a response in one hour, provided you submit your request within standard business timings and allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your banking statements, we are able to provide a decision in just an business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be capable of provide you with a conditional pre-approval within six hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Some offers have been approved within the space of 24 hours.
The quickest method is to ensure you apply during standard business hours. You can also allow us to use our modern bank verification link to check your bank’s information online. If you decide to send us documents from your account statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a certain amount, we consider a variety of factors that determine how much we can lend you well-being that is your company and the level of the repayments your business can support. The amount you receive from your loan will be contingent on the particular circumstances of your company.
When you submit an application for a specific amount we take into consideration a variety of aspects to assess your health for your business as well as the amount of payments your company can afford. The amount you receive from your loan will depend on the specific circumstances the business.
Fees & repayments
How much do you charge for the cost of a company loan?
When you apply for business loans with us business financing, we will assess the risk profile of your business and provide you with a customised offer including loan amount, term and the interest rates. A business loan is a loan that is priced upfront and you’ll be aware in advance of the total amount you will have to pay, including costs, fees, or interest rates.
What is the factor that determines the price I’m charged?
Interest rates for business loans rates differ based on various variables like the amount to be borrowed, the business assets the funds will be used for, the industry the company operates in, the long the company has been running, in the event that the company has sufficient cash flow to fund the loan, and the general health and creditworthiness of the company.
What are the cost?
There are no hidden fees with our company loans, and you’ll know precisely how much you need to pay, and when, from the day you sign up. There’s not any compounding interest and no additional fees (as long as you make your payments on time).
We don’t charge an Application Fee. You are able to get a cash loan absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the costs 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 loan.
Can I pay off the loan earlier?
You may choose to pay back all of your advance loan at any time.
If you are deciding to take this route, please call our helpful business loan experts. The experts will provide you with repayment details along with an early payout estimate. This will be calculated as the sum of the remaining principal amount and any accrued interest at the time of the early payout in addition to 1.5 percent of the remaining principal plus any outstanding fees.
How do repayments work?
To make sure you do not miss due dates and also to be in line with your cash flow routine, we offer repayments that are either weekly or daily. These are automatically withdrawn from your designated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing how we collect the information we collect, use, share and ensure the security of your information is vital and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our customers as well as their privacy. We use an advanced bank verification system link to immediately confirm your bank account information online to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when the company owner borrows from an asset that they own to make the funding. The asset may be an individual property, such as the family home, or an business asset such as a vehicle or other piece of machinery.
The vast majority of the lenders including the major banks, prefer to make loans secured by assets. If you have trouble paying back the loan, then the asset might be taken over by the lender. In essence, it is a way of securing additional financing using the worth of the asset you already own.
What do I require security for an company loan?
For loans up to $150,000 it is not necessary to secure assets upfront to access the money However, we do need a personal guarantee. If you adhere to the loan terms (as stated in the loan contract) and you are able to meet your obligations, asset security is not required. If you take out loans in excess of $150K typically, you will need an individual ensure and security in the form of a charge over assets.