FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Leichhardt Small Business Loans
Let me know about the Leichhardt Small Business Loans
Leichhardt unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from an ordinary company loan?
You can apply to the Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and the funds could be on your account within 24 hours. Traditional company loans are based on an interest rate per annum together with additional fees and charges. Our company loan is a pre-paid loan so you will be aware in advance of the amount you will have to pay, including the interest, fees and charges. This is then broken down into either a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business need, such as the management of cash flow, company improvements, advertising to purchase inventory, new equipment, for general working capital, and much more. The loan cannot be used to fund personal expenses.
About Larger Leichhardt Business Loans
What is the Larger Leichhardt Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly depending on your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size the business needs to be trading for at least 3 years and generate an annual revenue of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can I use the funding for?
A larger company loan can be used to fund almost all business use, including company improvements, purchasing equipment or inventory, as 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 needed to obtain funding above $150,000. This is by taking a charge on assets and can include registration on the PPSR or registering a caveat.
A director’s or personal guarantee is a promise to repay credit that is generally based rather than stipulating security over an asset. The person who is signing the ensure is personally accountable if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including items or assets). The PPSR gives priority over personal property to be granted according to the date a security interest has been registered.
An affidavit is an official document that is filed to provide notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan of more than $250K it is possible to offer an initial pre-approval to smooth out the process. We may be able to get this done without a credit check and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering a few financial health checks. It’s not an offer of credit or guarantee of funds. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you receive could be subject to different conditions.
Application process
Do I have the right to receive funds?
You may be eligible for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for the unsecured loan $5K – $100K) or 3 years of 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 an experienced business lending specialist will be in touch to guide you.
For a loan of up to $100,000, you’ll need ID details (valid Driver’s License) along with an NZBN/IRD that is valid and at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details of the application, including credit consent and 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, and interim current financial year financials such as age-related payables and aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) We can usually offer a response in one hour, provided you submit your request during quality business timings and you allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statements we can offer an answer in as little as 1 business day.
For Larger Business Loans ($100K or more) we might be able to offer you with conditional pre-approval within about 6 hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Certain agreements have been approved in less than 24 hours.
The quickest way to apply would be to ensure you apply during normal company hours. You can also allow us to use our advance bank verification link to confirm your bank details online. If you decide to send us the copies of bank statements , it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we typically offer a response in one hour – as long as you apply in normal business times and permit us to make use of the advanced bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statement, we’ll provide the decision in just an business day.
If you are applying for Larger Business Loans ($100K or more) we might be in a position to provide you with a conditional pre-approval within about six hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however it could be faster based on the circumstances of each application. Certain deals have been approved within 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours. You can also let us use the sophisticated bank verification link to check your bank’s information online. If you upload copies of your bank statements it may take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a certain amount we take into consideration a range of elements in order to assess the well-being that is your business and the amount of the repayments your business will be able to support. The total amount of your loan will be contingent on the specifics the business.
When you submit an application for a particular amount, we take into consideration a variety of aspects to assess the well-being for your business and the extent of the repayments your business can support. The total amount of your loan will depend on the particular circumstances the company.
Fees & repayments
How do you charge for a company loan?
When you apply for business loans with us company financing, we’ll assess the risk profile that you have for your company and offer an individualised offer that includes loan amount, term and the interest rates. It is a company loan is an upfront cost loan so you will know in advance the total amount you will have to pay, including interest rates, fees or charges.
What is the basis for the rate I will be charged?
The interest rates on business loans rates depend on several variables like the amount to be that is borrowed, what company assets the money will be used for and the sector the business operates in, the long the business has been in operation and what percentage of the company has enough cash flow to cover the loan, and the overall health or financial standing of the business.
What are the charges?
There are no hidden fees for our business loans, and you’ll be aware of the amount you need to pay, and when, starting from day one. There’s not any compounding interest and there are no additional charges (as as you make your payments on time).
We don’t charge an Application Fee. You are able to get a cash loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I repay the loan in advance?
You can repay the entire amount of your advance loan at any time.
If you are deciding to do this please talk to one of our helpful business loans professionals. The experts will provide you with details on repayment and an early payout figure. It will be calculated using the sum of the remaining principal amount plus any accrued interest as of the time of early payment, plus 1.5% of the principal balance plus any outstanding fees.
What are the repayment methods?
To ensure you do not miss due dates and also to be in line with your cash flow cycle we offer repayments either daily or weekly. They will be automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Protecting your information, and making it clear how we collect data, process, exchange and safeguard your data, is crucial and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to security for our clients and security. We use an advanced banking verification system to instantly verify your bank account details online, allowing us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a business owner borrows from an asset they own to get the funds for a loan. The asset could be an individual asset, such as the family home, or it could be a company asset such as a vehicle or piece or equipment.
The vast majority of banks, even the major banks, prefer to guarantee loans against an asset. If you have trouble paying back the loan then the asset could be transferred to the lender. In essence, it’s means of securing new financing using the worth of the asset you already own.
Should I need security for a company loan?
Up to $150,000 in loans the requirement for asset security is not required in advance to gain access to the funds but we do need a personal guarantee. So long as you comply with the loan terms (as detailed in the loan contract) Asset security is not required. For loans of over $150,000 generally, you can get personal guarantee and security in the form of an asset charge.