FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Lutwyche Small Business Loans
Let me know more about Lutwyche Small Business Loans
Lutwyche unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from an traditional business loan?
You can apply to the Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and the money could be on your account within 24 hours. Traditional company loans refer to an annual interest rate along with other charges and fees. This company loan is a cash-based loan therefore you’ll be aware of the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into either weekly or daily repayment figure.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company need, such as the management of cash flow, company renovations, marketing to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used to fund personal expenses.
Concerning Larger Lutwyche Business Loans
What is the Larger Lutwyche Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans are between $100,000 and $500,000 with a term fixed that can last up to 36 months. The repayments are made weekly or fortnightly, depending on you cashflow.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan that is this large, your business needs to be operating for at least three years with an annual turnover of at least $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funds be used for?
A large company loan can be used to fund almost every company need, including business renovations, purchase of equipment or inventory for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. This is by taking a charge against assets, which could also include registering this through the PPSR or registering as a caveat.
A personal or director’s ensure is a promise to pay back a loan that is general in nature rather than specifying the security of a specific asset. The person who is signing the guarantee is personally liable in the event that the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests registered in respect of personal property (including objects or assets). The PPSR gives preference over private property assigned according to the date a security interest has been registered.
The caveat can be described as a formal form of document to offer an official notice of a claim against a property.
What is a pre-approval minus Credit Check?
If you’re applying for the Larger Business Loan that exceeds $250,000, we may offer a preliminary pre-approval to help smooth out the process. It is possible to apply for this without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves the answer to a series of financial health questions. This is in no way an offer, nor is it a guarantee of finance. A conditional approval is subject a full credit assessment and any offer you might receive could be subject to different terms.
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 over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form within a few minutes and a dedicated business expert in lending will contact you to assist you.
To apply for up to $100,000 you’ll need ID details (valid Driver’s Licence) and an NZBN/IRD that is valid and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent and 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K or more) we can often provide an answer within an hour, provided you apply in standard company timings and allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your banking statements , we are able to provide an answer in as little as an business day.
For the Larger Business Loan ($100K or more) we may be likely to provide you with conditional pre-approval within six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this may be quicker depending upon the circumstances for each application. Certain deals have been approved within just 24 hours.
The quickest method can be ensure you apply during standard business hours. You can also allow us to use our advanced bank verification system to instantly verify your bank information online. If you opt to send us the copies of bank statement, it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K to $100K) we typically provide an answer in just one hour, provided you submit your request in standard business time and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statement, we’ll provide the decision in just one business day.
If you are applying for Larger Business Loans ($100K or more) we might be likely to provide you with pre-approval conditional to your application within about 6 hours. Once you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Some offers have been approved within just 24 hours.
The most effective method is to make sure you apply during standard business hours. You can also allow us to use our modern bank verification link to check your bank’s information online. If you decide to send us copies of your bank statements, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a particular amount, we consider a variety of factors to determine the health that is your company and the extent of repayments your company is able to afford. The total amount of your loan will depend on the particular circumstances that are unique to your company.
When you submit an application for a certain amount, we look at a range of variables to determine your health of the business and the amount of payments your company can support. The total amount of your loan will be contingent on the specifics that are unique to your company.
Fees & repayments
How do you charge for a business loan?
When you request the company loan, we will assess the risk profile for your company and provide you with a tailored offer, including the amount of loan, the term and interest rates. This business loan is an upfront-priced loan therefore you will know the exact amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I pay?
The interest rates on company loans rates depend on several factors like the amount of money that is borrowed, what business assets the money will be used for as well as the field the business is in, how long the company has been operating and in the event that the company has sufficient cash flow to support the loan, and general well-being or creditworthiness of the company.
What are the costs?
There aren’t any hidden charges with our company loans. You’ll know precisely what you’ll need to pay, and when, starting from day one. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments in time).
We don’t charge an application fee. You are able to apply for a loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan early?
You may choose to pay back all of your loan in full at any time.
If you choose to take this route, please talk to one of our helpful company credit specialists. The experts will provide you with details for repayment and an early payment figure. The figure will be calculated as the total of the principal balance and accrued interest to the time of early payment and 1.5% of the principal remaining as well as any outstanding fees.
How do repayments work?
To make sure that you don’t miss payment dates and to align with your cash flow cycle we offer repayments that are either daily or weekly. These are automatically deducted from your business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing how we collect, use, exchange and ensure the security of your information is of paramount importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to the security of our customers as well as their privacy. We use an advanced banking verification system to instantly verify your bank account information online to provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an business owner utilises an asset they own to obtain the funding. The asset could be an asset belonging to the personal, like the family home or a business property like a truck or piece or equipment.
The majority of lenders, even the major banks, prefer to make loans secured by assets. If you have trouble paying back the loan, then the asset might be offered for sale by the lender. In essence it’s an opportunity to secure new funding making use of the value of what you already own.
What do I need security to get an business loan?
For loans up to $150,000 there is no requirement for asset security before you can access the money However, we do require the personal guarantee. So long as you comply with your loan commitments (as stated in your loan contract document), asset security is not required. For loans over $150,000 typically, you will need personal guarantee and security in the form a charge over assets.