FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Hackney Small Business Loans
Let me know what you think of the Hackney Small Business Loans
Hackney unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from the traditional company loan?
Apply to get your Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an answer within the same day and the funds could be available in just 24 hours. Traditional business loans refer to an interest rate per annum along with other charges and fees. We offer a business loan is an upfront priced loan therefore you’ll know ahead of time the total amount payable including any fees, charges or charges. This is then broken down into weekly or daily repayment figure.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for almost every business reason, such as control of cash flow business improvements, advertising to purchase inventory, new equipment, or as general working capital and so much more. The loan cannot be used for personal reasons.
About Larger Hackney Business Loans
What is the Larger Hackney Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit of this size, your company needs to have been operating for at least three years and have an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be utilised?
A Business Loan of a larger size is a great option for almost every company reason, such as company renovations, to purchase new equipment or inventory, as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. This is by way of charge over assets, which could also include registration through the PPSR or the registration of as a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is general in nature, rather than stating the security of a specific asset. The person who is signing the guarantee is personally responsible if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including items or assets). The PPSR permits priority over personal property to be assigned according to the date a security interest has been registered.
Caveats are legal document lodged to offer notice of a legal claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for the Larger Business Loan that exceeds $250,000 we can offer an initial pre-approval that will help simplify the process. We might be able to apply for this without a credit check, and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes answering a couple of financial well-being questions. This is in no way an offer, nor is it a guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you receive could have different conditions.
Application process
Are I eligible for funding?
You are eligible to apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and simple. Complete the online form within a couple minutes, and an experienced company loan specialist will be in touch to guide you through the process.
For a loan of up to $100,000 you’ll need the right identification documents (valid Driver’s License) as well as an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll also need:
$100K to $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent as well as 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, and interim financial statements for the current year as well as Aged Payables and Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we typically offer an answer in just one hour, provided you apply during quality business hours and permit us to utilise the bank verification system link to instantly verify your bank information online. If you want to send us copies of your bank statements , we are able to provide a decision in just an business day.
For the Larger Business Loan ($100K up to $500,000) we might be in a position to offer you with conditional pre-approval in about 6 hours. After you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval, however this could be shorter based on the specifics of each application. Certain transactions have received approval within the space of 24 hours.
The quickest method can be make sure you apply during standard business hours and allow us to use the advanced bank verification system to confirm your bank details online. If you choose to send us the copies of bank statements it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) we typically provide an answer in just one hour, provided you submit your request within standard business timings and allow us to use the bank verification system link to instantly verify your bank details online. If you choose to upload copies of your banking statement, we’ll offer the decision in just 1 business day.
For Larger Business Loans ($100K and up) We may be capable of offer the conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Certain offers have been approved within 24 hours.
The fastest way can be ensure you apply during normal business hours. You can also permit us to use the modern bank verification to instantly verify your bank account information online. If you upload documents from your account statements it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you submit an application for a certain amount, we take into consideration a range of aspects that determine your well-being for your company as well as the amount of repayments your business is able to afford. The total amount of your loan will depend on the particular circumstances that are unique to your company.
When you apply for a certain amount, we look at a range of aspects to determine your health of your business and the amount of the repayments your company can support. The total amount of your loan will be determined by the specific circumstances of your business.
Fees & repayments
How much do you charge for a business loan?
When you request business loans with us business loan, we will assess the risk assessment the company and offer you with a tailored offer, including the amount of the loan, the duration and interest rates. This company loan is an upfront cost loan and you’ll be aware of the total amount due, which includes any costs, fees, or interest rates.
What is the basis for the rate I’m charged?
Business loan interest rates depend on a variety of factors including the amount that is borrowed, what company assets the money are used to purchase and the sector the company is in, how long the business has been in operation, what percentage of the business has sufficient cash flow to pay for the loan, as well as the overall well-being and creditworthiness of the business.
What are the fees?
There aren’t any hidden charges with our company loans. You’ll know exactly how much it is that you need to pay, and at what time, from the day you sign up. There’s no compounding interest, and no extra fees (as long as you make your payments in time).
We don’t charge an Application Fee. You are able to get a cash loan with with no upfront cost or 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 decide to take the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Do I have the option of paying off the loan early?
You can repay the entire amount of the loan in full at any time.
If you do decide to take this route, please call our helpful company lending experts. They’ll provide you with the details of your repayment and an early payout figure. This is calculated as the total of the principal balance and the accrued interest up to the time of the early payout, plus 1.5% of the principal amount remaining and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line your cash flow schedule, we offer repayments either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Security of your data, and being clear about how we collect information, use it, and exchange it, as well as ensure the security of your information is of huge importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to security for our customers and privacy. We utilise a sophisticated bank verification system that allows you to instantly verify the bank account details online to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the company owner makes use of the assets they have to secure a loan. The asset can be an individual property, such as the family home or it could be a company asset such as a vehicle or piece of equipment.
The vast majority of the lenders including the largest banks, are inclined to secure loans against an asset. If you have trouble paying back the loan, then your assets could be transferred to the lender. In essence it’s a way of securing new funding making use of the value of what you already have.
What do I need security to get an company loan?
For loans of up to $150,000, it is not necessary to secure assets prior to the loan’s access However, we require a personal guarantee. require an individual guarantee. As long as you follow your loan obligations (as specified in the loan contract) Asset security is not needed. For loans of over $150K generally there is personal ensure and security in the form charges on assets.