FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Point England Small Business Loans
Let me know what you think of the Point England Small Business Loans
Point England unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
How is what makes the Unsecured Loan different from the traditional company loan?
Apply for your Small Business Loan in under 10 minutes online or over the phone, receive a same day response and have the funds in your account within 24 hours. Traditional business loans reference an annual rate of interest as well as other fees and charges. This company loan is a cash-based loan so you will be aware of the total amount due, which includes any fees, charges or charges. This is then divided into weekly or daily repayment figure.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every business purpose including managing cash flows, company remodeling, marketing for purchasing inventory or new equipment, as general working capital and much more. The loan is not available for personal purposes.
About Larger Point England Business Loans
What is the Larger Point England Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan in this amount, your company needs to have been operating for a minimum of 3 years and generate an annual revenue of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funds be utilised?
A large business loan can be used for almost every company use, including company remodeling, buying inventory or new equipment, as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. This is by way of charge against assets, and could include registering this through the PPSR or the registration of a caveat.
A director’s or personal guarantee is a promise to repay a loan which is general in nature, rather than stating the security of a specific asset. The person who is signing the ensure is personally liable if the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be assigned in accordance with the date on which a security interest has been registered.
The caveat can be described as a formal document filed to offer notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250K, we may offer a preliminary pre-approval to help ease the process. It is possible to get this done without a credit check, and within six hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering a few financial health checks. It’s not an offer of credit or guarantee of credit. Unconditional approval is subject to an extensive credit evaluation and any offer that you might receive could be on different terms.
The application process
Do I qualify for funds?
You may be eligible for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Complete the online form in few minutes and a dedicated company expert in lending will be in touch to assist you.
For a loan of up to $100,000, you’ll need ID details (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Application requirements, 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 as well as 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, in addition to interim financials for the current financial year as well as Aged Payables and Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we can often offer a response in one hour, provided you submit your request during standard business times and let us utilise the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your bank statements we can offer a decision within an company day.
For Larger Business Loans ($100K and up) we may be likely to offer the conditional pre-approval in around six hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based upon the circumstances for each application. Certain agreements have been approved in 24 hours.
The fastest way would be to ensure you apply during normal company hours, and allow us to use our modern bank verification to instantly verify your bank information online. If you choose to send us copies of your bank statements , it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) We can usually provide an answer within one hour, provided you make your application during normal business time and allow us to use the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statements we can provide the decision within one business day.
For Larger Business Loans ($100K or more) we might be in a position to provide you with a conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this can be faster depending on the specifics of each application. Some offers have been approved in just 24 hours.
The quickest method is to ensure you apply during normal business hours. Also, let us use the advanced bank verification system link to instantly confirm your bank details online. If you choose to upload documents from your account statement, it takes a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a particular amount, we will consider a number of elements to determine your health of the company and the level of repayments that your business can support. The total amount of your loan will be contingent on the particular circumstances that are unique to your business.
When you submit an application for a specific amount we consider a variety of factors to determine your well-being that is your company as well as the amount of the repayments your business can support. The total amount of the loan will be determined by the specifics of your business.
Fees & repayments
How do you charge for the cost of a business loan?
When you apply for the company credit, we’ll assess the risk profile for your company and offer an individualised proposal that includes the loan amount, the terms and the interest rates. It is a company loan is an upfront cost loan which means you know the exact amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I pay?
Business loan interest rates vary due to factors including the amount that is borrowed, what business assets the money are used to purchase in addition to the industry that the company operates in, how long the company has been in operation for, how long the company has enough cash flow to support the loan, and the general well-being and creditworthiness of the company.
What are the costs?
There aren’t any hidden charges with our company loans, and you’ll know precisely how much it is that you need to pay, and when, right from the very first day. There’s no compounding and no extra fees (as long as you are able to make your payments punctually).
We don’t charge an application fee. You are able to get a cash loan without any upfront costs or any obligation to sign up.
The Origination Fee covers the expenses involved in establishing and managing the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay out the loan earlier?
You can repay the entire amount of your advance loan at any time.
If you decide to take this route, please contact our helpful business credit specialists. They will provide you with repayment details along with an early payout estimate. This is calculated as the sum of the principal amount remaining plus any accrued interest as of the date of early payout, plus 1.5 percent of the remaining principal plus any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payments and to work with your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from your company account.
Security & privacy
Will my data be protected?
Security of your data, and being clear about how we collect the information we collect, use, share and protect your information, is vital and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to security for our customers and privacy. We make use of an advanced bank verification system to instantly verify the bank account details online, allowing us to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where the business owner borrows from an asset that they own to get a loan. The asset may be an individual asset, such as the family home or a company asset such as a vehicle as well as a piece of machine.
The majority of lending institutions, not just the banks with the biggest size, prefer to secure loans against an asset. If you are having difficulty paying back the loan then the asset might be offered for sale by the lender. In essence it is the process of securing additional financing using the value of what you already have.
Do I require security to secure a company loan?
Up to $150,000 in loans there is no requirement for asset security upfront to access the money but we require a personal guarantee. need an individual guarantee. In the event that you fulfill the loan terms (as detailed in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans over $150,000 generally, there is an individual guarantee and security in the form the charge of assets.