FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Salisbury South Small Business Loans
Let me know what you think of the Salisbury South Small Business Loans
Salisbury South unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from the traditional company loan?
The application for this Small Business Loan in under 10 minutes on the phone. You’ll receive an immediate response, and the money could be in your account in 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. Our business loan is a loan that is priced upfront so you will be aware in advance of the total amount payable including any fees, interest or charges. Then, it is broken down into weekly or daily installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every business use, including control of cash flow company remodels and marketing, to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used to fund personal expenses.
Concerning Larger Salisbury South Business Loans
What is the Larger Salisbury South Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee that 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, your business needs to have been operating for at least three years and have an annual turnover of at least $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years 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 funds be utilised?
A larger company loan can be used for almost every company need, including company renovations, to purchase equipment or inventory or as general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. It’s by taking a charge over assets, and could be registered with the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a promise to repay credit that is general in nature, rather than specifying the security for a particular asset. The person signing the ensure is personally responsible if the business borrower is unable to pay back 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 registered in respect of personal property (including objects or assets). The PPSR permits preference over private property assigned in accordance with the date on which a registration of a security interest.
An affidavit is an official document that is filed to offer notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re requesting an enterprise loan that exceeds $250K we may be able to provide an initial pre-approval to smooth out the process. We could be able to make this decision without a credit check and within six hours of your initial application. This pre-approval is based on an initial assessment, which involves the answer to a series of financial well-being checks. It is not an offer or guarantee of funds. Unconditional approval is subject to an extensive credit evaluation and any offer you may receive may 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 over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Just complete the online application within a few minutes and an experienced company expert in lending will call you to assist you.
To apply for up to $100,000, you’ll need the right identification documents (valid Driver’s License) and an NZBN/IRD that is valid and at least 6 months of bank statements.
If you’re looking for loans with larger 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 to $500K: Application details including credit consent as well as 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, in addition to interim financial statements for the current year such as age-related payables and aged Receivables summary.
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 submit your request within quality company hours and allow us to utilise the bank verification system to instantly verify your bank details online. If you decide to upload copies of your banking statement, we’ll provide the decision within the span of one business day.
For the Larger Business Loan ($100K up to $500,000) we could be able to offer you with conditional pre-approval within about 6 hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending on the specifics of each application. Certain transactions have received approval in 24 hours.
The fastest way would be to ensure you apply during normal business hours. Also, let us use the advanced bank verification system to verify your bank account information online. If you upload the copies of bank statement, it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K or more) We can usually offer a response in one hour – provided you submit your request in normal business times and you allow us to use the bank verification system link to instantly verify your bank details online. If you want to submit copies of your bank statements, we are able to offer the decision in as little as an business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be likely to provide the conditional pre-approval within about six hours. After you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Certain offers have been approved within the space of 24 hours.
The fastest way would be to make sure you apply during normal business hours, and allow us to use our sophisticated bank verification link to check your bank’s information online. If you choose to upload the copies of bank accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a particular amount, we consider a variety of aspects to determine the health that is your business as well as the amount of the repayments your company can afford. The total amount of your loan will depend on the specific circumstances the company.
When you submit an application for a specific amount we consider a variety of factors to determine how much we can lend you such as health of your business and the level of payments your company is able to afford. The total amount of your loan will be determined by the particular circumstances of your company.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to request one of our company loan, we’ll assess the risk assessment of your business and offer you with a tailored offer that includes the amount of loan, the term and interest rates. It is a business loan is an upfront-priced loan and you’ll be aware in advance of the total amount due, which includes 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 including the amount borrowed, the business assets the funds are used to purchase as well as the field the business is in, how long the company has been running for, whether the business has sufficient cash flow to fund the loan, as well as the general well-being and creditworthiness of the company.
What are the fees?
There are no hidden costs with our business loans, and you’ll know precisely how much you need to pay and at what time, from day one. There’s not any compounding interest and no extra fees (as as long as you pay your payments punctually).
We do not charge an Application Fee. You are able to request a credit loan no cost upfront or the obligation to take action.
The Origination Fee covers the expenses involved with the setting up and management of the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan in advance?
You can choose to repay the entire amount of the loan at any point in time.
If you are deciding to do this please speak to our friendly business lending experts. We will offer you with the details of your repayment and an early payment figure. It will be calculated using the total of the remaining principal amount and any accrued interest at the time of early payout plus 1.5 percent of the principal remaining and any outstanding fees.
What is the process for repayments?
To make sure you do not miss payment dates and to align your cash flow schedule, we provide payments that are either weekly or daily. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being upfront about how we collect the information we collect, use, share and ensure the security of your information is crucial and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to security for our clients and privacy. We employ an exceptionally sophisticated bank verification system link to instantly verify your bank account details online so we can offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a business owner utilises the assets they have to make the funding. The asset may be an individual asset, such as the family home or a business asset like a truck or other piece of machinery.
The vast majority of lenders, not just the banks with the biggest size, prefer to secure loans against an asset. If you’re struggling to pay back the loan, the asset could be offered for sale by the lender. In essence, it is means of securing new financing making use of the value of what you already own.
Do I require security to get a company loan?
For loans up to $150,000 it is not necessary to secure assets in advance to gain access to the funds However, we require a personal guarantee. need a personal guarantee. So long as you comply with the loan terms (as specified in your loan contract document) Asset security is not needed. For loans of over $150K generally, there is personal guarantee and security is provided in the form of the charge of assets.