FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Surrey Downs Small Business Loans
Tell me how you can avail the Surrey Downs Small Business Loans
Surrey Downs unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
What makes this Unsecured Loan different from the traditional company loan?
It is possible to apply to get this Small Business Loan in under 10 minutes online or on the phone. You’ll receive an instant response and the money could be available in just 24 hours. Traditional company loans refer to an annual rate of interest together with additional fees and charges. This company loan is a pre-paid loan and you’ll be aware in advance of the total amount to be paid, including any fees, interest or charges. Then, it is broken down into either weekly or daily installment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business use, including the management of cash flow, business remodels and marketing to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available for personal reasons.
About larger Surrey Downs Business Loans
What is the Larger Surrey Downs Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are either weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee that 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 loan that is this large, your business needs to be in operation for at least 3 years with an annual turnover of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funding for?
A larger company loan can be used to fund almost every business use, including business improvements, purchasing new equipment or inventory or as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. It is usually as a result of an charge over assets, which could also be registered through the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to repay credit that is generally based rather than specifying the security for a particular asset. The person signing the ensure is personally accountable if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It reflects security interests registered in respect of personal property (including objects or assets). The PPSR allows priority over personal property to be granted according to the date a registration of a security interest.
A caveat is a legal document filed to provide the legal claim to a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for a Larger Business Loan of more than $250,000 it is possible to offer an initial pre-approval to smooth out the process. We may be able to get this done without a credit check and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering some financial well-being questions. It’s not an offer or guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you receive could be on different terms.
Application process
Can I be eligible for funding?
You may apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a few minutes and an experienced company expert in lending will be in touch to assist you.
To apply for up to $100,000, you’ll require the right identification documents (valid Driver’s License) along with a valid NZBN/IRD and at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Application details including credit consent, 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, plus interim financials from the current financial year, Aged Payables and Aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) We can usually offer an answer within an hour – as long as you submit your request within quality business timings and permit us to utilise the bank verification system link to instantly verify your bank’s information online. If you opt to submit copies of your bank statement, we’ll offer a decision within just 1 company day.
For the Larger Business Loan ($100K up to $500,000) we could be in a position to offer you with a conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however it could be faster based on the specifics of each application. Some transactions have received approval within the space of 24 hours.
The fastest way is to ensure you apply during normal business hours, and permit us to use the advance bank verification to confirm your bank details online. If you decide to send us the copies of bank statements , it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) we usually provide an answer within one hour if you submit your request at standard business hours and allow us to use the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your bank statement, we’ll provide the decision within the span of one business day.
For Larger Business Loans ($100K to $500K) we may be capable of offer you with pre-approval conditional to your application in around 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 deals have been approved in just 24 hours.
The fastest method can be make sure you apply during normal business hours, and allow us to use our advance bank verification to instantly verify your bank information online. If you upload the copies of bank statement, it may take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a specific amount we will consider a number of aspects to determine how much we can lend you well-being for your company and the extent of repayments your company can afford. The total amount of your loan will be contingent on the specifics that are unique to your business.
When you make an application for a specific amount we will consider a number of factors to assess how much we can lend you such as health of the business and the amount of the repayments your company can afford. The amount you receive from your loan will be contingent on the particular circumstances of your business.
Fees & repayments
How do you charge for an company loan?
If you decide to apply for one of our company loans, we will assess the risk profile the business and provide an individualised proposal that includes loan amount, term and the interest rates. The business loan is an upfront priced loan which means you know the exact amount to be paid, including any costs, fees, or interest rates.
What determines the amount I pay?
Interest rates for company loans rates differ based on various factors like the amount of money borrowed, the business assets the money are used to purchase, the industry the company operates in, the long the company has been operating as well as whether the company has sufficient cash flow to support the loan, and the overall health and creditworthiness of the company.
What are the cost?
There aren’t any hidden costs with our business loans. You’ll know precisely how much you’ll be required to pay, and when, from the day you sign up. There’s no compounding interest, and there are no additional charges (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You can request a credit loan no cost upfront or obligation to proceed.
The Origination Fee is the cost 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. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay off the loan earlier?
You may choose to pay back all of your loan early at any time.
If you choose to take this route, please talk to one of our helpful company lending professionals. We will offer you with details on repayment along with an early payout estimate. It will be calculated using the sum of the remaining principal amount and any accrued interest at the time of the early payout plus 1.5% of the principal amount remaining plus any outstanding fees.
What are the repayment methods?
To ensure you do not miss payments and to work with your cash flow standard, we offer repayments that are either daily or weekly. They are automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and making it clear how we collect, use, exchange and safeguard your data, is crucial and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to security for our customers and privacy. We make use of an advanced bank verification system that allows you to instantly verify your bank account information online to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an business owner borrows from an asset they own to make the loan. The asset may be an individual property, such as the family home, or it could be a business asset such as a vehicle or other piece of machinery.
The majority of banks, including the banks with the biggest size, prefer to guarantee loans against assets. If you have trouble paying back the loan, then the asset might be taken over by the lender. In essence, it is the process of securing new financing by using the worth of the asset you already have.
Are I require security to secure a business loan?
For loans up to $150K there is no requirement for asset security in advance to gain access to the funds however, we require a personal guarantee. need the personal guarantee. If you adhere to your loan commitments (as specified in your loan contract document) Asset security is not required. If you take out loans in excess of $150K typically, you will need a personal guarantee and security in the form an asset charge.