FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Sutherland Small Business Loans
Tell me about the Sutherland Small Business Loans
Sutherland unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from an ordinary business loan?
Apply to your Small Business Loan in under 10 minutes on the phone. You’ll receive an instant response and funds may be available in just 24 hours. Traditional company loans refer to an annual rate of interest along with other charges and fees. This business loan is an upfront priced loan and you’ll be aware of the total amount payable including any fees, interest or charges. This is then divided into weekly or daily repayment figure.
What can be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business need, such as cash flow management, company remodels and marketing, to purchase inventory or new equipment, as general working capital and much more. The loan is not available to fund personal expenses.
Concerning Larger Sutherland Business Loans
What is the Larger Sutherland Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
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.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to have been trading for at least 3 years and generate an annual revenue 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 demonstrate at least 12 months of trading.
What can I use the funding for?
A large company loan is a great option for almost every company use, including business renovations, to purchase inventory or new equipment for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. It is usually by taking a charge over assets and can be registered with the PPSR or registering a caveat.
A personal or director’s guarantee is a guarantee to pay off a credit line that is general in nature rather than defining the security for a particular asset. The person who is signing the ensure is personally responsible if the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including objects or assets). The PPSR permits the priority of personal property granted according to the date the security interest was registered.
Caveats are legal document lodged to offer 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 it is possible to offer an initial pre-approval to simplify the process. We might be able to make this decision without a credit verification and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes answering a couple of financial health questions. It’s in no way an offer, nor is it a guarantee of funds. Unconditional approval is subject to an assessment of your creditworthiness and any offer you receive could be on different terms.
The application process
Are I eligible for funding?
You may be eligible for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application within a few minutes and a dedicated business credit specialist will call you to help you.
To apply for up $100,000, you’ll require the right identification documents (valid Driver’s License) and a valid NZBN/IRD as well as at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Information on the application including credit consent, 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, plus interim financials from the current financial year including Aged Payables, Aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we can often offer an answer in just one hour – as long as you make your application at standard business hours and let us utilise the bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your banking statement, we’ll offer an answer within 1 business day.
For Larger Business Loans ($100K up to $500,000) we may be able to offer you with conditional pre-approval in around 6 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 circumstances of each application. Certain agreements have been approved within less than 24 hours.
The quickest method is to make sure you apply during standard business hours. Also, allow us to use the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your bank statement, it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within one hour, provided you make your application at normal business times and allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you want to submit copies of your bank statements we can offer the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K or more) we may be capable of provide you with pre-approval conditional to your application in around six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however it could be faster based on the circumstances of each application. Certain agreements have been approved within just 24 hours.
The most efficient method would be to make sure you apply during standard business hours. You can also let us use the modern bank verification to verify your bank information online. If you choose to send us the copies of bank statements, it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 and $500,000. When you make an application for a particular amount, we take into consideration a range of aspects that determine your health for your company and the extent of payments your company can support. The total amount of your loan will depend on the specifics of your business.
When you apply for a certain amount, we look at a range of factors to determine the health of the company and the amount of repayments your company can afford. The amount you receive from your loan will be determined by the particular circumstances for your business.
Fees & repayments
How much do you charge for a company loan?
If you decide to make an application for business loans with us company credit, we will assess the risk profile for your company and provide you with a customised offer including the amount of the loan, the duration and interest rates. A company loan is a loan that is priced upfront which means you know in advance the total amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I’m charged?
Business loan interest rates depend on a variety of variables like the amount to be that is borrowed, what business assets the money are used to purchase in addition to the industry that the business operates in, the long the company is in operation for, what percentage of the business has sufficient cash flow to support the loan, and the general well-being or creditworthiness of the business.
What are the fees?
There aren’t any hidden costs for our business loans, and you’ll know exactly how much you need to pay, and at what time, from the very first day. There’s not any compounding interest and no additional fees (as long as you make your payments on time).
We don’t charge an application fee. You are able to apply for a loan with with no upfront cost or commitment to apply.
The Origination Fee is the cost associated with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I repay the loan early?
You may choose to pay back the entire amount of the loan early at any time.
If you decide to pursue this option, please speak to our friendly business lending professionals. They will offer you with repayment details and an early payment figure. This will be calculated as the sum of the remaining principal amount and accrued interest to the time of early payment in addition to 1.5% of the remaining principal plus any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss due dates and also to be in line with your cash flow cycle we offer repayments either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and knowing how we collect information, use it, and exchange it, as well as safeguard your data, is crucial and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to protecting the security of customers and security. We use an advanced banking verification system to immediately verify the bank account details online. This allows us to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where the business owner uses the assets they have to obtain the loan. The asset may be an individual property, such as the family home, or an business property like a truck or other piece of machinery.
The majority of lending institutions, even the big banks, tend to secure loans against assets. If you’re struggling to pay back the loan, your assets could be taken over by the lender. In essence, it is an opportunity to secure additional financing using the value of what you already have.
What do I need security to get an company loan?
Up to $150K in loans no asset security is required before you can access the money However, we require a personal guarantee. require a personal guarantee. In the event that you fulfill your loan obligations (as stipulated in the loan contract) the security of assets is not required. If you take out loans in excess of $150,000 generally there is a personal ensure and security is provided in the form of a charge over assets.