FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Alberton Small Business Loans
Tell me more about Alberton Small Business Loans
Alberton unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from a traditional company loan?
Apply for the Small Business Loan in under 10 minutes over the phone, receive an instant response and the funds could be in your account in 24 hours. Traditional company loans reference an interest rate per annum as well as other fees and charges. The company loan is a cash-based loan and you’ll be aware of the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into weekly or daily installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for almost every company need, such as control of cash flow business remodeling, marketing for purchasing inventory or new equipment, or as general working capital and so much more. The loan is not available for personal reasons.
Concerning Larger Alberton Business Loans
What is the Larger Alberton Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to have been trading for at least 3 years, and have an annual income of $700K. 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 business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funding for?
A Business Loan of a larger size can be used for nearly all company use, including company improvements, purchasing inventory or new equipment as well as for 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 for accessing funds over $150,000. This is by taking a charge on assets, and may include registering this with the PPSR or the registration of a caveat.
A personal or director’s guarantee is a promise to repay a loan which is general in nature rather than defining security over an asset. The person who is signing the guarantee is personally liable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It records security interests that have been registered in respect of personal property (including items or assets). The PPSR allows priority over personal property to be assigned in accordance with the date on which a security interest was registered.
A caveat is a legal form of document to offer an official notice of a claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking the Larger Business Loan of $250K or more it is possible to offer an initial pre-approval that will help simplify the process. We might be able to do this without credit checks and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves you answering some financial health questions. It is not an offer of credit or guarantee of financing. Unconditional approval is subject to an extensive credit evaluation and any offer you receive could be based on different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application within a few minutes and a dedicated business credit specialist will call you to guide you through the process.
To apply for up $100,000, you’ll require identification details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent and 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, and interim financials from 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 typically provide a response in one hour if you apply during quality business timings and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you decide to submit copies of your bank statements , we will be able to offer an answer within just the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we might be able to provide you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be quicker based on the circumstances of each application. Some deals have been approved in just 24 hours.
The quickest method is to ensure you apply during standard company hours. You can also permit us to use the advanced bank verification system link to instantly check your bank’s information online. If you opt to send us the copies of bank statements it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) we usually offer an answer within an hour, provided you apply in standard business timings and you allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your bank statements, we are able to provide an answer within one business day.
For the Larger Business Loans ($100K and up) we may be capable of provide you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Some agreements have been approved within 24 hours.
The fastest method can be make sure you apply during normal business hours, and permit us to use the advance bank verification link to confirm your bank details online. If you choose to send us duplicates of your banking statement, it takes a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a certain amount, we will consider a number of aspects for determining how much we can lend you health of the business and the amount of payments your company is able to afford. The total amount of the loan will be determined by the particular circumstances of your business.
If you apply for a certain amount, we will consider a number of aspects to determine your health that is your business and the level of the repayments your business is able to afford. The total amount of your loan will be determined by the particulars of your business.
Fees & repayments
What is the cost for the cost of a company loan?
If you decide to apply for one of our business credit, we will assess the risk assessment of your company and offer you with a customised offer, including loan amount, term and the interest rates. The company loan is an upfront priced loan therefore you will be aware of the total amount you will have to pay, including charges or interest.
What determines the amount I’m charged?
Business loan interest rates depend on several factors including the amount borrowed, what company assets the funds are used to purchase in addition to the industry that the business operates in, how long the business is in operation as well as in the event that the company has sufficient cash flow to cover the loan, as well as the general well-being or creditworthiness of the company.
What are the fees?
There are no hidden fees with our company loans, and you’ll know exactly how much you’ll need to pay and when, from the first day. There’s no compounding interest, and no extra fees (as long as you are able to make your payments punctually).
We do not charge an application fee. You are able to apply for a loan with with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated in establishing and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I repay the loan earlier?
You can choose to repay the entire amount of your loan in full at any time.
If you do decide to do this please call our helpful business loan specialists. They’ll offer you with details for repayment and an early payment figure. The figure will be calculated as the sum of the remaining principal amount and the accrued interest up to the time of the early payout, plus 1.5 percent of the remaining principal and any outstanding fees.
How do you make repayments work?
To make sure you do not miss repayments and to fit in with your cash flow cycle we provide repayments either daily or weekly. These are automatically withdrawn from your designated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and knowing how we collect data, process, exchange and safeguard your data, is crucial and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to security for our clients and security. We use an advanced banking verification system to immediately verify the bank account details online to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where the business owner uses assets they own to obtain the funding. The asset may be an individual asset, such as the family home, or it could be a company property like a truck or other piece of machinery.
The vast majority of the lenders not just the largest banks, are inclined to secure loans against assets. If you are having difficulty paying back the loan, your assets could be offered for sale by the lender. In essence it is a way of securing new financing using the worth of the asset you already have.
Do I need security to get an company loan?
Up to $150K in loans no asset security is required prior to the loan’s access, however we do require a personal guarantee. If you adhere to the loan terms (as specified in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans of over $150,000 generally there is the option of a personal ensure and security that is in the form the charge of assets.