FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Sellicks Hill Small Business Loans
Let me know more about Sellicks Hill Small Business Loans
Sellicks Hill unsecured loans offers the range of $5,000 to $100,000. Terms range from 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 a traditional business loan?
It is imaginable to apply to the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and have the funds in your account in 24 hours. Traditional business loans have an annual interest rate as well as other fees and charges. This company loan is an upfront priced loan therefore you’ll be aware in advance of the amount you will have to pay, including any fees, charges or charges. This is then divided into weekly or daily amount to be paid back.
What can the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company use, including control of cash flow company renovations, marketing to purchase inventory, new equipment, or as general working capital and so much more. The loan is not available for personal purposes.
About the Larger Sellicks Hill Business Loans
What is the Larger Sellicks Hill Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term that can last up to 36 months. The repayments are made weekly or fortnightly, depending on your situation.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the business needs to have been in operation for at least 3 years with an annual turnover of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funds be utilised?
A Business Loan of a larger size can be used to fund almost every business purpose including business improvements, purchasing new equipment or inventory, as general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. This is by taking a charge against assets, which could also include registering this in the PPSR or filing as a caveat.
A personal or director’s ensure is a promise to pay back a loan that is general in nature, rather than stating the security of a specific asset. The person signing the ensure is personally accountable if the company creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including items or assets). The PPSR grants preference over private property assigned according to the date the security interest has been registered.
A caveat is a legal document lodged to provide the legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan that is greater than $250,000 it’s possible to offer an initial pre-approval that will help smooth out the process. We could be able to get this done without a credit check and within 6 hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering a few financial health questions. It is not an offer of credit or guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you might receive could be based on different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in few minutes and a dedicated company loan specialist will be in touch to guide you through the process.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s Licence) and a valid NZBN/IRD as well as at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent twelve months of bank records, IRD statements as well as the two most recent years’ financial statements, and interim financials for the current financial year as well as Aged Payables and Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) We can usually offer an answer in just one hour – as long as you make your application at quality company hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you opt to submit copies of your bank statements , we are able to offer a decision in just one business day.
For Larger Business Loans ($100K and up) we might be likely to offer you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Certain transactions have received approval in less than 24 hours.
The fastest way is to make sure you apply during standard company hours. Also, allow us to use our advanced bank verification system to confirm your bank details online. If you decide to upload the copies of bank statements , it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we can often provide an answer within an hour – provided you apply during normal business time and permit us to utilise the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your banking statements, we are able to provide an answer in as little as 1 business day.
For Larger Business Loans ($100K or more) we might be in a position to offer you with conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Certain agreements have been approved in just 24 hours.
The most effective method is to ensure you apply during normal business hours and let us use the modern bank verification to verify your bank account information online. If you opt to upload copies of your bank statement, it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a certain amount, we will consider a number of factors in order to assess how much we can lend you well-being for your business and the level of repayments your business will be able to support. The total amount of the loan will be determined by the specifics for your company.
If you apply for a specific amount we consider a variety of elements to determine your well-being of the company and the level of repayments your business can support. The total amount of your loan will be determined by the specific circumstances for your company.
Fees & repayments
How much do you charge for a business loan?
If you decide to request the business loans, we will assess the risk assessment the business and provide you with a customised offer including loan amount, term and interest rates. It is a business loan is a loan that is priced upfront and you’ll know in advance the total amount to be paid, including any charges or interest.
What determines the amount I am charged?
Business loan interest rates differ based on various variables like the amount to be borrowed, the company assets the funds will be used for, the industry the company operates in, how long the company is in operation, how long the business has sufficient cash flow to fund the loan, and also the general health as well as creditworthiness business.
What are the costs?
There aren’t any hidden costs for our company loans, and you’ll know exactly how much it is that you need to pay and when, from the first day. There’s no compounding interest, and there are no additional charges (as as you make your payments in time).
We don’t charge an Application Fee. You can apply for a loan with no upfront cost or any obligation to sign up.
The Origination Fee covers the expenses involved with setting up and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay out the loan in advance?
You can decide to repay the entire amount of the loan at any point in time.
If you choose to pursue this option, please talk to one of our helpful company lending specialists. They’ll provide you with details for repayment as well as an early payout amount. The figure will be calculated as the sum of the principal amount remaining plus any accrued interest as of the date of early payout plus 1.5% of the principal amount remaining plus any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss payments and to work with your cash flow routine, we provide payments that are either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being clear about the ways we gather information, use it, and exchange it, as well as safeguard your data, is of paramount importance and a vital 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 standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to security for our clients and security. We employ a highly sophisticated banking verification system to instantly confirm your bank account information online. This allows us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an company owner uses assets they own to secure the funds for a loan. The asset can be an asset belonging to the personal, like the family home or it could be a company asset such as a vehicle or piece or equipment.
The vast majority of lending institutions, including the largest banks, are inclined to secure loans against an asset. If you’re having trouble paying back the loan, your assets could be transferred to the lender. In essence, it’s the process of securing additional financing using the value of what you already have.
What do I need security to secure an business loan?
For loans up to $150K no asset security is required prior to the loan’s access, however we require a personal guarantee. need the personal guarantee. If you adhere to your loan commitments (as stated in the loan contract) Asset security is not needed. If you take out loans in excess of $150,000 generally, you are able to get the option of a personal guarantee and security that is in the form charges on assets.