FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Mango Hill Small Business Loans
Let me know about the Mango Hill Small Business Loans
Mango Hill unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from an traditional company loan?
You can apply to this Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and have the funds available in just 24 hours. Traditional business loans have an annual rate of interest along with other charges and fees. We offer a company loan is an upfront priced loan so you will be aware of the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into either a daily or weekly installment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any company need, such as cash flow management, business improvements, advertising, to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used to fund personal expenses.
Concerning Larger Mango Hill Business Loans
What is the Larger Mango Hill Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. The repayments are made weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size the company needs to have been operating for a minimum of 3 years with an annual turnover of at least $700,000. It is necessary to be 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 minimum 12 months of continuous trading.
What can the funding be used for?
A large business loan is a great option for almost all company use, including business remodeling, buying inventory or new equipment as well as for general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. This is by taking a charge against assets, and could be registered with the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is generally based rather than specifying security over an asset. The person who is signing the guarantee is personally responsible if the company lender is not able to make the repayment.
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 granted to individuals who own personal property (including goods or assets). The PPSR allows preference over private property granted according to the date the registration of a security interest.
An affidavit is an official document lodged to offer the legal claim to a property.
What exactly is a preapproval without Credit Check?
When you’re applying for larger business loans of $250,000 or more, we may offer an initial pre-approval to ease the process. It is possible to apply for this without a credit verification and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial health checks. It is not an offer or guarantee of credit. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you receive could be on different conditions.
Application process
Do I have the right to receive funds?
You can apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a couple minutes, and a dedicated company credit specialist will call you to guide you through the process.
To apply for up $100,000 you’ll need proof of identity (valid Driver’s License) and a valid NZBN/IRD and at least six months of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Application details including credit consent and 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, as well as interim current financial year financials including Aged Payables, Aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we typically provide an answer in just one hour if you make your application within standard business times and let us use the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statements , we are able to provide an answer within 1 business day.
For the Larger Business Loan ($100K or more) we might be capable of offer the conditional pre-approval in around 6 hours. After you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain offers have been approved in just 24 hours.
The most effective method for you to apply is ensure you apply during standard company hours and allow us to use the advanced bank verification system to instantly confirm your bank details online. If you send us documents from your account statements , it can take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we typically provide an answer in just one hour, provided you make your application within standard business times and you allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statements, we are able to offer 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 conditional pre-approval within 6 hours. Once you’ve signed your pre-approval document, you will require to wait around 2-3 days for final approval. However, this can be faster depending on the circumstances of each application. Certain transactions have received approval within 24 hours.
The fastest method would be to ensure you apply during standard business hours and permit us to use the sophisticated bank verification to instantly check your bank’s information online. If you upload copies of your bank statements, it takes a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you submit an application for a certain amount we will consider a number of factors in order to assess the health for your company as well as the amount of repayments that your company can afford. The total amount of the loan will be determined by the specific circumstances of your business.
When you submit an application for a certain amount, we consider a variety of factors to determine the well-being of the company and the level of payments your company can afford. The amount you receive from the loan will be determined by the particulars the company.
Fees & repayments
How much do you charge for an business loan?
When you apply for one of our company loans, we’ll assess the risk profile that you have for your company and offer an individualised proposal that includes the loan amount, the terms and the interest rates. The business loan is a loan that is priced upfront so you will be aware in advance of the total amount due, which includes any interest rates, fees or charges.
What determines the rate that I’m charged?
Business loan interest rates depend on several factors such as the amount that is of money borrowed, the business assets the money are used to purchase and the sector the company is operating in, how long the business has been in operation and how long the company has sufficient cash flow to fund the loan, as well as the general well-being or financial standing of the company.
What are the cost?
There aren’t any hidden costs with our company loans. You’ll know precisely what you’ll need to pay and when, from day one. There’s no compounding and the loan comes with no additional fees (as as you make your payments on time).
We do not charge an application fee. You are able to request a credit loan with no upfront cost or the obligation to take action.
The Origination Fee includes the expenses associated in establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Do I have the option of paying off the loan earlier?
You may choose to pay back the entire amount of your loan in full at any time.
If you do decide to do this please contact our helpful business credit professionals. They’ll offer you with repayment details along with an early payout estimate. The figure will be calculated as the sum of the principal remaining and any accrued interest at the date of early payout, plus 1.5 percent of the remaining principal and any fees that remain unpaid.
What is the process for repayments?
To help you avoid missing due dates and also to be in line with your cash flow general, we provide payments that are either weekly or daily. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as making it clear how we collect information, use it, and exchange it, as well as safeguard your data, is crucial and is a crucial part 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 customer security and security. We make use of an advanced bank verification system that allows you to immediately verify your bank account information online to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the company owner utilises an asset that they own to make a loan. The asset may be a personal asset like the family home, or a business asset such as a truck or piece or equipment.
The vast majority of lenders, including the largest banks, are inclined to make loans secured by assets. If you have trouble paying back the loan, your assets could be offered for sale by the lender. In essence, it’s means of securing new funding using the value of what you already have.
Do I require security for a business loan?
For loans up to $150,000 the requirement for asset security is not required in advance to gain access to the funds However, we do require the personal guarantee. As long as you follow the loan terms (as detailed in the loan contract) Asset security is not needed. For loans that exceed $150,000, typically, you will need an individual guarantee and security in the form of charges on assets.