FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Iluka Small Business Loans
Tell me about the Iluka Small Business Loans
Iluka unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from an ordinary company loan?
The application to your Small Business Loan in under 10 minutes online or over the phone. You’ll get an instant response and have the funds in your account in 24 hours. Traditional company loans reference an annual rate of interest as well as other fees and charges. Our business loan is a loan that is priced upfront and you’ll know in advance the total amount due, which includes any fees, interest or charges. This is then broken down into either weekly or daily repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost every company use, including the management of cash flow, company remodels and marketing to purchase inventory, new equipment, or as general working capital and much more. The loan is not available for personal use.
About larger Iluka Business Loans
What is the Larger Iluka Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed for up to 36 months. Repayments are scheduled weekly or fortnightly to work with you cashflow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan that is this large the business needs to have been operating for a minimum of 3 years and generate an annual revenue of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
How can the funds be utilised?
A Business Loan of a larger size can be used for almost all company purpose including company improvements, purchasing inventory or new equipment as well as for general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. It’s in the form of a charge over assets and can include registering this with the PPSR or registering a caveat.
A personal or director’s ensure is a promise to pay back a loan that is general in nature rather than stipulating the security for a particular asset. The person who signs the ensure is personally liable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR grants preference over private property granted in accordance with the date on which a security interest has been registered.
An affidavit is an official document filed to provide the legal claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan of more than $250,000 we can offer an initial pre-approval that will help simplify the process. It is possible to apply for this without a credit check and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes answering a couple of financial health checks. It’s in no way an offer, nor is it a guarantee of finance. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you might receive could have different terms.
The application process
Do I have the right to receive funds?
You are eligible to apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (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 in just a few minutes, and a dedicated company credit specialist will call you to guide you through the process.
To apply for up $100,000 you’ll need proof of identity (valid Driver’s License), an active NZBN/IRD, and at least six months worth of bank statements.
For larger loan sizes, you’ll also need:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Information on the application including credit consent, 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, and interim current financial year financials as well as Aged Payables and Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) We can usually offer a response in one hour if you submit your request in standard business timings 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 bank statement, we’ll offer a decision within just one business day.
For Larger Business Loans ($100K or more) we may be able to provide you with conditional pre-approval within six hours. After you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this can be quicker based upon the circumstances for each application. Some agreements have been approved within the space of 24 hours.
The most efficient method is to ensure you apply during normal company hours. Also, permit us to use the advanced bank verification system to instantly confirm your bank details online. If you choose to upload copies of your bank accounts, it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we can often offer an answer within an hour if you make your application during normal business time and let us use the bank verification system to instantly verify your bank information online. If you opt to upload copies of your bank statements, we’ll be able to provide the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be capable of provide you with pre-approval conditional to your application within 6 hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however it could be faster based on the circumstances of each application. Some deals have been approved within 24 hours.
The most efficient method is to ensure you apply during standard business hours, and permit us to use the advance bank verification to instantly confirm your bank details online. If you choose to send us the copies of bank statement, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a specific amount we consider a variety of aspects in order to assess your health of the company and the extent of repayments your business can support. The amount you receive from the loan will be determined by the specifics for your company.
When you submit an application for a particular amount, we take into consideration a variety of factors to assess the well-being that is your business and the amount of repayments your business will be able to support. The total amount of the loan will be determined by the particular circumstances of your business.
Fees & repayments
How do you charge for the cost of a business loan?
When you make an application for one of our business financing, we’ll assess the risk profile for your company and provide you with a customised offer including the amount of the loan, the duration and the interest rates. The company loan is an upfront-priced loan therefore you will be aware of the total amount payable including any costs, fees, or interest rates.
What determines the amount I pay?
Interest rates for company loans rates depend on several factors like the amount of money that is borrowed, what company assets the funds are used to purchase in addition to the industry that the company operates in, the long the company has been in operation and how long the company has enough cash flow to fund the loan, and also the general health and creditworthiness of the business.
What are the costs?
There aren’t any hidden charges with our company loans. You’ll know precisely what you be required to pay and when, right from the very first day. There’s no compounding interest, and no additional fees (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You can request a credit loan without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Do I have the option of paying off the loan earlier?
You can choose to repay the entire amount of the loan at any point in time.
If you are deciding to pursue this option, please contact our helpful business loan experts. We will provide you with details on repayment and an early payout figure. This is calculated as the sum of the principal balance plus any accrued interest as of the time of early payment in addition to 1.5 percent of the principal amount remaining plus 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 routine, we provide payments that are either weekly or daily. These are automatically deducted from your business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being transparent about how we collect data, process, exchange and protect your information, is of paramount importance and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to security for our customers and security. We use an advanced bank verification system that allows you to instantly verify your bank account information online. This allows us to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the business owner makes use of assets they own to secure the loan. The asset can be either an individual property, such as the family home, or it could be a company property like a truck or other piece of machinery.
The vast majority of lenders, even the banks with the biggest size, prefer to make loans secured by an asset. If you are having difficulty paying back the loan then your asset may be offered for sale by the lender. In essence, it is a way of securing additional financing using the value of what you already have.
Are I need security to get an company loan?
For loans up to $150,000 no asset security is required prior to the loan’s access but we require a personal guarantee. require a personal guarantee. In the event that you fulfill the terms of your loan (as stipulated in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans of over $150,000 generally, there is the option of a personal ensure and security that is in the form a charge over assets.