FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Mcdowall Small Business Loans
Tell me what you think of the Mcdowall Small Business Loans
Mcdowall unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from an traditional business loan?
You can apply to your Small Business Loan in under 10 minutes via the internet or by phone. You will receive an immediate response, and the money could be on your account within 24 hours. Traditional company loans are based on an interest rate per annum plus other fees and charges. The company loan is a pre-paid loan therefore you’ll be aware in advance of the total amount to be paid, including any fees, interest or charges. This is then broken down into a daily or weekly repayment figure.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business use, including control of cash flow company remodeling, marketing to purchase inventory, new equipment, for general working capital and much more. The loan cannot be used for personal purposes.
About Larger Mcdowall Business Loans
What is the Larger Mcdowall Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size the business needs to be in operation for at least 3 years with an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be used for?
A Larger Business Loan can be used for almost all company reason, such as company renovations, purchase of new equipment or inventory as well as for general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. This can be done by taking a charge over assets, and may include the registration of this on the PPSR or making a caveat.
A director’s or personal ensure is a promise to repay a loan which is general in nature, rather than stating security over a particular asset. The person signing the ensure is personally accountable if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be granted according to the date a security interest that is registered.
The caveat can be described as a formal form of document to offer the public notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan of more than $250K we can offer a preliminary pre-approval to help make the process. We may be able to make this decision without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves answering a couple of financial health questions. It’s not an offer of credit or guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer you receive could have different conditions.
The application process
Do I qualify for funds?
You can apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (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 simple and easy. Just fill out the online application within a few minutes and a dedicated company lending specialist will call you to help you.
To be eligible for up to $100,000 you’ll need proof of identity (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 also need:
$100K – $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Details for application including credit consent twelve month bank accounts, the IRD statements Last 2 years’ finalised financial statements, in addition to interim financials from the current financial year, Aged Payables and Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we typically offer a response in one hour – as long as you submit your request at standard business time and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your banking statements , we are able to provide an answer in just an company day.
For Larger Business Loans ($100K or more) we may be likely to offer the 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 could be shorter based on the circumstances of each application. Some offers have been approved in less than 24 hours.
The fastest way can be ensure you apply during normal company hours. You can also let us use the advanced bank verification system to verify your bank information online. If you choose to send us the copies of bank statement, it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) We can usually provide an answer in just one hour – as long as you apply in normal business timings and permit us to use the advanced bank verification system to instantly verify your bank details online. If you choose to submit copies of your bank statement, we’ll provide a decision in just one business day.
For Larger Business Loans ($100K or more) We may be able to offer you with conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Some deals have been approved within 24 hours.
The quickest method for you to apply is make sure you apply during normal business hours. You can also allow us to use the advance bank verification link to check your bank’s information online. If you opt to upload duplicates of your banking statement, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you make an application for a particular amount, we will consider a number of aspects for determining your health that is your business and the level of repayments your business can afford. The amount you receive from your loan will be contingent on the specifics the company.
When you submit an application for a specific amount we consider a variety of aspects to assess your well-being of the company and the amount of payments your company will be able to support. The amount you receive from your loan will be determined by the particular circumstances the business.
Fees & repayments
What is the cost for a company loan?
When you request our company loans, we’ll assess the risk assessment the business and offer you with a customised offer, including the amount of the loan, the duration and interest rates. It is a business loan is a loan that is priced upfront which means you know the exact amount you will have to pay, including charges or interest.
What is the factor that determines the price I’m charged?
Business loan interest rates differ based on various factors like the amount of money that is borrowed, what business assets the money will be used for and the sector the business operates in, how long the business is in operation for, how long the business has enough cash flow to cover the loan, as well as the general well-being and creditworthiness of the company.
What are the costs?
There are no hidden costs with our business loans, and you’ll know precisely what you be required to pay, and at what time, from day one. There’s no compounding and no extra fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You are able to get a cash loan with without any upfront costs or commitment to apply.
The Origination Fee covers the costs associated with establishing and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay off the loan in advance?
You can decide to repay the total amount of your loan early at any time.
If you are deciding to do this please speak to our friendly business lending specialists. We will provide you with details for repayment and an early payment figure. The figure will be calculated as the sum of the remaining principal amount and accrued interest to the time of early payment, plus 1.5% of the principal balance as well as any outstanding fees.
What is the process for repayments?
To ensure 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 withdrawn from your nominated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being clear about how we collect data, process, exchange and safeguard your data, is vital and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to security for our customers and privacy. We make use of an advanced bank verification system to instantly confirm your bank account information online. This allows us to provide quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where a business owner uses the assets they have to make the funds for a loan. The asset may be an individual asset, such as the family home or it could be a company asset like a truck or piece of equipment.
The majority of the lenders even the big banks, tend to secure loans against assets. If you’re struggling to pay back the loan then the asset could be taken over by the lender. In essence it is the process of securing new financing by using the value of what you already own.
Should I require security to secure a company loan?
Up to $150K in loans there is no requirement for asset security before you can access the money but we require a personal guarantee. need the personal guarantee. In the event that you fulfill your loan commitments (as stipulated in the loan contract) the security of assets is not needed. For loans over $150K typically, you will need an individual guarantee and security in the form an asset charge.