FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Marmion Small Business Loans
Let me know how you are able to avail the Marmion Small Business Loans
Marmion unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What makes what makes the Unsecured Loan different from the traditional business loan?
It is possible to apply to get your Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and funds may be available in just 24 hours. Traditional company loans are based on an annual interest rate along with other charges and fees. The company loan is an upfront priced loan and you’ll be aware of the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into weekly or daily amount to be paid back.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company need, such as managing cash flows, business improvements, advertising for purchasing inventory or new equipment, or as general working capital and much more. The loan cannot be used to fund personal expenses.
Concerning Larger Marmion Business Loans
What is the Larger Marmion 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 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is determined at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to have been operating for at least three years with an annual turnover of $700K. Your company must belong to 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 of proving at minimum 12 months of business.
What can I use the funding for?
A larger company loan is a great option for almost any company use, including company renovations, purchase of new equipment or inventory, as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. It is usually as a result of an charge on assets and can include registering this through the PPSR or filing a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is general in nature, rather than specifying the security of a specific asset. The person who is signing the ensure is personally responsible if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be granted according to the date the security interest that is registered.
A caveat is a legal document filed to provide notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re seeking the Larger Business Loan of more than $250K it’s possible to offer an initial pre-approval that will help make the process. We might be able to apply for this without credit checks and within 6 hours of your initial application. The pre-approval is based upon an initial evaluation that involves answering a couple of financial health checks. It’s not an offer of credit or guarantee of credit. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you might receive could be based on different terms.
The application process
Can I be eligible for funding?
You can apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Complete the online form in just a few minutes, and an experienced business loan specialist will call you to guide you.
To apply for up $100,000 you’ll require identification details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application details 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, 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, and interim current financial year financials including Aged Payables, Aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we usually offer an answer within an hour – as long as you make your application at standard company time and permit us to use the advanced bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statements , we’ll be able to provide an answer within 1 company day.
For the Larger Business Loan ($100K to $500K) we may be in a position to provide the conditional pre-approval within six hours. After you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval. However, this can be quicker based on the circumstances of each application. Certain agreements have been approved in just 24 hours.
The quickest way to apply is to make sure you apply during normal company hours. You can also allow us to use the modern bank verification link to check your bank’s information online. If you choose to send us the copies of bank accounts, it may take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer within one hour – as long as you apply in standard business times and let us use the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your bank statements, we’ll be able to provide a decision within one business day.
For the Larger Business Loans ($100K to $500K) We may be in a position to offer you with pre-approval conditional to your application within about 6 hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, this may be quicker depending on the specifics of each application. Certain agreements have been approved within less than 24 hours.
The quickest method is to ensure you apply during normal business hours. You can also let us use the advance bank verification to instantly check your bank’s information online. If you send us documents from your account statements, it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a specific amount we will consider a number of elements to determine how much we can lend you health of the company and the level of repayments that your company will be able to support. The total amount of the loan will be determined by the particular circumstances that are unique to your company.
If you apply for a set amount, we consider a variety of aspects to assess the well-being of the company and the extent of repayments your company will be able to support. The total amount of your loan will be contingent on the particulars the business.
Fees & repayments
What is the cost for a business loan?
When you apply for our company credit, we will assess the risk assessment the company and offer you with a customised offer that includes the amount of loan, the term and interest rates. A company loan is an upfront priced loan therefore you will know the exact amount to be paid, including any charges, interest rates or fees.
What is the basis for the rate I pay?
Interest rates for company loans rates depend on several variables like the amount to be that is borrowed, what business assets the funds are used to purchase as well as the field the company operates in, the long the business is in operation for, in the event that the company has enough cash flow to support the loan, and also the overall health as well as creditworthiness business.
What are the cost?
There aren’t any hidden costs for our company loans. You’ll know precisely what you’ll be required to pay, and when, from the very first day. There’s not any compounding interest and there are no additional charges (as long as you are able to make your payments punctually).
We don’t charge an application fee. You can apply for a loan no cost upfront or the obligation to take action.
The Origination Fee includes the expenses associated with the setting up and management of 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 out the loan in advance?
You can decide to repay the total amount of your loan at any point in time.
If you do decide to take this route, please contact our helpful company loan professionals. They’ll offer you with repayment details along with an early payout estimate. This is calculated as the total of the remaining principal amount plus any accrued interest as of the time of the early payout, plus 1.5 percent of the principal remaining and any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payments and to work your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Security of your data, and being clear about the ways we gather, use, exchange and ensure the security of your information is of paramount importance and an integral 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 protocols to safeguard your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their privacy. We employ an exceptionally sophisticated bank verification system to instantly verify your bank account details online, allowing us to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where the business owner borrows from an asset that they own to secure a loan. The asset can be either an individual property, such as the family home, or an business asset such as a vehicle as well as a piece of machine.
The majority of lenders, including the largest banks, are inclined to make loans secured by assets. If you’re struggling to pay back the loan, your asset may be sold by the lender. In essence, it is a way of securing new financing by taking advantage of the value of what you already have.
Do I need security for an company loan?
Up to $150K in loans the requirement for asset security is not required in advance to gain access to the funds However, we do require the personal guarantee. So long as you comply with the terms of your loan (as stated in the loan contract) Asset security will never be required. If you take out loans in excess of $150,000 generally, you can get a personal ensure and security in the form a charge over assets.