FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Hawthorn Small Business Loans
Let me know more about Hawthorn Small Business Loans
Hawthorn unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from an ordinary business loan?
It is possible to apply for the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an immediate response, and have the funds in your account in 24 hours. Traditional business loans reference an annual interest rate plus other fees and charges. This company loan is an upfront priced loan therefore you’ll know in advance the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into either a daily or weekly repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company reason, such as managing cash flows, business remodeling, marketing to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal purposes.
About the Larger Hawthorn Business Loans
What is the Larger Hawthorn Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size the company needs to be in operation for at least 3 years with an annual turnover of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funds for?
A Larger Business Loan can be used for nearly all business purpose including business remodeling, buying new equipment or inventory or as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. This is in the form of a charge on assets and can be registered with the PPSR or making a caveat.
A director’s or personal ensure is a commitment to pay back a loan that is general in nature rather than defining the security of a specific asset. The person signing the ensure is personally responsible if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests that are registered for personal property (including the assets or goods). The PPSR permits priority over personal property to be granted according to the date the security interest has been registered.
Caveats are legal document lodged to provide notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re applying for larger business loans that exceeds $250,000 we may be able to provide an initial pre-approval in order to ease the process. We could be able to do this without a credit check and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes you answering some financial well-being questions. It is neither an offer nor a guarantee of finance. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you are offered could be subject to different terms.
The application process
Do I have the right to receive funds?
You are eligible to apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a couple minutes, and a dedicated company expert in lending will be in touch to guide you through the process.
To be eligible for up to $100,000 you’ll require identification details (valid Driver’s Licence) and a valid NZBN/IRD as well as at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Information on the application including credit consent and 12 months bank statement, an IRD statement, last 2 years finalised financial statements, in addition to interim financials for the current financial year as well as Aged Payables and Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we can often provide an answer within one hour – as long as you submit your request in standard business hours and allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you opt to submit copies of your bank statements , we are able to provide a decision in just an company day.
If you are applying for a Larger Business Loan ($100K and up) we may be likely to provide you with conditional pre-approval within six hours. Once you have signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however it could be faster based upon the circumstances for each application. Some agreements have been approved within the space of 24 hours.
The most effective method is to make sure you apply during standard business hours and allow us to use our advance bank verification to verify your bank information online. If you opt to send us copies of your bank accounts, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) we usually offer a response in one hour, provided you make your application within normal business times and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your bank statement, we’ll offer a decision in as little as the span of one business day.
For the Larger Business Loans ($100K or more) we could be in a position to offer the conditional pre-approval within about six hours. Once you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this could be shorter based on the particular circumstances of each application. Certain deals have been approved in 24 hours.
The fastest method for you to apply is ensure you apply during standard business hours and permit us to use the advance bank verification to instantly check your bank’s information online. If you upload duplicates of your banking statements, it can take a bit longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a certain amount, we consider a variety of aspects that determine what is the well-being for your business and the level of payments your business will be able to support. The total amount of the loan will be determined by the particular circumstances for your company.
When you apply for a certain amount, we take into consideration a variety of aspects to determine the well-being of the company and the extent of repayments your business is able to afford. The amount you receive from the loan will be determined by the specific circumstances for your company.
Fees & repayments
How do you charge for an business loan?
When you request the business loan, we’ll assess the risk profile the business and offer an individualised offer that includes the loan amount, the terms and the interest rates. This business loan is an upfront priced loan which means you be aware of the total amount to be paid, including any charges or interest.
What determines the rate that I will be charged?
Interest rates for company loans rates differ based on various factors such as the amount that is borrowed, what company assets the money are used to purchase, the industry the company is in, how long the business has been running as well as whether the business has sufficient cash flow to support the loan, and general health as well as creditworthiness business.
What are the cost?
There are no hidden costs with our business loans, and you’ll know precisely how much you’ll be required to pay, and when, starting from the first day. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We do not charge an Application Fee. You can get a cash loan with no cost upfront or any obligation to sign up.
The Origination Fee covers the costs associated in establishing and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay off the loan early?
You may choose to pay back the entire amount of your loan in full at any time.
If you do decide to take this route, please call our helpful company loans experts. They will provide you with the details of your repayment and an early payout figure. This will be calculated as the sum of the remaining principal amount and the accrued interest up to the time of early payment and 1.5 percent of the principal balance plus any outstanding fees.
How do you make repayments work?
To help you avoid missing payment dates and to align with your cash flow routine, we provide payments that are either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and knowing how we collect, use, exchange and secure your information, is vital and is an essential aspect 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 as well as financial data. Our funders are ISO 27001 qualified for our commitment to security for our customers and security. We employ a highly sophisticated bank verification system to immediately confirm your bank account information online so we can provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the company owner borrows from an asset that they own to secure the loan. The asset can be either an individual property, such as the family home or an business asset like a truck as well as a piece of machine.
The majority of banks, including the big banks, tend to secure loans against an asset. If you’re having trouble paying back the loan, your asset may be transferred to the lender. In essence, it’s the process of securing new financing using the worth of the asset you already own.
Do I require security to get an business loan?
For loans of up to $150,000, no asset security is required upfront to access the money, however we require a personal guarantee. require an individual guarantee. If you adhere to the terms of your loan (as stated in your loan contract document) Asset security will never be required. If you take out loans in excess of $150K generally, you are able to get the option of a personal ensure and security is provided in the form of an asset charge.