FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Hackney Small Business Loans
Let me know more about Hackney Small Business Loans
Hackney unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from the traditional business loan?
It is imaginable to apply to the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and the money could be available in just 24 hours. Traditional business loans have an annual interest rate plus other fees and charges. We offer a business loan is an upfront priced loan which means you be aware of the total amount to be paid, including any fees, interest or charges. Then, it is broken down into either weekly or daily repayment figure.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every company use, including managing cash flows, business renovations, marketing, to purchase inventory or new equipment, for general working capital and so much more. The loan is not available for personal use.
About the Larger Hackney Business Loans
What is the Larger Hackney 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 over a fixed term for up to 36 months. Repayments are scheduled weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size the business needs to be operating for a minimum of 3 years with an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funds for?
A Business Loan of a larger size can be used for almost all business need, including company remodeling, buying inventory or new equipment or as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. It is usually in the form of a charge over assets and can include registering this in the PPSR or making a caveat.
A director’s or personal guarantee is a commitment 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 business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including goods or assets). The PPSR gives preference over private property assigned depending on the date that a security interest that is registered.
The caveat can be described as a formal document that is filed to offer an official notice of a claim to property.
What exactly is a preapproval without Credit Check?
If you’re seeking an enterprise loan that exceeds $250K, we may offer an initial pre-approval in order to simplify the process. We may be able to make this decision without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes answering a couple of financial health questions. This is not an offer or guarantee of financing. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you may receive may have different conditions.
Application process
Do I have the right to receive funds?
You are eligible to apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application within a few minutes and a dedicated business loan specialist will call you to guide you through the process.
To apply for up to $100,000 you’ll require identification details (valid Driver’s License) along with a valid NZBN/IRD and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent and 12 months of bank statements, IRD statement Last 2 years’ finalised financial statements, in addition to interim current financial year financials, Aged Payables and Aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K or more) We can usually provide an answer in just one hour if you apply during quality business time and let us use the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your bank statements we can offer a decision in just 1 business day.
If you are applying for a Larger Business Loan ($100K or more) we may be in a position to provide the conditional pre-approval within 6 hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending on the circumstances of each application. Certain offers have been approved in just 24 hours.
The quickest way to apply would be to make sure you apply during normal business hours. You can also let us use the modern bank verification to verify your bank account information online. If you upload duplicates of your banking statements it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer within one hour – provided you submit your request in normal business timings and permit us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you opt to submit copies of your bank statements we can provide a decision in just an business day.
For the Larger Business Loans ($100K to $500K) we might be able to offer you with pre-approval conditional to your application within 6 hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Some offers have been approved within the space of 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours. You can also permit us to use the sophisticated bank verification link to instantly verify your bank information online. If you opt to upload duplicates of your banking statement, it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. When you submit an application for a specific amount we take into consideration a range of factors to determine your health of your company as well as the amount of payments your business is able to afford. The total amount of your loan will depend on the particular circumstances for your business.
When you apply for a particular amount, we look at a range of factors to determine the well-being of the business and the level of repayments that your company will be able to support. The total amount of your loan will be contingent on the specifics that are unique to your company.
Fees & repayments
How much do you charge for a company loan?
If you decide to apply for business loans with us business financing, we will assess the risk profile the company and provide you with a customised offer, including the amount of the loan, the duration and the interest rates. It is a company loan is an upfront priced loan therefore you will know the exact amount due, which includes any costs, fees, or interest rates.
What determines the amount I’m charged?
Business loan interest rates depend on a variety of factors including the amount of money borrowed, the company assets the money will be used for in addition to the industry that the company is in, how long the business has been running for, how long the company has enough cash flow to support the loan, and the general health and creditworthiness of the company.
What are the costs?
There aren’t any hidden charges for our company loans. You’ll know exactly how much it is that you be required to pay, and at what time, from day one. There’s not any compounding interest and no extra fees (as long as you make your payments on time).
We do not charge an Application Fee. You can apply for a loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee is the cost associated with setting up 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.
Can I repay the loan earlier?
You can choose to repay all of your advance loan at any time.
If you choose to do this please talk to one of our helpful company loans experts. They will offer you with the details of your repayment as well as an early payout amount. It will be calculated using the total of the principal remaining plus any accrued interest as of the time of early payout plus 1.5 percent of the remaining principal plus any outstanding fees.
What is the process for repayments?
To ensure you do not miss due dates and also to be in line with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and knowing the ways we gather the information we collect, use, share and ensure the security of your information is of huge importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to protecting the security of customers and privacy. We utilise a sophisticated bank verification system link to immediately verify the bank account details online. This allows us to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when a company owner makes use of an asset they own to get the funds for a loan. The asset can be a personal asset like the family home or a company property like a truck as well as a piece of machine.
The vast majority of the lenders including the major banks, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, then the asset could be taken over by the lender. In essence, it’s the process of securing new financing by making use of the value of what you already have.
What do I need security to get an business loan?
For loans of up to $150K, there is no requirement for asset security in advance to gain access to the funds, however we require a personal guarantee. require the personal guarantee. So long as you comply with your loan commitments (as specified in your loan contract) the security of assets will never be required. For loans over $150,000 generally there is the option of a personal guarantee and security in the form of a charge over assets.