FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Valley View Small Business Loans
Tell me about the Valley View Small Business Loans
Valley View unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from the traditional business loan?
It is imaginable to apply to get the Small Business Loan in under 10 minutes over the phone, receive an instant response and the funds could be on your account within 24 hours. Traditional company loans are based on an annual rate of interest along with other charges and fees. Our business loan is a loan that is priced upfront which means you be aware in advance of the amount you will have to pay, including any fees, charges or charges. This is then broken down into weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business reason, such as managing cash flows, business improvements, advertising for purchasing inventory or new equipment, as general working capital and much more. The loan cannot be used to fund personal expenses.
About larger Valley View Business Loans
What is the Larger Valley View Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee determined?
The 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 business needs to have been operating for at least three years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can the funding be used for?
A large company loan is a great option for almost any business reason, such as business remodeling, buying new equipment or inventory, as general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required for accessing funds over $150,000. It’s in the form of a charge over assets, which could also include registration with the PPSR or making a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is generally in nature rather than stipulating security over an asset. The person who signs the ensure is personally liable if the company creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR permits priority over personal property to be granted depending on the date that a security interest was registered.
A caveat is a legal document filed to provide an official notice of a claim to property.
What is a pre-approval minus Credit Check?
If you’re seeking an enterprise loan that is greater than $250,000 we can offer an initial pre-approval to make the process. It is possible to apply for this without a credit verification and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial health questions. It is neither an offer nor a guarantee of financing. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you receive could have different conditions.
The application process
Do I have the right to receive funds?
You are eligible to apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Complete the online form in few minutes and a dedicated company expert in lending will call you to help you.
For a loan of up to $100,000, you’ll need ID details (valid Driver’s License) and a valid NZBN/IRD as well as at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details for application including credit consent, 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, plus interim financials for the current financial year such as age-related payables and aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we typically offer a response in one hour if you submit your request in standard company timings and let us use the advanced bank verification system to instantly verify your bank details online. If you decide to send us copies of your bank statements , we are able to offer the decision in just 1 business day.
For the Larger Business Loan ($100K or more) we could be likely to provide the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however it could be faster based on the circumstances of each application. Some offers have been approved within just 24 hours.
The most effective method would be to ensure you apply during normal business hours, and allow us to use our advanced bank verification system link to instantly verify your bank account information online. If you decide to upload documents from your account statements it can take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we typically provide a response in one hour – as long as you make your application within normal business hours and allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you opt to submit copies of your bank statement, we’ll offer the decision in as little as the span of one business day.
For Larger Business Loans ($100K and up) we may be likely to provide you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Some offers have been approved within less than 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours, and allow us to use the modern bank verification to confirm your bank details online. If you choose to upload duplicates of your banking statement, it takes a bit longer.
What is the maximum amount I can 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 in order to assess your well-being of your business as well as the amount of repayments your company will be able to support. The amount you receive from your loan will depend on the specifics of your business.
If you apply for a particular amount, we will consider a number of aspects to determine your health of the business and the amount of payments your company will be able to support. The total amount of your loan will be contingent on the specifics that are unique to your business.
Fees & repayments
What is the cost for a company loan?
When you apply for business loans with us company loans, we will assess the risk profile the company and provide an individualised offer that includes the amount of loan, the term and interest rates. A company loan is an upfront priced loan therefore you will be aware in advance of the total amount payable including any charges or interest.
What determines the rate that I’m charged?
Interest rates for company loans rates depend on a variety of factors like the amount of money that is borrowed, what business assets the funds are used to purchase in addition to the industry that the company operates in, the long the company has been in operation, in the event that the company has enough cash flow to cover the loan, and also the overall well-being as well as creditworthiness company.
What are the costs?
There are no hidden fees with our business loans. You’ll know exactly how much it is that you need to pay and when, right from the day you sign up. There’s not any compounding interest and the loan comes with no additional fees (as long as you are able to make your payments in time).
We do not charge an Application Fee. You are able to get a cash loan with with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved with establishing and managing the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay out the loan earlier?
You can repay the entire amount of your loan in full at any time.
If you are deciding to take this route, please contact our helpful company loans professionals. They’ll offer you with details for repayment along with an early payout estimate. It will be calculated using the sum of the principal balance plus any accrued interest as of the date of early payout plus 1.5% of the remaining principal plus any outstanding fees.
How do repayments work?
In order to help you avoid missing payment dates and to align your cash flow schedule, we offer repayments either daily or weekly. They will be automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as knowing the ways we gather the information we collect, use, share and protect your information, is of paramount importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to customer security and security. We employ an exceptionally sophisticated banking verification system to instantly verify your bank account information online so we can offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a company owner makes use of the assets they have to make the funding. The asset can be either an asset belonging to the personal, like the family home or a company property like a truck or other piece of machinery.
The vast majority of lenders, including the major banks, prefer to secure loans against an asset. If you are having difficulty paying back the loan then the asset might be offered for sale by the lender. In essence, it is a way of securing new financing using the value of what you already own.
Do I need security to secure a company loan?
For loans up to $150K there is no requirement for asset security in advance to gain access to the funds, however we do require the personal guarantee. As long as you follow your loan obligations (as detailed in the loan contract) the security of assets is not required. For loans over $150,000 generally, there is personal ensure and security is provided in the form of an asset charge.