FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Andrews Farm Small Business Loans
Let me know how you are able to avail the Andrews Farm Small Business Loans
Andrews Farm unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What makes this Unsecured Loan different from an traditional business loan?
Apply for the Small Business Loan in under 10 minutes over the phone, receive an immediate response, and funds may be in your account in 24 hours. Traditional company loans have an annual interest rate plus other fees and charges. The company loan is an upfront priced loan so you will be aware in advance of the total amount to be paid, including any fees, interest or charges. Then, it is divided into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for almost every company reason, such as the management of cash flow, business remodels and marketing to purchase inventory or new equipment, for general working capital and much more. The loan is not available for personal purposes.
Concerning Larger Andrews Farm Business Loans
What is the Larger Andrews Farm Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are either weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large, your company needs to have been operating for at least three years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be utilised?
A large business loan can be used for almost any business reason, such as business improvements, purchasing inventory or new equipment, as general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. This can be done in the form of a charge on assets, which could also be registered in the PPSR or the registration of a caveat.
A personal or director’s ensure is a promise to pay back a loan that is general in nature rather than specifying security over a particular asset. The person who signs the ensure is personally accountable if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR gives prioritisation over property that is personal to be granted according to the date a registration of a security interest.
The caveat can be described as a formal document filed to offer an official notice of a claim against a property.
What exactly is a preapproval without Credit Check?
If you’re applying for the Larger Business Loan that is greater than $250K it is possible to offer an initial pre-approval that will help ease the process. We could be able to apply for this without a credit verification and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes answering a couple of financial well-being checks. This is not an offer or guarantee of credit. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you might receive could be subject to 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 at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for the 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 simple and simple. Just complete the online application within a couple minutes, and a dedicated business expert in lending will be in touch to assist you.
To apply for up $100,000, you’ll need identification details (valid Driver’s License), 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 consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Information on the application including credit consent twelve months of bank records, IRD statement Last 2 years’ finalised financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we can often offer an answer within an hour if you make your application during standard business hours and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statement, we’ll provide the decision within 1 company day.
For the Larger Business Loan ($100K or more) we may be in a position to provide you with conditional pre-approval within about six hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending on the specifics of each application. Certain offers have been approved in 24 hours.
The fastest way is to ensure you apply during normal company hours and let us use the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank accounts, it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically provide an answer in just one hour, provided you submit your request at normal business timings and let us use the advanced bank verification system to instantly verify your bank’s information online. If you decide to submit copies of your bank statements, we will be able to offer the decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be likely to provide the conditional pre-approval in around six hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, it could be faster based on the specifics of each application. Some deals have been approved in 24 hours.
The quickest method would be to ensure you apply during standard business hours, and allow us to use our advanced bank verification system to instantly confirm your bank details online. If you decide to upload documents from your account accounts, it will take a little longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a specific amount we consider a variety of elements that determine what is the well-being that is your business and the amount of payments your company is able to afford. The total amount of your loan will depend on the specifics the business.
When you submit an application for a certain amount, we will consider a number of aspects to assess how much we can lend you such as health of your company and the extent of the repayments your company will be able to support. The amount you receive from your loan will be contingent on the specifics the company.
Fees & repayments
What is the cost for a business loan?
If you decide to request the business loan, we’ll assess the risk assessment the business and provide an individualised offer including the amount of the loan, the duration and the interest rates. It is a business loan is a loan that is priced upfront so you will be aware of the total amount you will have to pay, including charges or interest.
What determines the amount I am charged?
Business loan interest rates depend on several variables like the amount to be borrowed, what company assets the money will be used for in addition to the industry that the company is in, how long the company has been in operation and in the event that the business has enough cash flow to fund the loan, and also the overall well-being and creditworthiness of the business.
What are the fees?
There are no hidden fees for our business loans. You’ll know exactly how much you need to pay and when, right from the first day. There’s no compounding interest and no additional fees (as as long as you pay your payments on time).
We don’t charge an application fee. You are able to apply for a loan with no cost upfront or commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan earlier?
You can choose to repay all of your loan at any point in time.
If you are deciding to pursue this option, please speak to our friendly business lending professionals. They’ll provide you with repayment details and an early payout figure. The figure will be calculated as the sum of the remaining principal amount and the accrued interest up to the time of early payment in addition to 1.5 percent of the remaining principal and any outstanding fees.
What are the repayment methods?
To make sure you do not miss payment dates and to align with your cash flow general, we offer repayments either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Protecting your information, and making it clear the ways we gather, use, exchange and ensure the security of your information is crucial and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We use an advanced bank verification system link to instantly verify your bank account information online so we can offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an business owner borrows from the assets they have to secure the loan. The asset can be an asset belonging to the personal, like the family home or an business property like a truck or piece of equipment.
The majority of the lenders not just the largest banks, are inclined to secure loans against assets. If you are having difficulty paying back the loan, the asset might be transferred to the lender. In essence, it’s means of securing additional financing making use of the value of what you already have.
Should I require security to secure a business loan?
For loans that exceed $150,000, no asset security is required upfront to access the money but we do require an individual guarantee. As long as you follow your loan commitments (as specified in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans over $150,000 generally, there is a personal ensure and security in the form of an asset charge.