FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Hendon Small Business Loans
Let me know what you think of the Hendon Small Business Loans
Hendon unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
How is the Unsecured Loan different from an traditional business loan?
Apply for your Small Business Loan in under 10 minutes on the phone. You’ll receive an instant response and have the funds in your account within 24 hours. Traditional business loans are based on an interest rate per annum as well as other fees and charges. This company loan is a pre-paid loan which means you be aware of the total amount due, which includes the interest, fees and charges. This is then divided into a daily or weekly amount to be paid back.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any business need, such as managing cash flows, business renovations, marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal reasons.
About larger Hendon Business Loans
What is the Larger Hendon Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are weekly or fortnightly to work with 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.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to be operating for at least three years and generate an annual revenue of $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funding be used for?
A Larger Business Loan can be used to fund almost any company use, including company renovations, purchase of new equipment or inventory, as general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. This can be done by taking a charge on assets, and may be registered in the PPSR or the registration of a caveat.
A director’s or personal ensure is a commitment to repay a loan which is general in nature rather than specifying security over an asset. The person who is signing the guarantee is personally liable if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR allows priority over personal property to be assigned according to the date a security interest that is registered.
The caveat can be described as a formal document that is filed to offer 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 of more than $250K we can offer an initial pre-approval in order to make the process. We may be able to do this without a credit check, and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves the answer to a series of financial well-being checks. It is not an offer or guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer you may receive may be on different terms.
The application process
Can I be eligible for funding?
You can apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in few minutes and a dedicated business lending specialist will call you to help you.
To apply for up $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 worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent and 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, as well as interim financial statements for the current year such as age-related payables and aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we typically offer a response in one hour – as long as you make your application during standard business timings and allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your bank statements we can offer a decision within just 1 company day.
For Larger Business Loans ($100K to $500K) we could be capable of offer you with a conditional pre-approval in around six hours. After you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval, however this can be quicker based on the circumstances of each application. Some transactions have received approval within 24 hours.
The quickest method is to make sure you apply during normal business hours and let us use the advance bank verification to verify your bank information online. If you choose to upload the copies of bank statements , it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer within one hour – provided you submit your request within normal business times and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statements, we will be able to offer an answer within the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we might be likely to offer you with conditional pre-approval within about 6 hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however it could be faster based on the circumstances of each application. Some transactions have received approval in less than 24 hours.
The fastest way can be make sure you apply during standard business hours. You can also allow us to use our advanced bank verification system to instantly check your bank’s information online. If you opt to send us copies of your bank statement, it will take a little longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a certain amount, we consider a variety of elements that determine the health that is your business as well as the amount of payments your company can afford. The total amount of the loan will be determined by the particular circumstances the business.
When you submit an application for a set amount, we take into consideration a variety of variables to assess your health of the business and the level of repayments your company will be able to support. The total amount of your loan will be determined by the specifics that are unique to your company.
Fees & repayments
What is the cost for an company loan?
When you make an application for one of our company credit, we will assess the risk profile the business and offer an individualised proposal that includes the loan amount, the terms and the interest rates. It is a company loan is an upfront-priced loan so you will be aware of the total amount to be paid, including any costs, fees, or interest rates.
What is the basis for the rate I will be charged?
Business loan interest rates depend on a variety of factors including the amount borrowed, what business assets the funds will be used for, the industry the company operates in, the long the business is in operation as well as how long the business has enough cash flow to support the loan, and also the overall well-being or creditworthiness of the business.
What are the fees?
There are no hidden costs for our business loans. You’ll know precisely what you’ll be required to pay, and when, starting from the day you sign up. There’s no compounding interest and no additional fees (as long as you are able to make your payments punctually).
We don’t charge an application fee. You are able to apply for a loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the expenses involved with the setting up and management of the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay out the loan earlier?
You may choose to pay back all of your advance loan at any time.
If you do decide to pursue this option, please speak to our friendly business loan experts. They’ll provide you with details for repayment along with an early payout estimate. It will be calculated using the sum of the principal remaining and accrued interest to the time of the early payout and 1.5% of the principal remaining plus any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payments and to work with your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being clear about the ways we gather information, use it, and exchange it, as well as safeguard your data, is of huge importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to protecting the security of customers and privacy. We employ a highly sophisticated bank verification system to immediately verify your bank account details online. This allows us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when the business owner borrows from the assets they have to make a loan. The asset can be either an asset belonging to the personal, like the family home or an company asset such as a truck as well as a piece of machine.
The vast majority of banks, not just the major banks, prefer to make loans secured by an asset. If you’re having trouble paying back the loan, the asset might be offered for sale by the lender. In essence, it is means of securing new financing by using the worth of the asset you already own.
What do I require security to get an company loan?
For loans of up to $150,000, it is not necessary to secure assets upfront to access the money however, we require a personal guarantee. require a personal guarantee. As long as you follow the loan terms (as stated in the loan contract) Asset security will never be needed. For loans that exceed $150K, generally there is personal ensure and security that is in the form a charge over assets.