FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Sydney Small Business Loans
Tell me what you think of the Sydney Small Business Loans
Sydney unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from a traditional company loan?
The application for the Small Business Loan in under 10 minutes online or over the phone, receive a same day response and funds may be in your account in 24 hours. Traditional business loans are based on an annual rate of interest along with other charges and fees. This business loan is an upfront priced loan and you’ll know in advance the total amount due, which includes any fees, interest or charges. This is then broken down into either weekly or daily installment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every business purpose including cash flow management, company remodeling, marketing, to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Concerning Larger Sydney Business Loans
What is the Larger Sydney Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to have been operating for at least three years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funding be utilised?
A Larger Business Loan can be used for nearly every business use, including business improvements, purchasing new equipment or inventory, as general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. This can be done as a result of an charge on assets and can include registration with the PPSR or filing as a caveat.
A director’s or personal ensure is a promise to repay a loan which is generally based rather than defining the security for a particular asset. The person signing the ensure is personally liable in the event that the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR grants preference over private property assigned according to the date the security interest that is registered.
An affidavit is an official document that is filed to provide the public notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re requesting an enterprise loan of $250,000 or more we may be able to provide an initial pre-approval that will help simplify the process. We could be able to apply for this without a credit check, and within 6 hours of the initial application. The pre-approval process is based on a preliminary assessment which includes you answering a few financial health questions. It is in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to a full credit assessment and any offer you receive could be on different terms.
The application process
Do I have the right to receive funds?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (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 process for applying is fast and easy. Just fill out the online application within a few minutes and a dedicated business credit specialist will be in touch to guide you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s License) and a valid NZBN/IRD and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll also need:
$100K-$250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, and interim financials from the current financial year such as age-related payables and aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K and up) we can often provide an answer in just one hour, provided you submit your request at quality business times and let us use the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your banking statement, we’ll provide the decision within an business day.
For Larger Business Loans ($100K and up) we could be in a position to provide the conditional pre-approval within about six hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain deals have been approved within just 24 hours.
The quickest method is to make sure you apply during standard business hours. Also, permit us to use the advance bank verification link to instantly check your bank’s information online. If you choose to upload copies of your bank statements it can take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we can often provide an answer within one hour – as long as you apply within normal business timings and you allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to submit copies of your bank statements, we’ll be able to provide the decision in just one business day.
For Larger Business Loans ($100K and up) We may be likely to offer you with pre-approval conditional to your application within 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 may be quicker depending on the circumstances of each application. Certain agreements have been approved within 24 hours.
The most effective method for you to apply is ensure you apply during normal business hours, and let us use the advance bank verification to instantly verify your bank account information online. If you upload documents from your account accounts, it will take a little longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a certain amount, we will consider a number of aspects for determining how much we can lend you health of your company as well as the amount of the repayments your company can afford. The amount you receive from your loan will depend on the specifics of your business.
When you apply for a specific amount we consider a variety of elements to assess how much we can lend you such as well-being of the business and the level of the repayments your company is able to afford. The total amount of your loan will depend on the specific circumstances the business.
Fees & repayments
What is the cost for an business loan?
If you decide to apply for our business credit, we’ll assess the risk assessment of your company and offer you with a customised offer that includes the amount of the loan, the duration and interest rates. The company loan is an upfront-priced loan and you’ll be aware of the total amount to be paid, including any charges or interest.
What determines the rate that I am charged?
The interest rates on business loans rates differ based on various variables like the amount to be borrowed, what company assets the funds will be used for, the industry the business operates in, how long the company is in operation and whether the company has sufficient cash flow to pay for the loan, and also the overall health or creditworthiness of the business.
What are the cost?
There are no hidden fees for our business loans, and you’ll know precisely how much you need to pay, and when, starting from the day you sign up. There’s no compounding interest, and the loan comes with no additional fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You are able to request a credit loan without any upfront costs or any obligation to sign up.
The Origination Fee covers the costs associated in establishing and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I repay the loan earlier?
You can decide to repay the entire amount of the advance loan at any time.
If you are deciding to do this please speak to our friendly company loans specialists. They will provide you with details on repayment and an early payout figure. This will be calculated as the total of the principal amount remaining and the accrued interest up to the date of early payout and 1.5 percent of the remaining principal plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line your cash flow cycle we offer repayments either daily or weekly. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and knowing the ways we gather the information we collect, use, share and secure your information, is crucial and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their privacy. We employ a highly sophisticated bank verification system to instantly verify your bank account information online to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an business owner makes use of an asset that they own to secure the funds for a loan. The asset may be an individual property, such as the family home, or it could be a company asset such as a truck or piece or equipment.
The majority of the lenders including the largest banks, are inclined to guarantee loans against assets. If you have trouble paying back the loan then your asset may be offered for sale by the lender. In essence it’s an opportunity to secure new funding making use of the value of what you already have.
Should I require security to secure a business loan?
For loans that exceed $150K, no asset security is required in advance to gain access to the funds However, we require a personal guarantee. require the personal guarantee. So long as you comply with the terms of your loan (as specified in your loan contract) and you are able to meet your obligations, asset security will never be required. For loans over $150,000 generally, you can get a personal guarantee and security in the form an asset charge.
