FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Sydney Small Business Loans
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Sydney unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from a traditional company loan?
Apply to get your Small Business Loan in under 10 minutes over the phone. You’ll get an instant response and have the funds on your account within 24 hours. Traditional business loans are based on an interest rate per annum along with other charges and fees. We offer a business loan is an upfront priced loan so you will be aware of the total amount due, which includes any fees, interest or charges. This is then broken down into a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost every business purpose including control of cash flow company renovations, marketing, to purchase inventory or new equipment, as general working capital and so much more. The loan is not available for personal purposes.
Concerning 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 range between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan that is this large the business needs to have been operating for a minimum of 3 years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can the funding be used for?
A large company loan is a great option for almost every business need, including business renovations, purchase of equipment or inventory for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. It’s by way of charge on assets, and could include registering this through the PPSR or filing a caveat.
A personal or director’s guarantee is a promise to pay back a loan that is generally based rather than stating security over a particular asset. The person who signs the guarantee is personally liable in the event that the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including the assets or goods). The PPSR gives preference over private property granted according to the date a security interest has been registered.
Caveats are legal document lodged to offer notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
When you’re applying for a Larger Business Loan that is greater than $250,000 we may be able to provide a preliminary pre-approval to help smooth out the process. It is possible 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 you answering some financial health checks. It is not an offer or guarantee of finance. Acceptance without condition is subject to a full credit assessment and any offer that you receive could be based on different terms.
Application process
Can I be eligible for funding?
You may be eligible for a 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’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Complete the online form within a few minutes and a dedicated business loan specialist will be in touch to guide you.
To apply for up $100,000 you’ll require identification details (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Application details including credit consent as well as 12 months bank statement, an IRD statements, last 2 years finalised financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we usually offer an answer within an hour – as long as you apply within quality company timings and permit us to utilise the bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statements we can offer a decision within the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we may be able to provide you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this can be quicker based on the particular circumstances of each application. Some deals have been approved within 24 hours.
The most efficient method for you to apply is make sure you apply during standard company hours. You can also allow us to use the advance bank verification link to instantly confirm your bank details online. If you decide to send us documents from your account statements it can take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer in just one hour – provided you make your application in standard business hours and permit us to make use of the advanced bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statements, we are able to provide a decision within an business day.
For Larger Business Loans ($100K to $500K) we may be able to offer you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending on the circumstances of each application. Certain transactions have received approval within less than 24 hours.
The most efficient method for you to apply is ensure you apply during standard business hours. You can also allow us to use our advanced bank verification system link to instantly verify your bank information online. If you decide to upload duplicates of your banking statements, it may take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a specific amount we take into consideration a range of variables that determine what is the well-being of the company and the extent of repayments your company is able to afford. The total amount of the loan will be determined by the particular circumstances the business.
If you apply for a particular amount, we consider a variety of elements to assess your well-being of your company and the extent of repayments your business can support. The amount you receive from the loan will be determined by the particulars the company.
Fees & repayments
How much do you charge for a business loan?
When you request business loans with us business financing, we will assess the risk profile that you have for your company and offer you with a customised offer including the loan amount, the terms and the interest rates. This business loan is a loan that is priced upfront and you’ll know in advance the total amount to be paid, including any charges, interest rates or fees.
What is the basis for the rate I will be charged?
Business loan interest rates depend on several factors like the amount of money borrowed, what business assets the money will be used for, the industry the business operates in, the long the company has been operating and in the event that the company has sufficient cash flow to fund the loan, and the general well-being or creditworthiness of the business.
What are the charges?
There aren’t any hidden charges with our business loans, and you’ll know precisely what it is that you be required to pay, and at what time, from day one. There’s not any compounding interest and no additional fees (as long as you make your payments on time).
We don’t charge an Application Fee. You can make an application for loans absolutely no upfront cost and no obligation to proceed.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of loan.
Do I have the option of paying off the loan early?
You can repay the entire amount of your loan in full at any time.
If you decide to do this please talk to one of our helpful company credit professionals. They will provide you with the details of your repayment along with an early payout estimate. The figure will be calculated as the total of the principal remaining and accrued interest to the date of early payout and 1.5 percent of the remaining principal and any outstanding fees.
How do repayments work?
To help you avoid missing due dates and also to be in line your cash flow schedule, we provide payments that are either weekly or daily. They are automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and knowing the ways we gather information, use it, and exchange it, as well as protect your information, is of paramount importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to security for our clients and privacy. We make use of an advanced bank verification system link to instantly verify your bank account details online to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner borrows from an asset they own to obtain a loan. The asset may be an individual asset, such as the family home or an company asset such as a vehicle or piece or equipment.
The majority of lending institutions, even the major banks, prefer 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 the process of securing new financing using the value of what you already have.
Should I require security to get a company loan?
Up to $150K in loans there is no requirement for asset security before you are able to access the money, however we do need an individual guarantee. As long as you follow the loan terms (as detailed in the loan contract) Asset security will never be required. If you take out loans in excess of $150,000 generally there is personal guarantee and security is provided in the form of a charge over assets.