FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Morley Small Business Loans
Let me know about the Morley Small Business Loans
Morley unsecured loans offers amounts between $5,000 and $100,000 with terms 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 an traditional company loan?
Apply for the Small Business Loan in under 10 minutes on the internet or by phone. You will receive an immediate response, and the funds could be in your account within 24 hours. Traditional company loans reference an annual interest rate together with additional fees and charges. The company loan is a pre-paid loan so you will be aware of the amount you will have to pay, including the interest, fees and charges. This is then divided into weekly or daily installment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for almost every company use, including managing cash flows, company remodeling, marketing for purchasing inventory or new equipment, or as general working capital and much more. The loan is not available for personal use.
About the Larger Morley Business Loans
What is the Larger Morley Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to be in operation for at least 3 years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funding be utilised?
A larger business loan can be used for nearly any business need, including company renovations, to purchase equipment or inventory, as general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. This can be done as a result of an charge on assets, and could include the registration of this in the PPSR or registering a caveat.
A director’s or personal ensure is a guarantee to repay a loan which is generally based rather than stipulating the security of a specific asset. The person signing the guarantee is personally responsible if the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including objects or assets). The PPSR permits the priority of personal property granted in accordance with the date on which a security interest that is registered.
An affidavit is an official document lodged to provide an official notice of a claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for larger business loans of $250,000 or more it’s possible to offer an initial pre-approval to smooth out the process. We might be able to make this decision without a credit verification and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial health checks. This is neither an offer nor a guarantee of financing. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you might receive could be based on different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for a company 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)
- you must prove at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form in few minutes and a dedicated company loan specialist will call you to guide you through the process.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s License), an NZBN/IRD that is valid and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $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: Application details including credit consent and 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we can often provide an answer in just one hour, provided you apply in standard business times and permit us to utilise the bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your bank statements , we are able to offer the decision in as little as an company day.
For the Larger Business Loan ($100K and up) we could be in a position to provide you with conditional pre-approval within six hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this can be quicker based upon the circumstances for each application. Some transactions have received approval within less than 24 hours.
The fastest way is to ensure you apply during normal company hours and allow us to use our advanced bank verification system link to verify your bank information online. If you decide to upload duplicates of your banking statements , it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we usually provide an answer within an hour if you apply during normal business time and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you opt to send us copies of your bank statements, we’ll be able to offer a decision in just one business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be likely to offer you with conditional pre-approval in around six hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Certain agreements have been approved within 24 hours.
The fastest way can be ensure you apply during normal business hours, and let us use the advance bank verification to check your bank’s information online. If you send us duplicates of your banking statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you make an application for a particular amount, we consider a variety of variables for determining your well-being that is your company as well as the amount of payments your company is able to afford. The amount you receive from your loan will depend on the specific circumstances that are unique to your business.
When you apply for a specific amount we consider a variety of factors to assess your well-being of the company and the amount of repayments your company will be able to support. The total amount of your loan will depend on the particulars of your company.
Fees & repayments
How much should you charge for a company loan?
If you decide to make an application for one of our business loan, we’ll assess the risk profile of your company and provide you with a tailored offer, including the loan amount, the terms and the interest rates. A company loan is an upfront-priced loan so you will know in advance the total amount due, which includes any interest rates, fees or charges.
What is the factor that determines the price I will be charged?
Interest rates for business loans rates differ based on various factors like the amount of money borrowed, what company assets the money are used to purchase in addition to the industry that the company is operating in, how long the business is in operation as well as whether the business has enough cash flow to cover the loan, and general health or financial standing of the company.
What are the charges?
There aren’t any hidden charges for our business loans. You’ll know precisely what you’ll be required to pay and when, starting from the first day. There’s no compounding interest, and no extra fees (as long as you are able to make your payments on time).
We don’t charge an application fee. You can make an application for loans with with no upfront cost or the obligation to take action.
The Origination Fee covers the costs associated in establishing and managing 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 amount of the loan.
Can I pay off the loan early?
You can repay all of your loan in full at any time.
If you decide to do this please talk to one of our helpful business loans specialists. They will offer you with details for repayment along with an early payout estimate. This will be calculated as the total of the principal remaining and the accrued interest up to the time of early payout in addition to 1.5% of the principal amount remaining and any fees that remain unpaid.
What is the process for repayments?
To make sure you do not miss repayments and to fit in with your cash flow cycle we provide repayments either daily or weekly. These are automatically deducted from your business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being clear about how we collect data, process, exchange and secure your information, is of huge importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their privacy. We utilise a sophisticated bank verification system that allows you to instantly confirm your bank account information online. This allows us to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an business owner utilises an asset that they own to obtain the loan. The asset may be an individual asset, such as the family home, or it could be a company asset like a truck or other piece of machinery.
The vast majority of lending institutions, not just the major banks, prefer to guarantee loans against assets. If you’re struggling to pay back the loan then the asset might be transferred to the lender. In essence it is the process of securing new financing making use of the value of what you already have.
Should I require security for an company loan?
For loans of up to $150K, the requirement for asset security is not required before you can access the money However, we require a personal guarantee. require an individual guarantee. If you adhere to your loan commitments (as stated in your loan contract) Asset security is not required. For loans that exceed $150,000, generally, you can get a personal ensure and security is provided in the form of charges on assets.