FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Shanes Park Small Business Loans
Tell me more about Shanes Park Small Business Loans
Shanes Park unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from a traditional business loan?
It is possible to apply to get this Small Business Loan in under 10 minutes over the phone, receive a same day response and the money could be available in just 24 hours. Traditional company loans have an annual interest rate together with additional fees and charges. This company loan is a cash-based loan therefore you’ll know in advance the total amount payable including any fees, charges or charges. This is then divided into weekly or daily repayment figure.
What could the Small Business Loan be used for?
A Small Business Loan can be used for almost every company use, including cash flow management, company remodeling, marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
Concerning Larger Shanes Park Business Loans
What is the Larger Shanes Park Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee calculated?
The 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?
In order to be eligible for a loan of this size, your company needs to be operating for at least three years and have an annual turnover of $700K. The applicant must also 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 demonstrate at minimum 12 months of business.
How can the funding be utilised?
A large business loan can be used for nearly any business use, including company renovations, to purchase new equipment or inventory for general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required to access funding over $150,000. This is in the form of a charge on assets and can include registering this in the PPSR or registering as a caveat.
A director’s or personal ensure is a guarantee to repay credit that is generally based rather than stipulating the security for a particular asset. The person who signs the ensure is personally responsible if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests which are registered with respect to 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 lodged to offer the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan that is greater than $250,000 we may be able to provide a preliminary pre-approval to help smooth out the process. It is possible to apply for this without a credit verification and within six hours of your initial application. This pre-approval is based on an initial assessment that includes the answer to a series of financial well-being questions. It’s neither an offer nor a guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer that you receive could be based on different conditions.
Application process
Are I eligible for funding?
You can apply for a business 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)
- you must prove at least 6 months of business (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Just complete the online application within a couple minutes, and an experienced business lending specialist will contact you to guide you through the process.
To apply for up to $100,000 you’ll require ID details (valid Driver’s License) and a valid NZBN/IRD and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Information on the application including credit consent and 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we can often provide a response in one hour – as long as you make your application within standard business time and let us utilise the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your banking statements , we are able to provide a decision in just one business day.
For the Larger Business Loan ($100K or more) we could be able to offer you with pre-approval conditional to your application within 6 hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Some transactions have received approval in less than 24 hours.
The quickest method is to make sure you apply during standard company hours, and let us use the advanced bank verification system link to instantly confirm your bank details online. If you choose to upload documents from your account statements , it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we typically provide a response in one hour – as long as you apply in standard business times and let us use the advanced bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statement, we’ll offer an answer in as little as the span of one business day.
For the Larger Business Loans ($100K up to $500,000) we might be able to offer you with pre-approval conditional to your application in about 6 hours. Once you have signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however it could be faster based upon the circumstances for each application. Some offers have been approved within the space of 24 hours.
The fastest method is to ensure you apply during normal business hours, and permit us to use the advance bank verification link to verify your bank information online. If you opt to send us copies of your bank statements, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a certain amount we look at a variety of variables for determining how much we can lend you health of the company and the amount of repayments that your company will be able to support. The amount you receive from your loan will be contingent on the particular circumstances that are unique to your company.
When you make an application for a specific amount we consider a variety of factors to assess the well-being that is your business as well as the amount of repayments your business will be able to support. The amount you receive from your loan will be contingent on the particular circumstances that are unique to your company.
Fees & repayments
What is the cost for a business loan?
When you apply for one of our business loans, we will assess the risk profile that you have for your business and provide an individualised offer including the loan amount, the terms and the interest rates. It is a business loan is a loan that is priced upfront so you will know the exact amount to be paid, including any charges, interest rates or fees.
What is the factor that determines the price I am charged?
Interest rates for business loans rates depend on several variables like the amount to be borrowed, what business assets the money will be used for as well as the field the business operates in, how long the company has been in operation for, what percentage of the company has enough cash flow to cover the loan, and the overall health and creditworthiness of the business.
What are the cost?
There aren’t any hidden costs with our business loans. You’ll know precisely how much you’ll be required 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 punctually).
We do not charge an Application Fee. You can make an application for loans with without any upfront costs or commitment to apply.
The Origination Fee is the cost associated with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I repay the loan early?
You can choose to repay the total amount of your loan early at any time.
If you do decide to take this route, please contact our helpful business loans specialists. The specialists will provide you with repayment details along with an early payout estimate. The figure will be calculated as the sum of the remaining principal amount and accrued interest to the date of early payout and 1.5% of the principal remaining and any outstanding fees.
How do you make repayments work?
To ensure you do not miss repayments and to fit in your cash flow schedule, we provide repayments either daily or weekly. These are automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and being transparent about the ways we gather information, use it, and exchange it, as well as protect your information, is of huge importance and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to security for our customers and security. We employ a highly sophisticated bank verification system that allows you to immediately confirm your bank account information online to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the company owner makes use of an asset they own to secure the funding. The asset can be either an asset belonging to the personal, like the family home, or an company asset such as a truck as well as a piece of machine.
The majority of lending institutions, even the largest banks, are inclined to guarantee loans against an asset. If you are having difficulty paying back the loan then your assets could be taken over by the lender. In essence it is means of securing new financing using the value of what you already own.
Are I need security to secure an business loan?
For loans up to $150,000 it is not necessary to secure assets prior to the loan’s access However, we require a personal guarantee. require a personal guarantee. In the event that you fulfill the loan terms (as detailed in your loan contract document), asset security is not needed. If you take out loans in excess of $150,000 generally, you can get an individual guarantee and security in the form of the charge of assets.