FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Long Bay Small Business Loans
Let me know what you think of the Long Bay Small Business Loans
Long Bay unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from the traditional company loan?
Apply for your Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and the money could be on your account within 24 hours. Traditional company loans have an annual rate of interest plus other fees and charges. We offer a company loan is an upfront priced loan therefore you’ll be aware in advance of the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into a daily or weekly repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any business need, such as the management of cash flow, business remodels and marketing for purchasing inventory or new equipment, as general working capital and much more. The loan cannot be used to fund personal expenses.
About the Larger Long Bay Business Loans
What is the Larger Long Bay 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 with a maximum of 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit of this size the business needs to be operating for a minimum of 3 years and generate an annual revenue of $700K. You must 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 to prove at minimum 12 months of business.
What can I use the funds for?
A Business Loan of a larger size can be used for almost all company need, including company remodeling, buying equipment or inventory, as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed to access funding over $150,000. This can be done by taking a charge on assets, and could include registering this through the PPSR or filing as a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is general in nature rather than defining the security of a specific asset. The person who signs the ensure is personally liable in the event that 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 gives the priority of personal property granted depending on the date that a security interest has been registered.
An affidavit is an official form of document to provide the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re seeking an enterprise loan that is greater than $250,000 it is possible to 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 that includes you answering some financial well-being checks. It is neither an offer nor a guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer that you might receive could have different conditions.
The application process
Do I have the right to receive funds?
You are eligible to apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form within a few minutes and an experienced business expert in lending will be in touch to guide you.
To apply for up $100,000, you’ll require identification details (valid Driver’s License), an active NZBN/IRD, and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent, 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials such as age-related payables and aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we usually offer an answer within an hour, provided you apply within quality business time and allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your banking statements , we will be able to offer the decision in as little as one business day.
For Larger Business Loans ($100K up to $500,000) we could be capable of provide you with conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Certain agreements have been approved within the space of 24 hours.
The quickest method for you to apply is ensure you apply during standard company hours. You can also allow us to use the advance bank verification to instantly confirm your bank details online. If you upload duplicates of your banking accounts, it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer within one hour – as long as you make your application during normal business times and permit us to use the advanced bank verification system to immediately verify your bank account information online. If you opt to upload copies of your bank statements we can offer the decision in as little as 1 business day.
For the Larger Business Loans ($100K up to $500,000) we could be capable of offer you with a conditional pre-approval within about six hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this may be quicker depending upon the circumstances for each application. Some deals have been approved within less than 24 hours.
The fastest method is to ensure you apply during standard business hours. Also, allow us to use the advance bank verification link to check your bank’s information online. If you upload copies of your bank statement, it may 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 certain amount we consider a variety of factors in order to assess your well-being for your company as well as the amount of repayments your business will be able to support. The amount you receive from your loan will depend on the specific circumstances that are unique to your business.
When you submit an application for a certain amount, we take into consideration a variety of aspects to assess your well-being of the business and the extent of repayments your business will be able to support. The total amount of your loan will be contingent on the particulars the company.
Fees & repayments
What is the cost for an company loan?
If you decide to make an application for our company credit, we’ll assess the risk profile for your business and provide you with a customised proposal that includes the loan amount, the terms and the interest rates. This company loan is a loan that is priced upfront so you will be aware of the total amount payable including any charges, interest rates or fees.
What is the basis for the rate I pay?
Interest rates for company loans rates depend on a variety of factors including the amount borrowed, what company assets the funds will be used for, the industry the company is in, how long the business has been operating for, in the event that the company has sufficient cash flow to fund the loan, and overall health or financial standing of the business.
What are the fees?
There aren’t any hidden costs for our business loans. You’ll know precisely how much you’ll need to pay, and when, right from day one. There’s not any compounding interest and no extra fees (as as long as you pay your payments punctually).
We don’t charge an Application Fee. You are able to get a cash loan with no cost upfront or commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan early?
You may choose to pay back the total amount of your loan early at any time.
If you choose to take this route, please speak to our friendly business loans experts. We will provide you with details for repayment as well as an early payout amount. The figure will be calculated as the total of the principal amount remaining and the accrued interest up to the time of early payment, plus 1.5% of the principal remaining plus any outstanding fees.
How do repayments work?
To ensure you do not miss due dates and also to be in line your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from your company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and making it clear the ways we gather data, process, exchange and safeguard your data, is crucial and a vital element 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 sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to security for our clients and privacy. We employ a highly sophisticated bank verification system that allows you to instantly verify the bank account details online so we can provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when the company owner borrows from an asset they own to obtain a loan. The asset can be either an individual asset, such as the family home, or a business asset such as a truck or piece of equipment.
The vast majority of banks, including the major banks, prefer to secure loans against assets. If you are having difficulty paying back the loan, the asset might be sold by the lender. In essence it is an opportunity to secure new financing by using the worth of the asset you already have.
What do I require security to get a company loan?
For loans that exceed $150,000, no asset security is required before you can access the money however, we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan obligations (as stipulated in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans of over $150,000 generally there is personal guarantee and security in the form of a charge over assets.