FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the The Spectacles Small Business Loans
Tell me about the The Spectacles Small Business Loans
The Spectacles unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from the traditional company loan?
Apply for your Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and funds may be in your account in 24 hours. Traditional company loans reference an annual interest rate along with other charges and fees. The company loan is a loan that is priced upfront which means you know in advance the total amount due, which includes any interest, fees or charges. This is then broken down into weekly or daily installment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business reason, such as the management of cash flow, company remodels and marketing to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal purposes.
About the Larger The Spectacles Business Loans
What is the Larger The Spectacles Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. The repayments are made weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the business needs to be in operation for at least 3 years, and have an annual income of at least $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funds for?
A larger business loan can be used for nearly any company need, including company improvements, purchasing new equipment or inventory, as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. This can be done by taking a charge on assets, and may include registering this through the PPSR or filing a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is general in nature, rather than specifying the security of a specific asset. The person signing the ensure is personally accountable if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including the assets or goods). The PPSR permits priority over personal property to be assigned according to the date the security interest was registered.
A caveat is a legal document lodged to provide notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re requesting larger business loans that is greater than $250,000 we may be able to provide a preliminary pre-approval to help ease the process. It is possible to apply for this without a credit check and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves you answering a few financial well-being questions. It is not an offer of credit or guarantee of credit. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you receive could have different conditions.
The application process
Do I qualify for funds?
You can apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application in just a few minutes, and an experienced company lending specialist will call you to guide you.
To apply for up $100,000 you’ll require proof of identity (valid Driver’s License) and 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 also require:
$100K to $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Information on the application including credit consent, 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we usually provide an answer within one hour, provided you apply within quality company times and let us utilise the bank verification system to immediately verify your bank account information online. If you choose to upload copies of your bank statements , we will be able to provide an answer in as little as an business day.
For Larger Business Loans ($100K to $500K) we could be able to provide you with pre-approval conditional to your application within about six hours. Once you’ve signed the pre-approval document, you will need to wait about 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 most effective method would be to ensure you apply during normal business hours. You can also let us use the advanced bank verification system to confirm your bank details online. If you opt to upload duplicates of your banking accounts, it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K and up) we typically offer an answer in just one hour – provided you apply during standard business time and permit us to use the bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statement, we’ll offer the decision in just 1 business day.
For Larger Business Loans ($100K or more) we may be likely to provide the conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this can be faster depending on the circumstances of each application. Certain agreements have been approved in just 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours. Also, allow us to use the sophisticated bank verification to confirm your bank details online. If you upload copies of your bank accounts, it can take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a certain amount, we take into consideration a range of variables to determine how much we can lend you health that is your business and the level of the repayments your business will be able to support. The amount you receive from your loan will depend on the specific circumstances the business.
When you make an application for a particular amount, we take into consideration a variety of elements to determine the health that is your company and the level of payments your business can afford. The amount you receive from your loan will be contingent on the particulars of your business.
Fees & repayments
What is the cost for the cost of a business loan?
If you decide to make an application for the company loans, we will assess the risk assessment that you have for your business and offer you with a customised offer including the amount of the loan, the duration and interest rates. A company loan is an upfront cost loan which means you know in advance the total amount due, which includes any interest rates, fees or charges.
What is the basis for the rate I pay?
Interest rates for company loans rates differ based on various variables like the amount to be of money borrowed, the company assets the money are used to purchase in addition to the industry that the company is in, how long the company has been operating for, what percentage of the company has sufficient cash flow to cover the loan, and also the general well-being or creditworthiness of the company.
What are the charges?
There aren’t any hidden charges for our business loans. You’ll be aware of the amount it is that you need to pay, and when, from day one. There’s not any compounding interest and no additional fees (as as long as you pay your payments on time).
We do not charge an Application Fee. You can get a cash loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the costs associated with setting up and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay out the loan in advance?
You can repay the entire amount of your loan early at any time.
If you choose to do this please talk to one of our helpful business loan professionals. They’ll provide you with details for repayment and an early payment figure. The figure will be calculated as the sum of the principal remaining and any accrued interest at the time of early payment, plus 1.5 percent of the principal remaining and any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss payment dates and to align your cash flow cycle we offer repayments either daily or weekly. They will be automatically deducted from your company account.
Security & privacy
Will my data be protected?
Security of your data, and being clear about the ways we gather data, process, exchange and secure your information, is crucial and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to protecting the security of customers and security. We employ a highly sophisticated banking verification system to immediately verify your bank account details online so we can offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the company owner makes use of an asset they own to obtain the loan. The asset could be a personal asset like the family home or a company asset such as a truck or piece or equipment.
The vast majority of banks, not just the largest banks, are inclined to secure loans against assets. If you have trouble paying back the loan then the asset might be transferred to the lender. In essence, it is means of securing new financing using the value of what you already own.
Should I need security to secure a business loan?
For loans of up to $150,000, it is not necessary to secure assets prior to the loan’s access but we require a personal guarantee. require a personal guarantee. If you adhere to the loan terms (as specified in your loan contract document) the security of assets is not required. For loans over $150K generally, there is the option of a personal guarantee and security that is in the form an asset charge.