FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Luscombe Small Business Loans
Let me know more about Luscombe Small Business Loans
Luscombe unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
What is what makes the Unsecured Loan different from an traditional business loan?
Apply to get this Small Business Loan in under 10 minutes online or by phone. You will receive an answer within the same day and the funds could be in your account within 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. We offer a business loan is a pre-paid loan so you will be aware of the total amount payable including any fees, interest or 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?
A Small Business Loan can be used to fulfill almost any company use, including cash flow management, company remodels and marketing, to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used to fund personal expenses.
About larger Luscombe Business Loans
What is the Larger Luscombe Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is determined 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 company needs to be operating for at least three years with an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A larger business loan is a great option for almost any business purpose including company renovations, to purchase new equipment or inventory or as general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed to obtain funding above $150,000. This can be done as a result of an charge against assets, which could also include registration in the PPSR or registering a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is general in nature, rather than specifying security over a particular asset. The person who signs the ensure is personally accountable if the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests registered in respect of personal property (including objects or assets). The PPSR allows preference over private property granted according to the date the security interest was registered.
An affidavit is an official document filed to offer the public notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250,000 we can offer an initial pre-approval to smooth out the process. It is possible to make this decision without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial health checks. It’s not an offer or guarantee of funds. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you receive could have different terms.
The application process
Can I be eligible for funding?
You can apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form in few minutes and a dedicated business credit specialist will contact you to help you.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s Licence), a valid NZBN/IRD as well as at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent, 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we can often provide an answer in just one hour if you make your application in quality business time and let us use the advanced bank verification system to instantly verify your bank’s information online. If you decide to send us copies of your bank statement, we’ll provide an answer in as little as one company day.
For the Larger Business Loan ($100K up to $500,000) we may be likely to offer the conditional pre-approval within 6 hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this can be quicker based on the specifics of each application. Certain agreements have been approved within just 24 hours.
The quickest method for you to apply is ensure you apply during normal company hours. You can also allow us to use our advance bank verification link to confirm your bank details online. If you choose to send us copies of your bank statement, it may take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K to $100K) we can often provide an answer in just one hour, provided you apply during standard business times and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statements, we are able to offer a decision within 1 business day.
If you are applying for Larger Business Loans ($100K and up) We may be likely to offer you with pre-approval conditional to your application in about 6 hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however it could be faster based on the circumstances of each application. Certain transactions have received approval within the space of 24 hours.
The fastest method is to ensure you apply during normal business hours and allow us to use the sophisticated bank verification link to instantly check your bank’s information online. If you choose to upload the copies of bank 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 submit an application for a certain amount, we consider a variety of factors for determining how much we can lend you health of the business and the level of payments your business can support. The total amount of your loan will depend on the particular circumstances that are unique to your business.
When you submit an application for a set amount, we will consider a number of elements to assess how much we can lend you such as well-being of your company and the extent of repayments that your business is able to afford. The amount you receive from your loan will be contingent on the specific circumstances for your company.
Fees & repayments
What is the cost for a business loan?
When you make an application for the company loan, we will assess the risk profile the company and offer you with a customised offer including loan amount, term and the interest rates. A business loan is an upfront cost loan which means you know the exact amount to be paid, including any charges or interest.
What is the factor that determines the price I will be charged?
The interest rates on business loans rates depend on a variety of factors like the amount of money borrowed, the business assets the funds are used to purchase, the industry the business operates in, how long the business has been running and how long the business has sufficient cash flow to pay for the loan, as well as the general well-being or financial standing of the business.
What are the cost?
There are no hidden fees with our company loans, and you’ll be aware of the amount it is that you be required to pay, and when, right from the very first day. There’s no compounding and no additional fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You can get a cash loan with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved with setting up and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I pay out the loan earlier?
You can decide to repay all of your advance loan at any time.
If you do decide to do this please call our helpful business loans professionals. The professionals will offer you with repayment details along with an early payout estimate. It will be calculated using the sum of the remaining principal amount and the accrued interest up to the time of early payout in addition to 1.5% of the principal amount remaining plus any outstanding fees.
How do you make repayments work?
To help you avoid missing payment dates and to align your cash flow schedule, we provide repayments either weekly or daily. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Protecting your information, and knowing the ways we gather information, use it, and exchange it, as well as safeguard your data, is of paramount importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our dedication to customer security and privacy. We use an advanced banking verification system to instantly verify the bank account details online, allowing us to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when an company owner makes use of the assets they have to get the funding. The asset can be either a personal asset like the family home, or a business asset like a truck as well as a piece of machine.
The vast majority of lending institutions, including the banks with the biggest size, prefer to secure loans against assets. If you are having difficulty paying back the loan, then the asset might be offered for sale by the lender. In essence it’s an opportunity to secure new funding using the worth of the asset you already have.
What do I require security to get a company loan?
For loans of up to $150K, the requirement for asset security is not required before you are able to access the money, however we do need a personal guarantee. If you adhere to the loan terms (as specified in your loan contract document) Asset security will never be required. For loans that exceed $150K, generally, there is the option of a personal ensure and security is provided in the form of the charge of assets.