FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Sydney Small Business Loans
Let me know what you think of the Sydney Small Business Loans
Sydney unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from an ordinary business loan?
The application to your Small Business Loan in under 10 minutes on the phone. You’ll receive an instant response and funds may be in your account within 24 hours. Traditional company loans have an annual interest rate together with additional fees and charges. Our company loan is an upfront priced loan and you’ll be aware of the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into either weekly or daily amount to be paid back.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for almost any company reason, such as the management of cash flow, business remodeling, marketing, to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal use.
About Larger Sydney Business Loans
What is the Larger Sydney 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 term fixed that can last up to 36 months. Repayments are either weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large the company needs to have been operating for at least three years with an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can the funding be used for?
A Larger Business Loan is a great option for almost all company purpose including business renovations, to purchase equipment or inventory, as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. This is as a result of an charge over assets, and may include registering this with the PPSR or filing as a caveat.
A director’s or personal ensure is a promise to repay credit 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 the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including goods or assets). The PPSR permits priority over personal property to be granted in accordance with the date on which a security interest that is registered.
The caveat can be described as a formal document that is filed to provide the public notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking larger company loans that exceeds $250K we can offer a preliminary pre-approval to help make the process. We may be able to get this done without credit checks and within 6 hours of the initial application. This pre-approval is based on a preliminary assessment which includes answering a couple of financial health questions. This is not an offer of credit or guarantee of funds. Unconditional approval is subject to an extensive credit evaluation and any offer you may receive may be on different terms.
Application process
Are I eligible for funding?
You can apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just complete the online application within a couple minutes, and an experienced business loan specialist will contact you to guide you.
To be eligible for up to $100,000 you’ll require ID details (valid Driver’s Licence) along with an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Information on the application including credit consent and 12 month bank accounts, the IRD statement, last 2 years finalised financial statements, plus interim financials from the current financial year as well as Aged Payables and Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K and up) we typically provide a response in one hour – as long as you submit your request within standard company time and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statement, we’ll provide an answer in as little as an business day.
For the Larger Business Loan ($100K and up) we might be able to provide you with pre-approval conditional to your application within six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Some deals have been approved in less than 24 hours.
The quickest way to apply is to ensure you apply during standard business hours. Also, allow us to use the modern bank verification to instantly verify your bank account information online. If you decide to send us documents from your account accounts, it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) We can usually provide an answer in just one hour – as long as you make your application in normal business time and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statements, we are able to offer an answer in just the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we could be in a position to offer you with pre-approval conditional to your application within about 6 hours. After you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval, however it could be faster based on the circumstances of each application. Certain deals have been approved within the space of 24 hours.
The fastest way can be ensure you apply during normal business hours. Also, allow us to use the modern bank verification to verify your bank account information online. If you choose to send us documents from your account accounts, it takes a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a particular amount, we take into consideration a range of factors that determine your health of the business as well as the amount of repayments that your business will be able to support. The amount you receive from your loan will be contingent on the particular circumstances that are unique to your company.
When you make an application for a certain amount, we look at a range of factors to assess how much we can lend you such as well-being of your business and the extent of payments your company will be able to support. The amount you receive from your loan will be contingent on the particular circumstances the company.
Fees & repayments
How much do you charge for the cost of a company loan?
When you make an application for the company financing, we’ll assess the risk assessment of your business and provide an individualised offer, including the loan amount, the terms and the interest rates. The business loan is a loan that is priced upfront and you’ll be aware of the total amount due, which includes any costs, fees, or interest rates.
What is the basis for the rate I’m charged?
Interest rates for company loans rates depend on a variety of factors such as the amount that is borrowed, the business assets the money are used to purchase and the sector the business operates in, how long the business has been operating, in the event that the business has sufficient cash flow to support the loan, and the general health and creditworthiness of the business.
What are the costs?
There are no hidden costs for our company loans. You’ll know exactly how much it is that you be required to pay and when, from day one. There’s no compounding and no extra fees (as as you make your payments in time).
We don’t charge an application fee. You can apply for a loan with with no upfront cost or obligation to proceed.
The Origination Fee covers the costs associated with the setting up and management of the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay off the loan earlier?
You can decide to repay the entire amount of your advance loan at any time.
If you are deciding to pursue this option, please speak to our friendly business loans experts. The specialists will provide you with details for repayment and an early payment figure. It will be calculated using the total of the principal remaining and any accrued interest at the date of early payout, plus 1.5 percent of the principal balance and any fees that remain unpaid.
How do you make repayments work?
To ensure that you don’t miss repayments and to fit in with your cash flow cycle we offer repayments either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be secure?
Security of your data, and making it clear how we collect information, use it, and exchange it, as well as ensure the security of your information is crucial and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to security for our customers and security. We employ a highly sophisticated bank verification system that allows you to instantly confirm your bank account information online. This allows us to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where an business owner utilises an asset that they own to get the funds for a loan. The asset can be an asset belonging to the personal, like the family home, or an business asset like a truck or piece of equipment.
The vast majority of banks, even the largest banks, are inclined to make loans secured by assets. If you’re having trouble paying back the loan, then the asset could be transferred to the lender. In essence it’s means of securing new funding using the value of what you already own.
Do I require security to secure a business loan?
For loans of up to $150K, no asset security is required prior to the loan’s access, however we require a personal guarantee. need an individual guarantee. As long as you follow your loan obligations (as stated in your loan contract document), asset security will never be required. For loans that exceed $150K, generally, you can get a personal ensure and security in the form of charges on assets.