FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Applecross Small Business Loans
Tell me more about Applecross Small Business Loans
Applecross unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
How is how is the Unsecured Loan different from a traditional company loan?
You can apply for this Small Business Loan in under 10 minutes online or by phone. You will receive an answer within the same day and funds may be in your account in 24 hours. Traditional company loans have an annual interest rate together with additional fees and charges. This business loan is a cash-based loan and you’ll know in advance the total amount payable including any fees, interest or charges. Then, it is broken down into weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business reason, such as managing cash flows, business remodels and marketing to purchase inventory, new equipment, as general working capital and much more. The loan is not available to fund personal expenses.
About the Larger Applecross Business Loans
What is the Larger Applecross Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly depending on you cashflow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large the company needs to have been operating for a minimum of 3 years with an annual turnover of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can the funding be used for?
A Larger Business Loan is a great option for almost all company purpose including business renovations, purchase of equipment or inventory as well as for general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. This can be done as a result of an charge against assets, and may include the registration of this with the PPSR or making a caveat.
A personal or director’s guarantee is a guarantee to repay credit that is generally based rather than stipulating security over a particular asset. The person who signs the guarantee is personally liable if the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central registry 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 preference over private property assigned according to the date the security interest that is registered.
Caveats are legal document lodged to offer notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan of $250,000 or more it is possible to offer an initial pre-approval that will help simplify the process. We might be able to make this decision without a credit check and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering some financial health questions. This is not an offer or guarantee of financing. The approval of a conditional loan is subject to a full credit assessment and any offer that you may receive may be on different terms.
The application process
Can I be eligible for funding?
You may apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Complete the online form within a couple minutes, and a dedicated business lending specialist will contact you to guide you.
For a loan of up to $100,000 you’ll need the right identification documents (valid Driver’s License) as well as an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent and 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, in addition to interim financials from the current financial year as well as Aged Payables and Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K and up) we can often provide an answer within an hour, provided you make your application during standard business hours and allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your bank statements , we’ll be able to provide a decision in as little as one business day.
For the Larger Business Loan ($100K up to $500,000) we may be capable of offer the conditional pre-approval within six hours. After you’ve signed your pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, it could be faster based upon the circumstances for each application. Some deals have been approved in less than 24 hours.
The quickest way to apply would be to make sure you apply during normal company hours, and allow us to use the modern bank verification to verify your bank information online. If you choose to send us copies of your bank statements it can take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within an hour, provided you apply during normal business hours and you allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your banking statement, we’ll provide the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K or more) we might be capable of offer you with conditional pre-approval within six hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this may be quicker depending on the particular circumstances of each application. Some agreements have been approved within less than 24 hours.
The fastest method would be to make sure you apply during normal business hours. You can also let us use the modern bank verification link to confirm your bank details online. If you send us copies of your bank accounts, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a particular amount, we look at a variety of elements to determine how much we can lend you health of your business and the amount of repayments that your business can support. The total amount of your loan will depend on the particular circumstances that are unique to your business.
When you submit an application for a specific amount we will consider a number of variables to assess how much we can lend you such as well-being of the business and the level of payments your business can support. The amount you receive from your loan will be contingent on the particular circumstances of your company.
Fees & repayments
What is the cost for the cost of a business loan?
When you make an application for our company credit, we’ll assess the risk profile the business and offer you with a tailored offer, including the amount of the loan, the duration and interest rates. A business loan is an upfront cost loan therefore you will be aware in advance of the total amount you will have to pay, including interest rates, fees or charges.
What is the basis for the rate I am charged?
Business loan interest rates differ based on various factors such as the amount that is of money borrowed, the company assets the money will be used for as well as the field the company is operating in, how long the company is in operation as well as whether the business has enough cash flow to pay for the loan, as well as the general well-being as well as creditworthiness company.
What are the charges?
There aren’t any hidden charges with our business loans. You’ll know exactly how much you’ll need to pay and when, starting from the first day. There’s no compounding and the loan comes with 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 no upfront cost or commitment to apply.
The Origination Fee covers the costs associated with establishing and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay out the loan in advance?
You may choose to pay back the entire amount of your advance loan at any time.
If you choose to pursue this option, please speak to our friendly business credit professionals. The specialists will offer you with details on repayment as well as an early payout amount. This is calculated as the total of the principal balance plus any accrued interest as of the time of the early payout, plus 1.5 percent of the principal balance as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing due dates and also to be in line with your cash flow cycle we provide repayments either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing the ways we gather, use, exchange and ensure the security of your information is of paramount importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and privacy. We employ a highly sophisticated bank verification system to instantly confirm your bank account information online. This allows us to provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a business owner utilises assets they own to secure the funding. The asset could be an individual asset, such as the family home or it could be a business asset such as a truck or piece of equipment.
The majority of lending institutions, even the banks with the biggest size, prefer to secure loans against assets. If you have trouble paying back the loan, then the asset could be transferred to the lender. In essence it’s an opportunity to secure new financing making use of the value of what you already have.
Do I require security to get a business loan?
For loans that exceed $150K, it is not necessary to secure assets before you are able to access the money, however we require a personal guarantee. require the personal guarantee. So long as you comply with your loan obligations (as specified in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans over $150K generally, you are able to get personal guarantee and security is provided in the form of charges on assets.