FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The South Guildford Small Business Loans
Let me know more about South Guildford Small Business Loans
South Guildford unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from an traditional business loan?
The application for your Small Business Loan in under 10 minutes via the internet or by phone. You will receive an instant response and funds may be available in just 24 hours. Traditional company loans are based on an annual rate of interest along with other charges and fees. This company loan is a loan that is priced upfront therefore you’ll be aware of the total amount payable including any fees, interest or charges. This is then divided into a daily or weekly payment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any company need, such as control of cash flow company renovations, marketing, to purchase inventory or new equipment, to fund general working capital and much more. The loan is not available for personal use.
Concerning Larger South Guildford Business Loans
What is the Larger South Guildford Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed up to 36 months. Repayments are scheduled weekly or fortnightly to work with your situation.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large, your company needs to have been operating for at least three years and generate an annual revenue of $700K. Your company must belong to 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 least 12 months of trading.
How can the funds be utilised?
A Business Loan of a larger size can be used for nearly all company reason, such as company renovations, purchase of new equipment or inventory for general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required to access funding over $150,000. This can be done by way of charge over assets and can be registered in the PPSR or registering as a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is general in nature rather than stipulating the security of a specific asset. The person who is signing the guarantee is personally liable in the event that the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be assigned according to the date the registration of a security interest.
The caveat can be described as a formal form of document to offer the legal claim to a property.
What is a pre-approval without Credit Check?
If you’re applying for larger business loans of more than $250K it is possible to offer a preliminary pre-approval to help make the process. We may be able to make this decision without a credit check and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves answering a couple of financial well-being questions. It’s neither an offer nor a guarantee of finance. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you receive could be based on different conditions.
Application process
Are I eligible for funding?
You can apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application within a couple minutes, and an experienced business lending specialist will be in touch to assist you.
For a loan of up to $100,000 you’ll need proof of identity (valid Driver’s License) along with an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll also require:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Details of the application, including credit consent and 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, plus interim financial statements for the current year as well as Aged Payables and Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within an hour if you make your application within standard business timings and you allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you want to send us copies of your bank statements , we are able to provide the decision within just an company day.
If you are applying for a Larger Business Loan ($100K to $500K) we might be in a position to provide you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Certain transactions have received approval within just 24 hours.
The quickest way to apply is to ensure you apply during standard company hours and permit us to use the advanced bank verification system to check your bank’s information online. If you opt to send us duplicates of your banking statements it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) we usually offer an answer in just one hour – provided you make your application within normal business times and permit us to use the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your banking statements, we are able to provide the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be capable of offer the conditional pre-approval within 6 hours. Once you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, this can be faster depending on the circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The fastest method would be to ensure you apply during normal business hours. Also, permit us to use the modern bank verification to verify your bank information online. If you decide to upload copies of your bank accounts, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you submit an application for a specific amount we consider a variety of variables in order to assess your health for your company and the extent of repayments that your business is able to afford. The total amount of your loan will depend on the specifics the company.
If you apply for a certain amount, we consider a variety of factors to assess your well-being that is your business as well as the amount of repayments that your company will be able to support. The amount you receive from your loan will depend on the specifics for your company.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to apply for our company loans, we will assess the risk profile that you have for your company and provide you with a customised offer that includes the amount of the loan, the duration and the interest rates. A company loan is an upfront-priced loan therefore you will be aware of the total amount you will have to pay, including charges or interest.
What is the basis for the rate I pay?
Interest rates for company loans rates vary due to factors like the amount of money of money borrowed, the company assets the funds are used to purchase and the sector the company operates in, the long the company is in operation for, how long the company has sufficient cash flow to fund the loan, as well as the general well-being or financial standing of the business.
What are the costs?
There are no hidden fees with our company loans. You’ll know exactly how much it is that you be required to pay and when, from the day you sign up. There’s not any compounding interest and no additional fees (as as long as you pay your payments punctually).
We don’t charge an Application Fee. You can make an application for loans with with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay off the loan in advance?
You can decide to repay the total amount of your advance loan at any time.
If you do decide to take this route, please contact our helpful company lending professionals. They’ll provide you with details for repayment along with an early payout estimate. The figure will be calculated as the total of the principal amount remaining and accrued interest to the date of early payout and 1.5 percent of the principal balance as well as any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss due dates and also to be in line with your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from your company account.
Security & privacy
Will my information be secure?
Protecting your information, and being upfront about the ways we gather, use, exchange and protect your information, is of huge importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to the security of our customers as well as their privacy. We make use of an advanced bank verification system link to instantly confirm your bank account information online. This allows us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an business owner utilises an asset that they own to secure the funding. The asset can be either an individual asset, such as the family home or an company asset like a truck or piece or equipment.
The majority of lending institutions, not just the banks with the biggest size, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, the asset might be offered for sale by the lender. In essence, it is the process of securing additional financing making use of the value of what you already have.
What do I require security to secure a company loan?
For loans that exceed $150,000, it is not necessary to secure assets prior to the loan’s access however, we require a personal guarantee. need an individual guarantee. As long as you follow the terms of your loan (as stated in your loan contract document), asset security will never be needed. If you take out loans in excess of $150,000 generally there is personal guarantee and security that is in the form an asset charge.