FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Shalvey Small Business Loans
Let me know what you think of the Shalvey Small Business Loans
Shalvey unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
What makes what makes the Unsecured Loan different from an traditional company loan?
You can apply to this Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive a same day response and the money could be on your account within 24 hours. Traditional business loans reference an interest rate per annum together with additional fees and charges. We offer a business loan is a pre-paid loan and you’ll be aware in advance of the total amount due, which includes any fees, interest or charges. Then, it is divided into weekly or daily payment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every business reason, such as control of cash flow business remodels and marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used to fund personal expenses.
About larger Shalvey Business Loans
What is the Larger Shalvey Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to be operating for a minimum of 3 years, and have an annual income of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
What can the funding be used for?
A larger company loan can be used for almost all company reason, such as business remodeling, buying new equipment or inventory as well as for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary for accessing funds over $150,000. This can be done by way of charge on assets, which could also include registering this in the PPSR or making a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is generally in nature rather than defining the security of a specific asset. The person who signs the guarantee is personally accountable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including items or assets). The PPSR permits preference over private property assigned depending on the date that a security interest has been registered.
Caveats are legal document lodged to provide an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking an enterprise loan that is greater than $250,000 we may be able to provide an initial pre-approval that will help simplify the process. It is possible to get this done without a credit check, and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes you answering some financial health questions. It is not an offer or guarantee of finance. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you receive could be subject to 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 the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form within a few minutes and a dedicated company lending specialist will contact you to guide you.
To be eligible for up to $100,000, you’ll need proof of identity (valid Driver’s Licence) and a valid NZBN/IRD as well as at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Application details including credit consent and 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, as well as interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we typically offer an answer in just one hour, provided you submit your request in standard company hours and you allow us to utilise the bank verification system to instantly verify your bank details online. If you choose to submit copies of your bank statement, we’ll provide an answer within just an company day.
For the Larger Business Loan ($100K or more) we may be in a position to provide you with a conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Some deals have been approved in the space of 24 hours.
The most effective method is to ensure you apply during normal business hours and permit us to use the advanced bank verification system link to confirm your bank details online. If you opt to send us duplicates of your banking accounts, it can take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we typically offer an answer within one hour – provided you make your application within standard business times and permit us to use the advanced bank verification system to instantly verify your bank’s information online. If you opt to submit copies of your bank statements, we are able to offer an answer in just one business day.
If you are applying for Larger Business Loans ($100K or more) we might be capable of offer you with conditional pre-approval in around six hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this can be faster depending on the specifics of each application. Certain offers have been approved within just 24 hours.
The fastest method is to ensure you apply during normal business hours. Also, permit us to use the advanced bank verification system to confirm your bank details online. If you opt to send us the copies of bank statement, it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a certain amount we will consider a number of variables to determine the well-being for your company and the level of payments your business can afford. The amount you receive from your loan will be contingent on the particular circumstances that are unique to your business.
When you apply for a specific amount we look at a range of factors to assess how much we can lend you such as well-being that is your business and the extent of payments your company can support. The total amount of your loan will be determined by the particular circumstances the business.
Fees & repayments
How much should you charge for a business loan?
When you apply for our business loan, we will assess the risk profile the business and offer an individualised offer including the amount of the loan, the duration and interest rates. It is a company loan is an upfront cost loan which means you know the exact amount payable including any charges or interest.
What is the basis for the rate I pay?
Business loan interest rates differ based on various factors such as the amount that is borrowed, the company assets the funds will be used for and the sector the business operates in, the long the business has been in operation as well as what percentage of the business has sufficient cash flow to pay for the loan, and the overall well-being as well as creditworthiness company.
What are the costs?
There are no hidden fees with our business loans. You’ll know precisely how much you need to pay and when, right from the day you sign up. There’s no compounding interest and no extra fees (as long as you are able to make your payments on time).
We do not charge an application fee. You can apply for a loan no cost upfront or the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. The only way to pay this fee if you decide to take 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 earlier?
You may choose to pay back the entire amount of your loan in full at any time.
If you decide to do this please speak to our friendly company loan experts. The specialists will offer you with repayment details along with an early payout estimate. This is calculated as the total of the principal remaining and the accrued interest up to the time of the early payout and 1.5% of the remaining principal and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payment dates and to align with your cash flow standard, we offer repayments either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be protected?
Security of your data, and making it clear the ways we gather, use, exchange and safeguard your data, 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 make use of industry-standard encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to protecting the security of customers and privacy. We make use of an advanced bank verification system link to immediately verify your bank account information online to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the company owner utilises assets they own to make the loan. The asset can be a personal asset like the family home, or it could be a company asset such as a truck or other piece of machinery.
The majority of banks, not just the major banks, prefer to guarantee loans against an asset. If you have trouble paying back the loan, your asset may be transferred to the lender. In essence it is an opportunity to secure new financing by taking advantage of the value of what you already have.
Are I need security to get an business loan?
Up to $150,000 in loans no asset security is required in advance to gain access to the funds However, we do require the personal guarantee. If you adhere to the terms of your loan (as detailed in your loan contract document) and you are able to meet your obligations, asset security is not needed. If you take out loans in excess of $150K generally there is personal guarantee and security that is in the form an asset charge.