FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Hovea Small Business Loans
Tell me about the Hovea Small Business Loans
Hovea unsecured loans offers 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 what makes the Unsecured Loan different from an ordinary business loan?
You can apply for the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and funds may be in your account within 24 hours. Traditional company loans refer to an interest rate per annum plus other fees and charges. Our business loan is an upfront priced loan which means you be aware in advance of the total amount to be paid, including any fees, interest or charges. Then, it is divided into a daily or weekly installment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any company reason, such as the management of cash flow, business remodeling, marketing, to purchase inventory or new equipment, as general working capital and so much more. The loan is not available for personal reasons.
About the Larger Hovea Business Loans
What is the Larger Hovea Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to have been operating for a minimum of 3 years, and have an annual income of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funds be utilised?
A Larger Business Loan can be used for nearly all business use, including company renovations, to purchase inventory or new equipment for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. This is by way of charge over assets and can include registration in the PPSR or making a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is generally based rather than stipulating security over an asset. The person who is signing the guarantee is personally accountable if the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including goods or assets). The PPSR grants prioritisation over property that is personal to be granted according to the date the registration of a security interest.
Caveats are legal document lodged to offer notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re seeking larger business loans of more than $250,000 it’s possible to offer an initial pre-approval to smooth out the process. We might be able to apply for this without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial evaluation that involves answering a couple of financial well-being questions. This is in no way an offer, nor is it a guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer that you are offered could have different conditions.
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 prove at least 6 months of trading (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 quick and easy. Simply complete the online form within a few minutes and an experienced company expert in lending will contact you to assist you.
To apply for up to $100,000 you’ll need ID details (valid Driver’s License) and an active NZBN/IRD, and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K – $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Information on the application including credit consent, 12 months bank statement, an IRD statement, last 2 years finalised financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) We can usually offer an answer within one hour if you make your application during quality company time and let us utilise the advanced bank verification system link to instantly verify your bank’s information online. If you opt to submit copies of your bank statement, we’ll provide a decision within the span of one company day.
For Larger Business Loans ($100K up to $500,000) we may be capable of offer you with pre-approval conditional to your application within about 6 hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Certain offers have been approved in less than 24 hours.
The most effective method is to make sure you apply during standard business hours and permit us to use the advanced bank verification system link to instantly verify your bank account information online. If you decide to upload the copies of bank statements it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) We can usually provide an answer within one hour – provided you apply during normal business hours and let us use the bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statements we can provide a decision within 1 business day.
For the Larger Business Loans ($100K up to $500,000) we could be able to offer you with pre-approval conditional to your application within 6 hours. Once 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 specifics of each application. Certain agreements have been approved in just 24 hours.
The fastest method would be to ensure you apply during normal business hours. Also, allow us to use our advance bank verification link to verify your bank account information online. If you decide to send us duplicates of your banking statements it may take a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a specific amount we consider a variety of elements in order to assess the health that is your business and the amount of payments your company will be able to support. The total amount of your loan will be contingent on the particular circumstances of your business.
When you apply for a set amount, we consider a variety of variables to assess your well-being of the business and the extent of repayments that your company can afford. The total amount of your loan will depend on the particulars the company.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to request our business loans, we will assess the risk assessment the business and provide you with a customised proposal that includes the loan amount, the terms and the interest rates. The business loan is an upfront cost loan so you will know in advance the total amount to be paid, including any charges or interest.
What determines the rate that I pay?
Business loan interest rates vary due to factors such as the amount that is borrowed, the company assets the funds will be used for and the sector the company operates in, how long the business has been running, how long the business has enough cash flow to support the loan, and the overall well-being or creditworthiness of the company.
What are the cost?
There are no hidden costs for our business loans. You’ll know exactly how much it is that you need to pay and when, right from the first day. There’s no compounding interest, and no extra fees (as as long as you pay your payments on time).
We do not charge an application fee. You are able to get a cash loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee is the cost associated with establishing and managing 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.
Do I have the option of paying off the loan earlier?
You can repay all of your loan in full at any time.
If you do decide to pursue this option, please speak to our friendly business loans experts. The experts will provide you with the details of your repayment as well as an early payout amount. It will be calculated using the sum of the principal remaining and any accrued interest at the time of the early payout, plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line with your cash flow general, we offer repayments that are either daily or weekly. They are automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being upfront about how we collect information, use it, and exchange it, as well as 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 utilise industry-recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to the security of our customers as well as their privacy. We use an advanced bank verification system link to immediately confirm your bank account information online to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the business owner makes use of an asset that they own to secure the funds for a loan. The asset could be an individual asset, such as the family home, or an company asset like a truck as well as a piece of machine.
The majority of lenders, not just the big banks, tend to secure loans against an asset. If you have trouble paying back the loan then the asset could be transferred to the lender. In essence, it is an opportunity to secure additional financing taking advantage of the value of what you already have.
Do I need security to secure a company loan?
For loans of up to $150K, the requirement for asset security is not required upfront to access the money However, we require a personal guarantee. require an individual guarantee. So long as you comply with the terms of your loan (as stated in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans over $150,000 generally, there is an individual guarantee and security that is in the form the charge of assets.