FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Mauku Small Business Loans
Let me know how you are able to avail the Mauku Small Business Loans
Mauku unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from a traditional company loan?
The application to get the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an instant response and the money could be on your account within 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. We offer a business loan is an upfront priced loan and you’ll be aware of the total amount to be paid, including the interest, fees and charges. Then, it is broken down into either a daily or weekly payment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any company need, such as the management of cash flow, business improvements, advertising, to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal purposes.
Concerning Larger Mauku Business Loans
What is the Larger Mauku Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed 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, which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the company needs to be operating for a minimum of 3 years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funding be utilised?
A larger business loan can be used for nearly any business need, including company improvements, purchasing equipment or inventory or as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It is usually as a result of an charge against assets, and may include registering this on 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 defining the security of a specific asset. The person who is signing the guarantee is personally accountable if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including objects or assets). The PPSR grants preference over private property granted according to the date a security interest was registered.
An affidavit is an official document filed to offer the public notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re requesting larger business loans of more than $250,000 we may be able to provide an initial pre-approval to ease the process. It is possible to apply for this without a credit verification and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes the answer to a series of financial health checks. This is not an offer or guarantee of financing. A conditional approval is subject an extensive credit evaluation and any offer you are offered could be based on different conditions.
Application process
Do I qualify for 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 company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a couple minutes, and an experienced company credit specialist will contact you to assist 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’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details of the application, including credit consent, 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K and up) we can often provide an answer in just one hour, provided you submit your request in standard company timings and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you choose to send us copies of your bank statement, we’ll offer the decision in as little as 1 business day.
For the Larger Business Loan ($100K up to $500,000) we might be able to provide you with pre-approval conditional to your application within 6 hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, it could be faster based on the particular circumstances of each application. Some deals have been approved in just 24 hours.
The quickest way to apply for you to apply is make sure you apply during standard company hours. You can also let us use the modern bank verification to instantly verify your bank information online. If you opt to upload the copies of bank statement, it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) We can usually offer an answer within an hour if you submit your request at normal business times and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you choose to submit copies of your bank statements, we are able to offer an answer in just one business day.
For Larger Business Loans ($100K up to $500,000) We may be capable of provide you with 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 could be shorter based on the circumstances of each application. Certain offers have been approved within 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours, and let us use the advance bank verification to verify your bank account information online. If you opt to upload documents from your account statement, it can take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a certain amount we take into consideration a range of factors that determine how much we can lend you health for your company and the level of the repayments your company can support. The amount you receive from your loan will depend on the specific circumstances that are unique to your company.
When you make an application for a set amount, we look at a range of factors to assess the well-being of your business and the extent of the repayments your company can support. The amount you receive from your loan will depend on the specifics the company.
Fees & repayments
How much should you charge for a business loan?
When you request business loans with us company loan, we’ll assess the risk assessment for your company and provide you with a customised offer that includes the loan amount, the terms 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 payable including any costs, fees, or interest rates.
What is the factor that determines the price I pay?
Interest rates for business loans rates vary due to factors such as the amount that is borrowed, the business assets the money are used to purchase as well as the field the business is operating in, how long the company has been running and in the event that the business has sufficient cash flow to fund the loan, and general health or creditworthiness of the company.
What are the fees?
There are no hidden fees with our business loans, and you’ll know exactly how much you need to pay, and when, from the day you sign up. There’s not any compounding interest and there are no additional charges (as long as you make your payments on time).
We do not charge an Application Fee. You are able to apply for a loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Do I have the option of paying off the loan in advance?
You can decide to repay the entire amount of your loan at any point in time.
If you choose to pursue this option, please contact our helpful business loans experts. The experts will provide you with details on repayment along with an early payout estimate. This is calculated as the total of the remaining principal amount and accrued interest to the time of the early payout plus 1.5 percent of the principal balance and any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss due dates and also to be in line with your cash flow routine, we offer repayments either daily or weekly. They are automatically deducted from your business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing how we collect the information we collect, use, share and secure your information, is crucial 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 protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to security for our customers and security. We employ a highly sophisticated bank verification system that allows you to immediately confirm your bank account information online, allowing us to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when a business owner makes use of assets they own to get the loan. The asset can be either a personal asset like the family home, or an company asset like a truck or other piece of machinery.
The majority of banks, even the banks with the biggest size, prefer to make loans secured by assets. If you’re having trouble paying back the loan then your asset may be taken over by the lender. In essence, it’s the process of securing new financing using the worth of the asset you already own.
What do I require security for a company loan?
For loans up to $150K no asset security is required upfront to access the money but we do require a personal guarantee. In the event that you fulfill the terms of your loan (as stated in the loan contract) and you are able to meet your obligations, asset security will never be needed. For loans that exceed $150K, generally there is the option of a personal guarantee and security in the form a charge over assets.