FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Salisbury Park Small Business Loans
Let me know how you are able to avail the Salisbury Park Small Business Loans
Salisbury Park unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What makes this Unsecured Loan different from the traditional company loan?
It is possible to apply to the Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an immediate response, and the money could be in your account within 24 hours. Traditional business loans are based on an interest rate per annum as well as other fees and charges. Our company loan is a loan that is priced upfront therefore you’ll know in advance the total amount due, which includes any fees, interest or charges. This is then divided into a daily or weekly payment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for almost every company reason, such as cash flow management, company improvements, advertising, to purchase inventory or new equipment, as general working capital and much more. The loan is not available for personal use.
About the Larger Salisbury Park Business Loans
What is the Larger Salisbury Park Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan in this amount the business needs to be operating for a minimum of 3 years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funding be utilised?
A larger company loan can be used for nearly all company use, including company renovations, purchase of inventory or new equipment as well as 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 needed to obtain funding above $150,000. It’s by way of charge on assets, and could include registering this through the PPSR or filing as a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is general in nature, rather than stipulating security over an asset. The person who signs the ensure is personally liable if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including the assets or goods). The PPSR gives prioritisation over property that is personal to be granted according to the date a security interest that is registered.
Caveats are legal document filed to offer the public notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger business loans of $250K or more we may be able to provide a preliminary pre-approval to help smooth out the process. We could be able to do this without credit checks and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves the answer to a series of financial well-being checks. It’s not an offer of credit or guarantee of credit. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you might receive could be subject to different conditions.
The application process
Can I be eligible for funding?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (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 simple and simple. Simply complete the online form in few minutes and a dedicated business expert in lending will contact you to help you.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s Licence), a valid NZBN/IRD and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Information on the application including credit consent twelve months of bank records, IRD statement Last 2 years’ finalised financial statements, plus interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we typically offer an answer in just one hour, provided you submit your request within quality business time and allow us to use the advanced bank verification system to immediately verify your bank account information online. If you decide to upload copies of your banking statements we can offer the decision within 1 company day.
For Larger Business Loans ($100K to $500K) we could be capable of offer the conditional pre-approval within about 6 hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be quicker based upon the circumstances for each application. Some offers have been approved within the space of 24 hours.
The quickest way to apply can be ensure you apply during standard business hours, and allow us to use the modern bank verification to confirm your bank details online. If you opt to upload documents from your account statements , it takes a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) we typically offer an answer within one hour, provided you apply within standard business time and allow us to use the bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statements, we are able to provide an answer within an business day.
For the Larger Business Loans ($100K to $500K) we could be capable of offer you with pre-approval conditional to your application within about six hours. Once you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, this can be faster depending on the specifics of each application. Some agreements have been approved within just 24 hours.
The quickest method can be ensure you apply during normal business hours, and allow us to use the modern bank verification link to instantly check your bank’s information online. If you choose to send us duplicates of your banking statements it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. When you make an application for a certain amount we look at a variety of factors for determining how much we can lend you health for your business and the level of the repayments your company can afford. The amount you receive from the loan will be determined by the specific circumstances that are unique to your company.
When you apply for a certain amount, we will consider a number of elements to assess your well-being for your company as well as the amount of the repayments your company can support. The total amount of your loan will be determined by the specifics the business.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to apply for our business loan, we’ll assess the risk profile the business and provide you with a tailored offer that includes loan amount, term and interest rates. The business loan is an upfront-priced loan therefore you will know the exact amount to be paid, including any charges or interest.
What determines the rate that I am charged?
Interest rates for company loans rates differ based on various variables like the amount to be of money borrowed, the company assets the funds will be used for and the sector the company is operating in, how long the business has been running for, whether the business has sufficient cash flow to support the loan, as well as the general health or financial standing of the business.
What are the charges?
There aren’t any hidden charges for our business loans, and you’ll know precisely what you’ll be required to pay, and when, from day one. There’s not any compounding interest and there are no additional charges (as long as you make your payments on time).
We do not charge an Application Fee. You are able to apply for a loan without any upfront costs or commitment to apply.
The Origination Fee is the cost associated with setting up and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan earlier?
You can decide to repay all of your advance loan at any time.
If you decide to pursue this option, please call our helpful company loans experts. They will offer you with details for repayment and an early payout figure. The figure will be calculated as the sum of the principal balance plus any accrued interest as of the time of early payout and 1.5% of the principal balance as well as any outstanding fees.
How do repayments work?
To ensure that you don’t miss payments and to work with your cash flow routine, we offer repayments that are 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 being clear about how we collect the information we collect, use, share and safeguard your data, is of huge importance and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to customer security and privacy. We make use of an advanced bank verification system that allows you to immediately verify the bank account details online so we can provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where a business owner uses the assets they have to secure the loan. The asset can be an individual property, such as the family home, or an business asset such as a truck or piece or equipment.
The vast majority of lending institutions, even the big banks, tend to secure loans against assets. If you have trouble paying back the loan, then the asset could be sold by the lender. In essence, it’s a way of securing additional financing making use of the value of what you already own.
Should I need security to secure an business loan?
For loans of up to $150,000, it is not necessary to secure assets in advance to gain access to the funds However, we do need the personal guarantee. If you adhere to the loan terms (as stated in the loan contract) Asset security is not required. If you take out loans in excess of $150K generally there is personal guarantee and security in the form a charge over assets.