FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Jolimont Small Business Loans
Let me know more about Jolimont Small Business Loans
Jolimont unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What is how is the Unsecured Loan different from an traditional business loan?
It is possible to apply to this Small Business Loan in under 10 minutes on the phone. You’ll receive an instant response and funds may be available in just 24 hours. Traditional business loans refer to an annual interest rate together with additional fees and charges. This business loan is a cash-based loan therefore you’ll be aware in advance of the total amount payable including the interest, fees and charges. Then, it is divided into a daily or weekly installment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business use, including the management of cash flow, company remodeling, marketing to purchase inventory, new equipment, for general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger Jolimont Business Loans
What is the Larger Jolimont Business Loan?
The Larger Business Loan is a larger loan size to support business 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 in order to accommodate you cashflow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your business needs to be operating for at least three years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funding for?
A Business Loan of a larger size can be used for almost all company reason, such as company remodeling, buying inventory or new equipment, as general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. It is usually by way of charge on assets and can include registration through the PPSR or making a caveat.
A personal or director’s ensure is a promise to repay a loan which is general in nature rather than defining security over an asset. The person signing the guarantee is personally liable if the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including items or assets). The PPSR gives preference over private property granted according to the date the security interest has been registered.
A caveat is a legal form of document to provide an official notice of a claim against a property.
What exactly is a preapproval without Credit Check?
If you’re applying for larger company loans that is greater than $250K we can offer a preliminary pre-approval to help smooth out the process. It is possible to make this decision without a credit verification and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering some financial well-being checks. 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 you might receive could have different terms.
Application process
Can I be eligible for funding?
You may be eligible 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)
- must show at least six months of business (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application within a few minutes and an experienced business credit 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 Licence) and a valid NZBN/IRD as well as at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K-$250K: Application requirements, including credit consent, 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 as well as 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, and interim current financial year financials such as age-related payables and aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K and up) We can usually provide a response in one hour – as long as you apply at standard business hours and allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you want to send us copies of your bank statements , we are able to offer a decision within just 1 company day.
For the Larger Business Loan ($100K to $500K) we may be likely to provide you with a conditional pre-approval within six hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval, however it could be faster based on the particular circumstances of each application. Certain agreements have been approved in less than 24 hours.
The quickest way to apply for you to apply is make sure you apply during standard business hours, and allow us to use the advanced bank verification system link to instantly confirm your bank details online. If you decide to upload duplicates of your banking statement, it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we typically offer an answer in just one hour, provided you submit your request at normal business times and allow us to use the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your bank statements, we’ll be able to offer an answer in just the span of one business day.
For Larger Business Loans ($100K and up) we might be able to offer you with pre-approval conditional to your application in about 6 hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this can be faster depending on the particular circumstances of each application. Certain offers have been approved in the space of 24 hours.
The fastest way would be to ensure you apply during normal business hours. Also, let us use the advance bank verification link to instantly check your bank’s information online. If you opt to send us copies of your bank statements it will take a little longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a specific amount we consider a variety of factors that determine how much we can lend you health for your company and the extent of repayments your company will be able to support. The amount you receive from your loan will depend on the specifics the business.
If you apply for a specific amount we consider a variety of aspects to determine your health for your business and the level of payments your business can afford. The amount you receive from your loan will be determined by the specifics for your company.
Fees & repayments
How much should you charge for an business loan?
When you request one of our company financing, we will assess the risk assessment the company and offer you with a customised offer, including the loan amount, the terms and interest rates. The business loan is a loan that is priced upfront and you’ll be aware in advance of the total amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I pay?
Business loan interest rates depend on several factors like the amount of money that is borrowed, what business assets the money are used to purchase as well as the field the company operates in, how long the company has been in operation, how long the business has sufficient cash flow to fund the loan, and overall health and creditworthiness of the business.
What are the cost?
There are no hidden fees with our business loans. You’ll know precisely what you’ll be required to pay and at what time, from day one. There’s no compounding interest and there are no additional charges (as long as you are able to make your payments on time).
We don’t charge an application fee. You are able to apply for a loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the costs 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 percent of the amount of loan.
Can I repay the loan earlier?
You can repay the entire amount of the loan in full at any time.
If you are deciding to take this route, please call our helpful company lending specialists. The specialists will offer you with details for repayment as well as an early payout amount. The figure will be calculated as the total of the remaining principal amount and accrued interest to the time of early payout and 1.5 percent of the principal balance as well as any outstanding fees.
What are the repayment methods?
To ensure you do not miss due dates and also to be in line with your cash flow routine, we offer repayments that are either daily or weekly. These are automatically withdrawn from your company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being clear about how we collect information, use it, and exchange it, as well as ensure the security of your information is crucial and a vital aspect 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 financial and other data. Our funders are ISO 27001 certified for our dedication to protecting the security of customers and security. We employ a highly sophisticated banking verification system to immediately verify the bank account details online so we can provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a company owner utilises the assets they have to obtain the funds for a loan. The asset can be either an individual property, such as the family home or an business property like a truck or piece or equipment.
The vast majority of banks, even the major banks, prefer to make loans secured by an asset. If you’re struggling to pay back the loan then your asset may be transferred to the lender. In essence it is the process of securing new financing using the worth of the asset you already own.
What do I need security to get an business loan?
For loans of up to $150,000, no asset security is required in advance to gain access to the funds but we do need a personal guarantee. If you adhere to your loan commitments (as specified in the loan contract), asset security will never be needed. If you take out loans in excess of $150K generally, you can get the option of a personal ensure and security is provided in the form of charges on assets.