FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Mount Burnett Small Business Loans
Tell me what you think of the Mount Burnett Small Business Loans
Mount Burnett unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from a traditional business loan?
The application for the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an answer within the same day and the money could be in your account within 24 hours. Traditional company loans are based on an annual rate of interest as well as other fees and charges. This company loan is a pre-paid loan which means you be aware in advance of the total amount payable including the interest, fees and charges. Then, it is divided into weekly or daily amount to be paid back.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every business need, such as 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 purposes.
About the Larger Mount Burnett Business Loans
What is the Larger Mount Burnett Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of up to 36 months. The repayments are made weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan of this size the business needs to be trading for at least 3 years, and have an annual income of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funding be used for?
A larger company loan can be used for almost every business need, including company improvements, purchasing new equipment or inventory as well as for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This can be done as a result of an charge over assets, and could include the registration of this on the PPSR or filing as a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is general in nature, rather than defining the security for a particular asset. The person signing the ensure is personally accountable if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR permits prioritisation over property that is personal to be assigned depending on the date that a security interest was registered.
A caveat is a legal document that is filed to provide the legal claim to property.
What is a pre-approval without Credit Check?
If you’re applying for the Larger Business Loan of more than $250,000 it is possible to offer an initial pre-approval in order to ease the process. It is possible to make this decision without credit checks and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes the answer to a series of financial health questions. It is not an offer or guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you receive could be based on different conditions.
The application process
Are I eligible for funding?
You may apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Complete the online form within a few minutes and a dedicated company credit specialist will call you to assist you.
To apply for up $100,000 you’ll need identification details (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Application details including credit consent twelve months bank statement, an IRD statement, last 2 years finalised financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we can often offer an answer in just one hour, provided you make your application during standard business hours and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you opt to send us copies of your bank statements , we are able to provide an answer within just an company day.
If you are applying for a Larger Business Loan ($100K and up) we could be able to offer you with pre-approval conditional to your application in around six hours. After you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval. However, this can be quicker based upon the circumstances for each application. Some offers have been approved within the space of 24 hours.
The most efficient method would be to ensure you apply during normal company hours, and allow us to use the modern bank verification to verify your bank information online. If you upload documents from your account statements it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we typically offer an answer in just one hour if you submit your request in normal business hours and allow us to use the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your bank statements we can provide a decision within the span of one business day.
If you are applying for Larger Business Loans ($100K and up) we could be able to offer the conditional pre-approval within about 6 hours. Once you have signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Some deals have been approved within just 24 hours.
The fastest method can be ensure you apply during standard business hours and let us use the sophisticated bank verification to instantly verify your bank information online. If you decide to send us the copies of bank accounts, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a certain amount we look at a variety of aspects for determining what is the well-being for your business and the level of repayments your company will be able to support. The total amount of the loan will be determined by the specific circumstances for your business.
When you make an application for a specific amount we consider a variety of factors to assess how much we can lend you such as well-being of the business as well as the amount of payments your company will be able to support. The amount you receive from your loan will be determined by the particular circumstances of your company.
Fees & repayments
What is the cost for the cost of a business loan?
If you decide to apply for the company loans, we’ll assess the risk profile that you have for your business and provide you with a customised offer including the amount of the loan, the duration and interest rates. This company loan is an upfront priced loan therefore you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I am charged?
Business loan interest rates differ based on various variables like the amount to be of money borrowed, the company assets the funds will be used for and the sector the company operates in, the long the company has been in operation for, whether the business has enough cash flow to pay for the loan, and also the general well-being or creditworthiness of the company.
What are the fees?
There aren’t any hidden costs with our business loans. You’ll be aware of the amount you’ll need to pay and when, right from the very first day. There’s no compounding and there are no additional charges (as long as you are able to make your payments on time).
We do not charge an application fee. You are able to request a credit loan no cost upfront or obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. This is only a fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay off the loan early?
You can choose to repay all of your loan early at any time.
If you choose to take this route, please call our helpful business loan specialists. They will offer you with details for repayment and an early payment figure. It will be calculated using the sum of the principal remaining and accrued interest to the time of early payment, plus 1.5 percent of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
To help you avoid missing repayments and to fit in with your cash flow routine, we provide payments that are either weekly or daily. These are automatically deducted from your business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being upfront about the ways we gather the information we collect, use, share and ensure the security of your information is of huge importance and a vital 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 standards to protect your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their privacy. We make use of an advanced bank verification system link to immediately verify your 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 business owner utilises assets they own to get a loan. The asset may be an individual asset, such as the family home or it could be a business asset such as a vehicle or piece or equipment.
The majority of the lenders even the largest banks, are inclined to guarantee loans against assets. If you’re struggling to pay back the loan then your assets could be taken over by the lender. In essence it’s an opportunity to secure new funding using the value of what you already have.
What do I require security to get an business loan?
For loans up to $150,000 it is not necessary to secure assets upfront to access the money However, we require a personal guarantee. need the personal guarantee. If you adhere to your loan commitments (as stated in your loan contract document) Asset security will never be required. For loans over $150,000 typically, you will need personal ensure and security in the form an asset charge.