FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Skye Small Business Loans
Let me know what you think of the Skye Small Business Loans
Skye unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either daily or weekly.
How is how is the Unsecured Loan different from an traditional business loan?
It is possible to apply to your Small Business Loan in under 10 minutes by phone. You will receive an immediate response, and the money could be in your account within 24 hours. Traditional company loans reference an interest rate per annum along with other charges and fees. This business loan is a loan that is priced upfront therefore you’ll know ahead of time the total amount to be paid, including the interest, fees and charges. This is then broken down into either a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business purpose including cash flow management, company improvements, advertising to purchase inventory or new equipment, as general working capital and so much more. The loan cannot be used for personal use.
About larger Skye Business Loans
What is the Larger Skye Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of that can last up to 36 months. The repayments are made weekly or fortnightly, depending on your situation.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the company needs to be trading for at least 3 years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funds be utilised?
A Larger Business Loan is a great option for almost every business need, including company renovations, purchase of inventory or new equipment as well as for general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. This can be done as a result of an charge on assets, and could be registered on 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 based rather than specifying the security of a specific asset. The person who is signing the guarantee is personally liable in the event that the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including items or assets). The PPSR gives priority over personal property to be granted depending on the date that a security interest was registered.
Caveats are legal document that is filed to provide notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re seeking larger business loans that exceeds $250K we may be able to provide an initial pre-approval to simplify the process. It is possible to do this without a credit check, and within 6 hours of the initial application. The pre-approval process is based on a preliminary assessment which includes the answer to a series of financial health questions. It’s in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to a full credit assessment and any offer you are offered could be based on different terms.
Application process
Do I qualify for funds?
You can apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, 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 three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Complete the online form in few minutes and a dedicated business credit specialist will contact you to guide you.
For a loan of up to $100,000, you’ll need proof of identity (valid Driver’s License) as well as a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K to $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 and 12 months of bank records, IRD statement, last 2 years finalised financial statements, plus interim financial statements for the current year, Aged Payables and Aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we can often offer a response in one hour – as long as you apply in standard company timings and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you opt to send us copies of your bank statements , we’ll be able to offer the decision in just 1 business day.
For the Larger Business Loan ($100K or more) we could be likely to provide the conditional pre-approval in about six hours. After you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this could be shorter based on the specifics of each application. Some deals have been approved in 24 hours.
The fastest way can be ensure you apply during normal business hours. You can also permit us to use the advanced bank verification system to instantly check your bank’s information online. If you upload documents from your account statements it takes a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) We can usually offer an answer in just one hour if you apply at standard business timings and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statement, we’ll offer an answer in as little as an business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be able to provide you with conditional pre-approval within six hours. Once you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Certain deals have been approved within less than 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours and let us use the sophisticated bank verification to verify your bank information online. If you choose to send us documents from your account statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a certain amount, we look at a variety of factors that determine the well-being that is your company and the extent of the repayments your company is able to afford. The total amount of the loan will be determined by the particular circumstances for your company.
When you apply for a certain amount, we take into consideration a variety of variables to assess the health of your business and the level of repayments your business can support. The total amount of your loan will depend on the specifics that are unique to your company.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to make an application for our company credit, we will assess the risk assessment of your company and offer an individualised offer including the amount of loan, the term and interest rates. It is a business loan is a loan that is priced upfront so you will know in advance the total amount due, which includes any costs, fees, or interest rates.
What is the factor that determines the price I pay?
Interest rates for business loans rates differ based on various variables like the amount to be borrowed, what company assets the money will be used for as well as the field the business is in, how long the business has been running, what percentage of the company has sufficient cash flow to support the loan, and general health as well as creditworthiness company.
What are the fees?
There aren’t any hidden costs for our business loans. You’ll be aware of the amount you need to pay and when, right from the very first day. There’s no compounding interest, and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You are able to request a credit loan with no cost upfront or obligation to proceed.
The Origination Fee covers the costs associated with establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Do I have the option of paying off the loan in advance?
You can choose to repay the entire amount of the loan at any point in time.
If you do decide to pursue this option, please speak to our friendly company loans experts. They’ll provide you with repayment details and an early payment figure. This will be calculated as the sum of the remaining principal amount and any accrued interest at the time of the early payout, plus 1.5 percent of the remaining principal as well as any outstanding fees.
How do repayments work?
In order to help you avoid missing payments and to work your cash flow schedule, we provide repayments either daily or weekly. These are automatically deducted from your business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being upfront about the ways we gather, use, exchange and protect your information, is vital and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their security. We employ a highly sophisticated bank verification system link to immediately verify your bank account details online to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when a business owner uses an asset that they own to obtain a loan. The asset may be an asset belonging to the personal, like the family home, or a company asset such as a truck or other piece of machinery.
The vast majority of lenders, even the major banks, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan then your assets could be sold by the lender. In essence it’s a way of securing additional financing taking advantage of the value of what you already have.
Do I need security to get an company loan?
For loans up to $150,000 the requirement for asset security is not required in advance to gain access to the funds However, we require a personal guarantee. need a personal guarantee. So long as you comply with the loan terms (as stated in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans over $150K generally there is an individual guarantee and security is provided in the form of charges on assets.