FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Sydney Small Business Loans
Tell me more about Sydney Small Business Loans
Sydney unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from an traditional business loan?
The application to this Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an instant response and funds may be on your account within 24 hours. Traditional company loans have an annual interest rate as well as other fees and charges. Our company loan is an upfront priced loan therefore you’ll know in advance the total amount to be paid, including the interest, fees and charges. This is then divided into a daily or weekly repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business reason, such as control of cash flow business remodels and marketing to purchase inventory or new equipment, or as general working capital and much more. The loan is not available to fund personal expenses.
About the Larger Sydney Business Loans
What is the Larger Sydney Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed with a maximum of 36 months. The repayments are made weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to have been in operation for at least 3 years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funding be utilised?
A larger business loan can be used for almost every business need, including business remodeling, buying new equipment or inventory for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. This can be done as a result of an charge over assets, and could include the registration of this through the PPSR or making as a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally in nature rather than stipulating the security of a specific asset. The person who is signing the guarantee is personally responsible if the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including goods or assets). The PPSR grants prioritisation over property that is personal to be assigned depending on the date that a security interest has been registered.
A caveat is a legal form of document to offer an official notice of a claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan that exceeds $250K it is possible to offer an initial pre-approval that will help make the process. We might be able to apply for this without credit checks and within six hours of your initial application. This pre-approval is based on a preliminary assessment which includes answering a couple of financial well-being questions. It’s not an offer of credit or guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer that you might receive could be on different conditions.
Application process
Do I qualify for funds?
You may be eligible for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application within a few minutes and an experienced business expert in lending will contact you to help you.
To apply for up $100,000 you’ll need identification details (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Information on the application including credit consent, 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we usually provide an answer within one hour if you make your application at standard business hours and permit us to make use of the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your bank statements , we will be able to provide an answer within one company day.
For Larger Business Loans ($100K or more) we may be in a position to provide you with pre-approval conditional to your application in around 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based on the particular circumstances of each application. Certain offers have been approved within the space of 24 hours.
The quickest way to apply is to make sure you apply during normal company hours, and let us use the advance bank verification to check your bank’s information online. If you opt to upload duplicates of your banking statement, it may take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer within one hour if you make your application within standard business hours and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statements we can offer a decision within 1 business day.
For Larger Business Loans ($100K and up) we might be in a position to provide you with pre-approval conditional to your application in around 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 specifics of each application. Certain deals have been approved within just 24 hours.
The most effective method can be ensure you apply during normal business hours. You can also let us use the advanced bank verification system link to instantly confirm your bank details online. If you decide to send us copies of your bank accounts, it can take a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a certain amount we will consider a number of aspects that determine what is the well-being for your business as well as the amount of repayments that your company will be able to support. The total amount of your loan will be contingent on the specific circumstances for your company.
If you apply for a particular amount, we will consider a number of factors to assess the well-being of your company and the amount of repayments your business can afford. The total amount of your loan will be contingent on the particular circumstances the company.
Fees & repayments
How much do you charge for an business loan?
When you apply for the company loans, we will assess the risk assessment the company and offer an individualised offer that includes the amount of loan, the term and 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?
Business loan interest rates depend on several factors like the amount of money borrowed, the company assets the funds will be used for and the sector the company operates in, how long the business is in operation, how long the business has sufficient cash flow to cover the loan, and also the overall well-being as well as creditworthiness business.
What are the costs?
There aren’t any hidden costs for our company loans. You’ll know exactly how much you need to pay and when, starting from the day you sign up. There’s no compounding interest and no extra fees (as as long as you pay your payments in time).
We don’t charge an Application Fee. You are able to apply for a loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the expenses involved with establishing and managing the loan. It is only charged for this cost if you take out 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 early?
You may choose to pay back the entire amount of your loan in full at any time.
If you decide to do this please contact our helpful business loans experts. They will provide you with the details of your repayment and an early payment figure. The figure will be calculated as the sum of the principal balance and accrued interest to the time of early payout plus 1.5% of the principal amount remaining and any outstanding fees.
What is the process for repayments?
To help you avoid missing due dates and also to be in line with your cash flow routine, we offer repayments either daily or weekly. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my information be protected?
Security of your data, and making it clear the ways we gather, use, exchange and secure your information, is crucial 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 sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to security for our customers and privacy. We utilise a sophisticated bank verification system to immediately verify your bank account details online. This allows us to offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a business owner borrows from an asset that they own to make a loan. The asset can be an individual property, such as the family home, or an company asset like a truck as well as a piece of machine.
The majority of lending institutions, even the banks with the biggest size, prefer to make loans secured by an asset. If you are having difficulty paying back the loan, your asset may 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 own.
Are I need security for an company loan?
For loans that exceed $150,000, the requirement for asset security is not required before you are able to access the money However, we do require the personal guarantee. If you adhere to the loan terms (as stipulated in the loan contract) and you are able to meet your obligations, asset security is not required. For loans of over $150K generally, there is a personal guarantee and security is provided in the form of charges on assets.