FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Sydney Small Business Loans
Let me know how you can avail the Sydney Small Business Loans
Sydney unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from an traditional business loan?
It is possible to apply to the Small Business Loan in under 10 minutes on the phone. You’ll receive an answer within the same day and funds may be in your account in 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. This company loan is an upfront priced loan which means you be aware in advance of the total amount due, which includes any fees, interest or charges. This is then broken down into either a daily or weekly payment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business use, including control of cash flow company renovations, marketing to purchase inventory, new equipment, to fund general working capital, and much more. The loan is not available to fund personal expenses.
About larger Sydney Business Loans
What is the Larger Sydney Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are either weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size, your business needs to have been operating for at least three years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funds be utilised?
A Larger Business Loan is a great option for almost every company reason, such as business improvements, purchasing new equipment or inventory for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is needed to obtain funding above $150,000. It is usually in the form of a charge on assets, and could include the registration of this through the PPSR or registering a caveat.
A director’s or personal guarantee is a promise to repay a loan which is generally in nature rather than stipulating the security of a specific asset. The person who is signing the ensure is personally responsible if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests that are registered for personal property (including objects or assets). The PPSR allows preference over private property assigned according to the date a security interest was registered.
An affidavit is an official document that is filed to provide an official notice of a claim to a property.
What is a pre-approval minus Credit Check?
If you’re seeking a Larger Business Loan that exceeds $250K we can offer an initial pre-approval that will help ease the process. We may be able to get this done without a credit check, and within 6 hours of your initial application. This pre-approval is made based on an initial evaluation that involves you answering some financial health checks. It’s neither an offer nor a guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you are offered could have different terms.
Application process
Can I be eligible for funding?
You may apply for an 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)
- can demonstrate at least 6 months of trading (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 simple and simple. Just complete the online application within a few minutes and an experienced company lending specialist will contact you to guide you through the process.
To apply for up $100,000 you’ll require the right identification documents (valid Driver’s Licence) and a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Application details including credit consent twelve months of bank statements, IRD statements Last 2 years’ finalised financial statements, and interim financial statements for the current year as well as Aged Payables and Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K or more) we can often offer a response in one hour, provided you apply during quality business times and let us utilise the bank verification system to instantly verify your bank information online. If you want to send us copies of your bank statements , we are able to provide an answer within just the span of one business day.
If you are applying for a Larger Business Loan ($100K or more) we may be capable of provide you with pre-approval conditional to your application within six hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be quicker based on the specifics of each application. Certain transactions have received approval within the space of 24 hours.
The quickest way to apply is to ensure you apply during standard company hours and allow us to use the modern bank verification to instantly verify your bank account information online. If you send us documents from your account statement, it will take a little longer.
How soon will I receive the money?
For the Small Business Loan ($5K or more) We can usually provide an answer in just one hour – provided you make your application during normal business timings and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your bank statement, we’ll provide the decision within 1 business day.
For Larger Business Loans ($100K up to $500,000) we may be likely to provide you with a conditional pre-approval in about six hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this can be faster depending on the circumstances of each application. Some agreements have been approved within 24 hours.
The fastest way is to ensure you apply during normal business hours. Also, allow us to use the advanced bank verification system to instantly verify your bank information online. If you send us duplicates of your banking statements it takes a bit longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. When you submit an application for a specific amount we will consider a number of elements that determine the health of your company and the extent of repayments that your company will be able to support. The amount you receive from your loan will be contingent on the specifics of your business.
When you make an application for a set amount, we look at a range of elements to assess how much we can lend you such as health of your business and the extent of the repayments your business can support. The total amount of your loan will be contingent on the specifics the business.
Fees & repayments
How do you charge for a business loan?
When you apply for one of our company credit, we’ll assess the risk assessment of your business and offer you with a customised offer, including the amount of loan, the term and the interest rates. A company loan is an upfront-priced loan so you will be aware of the total amount you will have to pay, including charges or interest.
What determines the amount I will be charged?
Interest rates for business loans rates depend on several factors such as the amount that is of money borrowed, the company assets the funds are used to purchase as well as the field the company operates in, how long the business has been running for, what percentage of the company has enough cash flow to fund the loan, and overall health or creditworthiness of the company.
What are the charges?
There are no hidden fees with our company loans, and you’ll know precisely what you’ll need to pay and when, starting from the very first day. There’s no compounding and no extra fees (as as you make your payments in time).
We do not charge an application fee. You are able to get a cash loan absolutely no upfront cost and no commitment to apply.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I repay the loan earlier?
You may choose to pay back the entire amount of your advance loan at any time.
If you are deciding to do this please speak to our friendly company lending specialists. They will offer you with details on repayment and an early payout figure. It will be calculated using the total of the principal balance and the accrued interest up to the time of early payment in addition to 1.5% of the principal remaining and any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss payments and to work with your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from your nominated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as knowing how we collect data, process, exchange and safeguard your data, is of paramount importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to security for our customers and privacy. We use an advanced bank verification system that allows you to immediately verify your bank account details online. This allows us to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the business owner uses assets they own to make the funding. The asset can be an asset belonging to the personal, like the family home or it could be a business asset such as a truck or piece of equipment.
The majority of banks, not just the banks with the biggest size, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan then the asset could be taken over by the lender. In essence, it is an opportunity to secure additional financing using the value of what you already own.
Are I require security to secure a business loan?
For loans up to $150,000 the requirement for asset security is not required in advance to gain access to the funds however, we do require the personal guarantee. As long as you follow your loan commitments (as specified 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 $150,000 generally, there is an individual guarantee and security in the form an asset charge.
