SMALL BUSINESS LOANS

Find the Perfect Finance for Small Business with LoansOne

Small business loans are efficient in covering various business expenses like purchasing new equipment or updating existing equipment or any worthwhile business purpose. This loan type assists business owners in maintaining, expanding or building their companies from the scratch. Getting secured funding for your business does not necessarily mean you have to approach a traditional bank or other traditional lending institutions for this.

You can take the help of LoansOne who work with many reputable lending partners who offer small business loans that have rapid application processes and easier approvals. There are various types of small businesses in New Zealand, but one thing all of them have in common is the business finance requirements.

How can you apply for small business funds with LoansOne?

The small business funding application procedure can differ on the business loan type you are seeking. Short-term funding usually requires less paperwork than long term loans. However, it is best to keep the following documents ready to improve your chances of business small loan approvals.

• Statement for profit and loss

This statement summarizes the costs and revenue, resulting in total profit and loss for a particular time for a financial year or financial quarter year. It is also known as an income or P&L statement.

• Balance Sheet

The balance sheet indicates what a business owes and owns at the current time. There are no particular formats for balance sheets as the data varies according to the business industry.

• Cash Flow Statement

The cash flow statement keeps track of the existing business’s total cash. The profit and loss statement considers the non-cash accounts like depreciation, but this statement helps you understand the capital available for paying the monthly bills.

• Business Plan

Despite your business operation, you should present a business plan before the small business loan lenders get the loan. The business plan should also include the projected expenditures and income. This plan will guide you in making business decisions and assist the lenders in evaluating your repayment potential. However not all lenders will require this but it can be useful to have a business plan.

• Business Financial returns

Some lenders will require you to submit the past two year’s business tax returns to apply for small business loans in New Zealand. It will help them verify the document and your income ability to repay the loan. Again however not all lenders will require this and most private lenders do not have this requirement when you submit your small business finance application.

Checklist for application of small business loans in NZ

Once you determine that your business could benefit from small business finance, start preparing the required documents for the loan application. However, you should follow the below checklist while applying for funding from LoansOne.

• Copy of identification
• Information on the current debt
• Business registration number
• Proof of permanent residency in New Zealand
• Rates notice for security property

Remember, the most common cause of rejection of finance for small businesses is poor planning and not having the required documentation required by the different lenders. Thus always submit as much information you can about your business when applying for the loan.

What does LoansOne look for while finding solutions for your business?

LoansOne work with many business funding partners in New Zealand, depending on the lender that suits your needs you may just need equity in real estate to qualify and your credit history and business income is irrelevant. We aim to find the right lender for your business funding requirements.

• Credit score

Credit score determines the borrowers’ reliability for loan repayment. Mostly, business owners require a 600 credit score to qualify with some lenders. Although in some scenarios, we also offer small business loans with a credit score of 500, however we also have lenders who are not concerned by credit score.

• Collateral or security

Collateral is a security that is used to guarantee the loan and a charge is registered by the lenders. The security offered can be any asset like residential or commercial real estate, equipment or machinery, vehicles, or invoices. Some lenders will offer unsecured small business loans in New Zealand.

• Working Capital

Working capital is the available money for funding the daily operations of your business. It is easy to calculate the working capital by subtracting the debt liabilities of a company from the current assets in a year.

• Total Business Operational time

A business operating in the industry for over two years is considered more stable than a startup. If your company includes a proven revenue track record for the past two years, then you have a good basis if you require small business loans.

• Cash Flow

A proper cash flow projection shows when and where the money gets collected, goes out and what is remaining.

Want to know more about small business loans in NZ and how much funding you can get for your business? Worry not, as financial advisors of LoansOne are always there to guide you in the funding application and approval process. So hurry up, and call us!

For more information, please get in touch with us through our contact page, or call us on 09 888 5252