FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Marangaroo Small Business Loans
Let me know how you are able to avail the Marangaroo Small Business Loans
Marangaroo unsecured loans offers amounts between $5,000 and $100,000, with terms ranging 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?
Apply to your Small Business Loan in under 10 minutes on the phone. You’ll receive an answer within the same day and funds may be on your account within 24 hours. Traditional business loans have an annual interest rate together with additional fees and charges. The company loan is an upfront priced loan and you’ll be aware in advance of the total amount due, which includes any fees, interest or charges. This is then broken down into either weekly or daily amount to be paid back.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business reason, such as cash flow management, business remodels and marketing to purchase inventory, new equipment, for general working capital, and much more. The loan cannot be used for personal reasons.
Concerning Larger Marangaroo Business Loans
What is the Larger Marangaroo Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to have been trading for at least 3 years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able 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 nearly all company use, including company remodeling, buying inventory or new equipment, as 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 necessary to access funding over $150,000. It is usually as a result of an charge on assets, and may be registered with the PPSR or making as a caveat.
A personal or director’s guarantee is a promise to repay credit that is general in nature rather than stipulating the security of a specific asset. The person who is signing the ensure is personally liable in the event that the company 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 reflects security interests that are registered for personal property (including objects or assets). The PPSR allows priority over personal property to be granted according to the date the registration of a security interest.
An affidavit is an official form of document to provide an official notice of a claim to a property.
What is a pre-approval without Credit Check?
If you’re seeking an enterprise loan of $250,000 or more we can offer an initial pre-approval to make the process. It is possible to make this decision without credit checks and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves the answer to a series of financial health questions. It’s not an offer or guarantee of credit. Unconditional approval is subject to an extensive credit evaluation and any offer you might receive could be based on different terms.
The application process
Do I have the right to receive funds?
You can apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application in just a few minutes, and an experienced business loan specialist will call you to guide you through the process.
For a loan of up to $100,000, you’ll need identification details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll 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, 12 months bank statement, an 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 to $100K) we usually offer an answer in just one hour – as long as you apply during standard company hours and permit us to utilise the bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statement, we’ll provide an answer within just the span of one business day.
For Larger Business Loans ($100K to $500K) we might be capable of offer you with pre-approval conditional to your application in around 6 hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this can be quicker based on the particular circumstances of each application. Certain transactions have received approval within 24 hours.
The quickest method can be make sure you apply during standard company hours. Also, permit us to use the advanced bank verification system link to instantly verify your bank information online. If you choose to send us the copies of bank statements it takes a bit longer.
How quickly will I 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 during standard business time and let us utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your banking statements we can offer an answer in as little as 1 business day.
If you are applying for Larger Business Loans ($100K or more) we may be in a position to provide the conditional pre-approval within 6 hours. Once you’ve signed your pre-approval document, you will need to wait around 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Some transactions have received approval in just 24 hours.
The fastest method would be to make sure you apply during normal business hours and let us use the advance bank verification link to verify your bank information online. If you choose to send us duplicates of your banking statement, it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a particular amount, we look at a variety of variables for determining the well-being of the business and the extent of the repayments your business will be able to support. The total amount of the loan will be determined by the specifics the business.
If you apply for a certain amount, we take into consideration a variety of aspects to assess how much we can lend you such as well-being for your company and the level of payments your company can support. The total amount of the loan will be determined by the particulars that are unique to your company.
Fees & repayments
What is the cost for a business loan?
When you request the company credit, we’ll assess the risk assessment the company and provide you with a tailored offer including the loan amount, the terms and interest rates. This business loan is a loan that is priced upfront so you will be aware in advance of the total amount due, which includes any charges, interest rates or fees.
What determines the amount I’m charged?
Business loan interest rates depend on several factors like the amount of money of money borrowed, the company assets the funds are used to purchase, the industry the company is in, how long the company is in operation, what percentage of the company has enough cash flow to support the loan, and general health as well as creditworthiness business.
What are the charges?
There aren’t any hidden charges with our business loans. You’ll know precisely what you’ll need to pay and when, starting from the very first day. There’s no compounding interest, and no extra fees (as long as you are able to make your payments in time).
We don’t charge an application fee. You can apply for a loan absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the costs associated with setting up and managing the loan. This is only a fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the loan amount.
Do I have the option of paying off the loan early?
You may choose to pay back the entire amount of the loan at any point in time.
If you do decide to take this route, please speak to our friendly business loan experts. They’ll offer you with the details of your repayment along with an early payout estimate. This will be calculated as the sum of the remaining principal amount and accrued interest to the time of the early payout, plus 1.5% of the principal amount remaining as well as any outstanding fees.
How do repayments work?
In order to help you avoid missing payment dates and to align with your cash flow cycle we provide repayments either weekly or daily. They are automatically deducted from your designated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing the ways we gather the information we collect, use, share and secure your information, is vital and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to customer security and privacy. We employ an exceptionally sophisticated bank verification system to immediately verify your bank account information online. This allows us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the company owner borrows from the assets they have to get a loan. The asset could be a personal asset like the family home, or an company property like a truck as well as a piece of machine.
The majority of banks, including the big banks, tend to guarantee loans against an asset. If you have trouble paying back the loan, your asset may be offered for sale by the lender. In essence it is a way of securing new financing by using the worth of the asset you already own.
Are I need security to secure a company loan?
For loans up to $150,000 the requirement for asset security is not required before you can access the money however, we do require the personal guarantee. As long as you follow the loan terms (as detailed in your loan contract document), asset security will never be required. If you take out loans in excess of $150,000 generally, there is the option of a personal guarantee and security that is in the form the charge of assets.