FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Sydney Small Business Loans
Tell me about the Sydney Small Business Loans
Sydney unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from an ordinary company loan?
You can apply to the Small Business Loan in under 10 minutes over the phone, receive an instant response and funds may be in your account within 24 hours. Traditional business loans are based on an annual rate of interest together with additional fees and charges. This company loan is an upfront priced loan so you will be aware in advance of the amount you will have to pay, including any fees, interest or charges. This is then divided into a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company use, including control of cash flow business improvements, advertising to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal purposes.
About the Larger Sydney Business Loans
What is the Larger Sydney Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the company needs to have been operating for at least three years with an annual turnover of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funds be used for?
A larger company loan can be used to fund almost every company purpose including business renovations, purchase of equipment or inventory or as general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. This is as a result of an charge against assets, and may include registering this through the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to repay credit that is generally in nature rather than stipulating the security of a specific asset. The person signing the guarantee is personally liable if the business creditor is unable 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 contains security interests which are registered with respect to personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be assigned according to the date the security interest that is registered.
Caveats are legal document lodged to offer an official notice of a claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan of $250K or more, we may offer an initial pre-approval that will help simplify the process. It is possible to make this decision without credit checks and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes the answer to a series of financial health checks. It’s in no way an offer, nor is it a guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer you may receive may be on different conditions.
The application process
Do I have the right to receive funds?
You are eligible to apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application in few minutes and an experienced company expert in lending will be in touch to help you.
To apply for up $100,000 you’ll require ID details (valid Driver’s Licence), an active NZBN/IRD, and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Details of the application, including credit consent twelve months bank statement, an IRD statement Last 2 years’ finalised financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we usually provide a response in one hour if you apply during standard company hours and you allow us to utilise the bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statements we can offer an answer in as little as 1 business day.
For the Larger Business Loan ($100K and up) we might be in a position to provide the conditional pre-approval in around six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this may be quicker depending on the specifics of each application. Certain agreements have been approved within 24 hours.
The quickest way to apply can be make sure you apply during standard business hours. You can also permit us to use the advanced bank verification system to confirm your bank details online. If you choose to upload copies of your bank statement, it may take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K and up) we usually provide an answer within an hour if you make your application within normal business time and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you opt to send us copies of your bank statements, we are able to offer a decision in just the span of one business day.
For Larger Business Loans ($100K or more) we could be able to provide you with conditional pre-approval in about six hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Some transactions have received approval in less than 24 hours.
The fastest method would be to make sure you apply during standard business hours. You can also permit us to use the advanced bank verification system to check your bank’s information online. If you opt to upload duplicates of your banking accounts, it will take a little longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you make an application for a certain amount, we consider a variety of variables to determine what is the well-being that is your company as well as the amount of repayments that your business can afford. The total amount of your loan will be contingent on the specifics the company.
When you apply for a certain amount, we will consider a number of factors to assess the well-being of the company as well as the amount of repayments that your business will be able to support. The total amount of your loan will depend on the particulars the company.
Fees & repayments
What is the cost for a business loan?
When you make an application for business loans with us company loan, we’ll assess the risk profile that you have for your company and offer you with a customised proposal that includes loan amount, term and interest rates. It is a company loan is an upfront-priced loan therefore you will be aware in advance of the total amount payable including any costs, fees, or interest rates.
What determines the rate that I’m charged?
Interest rates for company loans rates depend on several factors including the amount borrowed, the business assets the money are used to purchase and the sector the business is in, how long the company has been in operation for, whether the business has enough cash flow to cover the loan, as well as the general health and creditworthiness of the company.
What are the fees?
There aren’t any hidden charges for our company loans, and you’ll know exactly how much you’ll need to pay, and when, starting from day one. There’s no compounding and there are no additional charges (as as long as you pay your payments in time).
We don’t charge an Application Fee. You are able to get a cash loan with no upfront cost or commitment to apply.
The Origination Fee is the cost associated in establishing and managing the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I repay the loan in advance?
You may choose to pay back all of your loan early at any time.
If you choose to pursue this option, please call our helpful company loans professionals. They’ll offer you with repayment details as well as an early payout amount. This will be calculated as the total of the principal amount remaining and any accrued interest at the time of early payment and 1.5 percent of the principal amount remaining and any outstanding fees.
How do you make repayments work?
To help you avoid missing due dates and also to be in line with your cash flow standard, we offer repayments either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
Protecting your information, and being clear about how we collect information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and is a crucial part 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 as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our clients and security. We use an advanced banking verification system to instantly confirm your bank account information online so we can offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an company owner uses the assets they have to make the loan. The asset can be either a personal asset like the family home or it could be a company property like a truck or piece of equipment.
The majority of banks, including the major banks, prefer to make loans secured by assets. If you are having difficulty paying back the loan, then the asset might be offered for sale by the lender. In essence, it’s means of securing new financing taking advantage of the value of what you already own.
Are I require security to get an business loan?
For loans that exceed $150K, there is no requirement for asset security before you can access the money However, we require a personal guarantee. need a personal guarantee. As long as you follow the terms of your loan (as stipulated in your loan contract document) and you are able to meet your obligations, asset security will never be required. For loans that exceed $150K, generally there is the option of a personal guarantee and security in the form an asset charge.