FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Spring Farm Small Business Loans
Let me know more about Spring Farm Small Business Loans
Spring Farm unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What makes what makes the Unsecured Loan different from the traditional company loan?
You can apply to the Small Business Loan in under 10 minutes on the internet or over the phone, receive an answer within the same day and the funds could be in your account in 24 hours. Traditional business loans are based on an annual rate of interest as well as other fees and charges. This business loan is a pre-paid loan so you will know ahead of time the amount you will have to pay, including any fees, interest or charges. Then, it is divided into a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company purpose including managing cash flows, business improvements, advertising to purchase inventory, new equipment, for general working capital and so much more. The loan is not available for personal purposes.
About the Larger Spring Farm Business Loans
What is the Larger Spring Farm Business Loan?
The Larger Business Loan is a larger size loan to aid in 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 weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to have been in operation for at least 3 years, and have an annual income of at least $700,000. You must 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 to prove at the least 12 months of operating.
What can I use the funds for?
A larger business loan can be used for almost all company use, including business renovations, purchase of equipment or inventory, as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It’s by taking a charge against assets, which could also include the registration of this with the PPSR or filing a caveat.
A director’s or personal ensure is a guarantee to repay a loan which is generally based rather than defining the security for a particular asset. The person signing the guarantee is personally liable in the event that the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including items or assets). The PPSR grants the priority of personal property assigned according to the date a security interest has been registered.
An affidavit is an official form of document to offer the legal claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for the Larger Business Loan that exceeds $250,000 it is possible to offer an initial pre-approval in order to make the process. We may be able to make this decision without a credit check, and within 6 hours of your initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial health questions. It’s not an offer or guarantee of credit. A conditional approval is subject a full credit assessment and any offer that you may receive may have different terms.
The application process
Do I qualify for funds?
You may be eligible for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months worth of trade (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Complete the online form in just a few minutes, and an experienced company loan specialist will contact you to assist you.
For a loan of up to $100,000 you’ll require identification details (valid Driver’s Licence) along with a valid NZBN/IRD and at least six months of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Details for application including credit consent, 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, plus interim financial statements for the current year such as age-related payables and aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) we typically offer an answer within one hour if you apply in quality business hours and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you choose to submit copies of your bank statements , we will be able to offer an answer in as little as an company day.
For the Larger Business Loan ($100K to $500K) we could be able to provide you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based upon the circumstances for each application. Some deals have been approved in the space of 24 hours.
The quickest way to apply for you to apply is ensure you apply during standard company hours. You can also let us use the modern bank verification to confirm your bank details online. If you choose to upload copies of your bank statements , it may take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer in just one hour if you make your application in normal business times and you allow us to use the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your banking statements, we will be able to offer the decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we could be capable of provide you with a conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this can be faster depending upon the circumstances for each application. Certain transactions have received approval in less than 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours. Also, permit us to use the advance bank verification link to verify your bank account information online. If you choose to upload copies of your bank statements, it can 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 certain amount, we take into consideration a range of factors in order to assess the health of the business and the extent of repayments your business can support. The amount you receive from your loan will be contingent on the particular circumstances that are unique to your business.
If you apply for a set amount, we consider a variety of aspects to determine how much we can lend you such as health for your company and the extent of repayments that your business will be able to support. The total amount of your loan will be contingent on the specific circumstances of your company.
Fees & repayments
What is the cost for the cost of a business loan?
When you apply for business loans with us business loan, we’ll assess the risk profile the business and offer you with a customised offer including the amount of the loan, the duration and the interest rates. It is a company loan is an upfront priced loan and you’ll be aware of the total amount due, which includes any costs, fees, or interest rates.
What determines the amount I will be charged?
Interest rates for business loans rates depend on several variables like the amount to be borrowed, the company assets the funds are used to purchase, the industry the business is in, how long the company has been operating and how long the company has enough cash flow to pay for the loan, and also the general health and creditworthiness of the company.
What are the charges?
There aren’t any hidden costs with our company loans. You’ll know exactly how much you’ll need to pay, and when, right from the first day. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments in time).
We don’t charge an Application Fee. You can request a credit loan with no cost upfront or any obligation to sign up.
The Origination Fee covers the expenses involved in establishing and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay off the loan in advance?
You can repay the entire amount of the advance loan at any time.
If you choose to pursue this option, please call our helpful business loan professionals. They’ll offer you with the details of your repayment as well as an early payout amount. This will be calculated as the sum of the principal balance plus any accrued interest as of the date of early payout in addition to 1.5 percent of the principal remaining plus any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss due dates and also to be in line with your cash flow standard, we provide payments that are either weekly or daily. They will be automatically deducted from your designated company account.
Security & privacy
Will my data be protected?
Security of your data, and knowing the ways we gather the information we collect, use, share and secure your information, is of huge importance and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their privacy. We utilise a sophisticated banking verification system to immediately confirm your bank account information online so we can offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an business owner uses an asset that they own to get the funds for a loan. The asset could be an individual asset, such as the family home, or a business asset such as a vehicle or piece or equipment.
The vast majority of lending institutions, including the major banks, prefer to make loans secured by an asset. If you’re struggling to pay back the loan, your asset may be taken over by the lender. In essence it is an opportunity to secure new financing by taking advantage of the value of what you already own.
Should I need security to secure an business loan?
Up to $150K in loans the requirement for asset security is not required prior to the loan’s access but we do need a personal guarantee. In the event that you fulfill the loan terms (as specified in the loan contract) and you are able to meet your obligations, asset security is not required. For loans of over $150,000 generally, there is a personal guarantee and security in the form of charges on assets.