FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Augustine Heights Small Business Loans
Tell me how you are able to avail the Augustine Heights Small Business Loans
Augustine Heights unsecured loans offers amounts 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 is what makes the Unsecured Loan different from an ordinary company loan?
You can apply to your Small Business Loan in under 10 minutes over the phone, receive an answer within the same day and have the funds available in just 24 hours. Traditional company loans reference an annual interest rate plus other fees and charges. We offer a business loan is an upfront priced loan so you will know ahead of time the total amount due, which includes the interest, fees and charges. This is then broken down into either weekly or daily payment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business use, including control of cash flow business renovations, marketing, to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available for personal purposes.
About the Larger Augustine Heights Business Loans
What is the Larger Augustine Heights Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range from $100,000 to $500,000 over a fixed term for up to 36 months. Repayments are scheduled weekly or fortnightly to work with the flow of cash.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount, your company needs to have been in operation for at least 3 years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (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 Business Loan can be used to fund almost any business use, including business renovations, to purchase new equipment or inventory as well as for general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. It is usually by way of charge over assets, and could include registering this through the PPSR or making a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is generally based rather than defining security over an asset. The person who is signing the ensure is personally liable if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests registered in respect of personal property (including objects or assets). The PPSR gives priority over personal property to be assigned in accordance with the date on which a security interest has been registered.
An affidavit is an official document that is filed to provide notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan that exceeds $250K, we may offer an initial pre-approval to smooth out the process. We may be able to apply for this without a credit verification and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes answering a couple of financial health questions. This is not an offer of credit or guarantee of funds. The approval of a conditional loan is subject to a full credit assessment and any offer you may receive may have different terms.
The application process
Can I be eligible for funding?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in few minutes and an experienced business lending specialist will be in touch to guide you.
To apply for up $100,000, you’ll require identification details (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Application details including credit consent and 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we typically offer a response in one hour if you submit your request in standard business timings and let us utilise the advanced bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statements we can offer a decision in as little as the span of one business day.
For the Larger Business Loan ($100K and up) we might be able to provide you with conditional pre-approval in about six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however it could be faster based on the specifics of each application. Certain agreements have been approved within 24 hours.
The fastest way would be to make sure you apply during normal business hours, and allow us to use our advance bank verification to instantly verify your bank information online. If you decide to send us copies of your bank statements , it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) we usually provide an answer within an hour – as long as you apply within normal business timings and allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your bank statements, we are able to provide an answer in just the span of one business day.
For the Larger Business Loans ($100K to $500K) We may be in a position to offer you with a conditional pre-approval in about six hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this can be faster depending on the specifics of each application. Certain deals have been approved in 24 hours.
The fastest method can be make sure you apply during normal business hours, and allow us to use the advance bank verification to instantly verify your bank information online. If you decide to send us copies of your bank statement, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a particular amount, we will consider a number of variables in order to assess your health for your business and the amount of the repayments your business will be able to support. The amount you receive from the loan will be determined by the specific circumstances that are unique to your business.
When you submit an application for a specific amount we will consider a number of elements to determine your health for your business and the amount of repayments your business can support. The amount you receive from the loan will be determined by the particular circumstances for your business.
Fees & repayments
How much should you charge for the cost of a company loan?
When you apply for our company financing, we’ll assess the risk profile that you have for your company and provide an individualised offer that includes the amount of the loan, the duration and the interest rates. This company loan is a loan that is priced upfront and you’ll be aware of the total amount to be paid, including any charges, interest rates or fees.
What determines the amount I am charged?
Business loan interest rates differ based on various 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 has been in operation, whether the business has sufficient cash flow to pay for the loan, and overall health as well as creditworthiness company.
What are the charges?
There are no hidden costs with our company loans. You’ll know precisely what you’ll be required to pay and at what time, 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 can request a credit loan without any upfront costs or the obligation to take action.
The Origination Fee includes the expenses associated with setting up and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay out the loan in advance?
You may choose to pay back all of your advance loan at any time.
If you decide to take this route, please talk to one of our helpful business credit experts. They’ll provide you with details on repayment as well as an early payout amount. It will be calculated using the sum of the principal balance and any accrued interest at the time of early payout in addition to 1.5% of the principal remaining and any outstanding fees.
What are the repayment methods?
To help you avoid missing due dates and also to be in line your cash flow schedule, we provide repayments either daily or weekly. They are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being clear about the ways we gather data, process, exchange and ensure the security of your information is vital and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We make use of an advanced bank verification system to immediately verify the bank account details online to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a company owner utilises an asset that they own to obtain the loan. The asset could be an individual asset, such as the family home, or an business asset such as a vehicle or other piece of machinery.
The majority of lending institutions, not just the banks with the biggest size, prefer to make loans secured by assets. If you are having difficulty paying back the loan, then your assets could be sold by the lender. In essence, it’s an opportunity to secure new financing using the worth of the asset you already have.
Are I need security to secure a business loan?
For loans up to $150,000 no asset security is required before you can access the money However, we require a personal guarantee. need a personal guarantee. In the event that you fulfill the terms of your loan (as detailed in your loan contract) Asset security is not needed. For loans that exceed $150K, generally, there is the option of a personal guarantee and security that is in the form the charge of assets.