FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Salisbury Downs Small Business Loans
Let me know more about Salisbury Downs Small Business Loans
Salisbury Downs unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What is how is the Unsecured Loan different from the traditional company loan?
The application for the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get a same day response and funds may be in your account in 24 hours. Traditional company loans reference an interest rate per annum along with other charges and fees. This business loan is a loan that is priced upfront so you will be aware in advance of the total amount to be paid, including any fees, charges or charges. Then, it is broken down into a daily or weekly repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost every company need, such as control of cash flow company remodels and marketing for purchasing inventory or new equipment, or as general working capital and much more. The loan is not available for personal reasons.
About Larger Salisbury Downs Business Loans
What is the Larger Salisbury Downs Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly to work with your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to have been in operation for at least 3 years with an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funding be utilised?
A larger business loan is a great option for almost all business use, including business improvements, purchasing 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 is secured?
Asset security is required for funding of more than $150,000. This is by taking a charge on assets and can include the registration of this with the PPSR or the registration of a caveat.
A personal or director’s ensure is a promise to repay a loan which is general in nature, rather than defining security over a particular asset. The person who signs the guarantee is personally liable in the event that the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests registered in respect of personal property (including items or assets). The PPSR grants priority over personal property to be assigned in accordance with the date on which a security interest has been registered.
The caveat can be described as a formal document lodged to offer the legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re requesting larger business loans that exceeds $250,000, we may offer an initial pre-approval in order to smooth out the process. It is possible to make this decision without a credit check and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial well-being checks. This is not an offer or guarantee of finance. Unconditional approval is subject to an assessment of your creditworthiness and any offer you are offered could be subject to different terms.
The application process
Can I be eligible for funding?
You may be eligible for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application in just a few minutes, and a dedicated company expert in lending will be in touch to assist you.
To apply for up $100,000 you’ll need proof of identity (valid Driver’s License), a valid NZBN/IRD and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K – $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent twelve months of bank records, IRD statement and the last two years’ finalised financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we can often provide a response in one hour, provided you make your application in quality business timings and you allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statements , we’ll be able to provide the decision in just one business day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be likely to offer you with a conditional pre-approval within about six hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this could be shorter based on the specifics of each application. Some deals have been approved in 24 hours.
The quickest method can be ensure you apply during standard company hours. You can also permit us to use the modern bank verification to instantly verify your bank account information online. If you decide to send us the copies of bank statement, it may take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) we typically provide an answer within one hour – provided you make your application in standard business hours and let us use the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statements, we are able to provide the decision within 1 business day.
If you are applying for Larger Business Loans ($100K or more) we may be in a position to provide the conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this can be faster depending on the circumstances of each application. Certain transactions have received approval within just 24 hours.
The fastest method would be to ensure you apply during normal business hours and permit us to use the sophisticated bank verification to check your bank’s information online. If you choose to send us duplicates of your banking statements, it will take a little longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. When you submit an application for a certain amount, we take into consideration a range of factors that determine how much we can lend you health of your business and the level of the repayments your company will be able to support. The amount you receive from the loan will be determined by the particular circumstances the business.
If you apply for a set amount, we consider a variety of aspects to determine the well-being for your business as well as the amount of repayments that your business is able to afford. The amount you receive from your loan will be determined by the particular circumstances that are unique to your company.
Fees & repayments
How much do you charge for a business loan?
If you decide to apply for business loans with us company financing, we will assess the risk profile that you have for your company and offer you with a customised offer, including the amount of the loan, the duration and the interest rates. It is a company loan is an upfront-priced loan which means you be aware in advance of the total amount to be paid, including any charges or interest.
What is the basis for the rate I pay?
The interest rates on business loans rates differ based on various factors such as the amount that is that is borrowed, what company assets the funds are used to purchase and the sector the company is in, how long the business is in operation, what percentage of the business has sufficient cash flow to support the loan, and general health as well as creditworthiness business.
What are the cost?
There aren’t any hidden costs for our company loans, and you’ll know precisely how much it is that you be required 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 do not charge an Application Fee. You can make an application for loans no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay off the loan early?
You may choose to pay back all of your loan at any point in time.
If you choose to pursue this option, please talk to one of our helpful business credit experts. They will provide you with repayment details along with an early payout estimate. It will be calculated using the total of the principal remaining and the accrued interest up to the time of early payout in addition to 1.5% of the principal balance as well as any outstanding fees.
How do you make repayments work?
In order to help you avoid missing due dates and also to be in line your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from your nominated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as making it clear how we collect data, process, exchange and protect your information, is of paramount importance and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal financial and other data. 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 link to instantly verify your bank account information online to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an business owner borrows from an asset they own to make the loan. The asset can be either an individual asset, such as the family home, or it could be a company property like a truck or other piece of machinery.
The majority of banks, including the big banks, tend to secure loans against an asset. If you’re struggling to pay back the loan then your asset may be sold by the lender. In essence, it’s an opportunity to secure new funding taking advantage of the value of what you already have.
Do I require security to secure a business loan?
For loans of up to $150,000, the requirement for asset security is not required in advance to gain access to the funds, however we do require the personal guarantee. As long as you follow your loan obligations (as stated in your loan contract document), asset security will never be needed. If you take out loans in excess of $150K generally, you can get the option of a personal ensure and security in the form an asset charge.