FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Yeronga Small Business Loans
Let me know about the Yeronga Small Business Loans
Yeronga unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What is this Unsecured Loan different from an traditional company loan?
It is possible to apply for the Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and have the funds on your account within 24 hours. Traditional company loans reference an annual rate of interest plus other fees and charges. We offer a business loan is a pre-paid loan which means you know in advance the total amount payable including any interest, fees or charges. Then, it is broken down into either a daily or weekly payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company need, such as the management of cash flow, business remodeling, marketing to purchase inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal purposes.
About the Larger Yeronga Business Loans
What is the Larger Yeronga Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are weekly or fortnightly to work with your cash flow.
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.
Do I qualify for the Larger Business Loan?
To be eligible for a credit in this amount, your company needs to be operating for a minimum of 3 years, and have an annual income of $700K. The applicant must also 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 demonstrate at the least 12 months of operating.
What can I use the funding for?
A Larger Business Loan is a great option for almost every business need, including business remodeling, buying equipment or inventory for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. This is by way of charge over assets, which could also include the registration of this on the PPSR or making a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is generally based rather than stipulating security over an asset. The person who signs the ensure is personally liable if the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including goods or assets). The PPSR allows prioritisation over property that is personal to be granted according to the date the security interest that is registered.
A caveat is a legal document filed to provide an official notice of a claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan that is greater than $250K we may be able to provide an initial pre-approval to ease the process. We may be able to make this decision without a credit verification and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves you answering a few financial health checks. It is neither an offer nor a guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer you might receive could have different terms.
Application process
Do I have the right to receive funds?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form in just a few minutes, and a dedicated business loan specialist will be in touch to help you.
To apply for up $100,000, you’ll require identification details (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K-$250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent as well as 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, in addition to interim financial statements for the current year as well as Aged Payables and Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K and up) we typically offer a response in one hour, provided you apply in standard business time and let us utilise the advanced bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statements , we’ll be able to offer a decision in just 1 business day.
For the Larger Business Loan ($100K to $500K) we might be in a position to provide you with conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this could be shorter based on the specifics of each application. Some transactions have received approval within the space of 24 hours.
The most effective method for you to apply is ensure you apply during normal company hours. Also, allow us to use our advance bank verification to instantly confirm your bank details online. If you choose to send us duplicates of your banking statement, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within one hour if you submit your request during normal business time and allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your bank statements, we are able to offer the decision in just one business day.
For Larger Business Loans ($100K or more) we could be in a position to offer the conditional pre-approval in about six hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this can be faster depending on the circumstances of each application. Some deals have been approved within the space of 24 hours.
The fastest way would be to make sure you apply during normal business hours, and let us use the advance bank verification link to verify your bank account information online. If you send us documents from your account accounts, it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a certain amount, we consider a variety of factors in order to assess how much we can lend you health of the business and the level of repayments your business can support. The amount you receive from your loan will depend on the specifics for your business.
When you submit an application for a particular amount, we will consider a number of aspects to determine how much we can lend you such as well-being of the business and the extent of repayments that your company can support. The total amount of your loan will be contingent on the specific circumstances that are unique to your business.
Fees & repayments
How much should you charge for a company loan?
If you decide to make an application for the company loan, we’ll assess the risk profile that you have for your business and provide you with a customised offer, including the amount of the loan, the duration and the interest rates. This company loan is an upfront priced loan and you’ll be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What is the basis for the rate I’m charged?
Business loan interest rates vary due to variables like the amount to be that is borrowed, what business assets the money will be used for, the industry the business is operating in, how long the business is in operation as well as what percentage of the business has enough cash flow to pay for the loan, as well as the overall health as well as creditworthiness company.
What are the fees?
There aren’t any hidden charges with our company loans, and you’ll know precisely what you’ll be required to pay, and when, starting from the very first day. There’s no compounding and there are no additional charges (as as long as you pay your payments punctually).
We do not charge an Application Fee. You can make an application for loans without any upfront costs or commitment to apply.
The Origination Fee includes the expenses associated with the setting up and management of the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I repay the loan in advance?
You can decide to repay the total amount of your loan at any point in time.
If you are deciding to do this please speak to our friendly company loan experts. The specialists will offer you with the details of your repayment as well as an early payout amount. The figure will be calculated as the total of the principal amount remaining plus any accrued interest as of the time of early payment and 1.5% of the principal remaining and any outstanding fees.
How do repayments work?
To ensure that you don’t miss payment dates and to align your cash flow schedule, we offer repayments either weekly or daily. They are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Security of your data, and being transparent about the ways we gather data, process, exchange and secure your information, is vital and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We use an advanced bank verification system that allows you to instantly verify your bank account details online so we can provide rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where an company owner uses assets they own to secure the loan. The asset could be an individual asset, such as the family home, or it could be a company asset like a truck as well as a piece of machine.
The majority of banks, even the largest banks, are inclined to secure loans against an asset. If you are having difficulty paying back the loan, then your asset may be transferred to the lender. In essence, it is means of securing additional financing using the value of what you already have.
Should I require security to get an business loan?
Up to $150K in loans no asset security is required before you are able to access the money but we require a personal guarantee. need a personal guarantee. As long as you follow the loan terms (as stipulated in your loan contract document) the security of assets is not needed. For loans of over $150,000 typically, you will need personal ensure and security in the form of an asset charge.