FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Sydney Small Business Loans
Tell me about 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 that are either daily or weekly.
How is this Unsecured Loan different from a traditional company loan?
You can apply to get your Small Business Loan in under 10 minutes online or on the phone. You’ll receive an immediate response, and funds may be in your account within 24 hours. Traditional business loans are based on an annual rate of interest together with additional fees and charges. The company loan is an upfront priced loan which means you know in advance the total amount to be paid, including the interest, fees and charges. This is then divided into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company reason, such as cash flow management, business remodels and marketing to purchase inventory or new equipment, or as general working capital and much more. The loan is not available for personal reasons.
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 business expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan that is this large, your company needs to be trading for at least 3 years and generate an annual revenue of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can I use the funding for?
A large business loan can be used to fund almost any company need, including company renovations, to purchase new equipment or inventory for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It’s in the form of a charge on assets, and could include registration through the PPSR or filing as a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is general in nature, rather than stipulating security over a particular asset. The person signing the ensure is personally accountable if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including items or assets). The PPSR grants the priority of personal property assigned according to the date the registration of a security interest.
Caveats are legal document lodged to provide the legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking a Larger Business Loan of $250,000 or more it’s possible to offer an initial pre-approval to make the process. We could be able to make this decision 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 some financial health checks. It is not an offer of credit or guarantee of financing. Unconditional approval is subject to a full credit assessment and any offer that you may receive may be on different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for an company 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 prove at least 6 months worth of trade (for for the 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 fast and easy. Just complete the online application in few minutes and an experienced company expert in lending will be in touch to help you.
To apply for up to $100,000, you’ll require identification details (valid Driver’s Licence), an active NZBN/IRD, and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details of the application, including credit consent and 12 months of bank statements, IRD statement Last 2 years’ finalised financial statements, in addition to interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we typically offer an answer within an hour if you submit your request during standard company time and allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statement, we’ll offer an answer in just 1 company day.
For the Larger Business Loan ($100K and up) we may be likely to offer you with conditional pre-approval in around six hours. After you’ve signed your pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, it could be faster based on the particular circumstances of each application. Some transactions have received approval in 24 hours.
The most effective method can be ensure you apply during normal company hours and permit us to use the advance bank verification link to confirm your bank details online. If you decide to upload documents from your account statement, it may take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer in just one hour if you submit your request during normal business time and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statements, we are able to offer a decision within one business day.
For Larger Business Loans ($100K up to $500,000) we could be likely to provide you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive 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 normal business hours and let us use the advance bank verification to verify your bank account information online. If you decide to upload duplicates of your banking accounts, it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you submit an application for a specific amount we take into consideration a range of variables to determine what is the health of the business and the extent of repayments that your business can afford. The total amount of the loan will be determined by the specific circumstances of your company.
When you submit an application for a certain amount, we take into consideration a variety of variables to assess your well-being of the company as well as the amount of the repayments your business can support. The total amount of your loan will be determined by the particulars for your company.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to apply for business loans with us company financing, we will assess the risk profile of your business and offer you with a tailored offer that includes the loan amount, the terms and interest rates. A company loan is an upfront cost loan therefore you will know the exact amount payable including any costs, fees, or interest rates.
What determines the amount I’m charged?
Interest rates for company loans rates differ based on various factors including the amount that is borrowed, what company assets the funds are used to purchase, the industry the company operates in, the long the business has been in operation as well as what percentage of the company has sufficient cash flow to cover the loan, as well as the overall well-being as well as creditworthiness business.
What are the fees?
There aren’t any hidden costs with our business loans, and you’ll know exactly how much you’ll need to pay, and when, starting from the very first day. There’s no compounding and there are no additional charges (as long as you are able to make your payments on time).
We don’t charge an application fee. You can request a credit loan with with no upfront cost or obligation to proceed.
The Origination Fee is the cost 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 the loan.
Can I pay off the loan earlier?
You can choose to repay the entire amount of your loan at any point in time.
If you are deciding to take this route, please speak to our friendly company loan specialists. The experts will provide you with repayment details and an early payout figure. This is calculated as the total of the remaining principal amount and accrued interest to the time of early payout and 1.5 percent of the principal balance as well as any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payment dates and to align your cash flow cycle we offer repayments either weekly or daily. They are automatically deducted from the nominated business account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being upfront about the ways we gather, use, exchange and safeguard your data, is of paramount importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to security for our customers and security. We employ a highly sophisticated bank verification system link to instantly confirm your bank account information online to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the business owner makes use of an asset that they own to secure the funding. The asset can be a personal asset like the family home, or an business asset such as a truck or piece or equipment.
The majority of lending institutions, not just the big banks, tend to secure loans against an asset. If you’re having trouble paying back the loan then your asset may be sold by the lender. In essence it’s the process of securing new financing making use of the value of what you already own.
Are I need security to get a business loan?
Up to $150,000 in loans it is not necessary to secure assets prior to the loan’s access, however we do need a personal guarantee. In the event that you fulfill your loan obligations (as specified in your loan contract document), asset security will never be required. For loans of over $150K typically, you will need personal ensure and security that is in the form an asset charge.