FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Sinagra Small Business Loans
Tell me more about Sinagra Small Business Loans
Sinagra unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from an ordinary company loan?
The application for your Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and the money could be on your account within 24 hours. Traditional business loans are based on an annual rate of interest as well as other fees and charges. We offer a business loan is a loan that is priced upfront which means you know in advance the amount you will have to pay, including any fees, charges or charges. This is then broken down into either a daily or weekly installment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for almost every business purpose including control of cash flow company remodeling, marketing, to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available to fund personal expenses.
Concerning Larger Sinagra Business Loans
What is the Larger Sinagra Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are weekly or fortnightly, depending on your situation.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan in this amount the company needs to be trading for at least 3 years and generate an annual revenue of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funds be utilised?
A larger company loan can be used for almost any company purpose including company improvements, purchasing equipment or inventory as well as for general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. It’s as a result of an charge over assets, which could also be registered with the PPSR or making as a caveat.
A personal or director’s ensure is a promise to pay off a credit line that is generally based rather than defining security over an asset. The person who is signing the ensure is personally liable in the event that the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests that are registered for personal property (including goods or assets). The PPSR allows preference over private property granted according to the date a security interest that is registered.
A caveat is a legal document lodged to provide an official notice of a claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for the Larger Business Loan of $250K or more we may be able to provide an initial pre-approval to make the process. We may be able to get this done without a credit verification and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering a few financial health checks. It’s not an offer or guarantee of funds. A conditional approval is subject an extensive credit evaluation and any offer that you receive could be on 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 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in few minutes and an experienced business expert in lending will contact you to assist you.
To apply for up $100,000, you’ll require proof of identity (valid Driver’s License) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Information on the application including credit consent, 12 months of bank records, IRD statements and the last two years’ finalised financial statements, in addition to interim current financial year financials as well as Aged Payables and Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we typically offer an answer within an hour, provided you make your application within quality business time and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statements , we will be able to provide a decision in as little as an business day.
For the Larger Business Loan ($100K to $500K) we may be able to provide you with conditional pre-approval within six hours. Once you have signed the pre-approval document, you will require to wait around 2-3 days for final approval, however this may be quicker depending on the particular circumstances of each application. Certain agreements have been approved within just 24 hours.
The fastest way can be make sure you apply during standard company hours. Also, let us use the advance bank verification link to instantly check your bank’s information online. If you decide to upload documents from your account statements it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) we can often provide an answer in just one hour if you make your application in standard business hours and permit us to use the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your banking statements, we will be able to provide an answer in as little as one business day.
For the Larger Business Loans ($100K up to $500,000) we may be in a position to offer you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval form, it will take around 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Some agreements have been approved in just 24 hours.
The quickest method can be make sure you apply during standard business hours and permit us to use the advance bank verification link to confirm your bank details online. If you decide to upload copies of your bank accounts, it will take a little longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a certain amount, we look at a variety of aspects in order to assess the well-being of your business as well as the amount of payments your business is able to afford. The total amount of the loan will be determined by the particular circumstances the company.
If you apply for a particular amount, we will consider a number of factors to determine your health of your business as well as the amount of repayments your business can afford. The total amount of your loan will be determined by the specifics that are unique to your business.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to make an application for business loans with us business financing, we’ll assess the risk assessment of your business and provide you with a customised offer that includes the loan amount, the terms and interest rates. It is a company loan is a loan that is priced upfront and you’ll know in advance the total amount payable including any costs, fees, or interest rates.
What determines the rate that I’m charged?
The interest rates on business loans rates depend on several variables like the amount to be borrowed, what business assets the funds are used to purchase and the sector the business operates in, the long the company is in operation, how long the company has enough cash flow to cover the loan, and the general well-being as well as creditworthiness company.
What are the charges?
There are no hidden costs for our company loans, and you’ll know exactly how much you need to pay, and when, from the day you sign up. There’s no compounding interest, and the loan comes with no additional fees (as as long as you pay your payments on time).
We don’t charge an application fee. You are able to make an application for loans with absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the expenses involved with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can repay the entire amount of your advance loan at any time.
If you are deciding to pursue this option, please speak to our friendly company lending specialists. We will offer you with details on repayment and an early payout figure. This is calculated as the total of the remaining principal amount and accrued interest to the date of early payout, plus 1.5% of the principal balance plus any outstanding fees.
What are the repayment methods?
To make sure you do not miss due dates and also to be in line your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and knowing the ways we gather data, process, exchange and ensure the security of your information is of huge importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to protecting the security of customers and security. We utilise a sophisticated bank verification system that allows you to instantly verify the bank account details online, allowing us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where a business owner borrows from the assets they have to make the funding. The asset may be an individual asset, such as the family home, or an business asset such as a vehicle or piece or equipment.
The vast majority of the lenders including the banks with the biggest size, prefer to guarantee loans against an asset. If you have trouble paying back the loan, your assets could be offered for sale by the lender. In essence it is an opportunity to secure new funding making use of the value of what you already have.
Are I require security to secure a business loan?
Up to $150K in loans it is not necessary to secure assets prior to the loan’s access however, we require a personal guarantee. need the personal guarantee. As long as you follow the terms of your loan (as stipulated in the loan contract) the security of assets is not required. If you take out loans in excess of $150,000 generally, there is the option of a personal guarantee and security in the form charges on assets.