FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Seaford Small Business Loans
Let me know what you think of the Seaford Small Business Loans
Seaford unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from a traditional company loan?
You can apply to this Small Business Loan in under 10 minutes online or over the phone. You’ll get a same day response and have the funds available in just 24 hours. Traditional business loans have an interest rate per annum along with other charges and fees. Our business loan is a pre-paid loan and you’ll know ahead of time the total amount to be paid, including the interest, fees and charges. This is then broken down into a daily or weekly payment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for almost any business use, including cash flow management, business remodels and marketing for purchasing inventory or new equipment, to fund general working capital and much more. The loan is not available for personal reasons.
About larger Seaford Business Loans
What is the Larger Seaford Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to have been operating for at least three years with an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be utilised?
A large business loan can be used for nearly any company reason, such as business renovations, purchase of inventory or new equipment, as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It is usually in the form of a charge against assets and can include registering this through the PPSR or registering as a caveat.
A personal or director’s guarantee is a commitment to repay credit that is generally in nature rather than defining the security for a particular asset. The person who signs the ensure is personally responsible if the company the borrower fails to re-pay the debt.
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 permits priority over personal property to be assigned in accordance with the date on which a registration of a security interest.
The caveat can be described as a formal document lodged to provide the legal claim to property.
What exactly is a preapproval without Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250,000 we may be able to provide an initial pre-approval to ease the process. We might be able to make this decision without a credit check, and within 6 hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering some financial well-being questions. It is in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to an extensive credit evaluation and any offer that you may receive may have different terms.
The application process
Do I qualify for funds?
You are eligible to apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application within a couple minutes, and a dedicated business lending specialist will call you to help you.
To apply for up $100,000, you’ll need ID details (valid Driver’s License), a valid NZBN/IRD as well as at least six months worth of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 month bank accounts, the IRD statement and the last two years’ finalised financial statements, plus interim financials for the current financial year, Aged Payables and Aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K and up) We can usually provide a response in one hour, provided you make your application in standard company time and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements , we will be able to offer an answer within the span of one company day.
For Larger Business Loans ($100K up to $500,000) we might be able to offer you with pre-approval conditional to your application in around six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Some agreements have been approved within the space of 24 hours.
The quickest way to apply is to ensure you apply during normal business hours and let us use the modern bank verification to check your bank’s information online. If you opt to upload documents from your account statements it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) we typically offer an answer within one hour – provided you make your application within standard business time and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your bank statement, we’ll provide an answer within an business day.
For the Larger Business Loans ($100K or more) we might be capable of provide you with conditional pre-approval within about 6 hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Some deals have been approved within just 24 hours.
The fastest way can be ensure you apply during normal business hours. Also, allow us to use the advance bank verification link to check your bank’s information online. If you decide to upload copies of your bank statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. If you apply for a particular amount, we look at a variety of aspects to determine how much we can lend you well-being that is your company and the amount of payments your business can afford. The total amount of your loan will be contingent on the particular circumstances that are unique to your company.
When you make an application for a set amount, we look at a range of elements to determine your well-being for your business and the extent of payments your business is able to afford. The total amount of your loan will depend on the specific circumstances that are unique to your company.
Fees & repayments
What is the cost for a company loan?
If you decide to request one of our company credit, we’ll assess the risk assessment for your business and offer you with a customised offer that includes the loan amount, the terms and interest rates. A company loan is a loan that is priced upfront therefore you will know the exact amount due, which includes any interest rates, fees or charges.
What determines the amount I will be charged?
The interest rates on business loans rates depend on several factors like the amount of money borrowed, what company assets the money are used to purchase as well as the field the company operates in, how long the company has been in operation, how long the business has enough cash flow to cover the loan, and the overall well-being or creditworthiness of the company.
What are the cost?
There are no hidden fees for our business loans, and you’ll be aware of the amount you be required to pay and when, right from day one. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments in time).
We do not charge an application fee. You are able to make an application for loans with with no upfront cost or any obligation to sign up.
The Origination Fee covers the expenses involved with establishing and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay off the loan early?
You can choose to repay the total amount of your loan in full at any time.
If you do decide to do this please talk to one of our helpful company credit experts. They will offer you with the details of your repayment and an early payout figure. The figure will be calculated as the total of the principal balance and any accrued interest at the time of early payout plus 1.5% of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
To help you avoid missing due dates and also to be in line your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from your designated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being clear about how we collect information, use it, and exchange it, as well as safeguard your data, is vital and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to customer security and security. We utilise a sophisticated bank verification system to immediately verify your bank account details online. This allows us to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the business owner uses assets they own to make the funds for a loan. The asset can be an individual asset, such as the family home, or a business asset like a truck or piece of equipment.
The vast majority of lenders, not just the major banks, prefer to make loans secured by an asset. If you’re having trouble paying back the loan, your asset may be transferred to the lender. In essence, it is the process of securing new financing using the worth of the asset you already own.
Are I need security to get an business loan?
Up to $150,000 in loans no asset security is required prior to the loan’s access However, we require a personal guarantee. require a personal guarantee. As long as you follow the terms of your loan (as stated in your loan contract document) the security of assets will never be required. If you take out loans in excess of $150K generally, there is a personal ensure and security is provided in the form of an asset charge.