FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Main Beach Small Business Loans
Let me know what you think of the Main Beach Small Business Loans
Main Beach unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from a traditional company loan?
The application to get this Small Business Loan in under 10 minutes online or on the phone. You’ll receive an answer within the same day and the funds could be in your account within 24 hours. Traditional company loans are based on an interest rate per annum plus other fees and charges. We offer a business loan is a loan that is priced upfront therefore you’ll know ahead of time the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into a daily or weekly repayment figure.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business need, such as the management of cash flow, company remodels and marketing to purchase inventory, new equipment, as general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Main Beach Business Loans
What is the Larger Main Beach Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly depending on your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to be in operation for at least 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funds for?
A large business loan is a great option for almost every company reason, such as business renovations, to purchase new equipment or inventory, as general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. This can be done by way of charge on assets and can include registering this with the PPSR or making as a caveat.
A director’s or personal guarantee is a commitment to repay credit that is generally based rather than stating security over an asset. The person who signs the guarantee is personally liable in the event that the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including objects or assets). The PPSR gives the priority of personal property granted according to the date a security interest was registered.
The caveat can be described as a formal document that is filed to offer the public notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re requesting a Larger Business Loan of more than $250K we may be able to provide an initial pre-approval to smooth out the process. It is possible to make this decision without credit checks and within 6 hours of the initial application. This pre-approval is based on an initial assessment that includes you answering a few financial well-being checks. It is neither an offer nor a guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer you receive could have different terms.
The application process
Can I be eligible for funding?
You are eligible to apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a couple minutes, and a dedicated business credit specialist will contact you to guide you.
To apply for up to $100,000 you’ll need the right identification documents (valid Driver’s License), a valid NZBN/IRD and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Details of the application, including credit consent twelve month bank accounts, the IRD statement Last 2 years’ finalised financial statements, as well as interim financials from the current financial year including Aged Payables, Aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K and up) We can usually offer an answer in just one hour, provided you apply in quality company time and let us utilise the bank verification system to instantly verify your bank’s information online. If you want to submit copies of your bank statement, we’ll provide the decision within an company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be likely to offer you with pre-approval conditional to your application in about six hours. After you’ve signed your pre-approval form, it will take about 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Certain deals have been approved within the space of 24 hours.
The quickest method would be to make sure you apply during normal business hours and permit us to use the advanced bank verification system to verify your bank information online. If you opt to send us duplicates of your banking statement, it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) we usually provide an answer in just one hour if you make your application at normal business timings and allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you choose to submit copies of your bank statements, we are able to provide an answer within the span of one business day.
For the Larger Business Loans ($100K to $500K) we might be able to offer you with a conditional pre-approval within 6 hours. Once you’ve signed your pre-approval form, it will take about 2-3 days for final approval. However, this can be faster depending on the circumstances of each application. Some agreements have been approved in less than 24 hours.
The quickest method can be make sure you apply during standard business hours and allow us to use the sophisticated bank verification link to verify your bank information online. If you opt to upload duplicates of your banking accounts, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a specific amount we consider a variety of aspects in order to assess the well-being for your business and the extent of payments your company can support. The total amount of your loan will depend on the specific circumstances of your company.
When you submit an application for a particular amount, we consider a variety of factors to assess the well-being for 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 particular circumstances for your company.
Fees & repayments
How do you charge for a company loan?
When you request business loans with us business loan, we’ll assess the risk profile of your business and offer an individualised offer that includes the amount of loan, the term and interest rates. It is a company loan is an upfront cost loan which means you be aware of the total amount you will have to pay, including charges or interest.
What is the factor that determines the price I am charged?
Interest rates for business loans rates depend on a variety of factors including the amount borrowed, what business assets the funds are used to purchase, the industry the company is in, how long the company has been operating and in the event that the company has sufficient cash flow to cover the loan, and also the general well-being or financial standing of the company.
What are the charges?
There are no hidden fees with our company loans, and you’ll know precisely what you need to pay and when, from day one. There’s no compounding interest, and there are no additional charges (as as long as you pay your payments on time).
We do not charge an Application Fee. You can apply for a loan no cost upfront or commitment to apply.
The Origination Fee covers the costs associated in establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay off the loan early?
You can choose to repay the total amount of your loan at any point in time.
If you choose to do this please speak to our friendly company lending professionals. They’ll provide you with the details of your repayment as well as an early payout amount. This is calculated as the sum of the remaining principal amount and any accrued interest at the time of early payout plus 1.5% of the principal amount remaining and any fees that remain unpaid.
How do repayments work?
In order to help you avoid missing payment dates and to align with your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be secure?
Security of your data, and being clear about the ways we gather data, process, exchange and protect your information, is crucial and is a crucial part 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 qualified for our commitment to customer security and privacy. We use an advanced bank verification system link to instantly verify your bank account details online. This allows us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a business owner borrows from the assets they have to get a loan. The asset can be either an asset belonging to the personal, like the family home, or a company asset such as a truck as well as a piece of machine.
The majority of the lenders not just the largest banks, are inclined to guarantee loans against assets. If you’re having trouble paying back the loan then the asset could be transferred to the lender. In essence it’s the process of securing new financing using the value of what you already own.
Do I require security for an business loan?
For loans up to $150K no asset security is required prior to the loan’s access However, we require a personal guarantee. need a personal guarantee. If you adhere to your loan commitments (as stated in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans that exceed $150,000, generally, there is an individual guarantee and security in the form of charges on assets.