FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Semaphore South Small Business Loans
Let me know more about Semaphore South Small Business Loans
Semaphore South unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
What is what makes the Unsecured Loan different from the traditional company loan?
You can apply to get the Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and funds may be available in just 24 hours. Traditional business loans have an interest rate per annum together with additional fees and charges. This business loan is a cash-based loan and you’ll be aware in advance of the total amount to be paid, including any fees, interest or charges. Then, it is divided into a daily or weekly repayment figure.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company need, such as control of cash flow business improvements, advertising to purchase inventory, new equipment, for general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger Semaphore South Business Loans
What is the Larger Semaphore South Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are either weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the business needs to be in operation for at least 3 years and generate an annual revenue of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
How can the funds be utilised?
A larger company loan can be used for nearly any business use, including company renovations, to purchase equipment or inventory, as 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 required for funding of more than $150,000. It is usually as a result of an charge against assets, and could include registering this on the PPSR or the registration of a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is generally in nature rather than stipulating the security of a specific asset. The person who is signing the guarantee is personally accountable 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 lists security interests that are which are registered with respect to personal property (including goods or assets). The PPSR grants prioritisation over property that is personal to be granted depending on the date that a security interest has been registered.
Caveats are legal document lodged to offer the legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250K it’s possible to offer an initial pre-approval in order to make the process. We might be able to apply for this without a credit verification and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering some financial well-being checks. It is not an offer or guarantee of funds. A conditional approval is subject an extensive credit evaluation and any offer that you might receive could be subject to different conditions.
The application process
Can I be eligible for funding?
You can apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application within a few minutes and a dedicated company lending specialist will contact you to assist you.
To be eligible for up to $100,000 you’ll need identification details (valid Driver’s License) and an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent twelve months of bank records, IRD statement as well as the two most recent years’ financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K or more) we typically provide an answer within one hour, provided you make your application in standard business hours and let us utilise the advanced bank verification system to instantly verify your bank information online. If you opt to send us copies of your bank statement, we’ll provide a decision in as little as 1 company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we could be likely to provide you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Certain transactions have received approval in the space of 24 hours.
The most effective method can be make sure you apply during normal company hours and permit us to use the modern bank verification to instantly verify your bank information online. If you decide to upload copies of your bank accounts, it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we can often offer an answer within an hour – provided you submit your request during standard business timings and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your bank statement, we’ll provide the decision in as little as one business day.
For Larger Business Loans ($100K up to $500,000) we could be able to provide the conditional pre-approval in around six hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however it could be faster based upon the circumstances for each application. Certain offers have been approved within 24 hours.
The fastest method can be make sure you apply during standard business hours. You can also allow us to use our advanced bank verification system to verify your bank account information online. If you choose to upload documents from your account statements, it can take a bit longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a certain amount, we will consider a number of aspects to determine your health that is your company and the amount of payments your company is able to afford. The total amount of the loan will be determined by the specifics for your company.
If you apply for a particular amount, we consider a variety of aspects to determine how much we can lend you such as health that is your company and the extent of payments your business is able to afford. The total amount of your loan will depend on the particulars the business.
Fees & repayments
How much do you charge for an company loan?
If you decide to make an application for one of our company loans, we will assess the risk profile that you have for your company and provide you with a customised offer that includes the amount of loan, the term and the interest rates. It is a business loan is a loan that is priced upfront therefore you will be aware of the total amount you will have to pay, including charges or interest.
What is the basis for the rate I am charged?
Business loan interest rates vary due to factors such as the amount that is that is borrowed, what business assets the funds are used to purchase and the sector the business is operating in, how long the business has been in operation, what percentage of the company has enough cash flow to support the loan, and also the general health and creditworthiness of the company.
What are the fees?
There aren’t any hidden costs for our business loans, and you’ll know precisely what you be required to pay, and when, right from the very first day. There’s no compounding interest and no extra fees (as as long as you pay your payments on time).
We do not charge an application fee. You can get a cash loan with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved with establishing and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I repay the loan in advance?
You may choose to pay back the entire amount of your loan at any point in time.
If you are deciding to pursue this option, please speak to our friendly business lending specialists. The experts will offer you with details on repayment and an early payment figure. This will be calculated as the sum of the principal balance and accrued interest 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 that you don’t miss payments and to work your cash flow schedule, we offer repayments that are either weekly or daily. These are automatically deducted from your company account.
Security & privacy
Will my information be secure?
Security of your data, and being clear about how we collect, use, exchange and safeguard your data, is crucial and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to customer security and security. We use an advanced banking verification system to immediately verify the bank account details online to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a business owner makes use of the assets they have to obtain the funding. The asset can be an individual property, such as the family home, or a business asset such as a truck or piece of equipment.
The majority of lending institutions, not just the largest banks, are inclined to make loans secured by an asset. If you’re struggling to pay back the loan, then the asset could be taken over by the lender. In essence, it’s means of securing new financing making use of the value of what you already have.
What do I need security to secure a business loan?
For loans that exceed $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 your loan commitments (as stated in the loan contract), asset security will never be needed. For loans of over $150K generally, there is personal guarantee and security in the form of an asset charge.