FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Llandilo Small Business Loans
Let me know what you think of the Llandilo Small Business Loans
Llandilo unsecured loans offers amounts between $5,000 and $100,000. Terms range from 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 company loan?
You can apply for the Small Business Loan in under 10 minutes on the phone. You’ll receive an immediate response, and the funds could be in your account in 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. Our business loan is a pre-paid loan which means you know ahead of time the total amount due, which includes the interest, fees and charges. This is then broken down into either weekly or daily payment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any company purpose including managing cash flows, business renovations, marketing, to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal reasons.
About larger Llandilo Business Loans
What is the Larger Llandilo Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to have been in operation for at least 3 years, and have an annual income of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funds be used for?
A larger business loan can be used to fund almost every business use, including company improvements, purchasing new equipment or inventory or as general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. It’s by taking a charge against assets, and may be registered in the PPSR or registering a caveat.
A personal or director’s guarantee is a promise to repay a loan which is general in nature, rather than stating the security of a specific asset. The person signing the guarantee is personally accountable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR gives prioritisation over property that is personal to be assigned in accordance with the date on which a security interest was registered.
The caveat can be described as a formal document lodged to provide notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250K, we may offer a preliminary pre-approval to help make the process. We may be able to make this decision without a credit check and within 6 hours of the initial application. The pre-approval is based upon an initial assessment that includes answering a couple of financial health questions. This is not an offer of credit or guarantee of funds. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you are offered could have different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for an business 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)
- can demonstrate at least 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a couple minutes, and a dedicated company lending specialist will contact you to assist you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s License) and a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K-$250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Information on the application including credit consent twelve months bank statement, an IRD statements and the last two years’ finalised financial statements, in addition to interim financials for the current financial year such as age-related payables and aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we typically provide a response in one hour – as long as you apply at quality company times and permit us to utilise the bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statements , we are able to provide the decision within just 1 company day.
For the Larger Business Loan ($100K or more) we could be capable of offer you with a conditional pre-approval in about 6 hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Certain agreements have been approved within just 24 hours.
The most effective method would be to make sure you apply during normal company hours and let us use the advance bank verification to verify your bank account information online. If you decide to upload duplicates of your banking statements it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) we typically provide a response in one hour – provided you submit your request within normal business time and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you want to send us copies of your bank statements, we’ll be able to offer a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K or more) We may be in a position to offer you with pre-approval conditional to your application within about six hours. Once you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however it could be faster based upon the circumstances for each application. Certain transactions have received approval in the space of 24 hours.
The quickest method is to make sure you apply during standard business hours, and permit us to use the sophisticated bank verification to instantly check your bank’s information online. If you decide to upload copies of your bank statements it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a specific amount we look at a variety of factors that determine the well-being of the company and the amount of the repayments your company will be able to support. The total amount of your loan will be contingent on the particular circumstances of your company.
If you apply for a set amount, we will consider a number of elements to assess the well-being that is your company and the amount of repayments that your company can afford. The total amount of the loan will be determined by the specifics the business.
Fees & repayments
How do you charge for a business loan?
When you make an application for the company credit, we’ll assess the risk profile that you have for your business and offer you with a customised offer that includes the loan amount, the terms and interest rates. The company loan is a loan that is priced upfront which means you know in advance the total amount payable including any interest rates, fees or charges.
What determines the amount I pay?
The interest rates on business loans rates depend on a variety of factors including the amount of money borrowed, the business assets the funds are used to purchase in addition to the industry that the company is operating in, how long the company is in operation and whether the company has sufficient cash flow to fund the loan, and the general well-being or creditworthiness of the business.
What are the costs?
There are no hidden fees with our company loans. You’ll know precisely what you be required to pay and when, starting from the very first day. There’s not any compounding interest and no additional fees (as as you make your payments in time).
We don’t charge an Application Fee. You can make an application for loans with absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the expenses involved in establishing and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan early?
You can choose to repay the entire amount of the loan in full at any time.
If you are deciding to pursue this option, please call our helpful business loans professionals. They will offer you with details on repayment and an early payment figure. The figure will be calculated as the total of the remaining principal amount and accrued interest to the time of the early payout and 1.5 percent of the remaining principal and any fees that remain unpaid.
How do repayments work?
To make sure you do not miss repayments and to fit in your cash flow cycle we offer repayments either daily or weekly. These are automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and being upfront about the ways we gather the information we collect, use, share and ensure the security of your information is of paramount importance and an integral aspect 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 personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We make use of an advanced bank verification system link to instantly confirm your bank account information online. This allows us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an business owner borrows from the assets they have to get the loan. The asset can be either an individual property, such as the family home or an company asset such as a truck or piece of equipment.
The majority of banks, not just the big banks, tend to make loans secured by an asset. If you have trouble paying back the loan, then the asset could be sold by the lender. In essence, it is means of securing new financing using the worth of the asset you already have.
What do I need security to secure an business loan?
Up to $150K in loans the requirement for asset security is not required before you are able to access the money however, we do need the personal guarantee. So long as you comply with your loan obligations (as specified in your loan contract document) Asset security is not required. For loans of over $150K generally, you are able to get an individual guarantee and security in the form of the charge of assets.