FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Mount Ommaney Small Business Loans
Tell me more about Mount Ommaney Small Business Loans
Mount Ommaney unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from a traditional business loan?
It is possible to apply to your Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and have the funds on your account within 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. This company loan is a loan that is priced upfront therefore you’ll be aware of the total amount to be paid, including any fees, interest or charges. This is then broken down into either a daily or weekly payment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business use, including the management of cash flow, company remodels and marketing, to purchase inventory or new equipment, for general working capital, and much more. The loan is not available for personal purposes.
About larger Mount Ommaney Business Loans
What is the Larger Mount Ommaney Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the business needs to have been operating for at least three years and have an annual turnover of $700,000. The applicant must also 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 least 12 months of trading.
What can the funding be used for?
A larger business loan can be used for nearly any business use, including company remodeling, buying equipment or inventory, as general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. This is in the form of a charge over assets, and may include the registration of this through the PPSR or the registration of as a caveat.
A personal or director’s ensure is a promise to repay credit that is general in nature rather than stating security over a particular asset. The person who is signing the ensure is personally responsible if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including objects or assets). The PPSR allows prioritisation over property that is personal to be assigned depending on the date that a registration of a security interest.
A caveat is a legal document filed to offer an official notice of a claim on a property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan that is greater than $250K we may be able to provide a preliminary pre-approval to help smooth out the process. We might be able to apply for this without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial assessment that includes you answering a few financial well-being checks. It is not an offer of credit or guarantee of credit. The approval of a conditional loan is subject to a full credit assessment and any offer that you receive could be based on different terms.
The application process
Are I eligible for funding?
You are eligible to apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Just complete the online application within a few minutes and a dedicated business loan specialist will contact you to guide you.
To apply for up to $100,000 you’ll need identification details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Application details including credit consent twelve months of bank statements, IRD statements as well as the two most recent years’ financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) We can usually provide an answer within an hour, provided you make your application within quality business times and you allow us to utilise the bank verification system to instantly verify your bank details online. If you decide to upload copies of your banking statements we can offer the decision in as little as an company 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 have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however it could be faster based upon the circumstances for each application. Certain transactions have received approval in 24 hours.
The fastest way is to ensure you apply during standard business hours. Also, allow us to use the modern bank verification to instantly verify your bank information online. If you opt to send us duplicates of your banking accounts, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) we can often offer a response in one hour – provided you make your application in standard business times and you allow us to use the advanced bank verification system to immediately verify your bank account information online. If you decide to upload copies of your bank statements, we are able to offer the decision in as little as the span of one business day.
For Larger Business Loans ($100K to $500K) we might be in a position to provide the conditional pre-approval within about six hours. Once you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this can be faster depending upon the circumstances for each application. Certain offers have been approved in just 24 hours.
The fastest method would be to make sure you apply during standard business hours, and permit us to use the sophisticated bank verification to verify your bank account information online. If you decide to upload copies of your bank accounts, it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a certain amount, we consider a variety of variables that determine how much we can lend you health for your business and the amount of repayments your company is able to afford. The total amount of the loan will be determined by the specifics for your company.
If you apply for a certain amount, we look at a range of aspects to determine your well-being that is your company and the extent of repayments that your business is able to afford. The amount you receive from your loan will depend on the particulars the company.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to apply for the business financing, we will assess the risk profile for your company and offer you with a customised offer including the amount of loan, the term and the interest rates. This company loan is a loan that is priced upfront therefore you will be aware in advance of the total amount you will have to pay, including charges or interest.
What determines the amount I am charged?
The interest rates on company loans rates vary due to variables like the amount to be borrowed, the company assets the funds are used to purchase in addition to the industry that the business operates in, how long the business has been running for, how long the company has enough cash flow to cover the loan, and overall health and creditworthiness of the business.
What are the charges?
There aren’t any hidden charges with our company loans. You’ll know precisely what you be required to pay, and when, from the first day. There’s no compounding interest and there are no additional charges (as as long as you pay your payments in time).
We do not charge an application fee. You can apply for a loan no cost upfront or obligation to proceed.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay off the loan in advance?
You can decide to repay the entire amount of the loan early at any time.
If you choose to pursue this option, please call our helpful business lending specialists. They’ll provide you with repayment details and an early payment figure. It will be calculated using the sum of the principal amount remaining and accrued interest to the time of early payout and 1.5 percent of the remaining principal and any outstanding fees.
How do repayments work?
To make sure that you don’t miss payment dates and to align your cash flow schedule, we provide payments that are either weekly or daily. These are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Security of your data, and being transparent about the ways we gather data, process, exchange and ensure the security of your information is vital and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to security for our customers and security. We employ a highly sophisticated banking verification system to instantly verify your bank account information online so we can provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an company owner uses an asset they own to obtain the funds for a loan. The asset can be an asset belonging to the personal, like the family home or a company asset such as a truck or piece or equipment.
The majority of lending institutions, not just the big banks, tend to secure loans against assets. If you are having difficulty paying back the loan, your asset may be transferred to the lender. In essence it is means of securing additional financing using the value of what you already own.
What do I need security to get an business loan?
For loans of up to $150K, there is no requirement for asset security prior to the loan’s access but we require a personal guarantee. require a personal guarantee. In the event that you fulfill the terms of your loan (as specified in your loan contract), asset security will never be needed. For loans of over $150,000 generally, you can get a personal guarantee and security that is in the form an asset charge.