FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Salisbury North Small Business Loans
Let me know more about Salisbury North Small Business Loans
Salisbury North unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from the traditional business loan?
You can apply to get your Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an answer within the same day and the money could be in your account in 24 hours. Traditional business loans have an annual interest rate as well as other fees and charges. We offer a company loan is a pre-paid loan which means you be aware of the total amount to be paid, including any fees, charges or charges. Then, it is divided into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company need, such as control of cash flow business improvements, advertising to purchase inventory, new equipment, or as general working capital and much more. The loan cannot be used for personal use.
Concerning Larger Salisbury North Business Loans
What is the Larger Salisbury North 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 term fixed that can last up to 36 months. Repayments are weekly or fortnightly in order to accommodate you cashflow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount the business needs to be operating for at least three years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funds for?
A Business Loan of a larger size is a great option for almost any company purpose including company renovations, purchase of new equipment or inventory or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. This is in the form of a charge on assets, which could also be registered in the PPSR or filing a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is generally in nature rather than stating the security for a particular asset. The person signing the guarantee is personally liable in the event that the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including items or assets). The PPSR permits preference over private property assigned according to the date a security interest was registered.
An affidavit is an official form of document to provide an official notice of a claim on a property.
What is a pre-approval without Credit Check?
If you’re seeking larger business loans of $250,000 or more we can offer an initial pre-approval that will help simplify the process. We may be able to apply for this 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 well-being checks. It is in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer you receive could be subject to different conditions.
Application process
Do I have the right to receive funds?
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 business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application within a couple minutes, and an experienced company expert in lending will contact you to guide you.
To be eligible for up to $100,000 you’ll require proof of identity (valid Driver’s Licence), an NZBN/IRD that is valid and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent as well as 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, as well as interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) we usually offer a response in one hour, provided you submit your request during quality business times and let us use the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your banking statement, we’ll offer a decision within just one business day.
For the Larger Business Loan ($100K to $500K) we might be likely to provide you with pre-approval conditional to your application in around six 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 specifics of each application. Some transactions have received approval in the space of 24 hours.
The fastest way would be to make sure you apply during standard business hours. You can also permit us to use the modern bank verification to confirm your bank details online. If you decide to send us copies of your bank statements , it may take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer in just one hour if you apply during standard business time and allow us to use the bank verification system to instantly verify your bank details online. If you decide to upload copies of your banking statements we can offer a decision within an business day.
If you are applying for Larger Business Loans ($100K and up) We may be likely to offer the conditional pre-approval in around six hours. Once you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this could be shorter based on the specifics of each application. Some transactions have received approval within the space of 24 hours.
The quickest method would be to make sure you apply during standard business hours. You can also allow us to use our sophisticated bank verification link to verify your bank account information online. If you decide to send us documents from your account accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you submit an application for a certain amount we will consider a number of variables for determining what is the health of the business and the level of repayments your business will be able to support. The total amount of the loan will be determined by the specifics of your business.
When you apply for a specific amount we will consider a number of aspects to assess your well-being of your business and the amount of the repayments your business will be able to support. The amount you receive from your loan will depend on the particular circumstances of your business.
Fees & repayments
What is the cost for a company loan?
If you decide to apply for one of our company loan, we’ll assess the risk assessment of 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 so you will know the exact amount payable including any charges or interest.
What determines the amount I pay?
Interest rates for company loans rates vary due to factors such as the amount that is that is borrowed, what business assets the funds are used to purchase in addition to the industry that the business is in, how long the business has been in operation as well as whether the company has sufficient cash flow to cover the loan, and overall well-being or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges with our business loans. You’ll know precisely what it is that you be required to pay, and when, from the first day. There’s no compounding interest and no additional fees (as long as you make your payments punctually).
We do not charge an application fee. You can get a cash loan with no cost upfront or the obligation to take action.
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 decide to take the loan. The Origination Fee for us is 2.5% of the loan amount.
Do I have the option of paying off the loan earlier?
You can repay the entire amount of your loan in full at any time.
If you are deciding to take this route, please call our helpful business loans experts. We will offer you with details for repayment and an early payout figure. This will be calculated as the total of the remaining principal amount and any accrued interest at the time of the early payout, plus 1.5% of the principal remaining plus any outstanding fees.
What are the repayment methods?
To ensure you do not miss payments and to work your cash flow schedule, we provide payments that are either weekly or daily. These are automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing how we collect the information we collect, use, share and protect your information, is vital and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to protecting the security of clients and security. We use an advanced bank verification system link to instantly verify your bank account information online so we can provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a business owner uses assets they own to obtain the loan. The asset could be an individual asset, such as the family home or it could be a company asset such as a truck or piece or equipment.
The majority of lenders, not just the largest banks, are inclined to guarantee loans against assets. If you are having difficulty paying back the loan, then your asset may be sold by the lender. In essence it’s a way of securing new financing using the value of what you already own.
Are I need security for a business loan?
For loans up to $150K there is no requirement for asset security in advance to gain access to the funds However, we require a personal guarantee. need the personal guarantee. As long as you follow the loan terms (as specified in your loan contract document) the security of assets is not required. If you take out loans in excess of $150,000 typically, you will need the option of a personal ensure and security is provided in the form of charges on assets.