FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Acacia Ridge Small Business Loans
Tell me how you can avail the Acacia Ridge Small Business Loans
Acacia Ridge unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What makes how is the 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 an answer within the same day and the funds could be available in just 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. The business loan is a pre-paid loan and you’ll know ahead of time the total amount payable including any fees, interest or charges. Then, it is broken down into weekly or daily installment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company purpose including the management of cash flow, 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 the Larger Acacia Ridge Business Loans
What is the Larger Acacia Ridge Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount, your company needs to have been operating for at least three years and generate an annual revenue of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funds be used for?
A Larger Business Loan can be used for nearly all company need, including business remodeling, buying equipment or inventory as well as for general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. This is by way of charge over assets and can include registration in the PPSR or filing as a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is general in nature rather than stipulating the security for a particular asset. The person who signs the ensure is personally accountable if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including the assets or goods). The PPSR grants priority over personal property to be assigned according to the date a security interest that is registered.
A caveat is a legal form of document to provide notice of a legal claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan of more than $250K it is possible to offer an initial pre-approval that will help ease the process. We may be able to apply for this without a credit check and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering some financial health questions. It is in no way an offer, nor is it a guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you might receive could be based on different terms.
Application process
Can I be eligible for funding?
You are eligible to apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for you to qualify for 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 easy. Simply complete the online form within a few minutes and an experienced company loan specialist will be in touch to help you.
To apply for up to $100,000, you’ll need proof of identity (valid Driver’s Licence), an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Application details including credit consent as well as 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, plus interim financial statements for the current year as well as Aged Payables and Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer in just one hour – as long as you apply during quality business hours and allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your banking statements we can provide the decision in just 1 business day.
For Larger Business Loans ($100K to $500K) we might be able to provide the conditional pre-approval in around six hours. After you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Some agreements have been approved within just 24 hours.
The quickest way to apply would be to ensure you apply during normal company hours, and permit us to use the advanced bank verification system to instantly confirm your bank details online. If you send us duplicates of your banking statements it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we typically provide an answer within one hour, provided you make your application at normal business times and let us make use of the advanced bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statements, we will be able to offer a decision in just the span of one business day.
For the Larger Business Loans ($100K to $500K) we might be able to provide you with conditional pre-approval in around six hours. Once you have signed the pre-approval document, you will require to wait about 2-3 days for final approval, however this could be shorter based on the specifics of each application. Certain agreements have been approved in the space of 24 hours.
The quickest method would be to make sure you apply during normal business hours and allow us to use the modern bank verification to instantly confirm your bank details online. If you upload the copies of bank accounts, it may take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a specific amount we will consider a number of aspects in order to assess the health of your business and the extent of payments your business is able to afford. The amount you receive from your loan will be contingent on the particular circumstances the business.
If you apply for a set amount, we will consider a number of variables to determine how much we can lend you such as well-being of your business and the amount of repayments that your business can support. The amount you receive from your loan will be contingent on the specifics of your business.
Fees & repayments
How much should you charge for the cost of a business loan?
When you apply for the company loan, we will assess the risk assessment for your business and offer an individualised offer that includes loan amount, term and the interest rates. It is a business loan is an upfront-priced loan which means you know the exact amount payable including any charges, interest rates or fees.
What determines the amount I’m charged?
Business loan interest rates vary due to factors including the amount of money borrowed, the company assets the funds will be used for as well as the field the business is in, how long the business has been operating, what percentage of the company has sufficient cash flow to cover the loan, and also the general health and creditworthiness of the company.
What are the charges?
There aren’t any hidden charges with our business loans. You’ll know precisely how much it is that you be required to pay, and when, right from the day you sign up. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments punctually).
We don’t charge an application fee. You are able to request a credit loan with no upfront cost or commitment to apply.
The Origination Fee covers the costs associated with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan earlier?
You can decide to repay all of your loan in full at any time.
If you are deciding to take this route, please contact our helpful business lending specialists. We will provide you with details for repayment along with an early payout estimate. It will be calculated using the sum of the principal amount remaining plus any accrued interest as of the date of early payout and 1.5% of the principal amount remaining as well as any outstanding fees.
How do repayments work?
To ensure that you don’t miss payments and to work with your cash flow routine, we provide repayments either daily or weekly. These are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Security of your data, and making it clear the ways we gather, use, exchange and ensure the security of your information is of paramount importance and is a crucial 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 security for our clients and privacy. We utilise a sophisticated bank verification system to immediately verify the bank account details online to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an business owner borrows from assets they own to obtain the funds for a loan. The asset can be either a personal asset like the family home or a company asset such as a truck or other piece of machinery.
The majority of lenders, including the banks with the biggest size, prefer to make loans secured by assets. If you have trouble paying back the loan then the asset could be taken over by the lender. In essence, it’s the process of securing additional financing taking advantage of the value of what you already have.
Are I need security for a company loan?
For loans of up to $150K, it is not necessary to secure assets prior to the loan’s access, however we require a personal guarantee. need a personal guarantee. So long as you comply with your loan commitments (as detailed in your loan contract document) the security of assets will never be required. For loans over $150K generally, you can get personal guarantee and security is provided in the form of the charge of assets.