FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the The Vines Small Business Loans
Let me know what you think of the The Vines Small Business Loans
The Vines unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
What is how is the Unsecured Loan different from an ordinary business loan?
It is possible to apply to get the Small Business Loan in under 10 minutes online or over the phone. You’ll get an immediate response, and funds may be available in just 24 hours. Traditional company loans have an annual rate of interest along with other charges and fees. Our business loan is a cash-based loan which means you know in advance the total amount due, which includes any fees, interest or charges. This is then broken down into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company purpose including the management of cash flow, company remodels and marketing for purchasing inventory or new equipment, for general working capital and so much more. The loan is not available to fund personal expenses.
About Larger The Vines Business Loans
What is the Larger The Vines Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan that is this large the company needs to have been 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 or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funds be used for?
A large business loan can be used for almost any business reason, such as company renovations, purchase of equipment or inventory for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. This can be done by taking a charge on assets and can be registered with the PPSR or registering as a caveat.
A personal or director’s guarantee is a guarantee to pay back a loan that is generally based rather than stipulating the security for a particular asset. The person who is signing the guarantee is personally responsible if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be granted according to the date a security interest was registered.
A caveat is a legal document that is filed to offer notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting larger company loans that exceeds $250K we may be able to provide a preliminary pre-approval to help ease the process. We could be able to apply for this without credit checks and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial health questions. This is neither an offer nor a guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer you are offered could be 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 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for for the 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 easy. Complete the online form in few minutes and a dedicated business credit specialist will contact you to guide you.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Information on the application including credit consent twelve month bank accounts, the IRD statement as well as the two most recent years’ financial statements, as well as interim financials from the current financial year as well as Aged Payables and Receivables summaries.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we usually offer an answer in just one hour – as long as you apply within quality company time and permit us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statement, we’ll offer a decision within the span of one business day.
For the Larger Business Loan ($100K or more) we may be in a position to provide you with pre-approval conditional to your application in around 6 hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this can be quicker based upon the circumstances for each application. Certain transactions have received approval in the space of 24 hours.
The most effective method would be to make sure you apply during normal business hours, and allow us to use the modern bank verification link to confirm your bank details online. If you choose to send us copies of your bank statements it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) we typically offer an answer in just one hour – provided you apply during normal business hours and you allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your banking statements, we will be able to provide a decision within the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be likely to offer the conditional pre-approval in around six hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval within less than 24 hours.
The fastest method is to ensure you apply during standard business hours. You can also let us use the sophisticated bank verification link to instantly check your bank’s information online. If you upload copies of your bank statements it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you submit an application for a certain amount we consider a variety of elements for determining your health for your business and the amount of repayments your business will be able to support. The total amount of your loan will depend on the specific circumstances for your business.
When you submit an application for a specific amount we consider a variety of aspects to assess how much we can lend you such as well-being for your business and the extent of payments your company can support. The total amount of your loan will depend on the particular circumstances the company.
Fees & repayments
How much do you charge for a company loan?
If you decide to request our business loans, we’ll assess the risk profile the business and provide an individualised offer that includes the amount of the loan, the duration and the interest rates. The company loan is an upfront-priced loan therefore you will be aware of the total amount payable including any charges, interest rates or fees.
What is the basis for the rate I pay?
Business loan interest rates vary due to variables like the amount to be of money borrowed, the business assets the money are used to purchase and the sector the business operates in, how long the company has been running and what percentage of the company has sufficient cash flow to pay for the loan, and overall well-being and creditworthiness of the company.
What are the cost?
There aren’t any hidden costs for our company loans, and you’ll be aware of the amount it is that you be required to pay, and when, starting from day one. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments on time).
We don’t charge an Application Fee. You can get a cash loan without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated in establishing and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay off the loan in advance?
You can decide to repay the entire amount of the loan at any point in time.
If you choose to do this please call our helpful company loans professionals. The specialists will provide you with repayment details along with an early payout estimate. It will be calculated using the total of the principal amount remaining and the accrued interest up to the time of the early payout in addition to 1.5 percent of the principal amount remaining and any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss due dates and also to be in line with your cash flow standard, we offer repayments that are either weekly or daily. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and being upfront about the ways we gather the information we collect, use, share and safeguard your data, is crucial and is a crucial aspect 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 and other data. Our funders are ISO 27001 qualified for our dedication to customer security and privacy. We employ an exceptionally sophisticated bank verification system link to immediately verify your bank account information online so we can offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an business owner utilises an asset they own to secure a loan. The asset can be either an individual property, such as the family home, or an company asset such as a truck or other piece of machinery.
The vast majority of banks, even the largest banks, are inclined to guarantee loans against an asset. If you’re struggling to pay back the loan, then the asset might be transferred to the lender. In essence, it’s a way of securing additional financing taking advantage of the value of what you already own.
Do I require security to secure a company loan?
Up to $150K in loans the requirement for asset security is not required upfront to access the money however, we require a personal guarantee. require a personal guarantee. In the event that you fulfill your loan obligations (as specified in your loan contract) Asset security will never be required. For loans of over $150K typically, you will need personal ensure and security in the form the charge of assets.