FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Stepney Small Business Loans
Tell me what you think of the Stepney Small Business Loans
Stepney unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from an traditional company loan?
You can apply to this Small Business Loan in under 10 minutes over the phone, receive a same day response and the money could be on your account within 24 hours. Traditional business loans are based on an interest rate per annum along with other charges and fees. Our business loan is a pre-paid loan which means you be aware in advance of the total amount due, which includes any interest, fees or charges. This is then broken down into a daily or weekly repayment figure.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business need, such as control of cash flow business remodels and marketing to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal purposes.
About the Larger Stepney Business Loans
What is the Larger Stepney Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly to work with you cashflow.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a loan of this size the business needs to have been trading for at least 3 years and have an annual turnover of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funding for?
A large company loan can be used for nearly any business need, including business remodeling, buying inventory or new equipment or as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary to obtain funding above $150,000. It’s as a result of an charge against assets, and may include the registration of this through the PPSR or making as a caveat.
A director’s or personal ensure is a promise to repay credit that is generally based rather than specifying security over a particular asset. The person who signs the guarantee is personally accountable if the business 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 that are registered for personal property (including objects or assets). The PPSR gives preference over private property granted depending on the date that a registration of a security interest.
An affidavit is an official document lodged to offer the public notice of a legal claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for the Larger Business Loan that exceeds $250K, we may offer an initial pre-approval that will help ease the process. We might be able to make this decision without a credit check and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves answering a couple of financial well-being questions. It is not an offer or guarantee of credit. Unconditional approval is subject to an extensive credit evaluation and any offer that you are offered could be based on different terms.
Application process
Can I be eligible for funding?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Just complete the online application within a couple minutes, and a dedicated business lending specialist will be in touch to guide you through the process.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s Licence) along with an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll also need:
$100K-$250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details of the application, including credit consent, 12 months of bank statements, IRD statements, last 2 years finalised financial statements, as well as interim current financial year financials, Aged Payables and Aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) We can usually offer an answer within one hour if you make your application in standard business times and allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statements , we’ll be able to provide the decision in just one company day.
For the Larger Business Loan ($100K to $500K) we may be in a position to offer you with pre-approval conditional to your application within six hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this can be quicker based upon the circumstances for each application. Certain offers have been approved in the space of 24 hours.
The quickest way to apply is to ensure you apply during standard company hours. Also, allow us to use our advanced bank verification system link to confirm your bank details online. If you decide to upload copies of your bank accounts, it can take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K to $100K) we usually offer an answer in just one hour, provided you make your application at standard business times and allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statements, we’ll be able to offer a decision within the span of one business day.
For Larger Business Loans ($100K up to $500,000) we may be able to provide you with a conditional pre-approval within about six hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this could be shorter based on the particular circumstances of each application. Certain transactions have received approval in the space of 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours and allow us to use the advanced bank verification system to confirm your bank details online. If you decide to upload duplicates of your banking accounts, it will take a little longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a certain amount we look at a variety of aspects for determining how much we can lend you well-being of your business as well as the amount of repayments that your company can afford. The amount you receive from the loan will be determined by the particular circumstances that are unique to your business.
When you submit an application for a specific amount we look at a range of factors to determine the health of your business and the amount of repayments your business can support. The total amount of your loan will depend on the particular circumstances of your company.
Fees & repayments
How do you charge for a company loan?
When you request our company loans, we will assess the risk assessment of your company and provide an individualised offer including the amount of the loan, the duration and the interest rates. It is a company loan is an upfront cost loan and you’ll be aware in advance of the total amount you will have to pay, including charges or interest.
What determines the amount I pay?
Business loan interest rates vary due to variables like the amount to be of money borrowed, the business assets the funds are used to purchase in addition to the industry that the company operates in, how long the company has been in operation as well as what percentage of the business has enough cash flow to pay for the loan, and also the general well-being or creditworthiness of the company.
What are the fees?
There are no hidden costs for our business loans. You’ll know precisely how much it is that you need to pay and when, starting from the very first day. There’s no compounding interest and no additional fees (as as you make your payments on time).
We don’t charge an application fee. You can make an application for loans with absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses associated with the setting up and management of the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I repay the loan earlier?
You can decide to repay the entire amount of your advance loan at any time.
If you are deciding to take this route, please call our helpful business lending experts. They’ll provide you with repayment details as well as an early payout amount. It will be calculated using the sum of the remaining principal amount and any accrued interest at the time of early payment and 1.5 percent of the principal remaining as well as any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss payments and to work with your cash flow cycle we offer repayments that are either weekly or daily. They are automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing how we collect the information we collect, use, share and protect your information, is of huge importance and is a crucial aspect 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 protecting the security of customers and security. We use an advanced bank verification system link to instantly verify the bank account details online. This allows us to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where a company owner makes use of an asset that they own to make the funds for a loan. The asset may be a personal asset like the family home, or an company property like a truck or other piece of machinery.
The majority of lenders, including the big banks, tend to guarantee loans against an asset. If you’re struggling to pay back the loan, your asset may be offered for sale by the lender. In essence it’s a way of securing new financing by using the worth of the asset you already own.
Are I require security to get a company loan?
Up to $150K in loans there is no requirement for asset security prior to the loan’s access, however we require a personal guarantee. need a personal guarantee. If you adhere to the loan terms (as stipulated in your loan contract document) Asset security will never be needed. For loans of over $150K typically, you will need a personal guarantee and security in the form of charges on assets.