FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The St Ives Chase Small Business Loans
Tell me about the St Ives Chase Small Business Loans
St Ives Chase unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from a traditional business loan?
It is imaginable to apply for your Small Business Loan in under 10 minutes online or on the phone. You’ll receive an immediate response, and have the funds in your account in 24 hours. Traditional business loans are based on an annual interest rate together with additional fees and charges. The business loan is an upfront priced loan so you will be aware of the total amount due, which includes any interest, fees or charges. Then, it is broken down into either weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for nearly every business use, including control of cash flow business improvements, advertising to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available for personal use.
Concerning Larger St Ives Chase Business Loans
What is the Larger St Ives Chase Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your company needs to be in operation for at least 3 years with an annual turnover of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funds for?
A larger company loan is a great option for almost any company need, including company renovations, purchase of inventory or new equipment for general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. It’s by way of charge against assets and can include registering this on the PPSR or registering a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is general in nature rather than specifying security over an asset. The person who signs the guarantee is personally liable if the business borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including the assets or goods). The PPSR allows prioritisation over property that is personal to be assigned according to the date a security interest was registered.
The caveat can be described as a formal document filed to provide notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
When you’re applying for a Larger Business Loan that exceeds $250K we may be able to provide a preliminary pre-approval to help make the process. It is possible to make this decision without a credit check, and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes answering a couple of financial health checks. It is neither an offer nor a guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer that you may receive may be based on different terms.
The application process
Can I be eligible for funding?
You can apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and simple. Just complete the online application within a couple minutes, and a dedicated company expert in lending will call you to guide you through the process.
To apply for up to $100,000, you’ll require identification details (valid Driver’s License) along with an active NZBN/IRD, and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K to $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent and 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, plus interim financial statements for the current year, Aged Payables and Aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we usually provide a response in one hour – as long as you make your application within standard business hours and let us utilise the bank verification system to instantly verify your bank’s information online. If you opt to send us copies of your bank statements we can offer a decision in as little as the span of one company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be likely to offer you with a conditional pre-approval within about 6 hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Some offers have been approved in the space of 24 hours.
The quickest way to apply would be to ensure you apply during standard business hours. Also, let us use the advanced bank verification system link to verify your bank account information online. If you choose to upload documents from your account statement, it can take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) we usually offer a response in one hour – as long as you apply within normal business timings and let us use the advanced bank verification system to instantly verify your bank details online. If you decide to send us copies of your bank statements, we will be able to provide the decision within one business day.
For Larger Business Loans ($100K or more) we might be likely to offer you with a conditional pre-approval in about six hours. Once you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this can be faster depending on the specifics of each application. Some deals have been approved in just 24 hours.
The quickest method would be to ensure you apply during normal business hours, and allow us to use the sophisticated bank verification to instantly verify your bank account information online. If you decide to send us duplicates of your banking statement, it can take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a specific amount we consider a variety of elements for determining how much we can lend you well-being of the business and the level of the repayments your business can support. The total amount of the loan will be determined by the specifics the business.
When you apply for a set amount, we look at a range of variables to assess the well-being of the business and the level of repayments that your company can support. The total amount of the loan will be determined by the specific circumstances that are unique to your business.
Fees & repayments
What is the cost for a business loan?
When you request one of our company credit, we will assess the risk assessment of your business and offer you with a customised offer including the amount of loan, the term and interest rates. It is a company loan is an upfront-priced loan therefore you will know in advance the total amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I’m charged?
Business loan interest rates depend on a variety of factors like the amount of money of money borrowed, the company assets the money are used to purchase in addition to the industry that the company is in, how long the business has been in operation and whether the company has enough cash flow to support the loan, and also the general health as well as creditworthiness business.
What are the cost?
There aren’t any hidden costs with our company loans. You’ll know precisely how much you be required to pay, and when, starting from the very first day. There’s no compounding interest, and the loan comes with no additional fees (as as you make your payments on time).
We don’t charge an Application Fee. You are able to make an application for loans with absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the costs associated with the setting up and management of the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan in advance?
You may choose to pay back the entire amount of the loan early at any time.
If you decide to pursue this option, please talk to one of our helpful business credit experts. They’ll provide you with repayment details and an early payment figure. This is calculated as the sum of the principal balance plus any accrued interest as of the time of early payout in addition to 1.5% of the principal remaining as well as any outstanding fees.
How do repayments work?
To make sure you do not miss payment dates and to align with your cash flow routine, we offer repayments either weekly or daily. These are automatically deducted from the nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and being transparent about how we collect data, process, exchange and protect your information, is crucial and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to customer security and privacy. We use an advanced bank verification system link to immediately verify your bank account information online so we can offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when a business owner uses an asset that they own to secure the funding. The asset may be an asset belonging to the personal, like the family home or an company asset such as a vehicle or piece of equipment.
The vast majority of lenders, even the banks with the biggest size, prefer to make loans secured by an asset. If you have trouble paying back the loan, your asset may be sold by the lender. In essence, it is a way of securing new funding using the worth of the asset you already have.
Should I need security for a business loan?
For loans of up to $150K, no asset security is required before you are able to access the money however, we do require a personal guarantee. As long as you follow the terms of your loan (as stipulated in your loan contract), asset security is not required. For loans that exceed $150K, generally, there is a personal ensure and security is provided in the form of a charge over assets.