FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Piara Waters Small Business Loans
Let me know what you think of the Piara Waters Small Business Loans
Piara Waters unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from a traditional company loan?
The application to your Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and the funds could be in your account within 24 hours. Traditional business loans are based on an interest rate per annum along with other charges and fees. We offer a company loan is an upfront priced loan and you’ll know in advance the total amount payable including any interest, fees or charges. This is then divided into a daily or weekly payment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business use, including control of cash flow business remodeling, marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan cannot be used to fund personal expenses.
About larger Piara Waters Business Loans
What is the Larger Piara Waters Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount the business needs to be trading for at least 3 years with an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can the funding be used for?
A larger company loan can be used to fund almost any business reason, such as company remodeling, buying new equipment or inventory, as general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. This can be done by way of charge against assets, which could also include registration in the PPSR or filing a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is generally in nature rather than defining security over an asset. The person who signs the ensure is personally liable if the company creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR permits prioritisation over property that is personal to be assigned in accordance with the date on which a security interest was registered.
A caveat is a legal document that is filed to offer the public notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
When you’re applying for an enterprise loan of more than $250,000, we may offer an initial pre-approval in order to ease the process. We might be able to make this decision without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering a few financial health questions. It’s not an offer or guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer you receive could have different conditions.
The application process
Are I eligible for funding?
You may apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (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 up to $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application in few minutes and an experienced company expert in lending will be in touch to assist you.
To apply for up to $100,000 you’ll require proof of identity (valid Driver’s License), a valid NZBN/IRD as well as at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Information on the application including credit consent twelve months bank statement, an IRD statements and the last two years’ finalised financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K and up) we typically provide an answer within an hour – as long as you submit your request at standard company times and permit us to use the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statement, we’ll offer a decision in as little as an company day.
If you are applying for a Larger Business Loan ($100K to $500K) we might be likely to offer you with a conditional pre-approval in around six hours. Once you have signed the pre-approval, turnaround times are 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 the space of 24 hours.
The quickest way to apply would be to make sure you apply during normal company hours. You can also allow us to use our modern bank verification to verify your bank account information online. If you opt to upload the copies of bank statements it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we typically provide an answer in just one hour, provided you make your application at standard business hours and you allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statements we can provide a decision in as little as one business day.
For the Larger Business Loans ($100K up to $500,000) we might be likely to offer the conditional pre-approval in around six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending on the particular circumstances of each application. Some agreements have been approved in just 24 hours.
The most effective method is to make sure you apply during standard business hours and allow us to use the advance bank verification to instantly verify your bank information online. If you opt to send us duplicates of your banking statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a certain amount we will consider a number of variables in order to assess the well-being of the company as well as the amount of the repayments your business can afford. The amount you receive from your loan will be contingent on the specific circumstances for your business.
When you apply for a particular amount, we consider a variety of variables to assess how much we can lend you such as health of your business and the amount of repayments that your business is able to afford. The total amount of your loan will be contingent on the specifics for your business.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to apply for the business credit, we will assess the risk profile the business and provide you with a customised offer that includes the loan amount, the terms and the interest rates. This company loan is an upfront priced loan so you will be aware in advance of the total amount due, which includes any interest rates, fees or charges.
What determines the amount I’m charged?
The interest rates on company loans rates vary due to factors like the amount of money that is borrowed, what company assets the money are used to purchase in addition to the industry that the business operates in, how long the company is in operation and whether the company has sufficient cash flow to cover the loan, and also the general health or creditworthiness of the business.
What are the cost?
There aren’t any hidden charges with our company loans, and you’ll be aware of the amount you need to pay, and when, starting from day one. There’s not any compounding interest and there are no additional charges (as as long as you pay your payments punctually).
We don’t charge an Application Fee. You are able to apply for a loan without any upfront costs or commitment to apply.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I repay the loan earlier?
You can decide to repay the entire amount of the loan at any point in time.
If you choose to pursue this option, please talk to one of our helpful business loan specialists. They will provide you with the details of your repayment as well as an early payout amount. The figure will be calculated as the sum of the principal balance plus any accrued interest as of the date of early payout in addition to 1.5% of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss due dates and also to be in line with your cash flow cycle we offer 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 transparent about the ways we gather, use, exchange and ensure the security of your information is of huge importance and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We use an advanced bank verification system that allows you to immediately verify your bank account information online, allowing us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when a business owner utilises assets they own to make the loan. The asset can be either a personal asset like the family home, or a company asset such as a vehicle or other piece of machinery.
The majority of lending institutions, not just the banks with the biggest size, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, then your assets could be sold by the lender. In essence, it is means of securing additional financing taking advantage of the value of what you already own.
Are I need security to get an company loan?
For loans of up to $150,000, it is not necessary to secure assets before you can access the money However, we require a personal guarantee. require an individual guarantee. In the event that you fulfill your loan obligations (as stipulated in your loan contract) Asset security is not needed. For loans of over $150,000 generally there is a personal ensure and security that is in the form charges on assets.