FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Macgregor Small Business Loans
Tell me about the Macgregor Small Business Loans
Macgregor unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What makes how is the Unsecured Loan different from an traditional company loan?
Apply to get the Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and funds may be available in just 24 hours. Traditional business loans have an interest rate per annum plus other fees and charges. We offer a business loan is a loan that is priced upfront therefore you’ll know ahead of time the total amount due, which includes the interest, fees and charges. This is then broken down into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company purpose including managing cash flows, company renovations, marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
About Larger Macgregor Business Loans
What is the Larger Macgregor Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount the company needs to have been in operation for at least 3 years with an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funds be utilised?
A Larger Business Loan is a great option for almost any business purpose including company remodeling, buying equipment or inventory or as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. It’s as a result of an charge over assets, which could also include registering this in the PPSR or filing a caveat.
A director’s or personal ensure is a promise to repay a loan which is general in nature, rather than defining the security for a particular asset. The person who signs the guarantee is personally liable in the event that the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including objects or assets). The PPSR grants prioritisation over property that is personal to be granted according to the date a security interest that is registered.
Caveats are legal form of document to provide the public notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan of $250K or more we may be able to provide a preliminary pre-approval to help ease the process. It is possible to get this done without a credit check, and within 6 hours of the initial application. The pre-approval is based upon an initial evaluation that involves you answering some financial well-being checks. It’s neither an offer nor a guarantee of finance. Acceptance without condition is subject to a full credit assessment and any offer that you might receive could be subject to different conditions.
Application process
Can I be eligible for funding?
You may apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for 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 application process is fast and simple. Just complete the online application within a couple minutes, and a dedicated business credit specialist will be in touch to assist you.
To apply for up to $100,000, you’ll need the right identification documents (valid Driver’s License), a valid NZBN/IRD and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details for application including credit consent, 12 months bank statement, an IRD statement, last 2 years finalised financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we can often provide an answer within an hour, provided you submit your request during standard company timings and permit us to utilise the bank verification system link to instantly verify your bank information online. If you opt to submit copies of your bank statement, we’ll provide a decision in just an company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we might be likely to provide the conditional pre-approval in around six hours. After you’ve signed your pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, it could be faster based upon the circumstances for each application. Some offers have been approved in less than 24 hours.
The most effective method is to make sure you apply during normal business hours and let us use the modern bank verification to confirm your bank details online. If you opt to send us copies of your bank statement, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer in just one hour – provided you submit your request in standard business times and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statements, we will be able to provide a decision in just an business day.
For the Larger Business Loans ($100K to $500K) we could be able to offer you with a conditional pre-approval within about six hours. Once you’ve signed your pre-approval form, it will take about 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Some agreements have been approved in 24 hours.
The quickest method is to make sure you apply during standard business hours. You can also allow us to use the modern bank verification to instantly confirm your bank details online. If you send us duplicates of your banking statements it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a certain amount we look at a variety of factors that determine your well-being of the company and the amount of payments your business will be able to support. The total amount of your loan will be contingent on the specifics the company.
When you apply for a particular amount, we will consider a number of aspects to assess how much we can lend you such as well-being of your business and the level of payments your company will be able to support. The amount you receive from the loan will be determined by the specific circumstances the company.
Fees & repayments
How do you charge for an business loan?
If you decide to request our company financing, we’ll assess the risk assessment of your business and provide you with a customised offer that includes loan amount, term and interest rates. A business loan is an upfront cost loan therefore you will be aware of the total amount to be paid, including any charges, interest rates or fees.
What is the factor that determines the price I am charged?
Business loan interest rates vary due to factors like the amount of money borrowed, the company assets the funds will be used for in addition to the industry that the business operates in, the long the company has been operating, how long the business has enough cash flow to support the loan, and the general well-being and creditworthiness of the company.
What are the costs?
There aren’t any hidden costs with our business loans, and you’ll know precisely what it is that you be required to pay, and when, starting from the very first day. There’s no compounding and the loan comes with no additional fees (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You can request a credit loan with no cost upfront or any obligation to sign up.
The Origination Fee includes the expenses 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 percent of the loan amount.
Do I have the option of paying off the loan earlier?
You can repay the total amount of your advance loan at any time.
If you choose to take this route, please call our helpful business loan specialists. They will offer you with repayment details and an early payout figure. It will be calculated using the total of the principal balance and any accrued interest at the time of the early payout and 1.5% of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
To ensure that you don’t miss repayments and to fit in your cash flow schedule, we provide payments that are either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being clear about how we collect data, process, exchange and protect your information, is of huge importance and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We make use of an advanced banking verification system to immediately verify your bank account details online to offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an business owner utilises an asset that they own to secure the funds for a loan. The asset can be either an asset belonging to the personal, like the family home, or an business asset like a truck or piece of equipment.
The majority of lenders, even the largest banks, are inclined to make loans secured by assets. If you have trouble paying back the loan, then your asset may be offered for sale by the lender. In essence it is means of securing additional financing using the worth of the asset you already own.
Are I require security to secure an company loan?
For loans that exceed $150K, there is no requirement for asset security before you can access the money However, we do need the personal guarantee. So long as you comply with the terms of your loan (as stated in your loan contract document) and you are able to meet your obligations, asset security will never be required. For loans that exceed $150K, typically, you will need an individual guarantee and security is provided in the form of a charge over assets.