FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Yennora Small Business Loans
Let me know more about Yennora Small Business Loans
Yennora unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
How is this Unsecured Loan different from an traditional company loan?
The application to get the Small Business Loan in under 10 minutes online or on the phone. You’ll receive an answer within the same day and have the funds on your account within 24 hours. Traditional business loans refer to an annual interest rate together with additional fees and charges. We offer a company loan is a loan that is priced upfront so you will know in advance the total amount payable including the interest, fees and charges. This is then broken down into a daily or weekly payment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for almost any business purpose including control of cash flow company remodeling, marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used to fund personal expenses.
Concerning Larger Yennora Business Loans
What is the Larger Yennora Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to have been trading for at least 3 years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funding be used for?
A larger company loan is a great option for almost any business purpose including business improvements, purchasing new equipment or inventory, as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. It is usually in the form of a charge over assets, and could be registered in the PPSR or making as a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is generally in nature rather than defining security over a particular asset. The person signing the ensure is personally accountable if the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including items or assets). The PPSR grants the priority of personal property assigned according to the date a security interest has been registered.
A caveat is a legal document that is filed to provide the legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan that is greater than $250,000 we may be able to provide an initial pre-approval in order to smooth out the process. We might be able to apply for this without credit checks and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial well-being questions. This is not an offer or guarantee of credit. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you are offered could have different terms.
The application process
Are I eligible for funding?
You can apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just complete the online application within a few minutes and an experienced business expert in lending will call you to guide you through the process.
To apply for up $100,000, you’ll need the right identification documents (valid Driver’s License) along with an active NZBN/IRD, and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details for application including credit consent as well as 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, plus 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 can often offer an answer in just one hour if you make your application during standard company time and let us utilise the bank verification system to instantly verify your bank information online. If you decide to send us copies of your bank statement, we’ll provide an answer within just the span of one company day.
For the Larger Business Loan ($100K or more) we may be likely to provide the conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this could be shorter based on the specifics of each application. Certain agreements have been approved in the space of 24 hours.
The most effective method would be to make sure you apply during standard company hours. Also, permit us to use the modern bank verification link to instantly verify your bank information online. If you choose to upload the copies of bank statements , it can take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) we typically offer an answer within one hour – as long as you apply at standard business timings and allow us to use the advanced bank verification system link to instantly verify your bank details online. If you opt to send us copies of your bank statements, we are able to provide the decision within an business day.
If you are applying for Larger Business Loans ($100K and up) We may be able to provide the conditional pre-approval within 6 hours. Once you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Certain offers have been approved in just 24 hours.
The fastest way can be make sure you apply during normal business hours. Also, let us use the advance bank verification link to confirm your bank details online. If you opt to upload duplicates of your banking statements it takes a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. When you make an application for a certain amount we take into consideration a range of variables for determining your well-being of your company and the extent of the repayments your business can support. The amount you receive from your loan will depend on the particular circumstances that are unique to your company.
If you apply for a set amount, we take into consideration a variety of variables to assess how much we can lend you such as health of the company as well as the amount of repayments that your business will be able to support. The amount you receive from the loan will be determined by the particular circumstances for your business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to make an application for business loans with us company loans, we will assess the risk assessment for your business and provide you with a customised offer that includes the amount of the loan, the duration and the interest rates. This company loan is an upfront priced loan so you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I pay?
The interest rates on company loans rates differ based on various variables like the amount to be borrowed, what business assets the money are used to purchase as well as the field the business operates in, the long the company has been in operation and what percentage of the company has enough cash flow to pay for the loan, as well as the overall well-being as well as creditworthiness business.
What are the charges?
There aren’t any hidden charges with our business loans, and you’ll know exactly how much you need to pay and at what time, from the day you sign up. There’s no compounding and the loan comes with no additional fees (as long as you make your payments in time).
We don’t charge an application fee. You are able to make an application for loans with with no upfront cost or commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay out the loan in advance?
You can repay the total amount of your loan early at any time.
If you choose to take this route, please contact our helpful company credit experts. They’ll offer you with repayment details and an early payout figure. It will be calculated using the total of the principal remaining and the accrued interest up to the date of early payout in addition to 1.5 percent of the principal amount remaining and any fees that remain unpaid.
How do repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow cycle we provide repayments either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about how we collect information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and is a crucial part 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 qualified for our commitment to security for our customers and security. We utilise a sophisticated bank verification system to immediately verify the bank account details online so we can provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when a business owner uses the assets they have to secure a loan. The asset could be a personal asset like the family home, or it could be a business asset such as a truck or piece or equipment.
The majority of lenders, even the major banks, prefer to guarantee loans against an asset. If you have trouble paying back the loan, the asset might be transferred to the lender. In essence it’s 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 $150,000 in loans there is no requirement for asset security in advance to gain access to the funds but we do require a personal guarantee. In the event that you fulfill the loan terms (as stipulated in your loan contract document) and you are able to meet your obligations, asset security will never be required. For loans over $150,000 typically, you will need a personal ensure and security in the form of an asset charge.