FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Mount Coot-Tha Small Business Loans
Let me know how you are able to avail the Mount Coot-Tha Small Business Loans
Mount Coot-Tha unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
What is what makes the Unsecured Loan different from the traditional business loan?
It is possible to apply to get the Small Business Loan in under 10 minutes over the phone, receive a same day response and funds may be in your account in 24 hours. Traditional company loans refer to an annual interest rate along with other charges and fees. We offer a business loan is a loan that is priced upfront so you will be aware of the total amount due, which includes any fees, charges or charges. Then, it is broken down into weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business use, including control of cash flow business remodels and marketing to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal reasons.
About larger Mount Coot-Tha Business Loans
What is the Larger Mount Coot-Tha Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are weekly or fortnightly, depending on your situation.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size the company needs to be operating for at least three years, and have an annual income of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
What can the funding be used for?
A Larger Business Loan is a great option for almost every business use, including company remodeling, buying inventory or new equipment as well as for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. It is usually by taking a charge on assets, which could also include registration in the PPSR or registering as a caveat.
A personal or director’s ensure is a promise to pay back a loan that is generally in nature rather than specifying security over a particular asset. The person who signs the guarantee is personally liable in the event that the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including items or assets). The PPSR permits priority over personal property to be granted in accordance with the date on which a security interest that is registered.
A caveat is a legal document lodged to offer notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re applying for larger company loans of $250K or more we can offer an initial pre-approval to simplify the process. We may be able to make this decision without a credit check and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves answering a couple of financial health checks. It’s not an offer of credit or guarantee of financing. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you are offered could be on different conditions.
The application process
Can I be eligible for funding?
You may apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form in few minutes and a dedicated company loan specialist will call you to guide you.
To apply for up $100,000 you’ll need the right identification documents (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll also require:
$100K to $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent twelve month bank accounts, the IRD statement and the last two years’ finalised financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we can often offer an answer in just one hour if you apply at standard company timings and permit us to use the advanced bank verification system link to immediately verify your bank account information online. If you want to submit copies of your bank statement, we’ll provide an answer within just one company day.
For the Larger Business Loan ($100K or more) we might be in a position to provide you with conditional pre-approval within six hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain deals have been approved in 24 hours.
The most efficient method would be to ensure you apply during normal business hours and permit us to use the advance bank verification to instantly verify your bank information online. If you choose to upload the copies of bank statement, it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer within one hour – provided you make your application within standard business timings and allow us to use the bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statement, we’ll provide an answer within one business day.
For Larger Business Loans ($100K up to $500,000) we may be able to offer you with conditional pre-approval in around 6 hours. After you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Some offers have been approved in 24 hours.
The quickest method is to make sure you apply during normal business hours and permit us to use the sophisticated bank verification link to instantly confirm your bank details online. If you opt to upload documents from your account statements it will take a little longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a particular amount, we will consider a number of factors that determine your health for your company and the extent of repayments that your business is able to afford. The total amount of your loan will be contingent on the particular circumstances that are unique to your company.
If you apply for a certain amount, we take into consideration a variety of variables to assess the well-being of your company and the level of the repayments your business will be able to support. The amount you receive from your loan will be contingent on the particular circumstances for your company.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to request one of our business credit, we will assess the risk assessment that you have for your business and offer an individualised offer, including loan amount, term and interest rates. This business loan is a loan that is priced upfront and you’ll know in advance the total amount you will have to pay, including costs, fees, or interest rates.
What determines the rate that I will be charged?
Interest rates for company loans rates vary due to factors like the amount of money borrowed, the business assets the funds are used to purchase, the industry the business is operating in, how long the company has been operating for, in the event that the business has sufficient cash flow to cover the loan, and general health and creditworthiness of the company.
What are the cost?
There aren’t any hidden costs for our business loans. You’ll know precisely how much you be required to pay and at what time, from day one. There’s no compounding interest, and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We don’t charge an application fee. You can request a credit loan without any upfront costs or obligation to proceed.
The Origination Fee is the cost associated with establishing and managing the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay out the loan earlier?
You can repay the entire amount of the loan at any point in time.
If you choose to pursue this option, please speak to our friendly company credit experts. We will offer you with details on repayment along with an early payout estimate. This is calculated as the sum 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 ensure that you don’t miss repayments and to fit in with your cash flow standard, we provide payments that are either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing how we collect data, process, exchange and ensure the security of your information is of huge importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to protecting the security of customers and privacy. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account details online, allowing us to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where a business owner utilises an asset that they own to get the funding. The asset can be either an individual property, such as the family home or an company asset such as a vehicle or other piece of machinery.
The vast majority of lenders, not just the major banks, prefer to make loans secured by assets. If you’re struggling to pay back the loan, then the asset could be transferred to the lender. In essence, it is means of securing new financing by using the worth of the asset you already have.
Should I need security for a business loan?
For loans that exceed $150,000, the requirement for asset security is not required before you are able to access the money but we do need the personal guarantee. So long as you comply with your loan obligations (as specified in your loan contract document) Asset security is not needed. For loans of over $150K typically, you will need the option of a personal guarantee and security in the form the charge of assets.