FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The St Morris Small Business Loans
Let me know about the St Morris Small Business Loans
St Morris unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
How is what makes the Unsecured Loan different from an traditional company loan?
The application for your Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an immediate response, and have the funds in your account in 24 hours. Traditional business loans have an annual interest rate plus other fees and charges. Our business loan is a cash-based loan therefore you’ll be aware of the total amount to be paid, including the interest, fees and charges. This is then broken down into a daily or weekly repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company use, including control of cash flow company renovations, marketing for purchasing inventory or new equipment, to fund general working capital and so much more. The loan is not available for personal use.
About Larger St Morris Business Loans
What is the Larger St Morris Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of that can last up to 36 months. The repayments are made weekly or fortnightly to work with you cashflow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to be in operation 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) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funds for?
A large company loan can be used for nearly any company need, including business improvements, purchasing new equipment or inventory or as 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 needed to obtain funding above $150,000. It’s in the form of a charge on assets and can be registered through the PPSR or registering as a caveat.
A director’s or personal ensure is a commitment to pay off a credit line that is general in nature, rather than defining security over a particular asset. The person signing the ensure is personally liable if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR allows prioritisation over property that is personal to be granted according to the date the security interest was registered.
The caveat can be described as a formal document filed to offer the public notice of a legal claim to property.
What is a pre-approval that does not require Credit Check?
When you’re applying for larger company loans that exceeds $250,000 it’s possible to offer an initial pre-approval to smooth out the process. We might be able to get this done without a credit check and within 6 hours of your initial application. The pre-approval is based upon a preliminary assessment which includes you answering some financial health questions. It’s neither an offer nor a guarantee of credit. A conditional approval is subject an exhaustive credit evaluation, and any offer you might receive could be subject to different terms.
The application process
Are I eligible for funding?
You may apply for a 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)
- can demonstrate at least 6 months worth of trade (for you to qualify for 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. Simply complete the online form within a few minutes and a dedicated company credit specialist will be in touch to assist you.
For a loan of up to $100,000 you’ll need identification details (valid Driver’s License) as well as an NZBN/IRD that is valid and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K – $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) we typically provide a response in one hour if you apply within standard business timings and permit us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statements , we’ll be able to offer the decision in as little as one company day.
For Larger Business Loans ($100K up to $500,000) we might be likely to provide you with a conditional pre-approval within six hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be quicker based upon the circumstances for each application. Some agreements have been approved in less than 24 hours.
The fastest way for you to apply is make sure you apply during standard company hours and let us use the modern bank verification to instantly verify your bank account information online. If you decide to upload the copies of bank statement, it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) We can usually provide a response in one hour if you submit your request in standard business hours and let us use the 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 a decision in just one business day.
For Larger Business Loans ($100K to $500K) We may be likely to provide you with a conditional pre-approval in around six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this can be faster depending on the circumstances of each application. Some transactions have received approval in just 24 hours.
The fastest method is to ensure you apply during standard business hours, and permit us to use the advance bank verification link to instantly check your bank’s information online. If you choose to send us the copies of bank statement, it will take a little longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a particular amount, we consider a variety of variables that determine the health of the business and the level of payments your business can afford. The total amount of the loan will be determined by the specific circumstances for your business.
If you apply for a set amount, we consider a variety of factors to determine how much we can lend you such as well-being that is your company and the extent of payments your business will be able to support. The total amount of your loan will depend on the specific circumstances the company.
Fees & repayments
How much do you charge for an business loan?
If you decide to apply for our business loans, we’ll assess the risk profile the business and offer you with a customised proposal that includes the amount of loan, the term and the interest rates. This company loan is a loan that is priced upfront which means you know in advance the total amount due, which includes any interest rates, fees or charges.
What determines the rate that I pay?
Interest rates for business loans rates vary due to variables like the amount to be borrowed, the company assets the money are used to purchase, the industry the company operates in, the long the business has been operating for, whether the company has enough cash flow to support the loan, and the overall health as well as creditworthiness business.
What are the charges?
There are no hidden fees for our company loans. You’ll know precisely what it is that you be required to pay, and when, from day one. There’s no compounding interest and there are no additional charges (as as you make your payments on time).
We do not charge an Application Fee. You can apply for a loan no cost upfront or the obligation to take action.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I repay the loan earlier?
You can repay the entire amount of your loan in full at any time.
If you are deciding to pursue this option, please speak to our friendly business lending professionals. We will offer you with the details of your repayment and an early payment figure. This is calculated as the sum of the principal amount remaining and accrued interest to the time of the early payout plus 1.5 percent of the principal balance and any outstanding fees.
How do you make repayments work?
To help you avoid missing due dates and also to be in line with your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from your company 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 protect your information, is vital and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to customer security and privacy. We employ a highly sophisticated banking verification system to instantly verify the bank account details online to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a company owner uses assets they own to get the funding. The asset may be an individual property, such as the family home, or an business property like a truck or piece or equipment.
The vast majority of lending institutions, even the big banks, tend to make loans secured by an asset. If you’re struggling to pay back the loan, the asset could be sold by the lender. In essence, it is a way of securing new financing by using the value of what you already have.
Should I need security to secure an company loan?
For loans that exceed $150K, there is no requirement for asset security prior to the loan’s access but we require a personal guarantee. need a personal guarantee. In the event that you fulfill your loan obligations (as stipulated in the loan contract) Asset security will never be needed. For loans over $150,000 generally, there is the option of a personal ensure and security that is in the form charges on assets.