FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Highbury Small Business Loans
Let me know what you think of the Highbury Small Business Loans
Highbury unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
How is the Unsecured Loan different from an ordinary business loan?
You can apply to get your Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an instant response and funds may be on your account within 24 hours. Traditional business loans reference an annual interest rate as well as other fees and charges. Our business loan is a pre-paid loan therefore you’ll know ahead of time the total amount due, which includes any fees, interest or charges. This is then divided into a daily or weekly installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for almost every company need, such as cash flow management, business remodeling, marketing to purchase inventory, new equipment, for general working capital and much more. The loan cannot be used to fund personal expenses.
About larger Highbury Business Loans
What is the Larger Highbury Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the company needs to have been operating for at least three years and have an annual turnover of at least $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A Business Loan of a larger size can be used for nearly any business use, including business improvements, purchasing inventory or new equipment for general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It is usually by way of charge over assets, and may include the registration of this on the PPSR or registering as a caveat.
A director’s or personal ensure is a commitment to repay a loan which is general in nature, rather than stating the security of a specific asset. The person who is signing the guarantee is personally liable if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including objects or assets). The PPSR permits priority over personal property to be granted in accordance with the date on which a registration of a security interest.
Caveats are legal document filed to provide the legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re requesting the Larger Business Loan of more than $250,000 it is possible to offer an initial pre-approval in order to smooth out the process. We may be able to do this without credit checks and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves you answering some financial well-being questions. It’s not an offer of credit or guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer you receive could be based on 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 business (with a valid NZBN/IRD)
- must show at least six months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Complete the online form in just a few minutes, and a dedicated business credit specialist will be in touch to guide you through the process.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s Licence) as well as an active NZBN/IRD, and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K-$500K: Details for application including credit consent and 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, in addition to interim financial statements for the current year including Aged Payables, Aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) We can usually provide an answer within an hour if you submit your request at standard business hours and allow us to use the advanced bank verification system link to immediately verify your bank account information online. If you want to send us copies of your bank statements , we are able to offer a decision in just one company day.
For the Larger Business Loan ($100K to $500K) we could be able to provide you with conditional pre-approval within six hours. After you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval, however this may be quicker depending on the specifics of each application. Some transactions have received approval within just 24 hours.
The fastest way would be to ensure you apply during standard business hours and let us use the advance bank verification link to check your bank’s information online. If you opt to upload duplicates of your banking statements , it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we typically offer a response in one hour if you make your application at normal business times and you allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statements we can offer a decision within one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be in a position to offer you with a conditional pre-approval in around 6 hours. Once you’ve signed your 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 agreements have been approved within less than 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours. You can also allow us to use our sophisticated bank verification link to verify your bank information online. If you send us duplicates of your banking accounts, it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a certain amount, we consider a variety of aspects for determining your health that is your company and the level of the 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.
If you apply for a specific amount we look at a range of factors to assess the health of your business and the amount of repayments your company is able to afford. The amount you receive from your loan will be contingent on the particular circumstances for your business.
Fees & repayments
How do you charge for the cost of a business loan?
When you request business loans with us company credit, we’ll assess the risk assessment the company and provide you with a tailored offer that includes loan amount, term and the interest rates. The company loan is an upfront cost loan so you will be aware of the total amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I will be charged?
The interest rates on business loans rates depend on a variety of factors like the amount of money of money borrowed, the company assets the funds will be used for and the sector the company operates in, the long the business is in operation as well as how long the company has enough cash flow to support the loan, and the general well-being or financial standing of the company.
What are the cost?
There aren’t any hidden costs for our company loans. You’ll know precisely what you be required to pay, and at what time, from the first day. There’s not any compounding interest and no extra fees (as as you make your payments on time).
We don’t charge an application fee. You can get a cash loan with without any upfront costs or any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay out the loan earlier?
You can repay the entire amount of your loan in full at any time.
If you decide to take this route, please talk to one of our helpful company lending professionals. They will offer you with details for repayment and an early payout figure. This is calculated as the sum of the principal remaining and the accrued interest up to the date of early payout, plus 1.5 percent of the principal remaining plus any outstanding fees.
How do repayments work?
To ensure that you don’t miss payment dates and to align with your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from your company account.
Security & privacy
Will my information be secure?
Protecting your information, and being upfront about how we collect, use, exchange and secure your information, is of paramount importance and is a crucial 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 certified for our dedication to protecting the security of clients and security. We make use of an advanced banking verification system to instantly verify the bank account details online so we can provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where an business owner uses the assets they have to make the funds for a loan. The asset can be either a personal asset like the family home, or an company property like a truck or piece of equipment.
The vast majority of lenders, not just the banks with the biggest size, prefer to make loans secured by an asset. If you are having difficulty paying back the loan, your assets could be transferred to the lender. In essence it’s an opportunity to secure new funding taking advantage of the value of what you already have.
Are I require security to secure an business loan?
Up to $150,000 in loans it is not necessary to secure assets prior to the loan’s access however, we do require an individual guarantee. If you adhere to your loan obligations (as stated in your loan contract) Asset security will never be needed. For loans that exceed $150K, generally there is the option of a personal ensure and security is provided in the form of charges on assets.