FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Hope Valley Small Business Loans
Let me know what you think of the Hope Valley Small Business Loans
Hope Valley unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from an ordinary company loan?
You can apply to get the Small Business Loan in under 10 minutes by phone. You will receive an immediate response, and the funds could be available in just 24 hours. Traditional company loans refer to an interest rate per annum along with other charges and fees. This company loan is a pre-paid loan which means you know ahead of time the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into either weekly or daily installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business reason, such as cash flow management, company remodels and marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan cannot be used for personal reasons.
About the Larger Hope Valley Business Loans
What is the Larger Hope Valley Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed up to 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large the company needs to be operating for a minimum of 3 years and generate an annual revenue of $700K. You must be 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 prove at minimum 12 months of business.
What can the funding be used for?
A large business loan is a great option for almost every company use, including business improvements, purchasing new equipment or inventory for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. This can be done by taking a charge over assets, which could also include the registration of this on the PPSR or filing as a caveat.
A director’s or personal ensure is a guarantee to repay a loan which is general in nature, rather than stating the security for a particular asset. The person who is signing the guarantee is personally accountable if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including items or assets). The PPSR allows preference over private property assigned depending on the date that a security interest has been registered.
Caveats are legal document lodged to offer the legal claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan of $250K or more, we may offer an initial pre-approval to ease the process. We might be able to make this decision without a credit check and within 6 hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering a few financial well-being checks. It is not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer that you receive could be on different conditions.
Application process
Do I qualify for funds?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for 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 lending specialist will contact you to guide you.
To apply for up $100,000 you’ll need proof of identity (valid Driver’s Licence), an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent and 12 months bank statement, an IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials, Aged Payables and Aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we typically offer a response in one hour, provided you submit your request during quality business hours and you allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you opt to send us copies of your bank statements , we will be able to provide a decision in as little as the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we might be likely to offer you with a conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however it could be faster based on the particular circumstances of each application. Certain deals have been approved within less than 24 hours.
The most efficient method for you to apply is make sure you apply during standard company hours. Also, allow us to use the advance bank verification to confirm your bank details online. If you decide to send us the copies of bank statements it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within one hour if you submit your request during standard business hours and allow us to use the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statements, we will be able to offer an answer within one business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be likely to provide you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Certain offers have been approved in the space of 24 hours.
The quickest method would be to make sure you apply during standard business hours and permit us to use the modern bank verification link to instantly check your bank’s information online. If you opt to send us duplicates of your banking statements it will take a little longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you submit an application for a specific amount we will consider a number of variables that determine your health of your company and the amount of repayments that your business will be able to support. The total amount of your loan will depend on the particular circumstances that are unique to your business.
When you submit an application for a certain amount, we take into consideration a variety of variables to determine your well-being that is your company and the extent of the repayments your business is able to afford. The amount you receive from your loan will depend on the particular circumstances of your company.
Fees & repayments
How much do you charge for an business loan?
If you decide to make an application for the company loan, we will assess the risk profile that you have for your business and provide you with a customised offer, including the amount of the loan, the duration and the interest rates. A company loan is an upfront-priced loan which means you be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What is the basis for the rate I am charged?
The interest rates on business loans rates vary due to factors such as the amount that is borrowed, the company assets the money are used to purchase, the industry the business is operating in, how long the business has been running, how long the business has sufficient cash flow to support the loan, and overall well-being or creditworthiness of the business.
What are the costs?
There are no hidden fees with our company loans. You’ll know exactly how much you be required to pay, and at what time, from the day you sign up. There’s no compounding interest and there are no additional charges (as long as you make your payments in time).
We do not charge an application fee. You are able to apply for a loan with no cost upfront or the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5% of the loan amount.
Do I have the option of paying off the loan in advance?
You can choose to repay the entire amount of your loan at any point in time.
If you do decide to pursue this option, please speak to our friendly business credit experts. They’ll provide you with repayment details along with an early payout estimate. This will be calculated as the sum of the remaining principal amount and any accrued interest at the time of the early payout plus 1.5% of the principal balance as well as any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss due dates and also to be in line with your cash flow cycle we provide repayments either daily or weekly. These are automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear how we collect data, process, exchange and protect your information, is vital and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to security for our clients and security. We utilise a sophisticated bank verification system to instantly verify the bank account details online so we can provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where the company owner borrows from assets they own to make the funding. The asset can be either an individual asset, such as the family home or a company property like a truck or piece or equipment.
The vast majority of lenders, including the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan then the asset might be offered for sale by the lender. In essence, it’s the process of securing new funding using the value of what you already have.
Are I need security for an company loan?
For loans of up to $150K, the requirement for asset security is not required upfront to access the money but we require a personal guarantee. need a personal guarantee. As long as you follow your loan obligations (as detailed in your loan contract) the security of assets is not needed. For loans over $150,000 typically, you will need an individual ensure and security that is in the form charges on assets.