FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Morphett Vale Small Business Loans
Let me know what you think of the Morphett Vale Small Business Loans
Morphett Vale unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What makes this Unsecured Loan different from an ordinary company loan?
It is imaginable to apply to get your Small Business Loan in under 10 minutes on the internet or by phone. You will receive an immediate response, and the funds could be in your account in 24 hours. Traditional company loans have an annual interest rate together with additional fees and charges. The business loan is a cash-based loan which means you be aware in advance of the amount you will have to pay, including any interest, fees or charges. This is then broken down into either a daily or weekly amount to be paid back.
What can the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any company use, including the management of cash flow, business remodeling, marketing to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal use.
About Larger Morphett Vale Business Loans
What is the Larger Morphett Vale Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large the business needs to have been operating for a minimum of 3 years and have an annual turnover of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funding for?
A larger company loan can be used to fund almost any business need, including company remodeling, buying inventory or new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. It’s by taking a charge against assets, and may include registering this in the PPSR or the registration of a caveat.
A director’s or personal ensure is a promise to pay back a loan that is generally based rather than defining security over an asset. The person who signs the ensure is personally responsible if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including the assets or goods). The PPSR grants priority over personal property to be assigned depending on the date that a security interest that is registered.
A caveat is a legal document filed to offer notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger company loans of more than $250,000 we may be able to provide an initial pre-approval in order to ease the process. We might be able to apply for this without a credit verification and within 6 hours of your initial application. This pre-approval is made based on an initial assessment, which involves answering a couple of financial health questions. It’s not an offer of credit or guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer you are offered could be subject to different terms.
Application process
Do I have the right to receive funds?
You are eligible to apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Complete the online form in few minutes and a dedicated company expert in lending will call you to assist you.
To be eligible for up to $100,000, you’ll require ID details (valid Driver’s License) along with an active NZBN/IRD, and at least six months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent twelve months of bank statements, IRD statement, last 2 years finalised financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we can often provide an answer within one hour if you apply during quality business time and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your banking statements we can offer a decision within an business day.
For the Larger Business Loan ($100K or more) we may be able to provide you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this may be quicker depending on the specifics of each application. Some offers have been approved in 24 hours.
The fastest way for you to apply is ensure you apply during standard company hours. Also, permit us to use the modern bank verification to instantly check your bank’s information online. If you opt to send us copies of your bank statements , it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually offer a response in one hour if you make your application at standard business times and permit us to use the advanced bank verification system link to instantly verify your bank’s information online. If you opt to submit copies of your bank statement, we’ll offer the decision in just the span of one business day.
For the Larger Business Loans ($100K up to $500,000) we may be able to provide you with conditional pre-approval within about six hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be faster depending on the particular circumstances of each application. Some offers have been approved in 24 hours.
The most efficient method is to make sure you apply during standard business hours. Also, allow us to use our advanced bank verification system link to instantly check your bank’s information online. If you decide to upload the copies of bank accounts, it will take a little longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a specific amount we look at a variety of aspects for determining what is the well-being for your company and the amount of payments your business is able to afford. The total amount of your loan will depend on the specific circumstances of your business.
When you make an application for a certain amount, we will consider a number of elements to assess the health for your business and the level of payments your business is able to afford. The amount you receive from your loan will depend on the specific circumstances the company.
Fees & repayments
How much do you charge for a company loan?
If you decide to apply for our company financing, we will assess the risk assessment the company and provide you with a customised offer including the loan amount, the terms and interest rates. A company loan is an upfront cost loan so you will be aware of the total amount to be paid, including any charges, interest rates or fees.
What is the factor that determines the price I will be charged?
The interest rates on business loans rates differ based on various factors such as the amount that is borrowed, the business assets the money are used to purchase as well as the field the company is in, how long the company has been running, what percentage of the business has sufficient cash flow to pay for the loan, and the overall health as well as creditworthiness company.
What are the charges?
There aren’t any hidden costs with our company loans. You’ll be aware of the amount you need to pay and at what time, from the very first day. There’s no compounding and no extra fees (as long as you make your payments on time).
We do not charge an Application Fee. You are able to make an application for loans with no upfront cost or obligation to proceed.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay out the loan early?
You can decide to repay the entire amount of the loan at any point in time.
If you do decide to do this please speak to our friendly business loan professionals. We will provide you with details for repayment along with an early payout estimate. This is calculated as the total of the principal balance and accrued interest to the time of the early payout in addition to 1.5 percent of the remaining principal and any fees that remain unpaid.
How do repayments work?
To ensure you do not miss due dates and also to be in line with your cash flow general, we offer repayments either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being transparent about the ways we gather information, use it, and exchange it, as well as secure your information, is of huge importance and an integral element 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 personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We use an advanced bank verification system to immediately verify your bank account information online. This allows us to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a business owner uses an asset they own to make the funds for a loan. The asset can be an asset belonging to the personal, like the family home or it could be a business asset such as a truck or piece or equipment.
The vast majority of lenders, even the largest banks, are inclined to secure loans against assets. If you have trouble paying back the loan, then the asset might be transferred to the lender. In essence it is an opportunity to secure additional financing making use of the value of what you already own.
Are I need security to secure a company loan?
For loans up to $150,000 no asset security is required in advance to gain access to the funds However, we do require an individual guarantee. So long as you comply with the terms of your loan (as stipulated in your loan contract document), asset security will never be needed. For loans of over $150K generally there is personal ensure and security is provided in the form of a charge over assets.