FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Yallambie Small Business Loans
Tell me about the Yallambie Small Business Loans
Yallambie unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
How is how is the Unsecured Loan different from an traditional business loan?
You can apply to your Small Business Loan in under 10 minutes online or by phone. You will receive a same day response and the funds could be available in just 24 hours. Traditional company loans have an interest rate per annum along with other charges and fees. This company loan is a cash-based loan and you’ll be aware of the amount you will have to pay, including the interest, fees and charges. This is then broken down into weekly or daily payment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every business reason, such as the management of cash flow, company remodels and marketing to purchase inventory, new equipment, for general working capital and much more. The loan is not available for personal reasons.
About the Larger Yallambie Business Loans
What is the Larger Yallambie Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to have been in operation for at least 3 years, and have an annual income of $700,000. Your company must belong to 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 demonstrate at minimum 12 months of continuous trading.
How can the funding be used for?
A Larger Business Loan can be used for almost all business reason, such as business renovations, purchase of new equipment or inventory or as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. This can be done by taking a charge on assets, and may include the registration of this in the PPSR or registering a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is general in nature rather than specifying security over a particular asset. The person who is signing the ensure is personally accountable if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It lists security interests that are that are registered for 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.
The caveat can be described as a formal document lodged to offer notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re applying for larger company loans that is greater than $250K we may be able to provide an initial pre-approval in order to make the process. We might be able to apply for this without a credit check, and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves the answer to a series of financial health questions. It is not an offer or guarantee of finance. Unconditional approval is subject to a full credit assessment and any offer that you receive could have different terms.
The application process
Do I have the right to receive funds?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a few minutes and a dedicated company credit specialist will be in touch to guide you through the process.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details for application including credit consent, 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we usually provide an answer within one hour if you apply within standard company hours and allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statements we can provide the decision in as little as 1 business day.
For the Larger Business Loan ($100K or more) we might be in a position to provide you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Some offers have been approved in 24 hours.
The most efficient method for you to apply is ensure you apply during normal company hours. You can also allow us to use our advance bank verification to instantly check your bank’s information online. If you choose to upload the copies of bank statements , it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) We can usually offer an answer in just one hour, provided you apply during normal business timings and you allow us to use the bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your bank statements, we are able to provide an answer in as little as an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be capable of provide you with a conditional pre-approval within six hours. Once you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this can be faster depending on the circumstances of each application. Some transactions have received approval in the space of 24 hours.
The fastest method would be to ensure you apply during normal business hours, and allow us to use the advance bank verification to instantly verify your bank account information online. If you decide to upload copies of your bank statements, it will take a little longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a particular amount, we will consider a number of elements in order to assess the well-being for your business and the extent of repayments your company can afford. The amount you receive from your loan will be contingent on the specific circumstances that are unique to your business.
When you apply for a set amount, we will consider a number of variables to assess the health of your company as well as the amount of repayments that your business will be able to support. The amount you receive from your loan will depend on the specific circumstances for your company.
Fees & repayments
How much should you charge for an business loan?
When you make an application for business loans with us business loan, we’ll assess the risk assessment for your company and offer an individualised offer, including the amount of the loan, the duration and the interest rates. This company loan is an upfront priced loan and you’ll know in advance the total amount due, which includes any charges, interest rates or fees.
What determines the amount I am charged?
Business loan interest rates depend on several factors including the amount that is borrowed, what company assets the money will be used for, the industry the business is in, how long the business has been in operation and in the event that the business has enough cash flow to pay for the loan, as well as the general health or creditworthiness of the business.
What are the cost?
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 very first day. There’s not any compounding interest and no extra fees (as as you make your payments on time).
We do not charge an Application Fee. You can make an application for loans with no cost upfront or obligation to proceed.
The Origination Fee covers the costs associated with establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I repay the loan in advance?
You can repay all of your advance loan at any time.
If you are deciding to take this route, please talk to one of our helpful business loans specialists. They’ll provide you with the details of your repayment and an early payment figure. This will be calculated as the sum of the principal balance and accrued interest to the time of the early payout and 1.5 percent of the remaining principal plus any outstanding fees.
What are the repayment methods?
To help you avoid missing repayments and to fit in with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as making it clear the ways we gather information, use it, and exchange it, as well as secure your information, is of huge importance and is an essential part 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 personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We use an advanced bank verification system to immediately verify your bank account details online to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a company owner borrows from an asset they own to obtain the loan. The asset may be an asset belonging to the personal, like the family home or an business asset such as a truck or other piece of machinery.
The majority of lending institutions, not just the big banks, tend to guarantee loans against assets. If you are having difficulty paying back the loan, your asset may be offered for sale by the lender. In essence, it is an opportunity to secure new funding taking advantage of the value of what you already own.
Should I require security to get a business loan?
For loans up to $150K no asset security is required upfront to access the money, however we do require the personal guarantee. As long as you follow your loan commitments (as specified in the loan contract) the security of assets will never be required. For loans over $150,000 typically, you will need a personal guarantee and security that is in the form an asset charge.