FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Seaford Small Business Loans
Tell me what you think of the Seaford Small Business Loans
Seaford unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What makes the Unsecured Loan different from an ordinary company loan?
Apply to the Small Business Loan in under 10 minutes by phone. You will receive an answer within the same day and have the funds on your account within 24 hours. Traditional business loans refer to an annual rate of interest plus other fees and charges. Our business loan is a loan that is priced upfront and you’ll be aware in advance of the total amount due, which includes any interest, fees or charges. Then, it is divided into weekly or daily amount to be paid back.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any company need, such as control of cash flow company improvements, advertising to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal reasons.
About the Larger Seaford Business Loans
What is the Larger Seaford Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your cash flow.
How is the Origination Fee determined?
It is crucial to note that the 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?
To be eligible for a loan in this amount, your company needs to have been trading for at least 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can the funds be used for?
A Larger Business Loan can be used for nearly every company need, including company renovations, to purchase new equipment or inventory for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. It is usually as a result of an charge over assets and can be registered through the PPSR or the registration of a caveat.
A personal or director’s guarantee is a guarantee to pay back a loan that is generally based rather than stating the security of a specific asset. The person signing the guarantee is personally liable if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including items or assets). The PPSR permits prioritisation over property that is personal to be assigned according to the date the security interest was registered.
An affidavit is an official document lodged to provide the public notice of a legal claim to a property.
What is a pre-approval without Credit Check?
If you’re requesting larger company loans of more than $250,000 we can offer an initial pre-approval to ease the process. We may be able to do this without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves you answering some financial well-being checks. It’s in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you may receive may be based on different conditions.
The application process
Do I have the right to receive funds?
You can apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for a 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 fill out the online application within a few minutes and a dedicated company loan specialist will contact you to guide you through the process.
To be eligible for up to $100,000 you’ll require identification details (valid Driver’s License) along with an NZBN/IRD that is valid and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent as well as 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, and interim financial statements for the current year including Aged Payables, Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we usually provide a response in one hour if you submit your request during standard business hours and permit us to utilise the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your bank statements , we will be able to offer the decision in as little as one company day.
For Larger Business Loans ($100K up to $500,000) we could be capable of provide you with pre-approval conditional to your application in around 6 hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this can be quicker based on the specifics of each application. Some deals have been approved in the space of 24 hours.
The quickest way to apply for you to apply is make sure you apply during standard company hours. You can also let us use the advanced bank verification system to instantly verify your bank account information online. If you send us the copies of bank statement, it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K or more) we usually provide a response in one hour if you submit your request at normal business times and let us utilise the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your banking statements, we’ll be able to provide an answer in as little as the span of one business day.
For the Larger Business Loans ($100K and up) we might be capable of offer you with pre-approval conditional to your application in about 6 hours. Once you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this may be quicker depending upon the circumstances for each application. Some deals have been approved within just 24 hours.
The quickest method can be make sure you apply during standard business hours. Also, permit us to use the advance bank verification link to instantly verify your bank information online. If you opt to send us documents from your account statements, it takes a bit longer.
How much can I borrow?
We offer loans ranging from $5,000 and $500,000. When you make an application for a particular amount, we consider a variety of factors for determining how much we can lend you health that is your company as well as the amount of repayments that your business is able to afford. The amount you receive from the loan will be determined by the particular circumstances the company.
When you apply for a certain amount, we will consider a number of elements to assess your well-being of your company and the amount of the repayments your company will be able to support. The amount you receive from your loan will depend on the specific circumstances for your company.
Fees & repayments
How much do you charge for a company loan?
If you decide to request the business loan, we’ll assess the risk assessment that you have for your company and offer you with a tailored offer, including the amount of loan, the term and interest rates. A business loan is an upfront cost loan therefore you will be aware in advance of the total amount you will have to pay, including interest rates, fees or charges.
What determines the amount I am charged?
Interest rates for business loans rates differ based on various factors including the amount borrowed, the company assets the funds are used to purchase and the sector the business operates in, how long the company has been in operation, what percentage of the business has sufficient cash flow to fund the loan, as well as the overall health as well as creditworthiness company.
What are the costs?
There are no hidden costs with our company loans, and you’ll be aware of the amount you be required to pay and when, starting from the very first day. There’s no compounding and the loan comes with no additional fees (as long as you make your payments punctually).
We don’t charge an application fee. You are able to make an application for loans absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan in advance?
You can repay the entire amount of your loan in full at any time.
If you choose to pursue this option, please talk to one of our helpful company lending professionals. They will offer you with details for repayment as well as an early payout amount. This is calculated as the total of the principal remaining and the accrued interest up to the time of early payout, plus 1.5 percent of the principal remaining and any fees that remain unpaid.
How do repayments work?
To make sure you do not miss payment dates and to align with your cash flow general, we offer repayments either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being transparent about the ways we gather the information we collect, use, share and safeguard your data, is vital and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to security for our clients and security. We make use of an advanced bank verification system to instantly verify your bank account details online. This allows us to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where an business owner makes use of an asset they own to obtain the funds for a loan. The asset may be a personal asset like the family home or it could be a business asset such as a vehicle or other piece of machinery.
The majority of lending institutions, even the banks with the biggest size, prefer to make loans secured by an asset. If you’re struggling to pay back the loan then your assets could be taken over by the lender. In essence, it is an opportunity to secure new financing by making use of the value of what you already own.
Are I need security to get a business loan?
For loans of up to $150K, it is not necessary to secure assets upfront to access the money, however we do need an individual guarantee. If you adhere to your loan obligations (as stipulated in your loan contract) and you are able to meet your obligations, asset security is not needed. For loans that exceed $150,000, generally, you can get the option of a personal guarantee and security in the form an asset charge.