FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Somerton Park Small Business Loans
Tell me what you think of the Somerton Park Small Business Loans
Somerton Park unsecured loans offers amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from an ordinary business loan?
It is imaginable to apply to your Small Business Loan in under 10 minutes online or over the phone, receive an instant response and funds may be in your account within 24 hours. Traditional company loans refer to an annual rate of interest as well as other fees and charges. Our business loan is a pre-paid loan therefore you’ll be aware in advance of the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for almost any company use, including managing cash flows, business remodels and marketing to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal purposes.
About the Larger Somerton Park Business Loans
What is the Larger Somerton Park Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term with a maximum of 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount 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 or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can I use the funds for?
A large business loan can be used for nearly every company purpose including company renovations, purchase of new equipment or inventory, as general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. It is usually in the form of a charge over assets, and could include registration through the PPSR or filing a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is general in nature, rather than stipulating the security of a specific asset. The person who is signing the guarantee is personally accountable if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It contains security interests registered in respect of personal property (including objects or assets). The PPSR allows preference over private property assigned according to the date the security interest has been registered.
A caveat is a legal document filed to offer notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking the Larger Business Loan that exceeds $250,000 we can offer an initial pre-approval that will help smooth out the process. We may be able to get this done without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves you answering a few financial health checks. It’s not an offer or guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer that you are offered could be subject to different terms.
The application process
Are I eligible for funding?
You are eligible to apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form within a few minutes and an experienced business expert in lending will contact you to help you.
To apply for up $100,000 you’ll need ID details (valid Driver’s License), an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Application details including credit consent and 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, as well as interim financial statements for the current year including Aged Payables, Aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) we usually offer an answer within one hour, provided you make your application in standard company times and you allow us to utilise the bank verification system to instantly verify your bank details online. If you want to upload copies of your bank statements , we will be able to offer an answer in just 1 business day.
If you are applying for a Larger Business Loan ($100K or more) we may be likely to offer you with a conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this may be quicker depending on the specifics of each application. Certain agreements have been approved within the space of 24 hours.
The most effective method can be ensure you apply during standard business hours, and allow us to use the advance bank verification link to instantly verify your bank information online. If you opt to send us copies of your bank accounts, it can take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) we can often provide an answer within an hour – provided you make your application within normal business timings and allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you opt to send us copies of your bank statements, we are able to offer the decision in just one business day.
For the Larger Business Loans ($100K and up) we might be in a position to provide you with pre-approval conditional to your application in about 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, it could be faster based on the particular circumstances of each application. Certain offers have been approved in just 24 hours.
The fastest method can be ensure you apply during normal business hours. You can also permit us to use the advance bank verification link to verify your bank information online. If you send us the copies of bank statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you make an application for a particular amount, we take into consideration a range of aspects in order to assess your health that is your company and the level of repayments your business is able to afford. The total amount of your loan will depend on the particular circumstances for your business.
When you apply for a particular amount, we will consider a number of aspects to assess the health of the business and the extent of payments your company is able to afford. The amount you receive from your loan will be contingent on the particular circumstances for your company.
Fees & repayments
How much should you charge for an company loan?
If you decide to make an application for business loans with us company financing, we will assess the risk assessment the business and offer you with a customised offer, including the amount of the loan, the duration and interest rates. The business loan is an upfront-priced loan so you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I pay?
The interest rates on business loans rates differ based on various variables like the amount to be borrowed, the business assets the money will be used for in addition to the industry that the company is in, how long the business has been operating for, what percentage of the company has enough cash flow to support the loan, and also the overall health or creditworthiness of the business.
What are the costs?
There are no hidden fees for our business loans, and you’ll know precisely what you need to pay and at what time, from the first day. There’s not any compounding interest and the loan comes with no additional fees (as long as you make your payments on time).
We do not charge an Application Fee. You are able to make an application for loans with absolutely no upfront cost and no the obligation to take action.
The Origination Fee includes the expenses associated with establishing and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5% of the loan amount.
Do I have the option of paying off the loan in advance?
You can choose to repay all of your loan early at any time.
If you are deciding to pursue this option, please talk to one of our helpful company loan professionals. We will offer you with details on repayment and an early payment figure. The figure will be calculated as the total of the principal remaining plus any accrued interest as of the date of early payout in addition to 1.5% of the principal remaining plus any outstanding fees.
What is the process for repayments?
To help you avoid missing payment dates and to align with your cash flow cycle we offer repayments either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my data be protected?
Protecting your information, and being clear about how we collect information, use it, and exchange it, as well as secure your information, is crucial and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our commitment to protecting the security of customers and security. We utilise a sophisticated bank verification system to immediately verify your bank account information online so we can offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the company owner utilises an asset that they own to get the funds for a loan. The asset can be either an individual property, such as the family home or it could be a company asset such as a truck or other piece of machinery.
The majority of the lenders not just the big banks, tend to guarantee loans against an asset. If you have trouble paying back the loan, the asset could be offered for sale by the lender. In essence, it’s an opportunity to secure additional financing taking advantage of the value of what you already own.
Are I require security to secure a business loan?
For loans that exceed $150K, the requirement for asset security is not required in advance to gain access to the funds but we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan commitments (as detailed in the loan contract) the security of assets will never be required. If you take out loans in excess of $150,000 generally, there is a personal ensure and security in the form of an asset charge.