There are several options for business funding. Depending on your circumstances and the type of business, one option may be better.
Second-tier lenders NZ are the Plan B option for borrowers who don’t meet the strict lending criteria set by central banks. They are consummate professionals and are tightly regulated by consumer credit governing bodies. For more information about the second tier business lenders NZ, click here.
Faster turnaround
Getting business finance can be a lengthy process, with many lenders requiring a lot of documents and information. These processes are usually designed to ensure you’re not a risky borrower who can repay your debt on time.
Unlike the big banks, second-tier business lenders have a more flexible approach to lending. It means they can offer a faster turnaround for small businesses needing inventory. Whether it’s computers for an Auckland-based IT company or new equipment for a Christchurch-based refurbishment firm, these lenders can get you the cash you need to meet your targets.
Some of NZ’s fastest second-tier business lenders include Basecorp, Pepper Money, First Mortgage Trust and Resimac. With these lenders, you can get finance for any business purpose with your real estate as security.
Flexibility
Obtaining business financing is a challenge for many small businesses. That is because lenders prefer to work with established companies with a low risk of default. However, there are alternative ways to obtain funding for your small business.
One way is to use second-tier business lenders. These lenders are more flexible than banks and can offer different mortgage types and structures. Second-tier lenders also cater to people with bad credit or arrears to provide lending options unavailable from banks.
There are many different loan products available to small businesses in New Zealand. These include term loans, lump sums of money repaid over time, and line of credit loans, which allow companies to draw funds as needed.
No credit check
The application process for a business loan is different for every lender, but it is usually similar to a home mortgage. You must provide details about your business, financial statements, and personal information. The lenders may also ask for additional documents and security if you borrow more.
Some second-tier lenders will allow you to borrow without doing a credit check. It is an excellent option for people who have poor credit history or for those whom banks have refused.
Some companies will offer a business line of credit that is like an overdraft and can be funded in 24 hours. Others, such as Prospa, will support a short-term business loan and have flexible repayment terms. These loans can be used for various purposes, from helping the corner dairy put more stock on their shelves to funding new equipment. For more information about the second tier business lenders NZ, click here.
No collateral
The second-tier business lenders have fewer hoops than the central banks. They offer different mortgage types and structures for a variety of borrowers.
They can provide a short-term business loan with a fixed interest rate to help you manage cash flow. You can also get a line of credit that lets you borrow funds as and when needed.
Affordable
Non-Bank Business Funders, second-tier lenders or alternative finance providers are becoming increasingly popular with New Zealand businesses. They can provide quick approval and funding based on current cash flow rather than previous credit history. They can offer flexible financing solutions such as invoice finance, unsecured business loans and short-term business funding.
They are an excellent Plan B option for borrowers who don’t meet the strict criteria set by the central banks – especially with the recent changes to debt-to-income ratios and LVRs. With some foresight, it is possible to prepare the necessary information that will be requested by these second-tier lenders so that you can secure the funding your business needs at an affordable rate. For more information about the second tier business lenders NZ, click here.