FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Yamanto Small Business Loans
Let me know what you think of the Yamanto Small Business Loans
Yamanto unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from an ordinary company loan?
The application to get the Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an instant response and funds may be available in just 24 hours. Traditional business loans are based on an annual rate of interest as well as other fees and charges. We offer a business loan is a loan that is priced upfront so you will know ahead of time the total amount payable including any fees, charges or charges. This is then broken down into either a daily or weekly payment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business use, including cash flow management, business remodels and marketing, to purchase inventory or new equipment, for general working capital and so much more. The loan is not available for personal purposes.
About the Larger Yamanto Business Loans
What is the Larger Yamanto Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of for up to 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the business needs to be operating for at least three years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funds for?
A Business Loan of a larger size can be used for almost any company use, including company renovations, purchase of inventory or new equipment for 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 as a result of an charge over assets, which could also include registering this with the PPSR or the registration of as a caveat.
A director’s or personal ensure is a commitment to pay back a loan that is generally in nature rather than stating security over a particular asset. The person signing the guarantee is personally liable in the event that the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including objects or assets). The PPSR permits priority over personal property to be granted according to the date the security interest that is registered.
Caveats are legal form of document to provide an official notice of a claim to a property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan of $250,000 or more it’s possible to offer an initial pre-approval to smooth out the process. We could be able to apply for this without a credit verification and within 6 hours of your initial application. This pre-approval is based on an initial assessment that includes you answering a few financial health checks. It is in no way an offer, nor is it a guarantee of finance. A conditional approval is subject an exhaustive credit evaluation, and any offer you may receive may be based on different conditions.
The application process
Can I be eligible for funding?
You can apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must prove 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 - $500K)
How do I apply?
The application process is simple and simple. Complete the online form in few minutes and an experienced business expert in lending will be in touch to guide you.
For a loan of up to $100,000 you’ll need the right identification documents (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Information on the application including credit consent twelve month bank accounts, the IRD statement as well as the two most recent years’ financial statements, and interim current financial year financials including Aged Payables, Aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we can often offer an answer within one hour, provided you apply during quality company hours and permit us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you want to send us copies of your bank statements we can offer an answer within 1 business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be capable of provide the conditional pre-approval within about 6 hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Certain agreements have been approved within 24 hours.
The quickest method would be to ensure you apply during normal company hours. Also, let us use the advanced bank verification system to instantly verify your bank account information online. If you upload the copies of bank statements it can take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we usually offer an answer within one hour – provided you make your application in standard business time and permit us to use the bank verification system link to instantly verify your bank details online. If you choose to send us copies of your bank statements we can offer a decision within 1 business day.
For the Larger Business Loans ($100K and up) we may be capable of provide you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this may be quicker depending upon the circumstances for each application. Some agreements have been approved in just 24 hours.
The most effective method for you to apply is make sure you apply during standard business hours and permit us to use the sophisticated bank verification link to verify your bank account information online. If you choose to upload duplicates of your banking statement, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a certain amount, we look at a variety of aspects to determine your health of the business and the amount of payments your business can afford. The amount you receive from your loan will be contingent on the specific circumstances for your business.
If you apply for a set amount, we will consider a number of variables to determine your well-being of your company and the extent of repayments that your company will be able to support. The amount you receive from your loan will be contingent on the specific circumstances for your business.
Fees & repayments
How do you charge for a business loan?
If you decide to make an application for one of our business financing, we will assess the risk assessment for your business and offer an individualised offer that includes the amount of loan, the term and interest rates. This business loan is an upfront priced loan therefore you will know in advance the total amount due, which includes any interest rates, fees or charges.
What determines the amount I pay?
Interest rates for company loans rates depend on several factors such as the amount that is of money borrowed, the company assets the funds are used to purchase as well as the field the company is in, how long the company has been running for, in the event that the company has enough cash flow to pay for the loan, and overall well-being or creditworthiness of the business.
What are the charges?
There aren’t any hidden costs with our business loans, and you’ll know precisely what you’ll need to pay, and when, starting from day one. There’s not any compounding interest and the loan comes with no additional fees (as long as you make your payments on time).
We don’t charge an Application Fee. You can make an application for loans with no cost upfront or the obligation to take action.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay off the loan early?
You can decide to repay the total amount of your loan at any point in time.
If you decide to pursue this option, please talk to one of our helpful company credit specialists. They’ll provide you with details for repayment and an early payment figure. This is calculated as the total of the principal balance and accrued interest to the time of early payment and 1.5% of the principal balance and any fees that remain unpaid.
How do repayments work?
In order to help you avoid missing payment dates and to align your cash flow schedule, we provide payments that are either daily or weekly. These are automatically withdrawn from your designated business account.
Security & privacy
Will my data be protected?
Protecting your information, and being upfront about the ways we gather data, process, exchange and protect your information, is crucial and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their security. We utilise a sophisticated bank verification system link to instantly verify the bank account details online. This allows us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where an company owner uses assets they own to obtain the funds for a loan. The asset could be an individual property, such as the family home, or an business property like a truck or piece of equipment.
The majority of lending institutions, including the largest banks, are inclined to make loans secured by assets. If you have trouble paying back the loan then your assets could be sold by the lender. In essence it’s means of securing new financing using the value of what you already own.
What do I require security for a company loan?
For loans of up to $150K, there is no requirement for asset security in advance to gain access to the funds However, we require a personal guarantee. require an individual guarantee. If you adhere to the loan terms (as stated in your loan contract document) Asset security will never be needed. For loans that exceed $150K, typically, you will need an individual ensure and security that is in the form charges on assets.