FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Leabrook Small Business Loans
Tell me more about Leabrook Small Business Loans
Leabrook unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What makes this Unsecured Loan different from the traditional business loan?
You can apply to get this Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and the funds could be in your account in 24 hours. Traditional company loans are based on an annual interest rate as well as other fees and charges. Our business loan is a cash-based loan which means you be aware in advance of the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into either a daily or weekly amount to be paid back.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company reason, such as cash flow management, company remodels and marketing, to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used to fund personal expenses.
About Larger Leabrook Business Loans
What is the Larger Leabrook Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been trading for at least 3 years, and have an annual income of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funding be utilised?
A Larger Business Loan can be used for nearly every company reason, such as business improvements, purchasing inventory or new equipment as well as for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It’s as a result of an charge over assets, and may include the registration of this on the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is general in nature, rather than defining security over a particular asset. The person who is signing the guarantee is personally responsible if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry 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 grants prioritisation over property that is personal to be assigned in accordance with the date on which a registration of a security interest.
An affidavit is an official document filed to offer the public notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan that exceeds $250,000 we may be able to provide an initial pre-approval in order to make the process. We may be able to get this done without a credit check, and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves answering a couple of financial well-being checks. It is not an offer of credit or guarantee of funds. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you receive could be on different conditions.
Application process
Are I eligible for funding?
You are eligible to apply for a 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 prove at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form in just a few minutes, and a dedicated business lending specialist will call you to guide you through the process.
To be eligible for up to $100,000 you’ll require proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Details of the application, including credit consent twelve months bank statement, an IRD statement, last 2 years finalised financial statements, in addition to interim financial statements for the current year, Aged Payables and Aged Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we typically provide a response in one hour – as long as you submit your request within quality company time and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your bank statement, we’ll provide a decision in as little as the span of one company day.
For Larger Business Loans ($100K or more) we could be able to offer you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Some transactions have received approval within less than 24 hours.
The quickest method can be ensure you apply during normal business hours, and allow us to use our advance bank verification link to instantly verify your bank account information online. If you opt to upload documents from your account statement, it can take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) We can usually offer an answer within an hour – as long as you make your application during standard business timings and let us make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your banking statements, we’ll be able to offer an answer within the span of one business day.
If you are applying for Larger Business Loans ($100K or more) We may be able to offer you with pre-approval conditional to your application within 6 hours. Once you have signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Certain agreements have been approved within 24 hours.
The most efficient method for you to apply is ensure you apply during normal business hours, and allow us to use our advance bank verification link to verify your bank information online. If you choose to send us duplicates of your banking statement, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a certain amount we consider a variety of factors in order to assess what is the well-being for your company and the extent of payments your company will be able to support. The total amount of the loan will be determined by the particular circumstances that are unique to your company.
When you submit an application for a specific amount we consider a variety of aspects to determine the well-being that is your business and the extent of repayments that your business will be able to support. The total amount of the loan will be determined by the particular circumstances that are unique to your company.
Fees & repayments
How much do you charge for a company loan?
When you apply for one of our business credit, we will assess the risk assessment of your company and provide you with a customised proposal that includes the loan amount, the terms and interest rates. The business loan is a loan that is priced upfront so you will know the exact amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I am charged?
The interest rates on business loans rates depend on several factors like the amount of money borrowed, what company assets the money will be used for in addition to the industry that the company operates in, the long the company is in operation and how long the business has sufficient cash flow to fund the loan, as well as the overall well-being or financial standing of the business.
What are the fees?
There are no hidden fees with our business loans. You’ll know exactly how much you be required 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 punctually).
We do not charge an Application Fee. You are able to request a credit loan absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the expenses involved with establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay out the loan earlier?
You can repay all of your loan at any point in time.
If you do decide to pursue this option, please contact our helpful company credit professionals. We will offer you with the details of your repayment and an early payout figure. The figure will be calculated as the sum of the remaining principal amount and accrued interest to the time of the early payout in addition to 1.5% of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
To ensure you do not miss payment dates and to align with your cash flow cycle we offer repayments either weekly or daily. These are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear how we collect information, use it, and exchange it, as well as secure your information, is of huge importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to protecting the security of clients and security. We employ a highly sophisticated bank verification system link to immediately verify the bank account details online, allowing us to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where an business owner uses an asset they own to get the loan. The asset can be a personal asset like the family home or it could be a business asset such as a truck or other piece of machinery.
The vast majority of lending institutions, even the largest banks, are inclined to guarantee loans against assets. If you’re having trouble paying back the loan, your assets could be transferred to the lender. In essence, it is an opportunity to secure new financing using the worth of the asset you already have.
Should I need security to secure an company loan?
For loans up to $150K there is no requirement for asset security upfront to access the money but we require a personal guarantee. require an individual guarantee. If you adhere to your loan obligations (as stated in your loan contract document) Asset security is not needed. For loans over $150K generally, you can get a personal guarantee and security that is in the form charges on assets.