FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Seaford Heights Small Business Loans
Tell me how you are able to avail the Seaford Heights Small Business Loans
Seaford Heights unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from the traditional business loan?
The application to get your Small Business Loan in under 10 minutes over the phone, receive an immediate response, and the money could be on your account within 24 hours. Traditional company loans have an annual interest rate as well as other fees and charges. The company loan is a loan that is priced upfront and you’ll know in advance the amount you will have to pay, including any fees, charges or charges. This is then broken down into either weekly or daily installment amount.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every company reason, such as control of cash flow business renovations, marketing, to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal use.
About the Larger Seaford Heights Business Loans
What is the Larger Seaford Heights Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How is 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 amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to have been in operation for at least 3 years and have an annual turnover of at least $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funds be utilised?
A Business Loan of a larger size can be used for almost any company reason, such as business remodeling, buying new equipment or inventory for general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. It’s in the form of a charge over assets and can include registering this in the PPSR or the registration of a caveat.
A personal or director’s ensure is a promise to pay back a loan that is generally in nature rather than stipulating security over a particular asset. The person who signs the guarantee is personally responsible if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It reflects security interests that are registered for personal property (including objects or assets). The PPSR grants preference over private property granted according to the date a security interest has been registered.
Caveats are legal document that is filed to provide the legal claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for larger company loans that exceeds $250,000, we may offer a preliminary pre-approval to help smooth out the process. We might 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 that includes you answering a few financial health questions. It is not an offer or guarantee of credit. A conditional approval is subject an exhaustive credit evaluation, and any offer you receive could have different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application in just a few minutes, and an experienced company loan specialist will call you to help you.
To apply for up to $100,000 you’ll require ID details (valid Driver’s License), an active NZBN/IRD, and at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent, 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we typically offer a response in one hour – as long as you apply within standard company time and you allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statements , we’ll be able to provide the decision within 1 company day.
For the Larger Business Loan ($100K up to $500,000) we might be likely to provide you with pre-approval conditional to your application in 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 may be quicker depending upon the circumstances for each application. Certain transactions have received approval within just 24 hours.
The quickest method would be to make sure you apply during normal business hours. Also, permit us to use the advance bank verification to instantly confirm your bank details online. If you decide to upload copies of your bank statements it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer in just one hour – provided you make your application within normal business timings and allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statement, we’ll provide the decision in just an business day.
If you are applying for Larger Business Loans ($100K or more) We may be in a position to offer you with pre-approval conditional to your application in around six hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this may be quicker depending upon the circumstances for each application. Some deals have been approved within less than 24 hours.
The fastest method for you to apply is make sure you apply during normal business hours. You can also permit us to use the advance bank verification to instantly verify your bank information online. If you choose to upload documents from your account accounts, it can take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a particular amount, we look at a variety of elements to determine the well-being of your company and the level of the repayments your company can support. The total amount of your loan will depend on the specific circumstances that are unique to your business.
When you submit an application for a particular amount, we consider a variety of factors to assess the well-being of the business as well as the amount of payments your company is able to afford. The amount you receive from the loan will be determined by the specific circumstances of your business.
Fees & repayments
How do you charge for a company loan?
If you decide to make an application for the company credit, we will assess the risk assessment that you have for your company and provide an individualised proposal that includes loan amount, term and the interest rates. This company loan is a loan that is priced upfront so you will know the exact amount you will have to pay, including costs, fees, or interest rates.
What determines the amount I will be charged?
Interest rates for business loans rates depend on a variety of factors including the amount borrowed, the company assets the funds are used to purchase, the industry the company is in, how long the business is in operation and how long the business has sufficient cash flow to cover the loan, and the overall well-being or financial standing of the company.
What are the cost?
There aren’t any hidden charges for our business loans. You’ll be aware of the amount you’ll need to pay and when, from the day you sign up. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We do not charge an application fee. You are able to request a credit loan without any upfront costs or obligation to proceed.
The Origination Fee includes the expenses associated with setting up and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan early?
You can choose to repay the entire amount of your loan early at any time.
If you are deciding to pursue this option, please contact our helpful business loans specialists. They will provide you with details on repayment as well as an early payout amount. The figure will be calculated as the total of the principal amount remaining and accrued interest to the time of early payout and 1.5 percent of the remaining principal plus any outstanding fees.
How do you make repayments work?
In order to help you avoid missing 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 data be secure?
Making sure that your information is secure, and making it clear the ways we gather, use, exchange and protect your information, is vital and an integral 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 secure your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their security. We use an advanced bank verification system that allows you to instantly verify your bank account details online, allowing us to offer 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 makes use of an asset that they own to secure the funds for a loan. The asset can be either an asset belonging to the personal, like the family home or it could be a business property like a truck as well as a piece of machine.
The majority of lending institutions, even the banks with the biggest size, prefer to secure loans against an asset. If you’re having trouble paying back the loan, the asset might be offered for sale by the lender. In essence, it’s means of securing additional financing using the worth of the asset you already have.
Do I need security to get a company loan?
For loans of up to $150,000, it is not necessary to secure assets before you can access the money but we require a personal guarantee. require an individual guarantee. As long as you follow the loan terms (as detailed in your loan contract document) the security of assets is not needed. For loans that exceed $150,000, generally, you can get personal guarantee and security that is in the form a charge over assets.