FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Maraetai Small Business Loans
Tell me how you are able to avail the Maraetai Small Business Loans
Maraetai unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What makes this Unsecured Loan different from a traditional company loan?
Apply to get the Small Business Loan in under 10 minutes via the internet or over the phone, receive an instant response and have the funds in your account within 24 hours. Traditional company loans have an annual rate of interest as well as other fees and charges. The company loan is an upfront priced loan which means you know in advance the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into either weekly or daily payment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business use, including control of cash flow business remodeling, marketing, to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal purposes.
About larger Maraetai Business Loans
What is the Larger Maraetai Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan in this amount the company needs to have been operating for a minimum of 3 years and generate an annual revenue of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funding be utilised?
A Larger Business Loan can be used to fund almost all company purpose including company renovations, to purchase inventory or new equipment for general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. It is usually by taking a charge on assets, and may include the registration of this with the PPSR or filing a caveat.
A director’s or personal guarantee is a promise to repay credit that is generally in nature rather than stating the security for a particular asset. The person signing the ensure is personally liable if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR allows priority over personal property to be assigned depending on the date that a security interest has been registered.
Caveats are legal document that is filed to offer notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking larger business loans that is greater than $250,000, we may offer an initial pre-approval that will help make the process. We may be able to do this without credit checks and within 6 hours of your 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 or guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you receive could be subject to different terms.
Application process
Do I have the right to receive funds?
You may apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (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 quick and simple. Just fill out the online application within a couple minutes, and an experienced business expert in lending will contact you to help you.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s License) and an NZBN/IRD that is valid and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K-$250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent and 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) We can usually provide a response in one hour if you apply within quality business timings and allow us to utilise the bank verification system to immediately verify your bank account information online. If you decide to send us copies of your bank statements we can offer an answer in just the span of one business day.
If you are applying for a Larger Business Loan ($100K and up) we could be able to offer you with pre-approval conditional to your application within about 6 hours. After you’ve signed your pre-approval form, it will take about 2-3 days for final approval, however this can be quicker based on the circumstances of each application. Some deals have been approved in 24 hours.
The most efficient method is to make sure you apply during standard business hours. You can also allow us to use the advance bank verification to confirm your bank details online. If you opt to send us copies of your bank statements , it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer in just one hour if you submit your request within standard business hours and allow us to use the bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statements, we are able to offer the decision within one business day.
If you are applying for Larger Business Loans ($100K or more) we may be in a position to provide you with a conditional pre-approval in about 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 circumstances of each application. Certain transactions have received approval within 24 hours.
The fastest method for you to apply is ensure you apply during normal business hours. You can also allow us to use our modern bank verification link to verify your bank account information online. If you decide to upload the copies of bank accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a specific amount we will consider a number of elements to determine the health of your business and the amount of the repayments your company is able to afford. The amount you receive from your loan will be contingent on the particular circumstances that are unique to your company.
When you make an application for a specific amount we look at a range of elements to determine the well-being of the company as well as the amount of the 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.
Fees & repayments
What is the cost for a business loan?
When you apply for one of our company loans, we will assess the risk profile the company and offer you with a customised offer that includes the amount of loan, the term and interest rates. A business loan is a loan that is priced upfront and you’ll know the exact amount payable including any costs, fees, or interest rates.
What determines the rate that I am charged?
Interest rates for business loans rates depend on several factors including the amount of money borrowed, the company assets the funds will be used for as well as the field the company operates in, how long the business has been in operation for, what percentage of the company has sufficient cash flow to fund the loan, and overall health or creditworthiness of the business.
What are the costs?
There aren’t any hidden charges for our business loans, and you’ll know precisely how much it is that you need to pay, and when, starting from day one. There’s no compounding interest and no additional fees (as as you make your payments on time).
We do not charge an application fee. You can make an application for loans with absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan in advance?
You can repay all of your loan early at any time.
If you decide to take this route, please talk to one of our helpful company lending specialists. They’ll offer you with details on repayment and an early payout figure. This will be calculated as the total of the principal amount remaining plus any accrued interest as of the time of early payment plus 1.5% of the principal amount remaining plus any outstanding fees.
How do you make repayments work?
To help you avoid missing repayments and to fit in your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being clear about how we collect the information we collect, use, share and safeguard your data, is of paramount importance and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We use an advanced bank verification system link to immediately verify your bank account information online to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner borrows from the assets they have to obtain the funding. The asset may be an individual asset, such as the family home or an company property like a truck or piece or equipment.
The majority of banks, even the banks with the biggest size, prefer to guarantee loans against assets. If you have trouble paying back the loan, then your assets could be transferred to the lender. In essence it’s means of securing new financing by using the worth of the asset you already have.
Are I need security to secure a company loan?
For loans up to $150,000 the requirement for asset security is not required before you can access the money However, we do require an individual guarantee. So long as you comply with the terms of your loan (as specified in your loan contract) and you are able to meet your obligations, asset security will never be needed. For loans of over $150K typically, you will need personal ensure and security in the form charges on assets.