FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Lyons Small Business Loans
Tell me about the Lyons Small Business Loans
Lyons unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from the traditional company loan?
You can apply to this Small Business Loan in under 10 minutes over the phone. You’ll get an instant response and have the funds in your account in 24 hours. Traditional business loans are based on an interest rate per annum together with additional fees and charges. The company loan is a pre-paid loan which means you know in advance the total amount to be paid, including any fees, interest or charges. This is then broken down into weekly or daily repayment figure.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every business reason, such as control of cash flow business remodeling, marketing to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal use.
About Larger Lyons Business Loans
What is the Larger Lyons Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly, depending on you cashflow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your company needs to have been trading for at least 3 years and have an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funds be utilised?
A Larger Business Loan can be used to fund almost every company use, including business renovations, purchase of inventory or new equipment as well as for general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. This can be done by way of charge over assets, and could be registered on the PPSR or filing a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is generally based rather than defining the security for a particular asset. The person who is signing the ensure is personally liable in the event that the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including goods or assets). The PPSR grants priority over personal property to be assigned according to the date a security interest was registered.
An affidavit is an official form of document to offer the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting the Larger Business Loan that is greater than $250,000 it is possible to offer an initial pre-approval to simplify the process. We may be able to do this without a credit check and within 6 hours of the initial application. This pre-approval is based on an initial assessment that includes you answering a few financial health questions. It is not an offer of credit or guarantee of credit. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you may receive may be based on different conditions.
Application process
Do I qualify for funds?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for a 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 quick and simple. Simply complete the online form in just a few minutes, and a dedicated company lending specialist will call you to assist you.
To apply for up to $100,000 you’ll need ID details (valid Driver’s Licence), a valid NZBN/IRD as well as at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent, 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, plus interim financial statements for the current year, Aged Payables and Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we typically offer a response in one hour, provided you apply in quality business times and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statements we can offer an answer within just one business day.
For Larger Business Loans ($100K to $500K) we may be in a position to offer you with pre-approval conditional to your application in around 6 hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Some deals have been approved within just 24 hours.
The quickest way to apply would be to make sure you apply during normal company hours and allow us to use our advance bank verification to verify your bank information online. If you opt to send us copies of your bank statements it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K to $100K) we usually provide an answer within one hour, provided you make your application within normal business time and let us make use of the advanced bank verification system link to instantly verify your bank details online. If you want to send us copies of your bank statements, we are able to offer an answer in as little as 1 business day.
For the Larger Business Loans ($100K and up) we could be likely to provide you with a conditional pre-approval in around six hours. Once you have signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this can be faster depending on the particular circumstances of each application. Some offers have been approved within less than 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours, and allow us to use the advanced bank verification system link to check your bank’s information online. If you opt to send us documents from your account accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a certain amount, we take into consideration a range of factors in order to assess the health of the company and the level of payments your business can support. The total amount of your loan will depend on the specifics that are unique to your business.
If you apply for a certain amount, we consider a variety of elements to determine the health that is your business and the amount of repayments your business is able to afford. The total amount of the loan will be determined by the particulars for your business.
Fees & repayments
How much should you charge for an company loan?
When you make an application for our company loan, we will assess the risk assessment for your business and provide an individualised offer, including loan amount, term and the interest rates. A business loan is an upfront cost loan therefore you will know the exact amount payable including any charges or interest.
What is the basis for the rate I pay?
Interest rates for company loans rates depend on a variety of variables like the amount to be that is borrowed, what company assets the funds will be used for and the sector the company is operating in, how long the business has been operating for, how long the company has sufficient cash flow to support the loan, as well as the overall health and creditworthiness of the company.
What are the fees?
There aren’t any hidden charges for our business loans, and you’ll know precisely what you need to pay, and at what time, from the first day. There’s no compounding interest and there are no additional charges (as long as you make your payments on time).
We do not charge an application fee. You are able to request a credit loan without any upfront costs or commitment to apply.
The Origination Fee includes the expenses associated with establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan earlier?
You can repay the total amount of your loan in full at any time.
If you decide to pursue this option, please call our helpful business credit experts. The experts will offer you with details for repayment as well as an early payout amount. The figure will be calculated as the total of the principal balance and any accrued interest at the date of early payout in addition to 1.5 percent of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss payments and to work your cash flow cycle we offer repayments that are either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and being upfront about the ways we gather data, process, exchange and safeguard your data, is vital and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to protecting the security of customers and privacy. We use an advanced bank verification system link to immediately verify the bank account details online so we can offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where an business owner borrows from the assets they have to make the funding. The asset could be an asset belonging to the personal, like the family home or an business asset like a truck or piece or equipment.
The vast majority of banks, even the major banks, prefer to secure loans against assets. If you’re having trouble paying back the loan then your asset may be sold by the lender. In essence it is means of securing new financing by making use of the value of what you already have.
Do I need security to secure a company loan?
For loans that exceed $150K, there is no requirement for asset security before you are able to access the money, however we require a personal guarantee. need an individual guarantee. If you adhere to the terms of your loan (as specified in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans that exceed $150,000, generally, there is personal guarantee and security that is in the form a charge over assets.