FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Unley Small Business Loans
Tell me more about Unley Small Business Loans
Unley unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from an traditional company loan?
Apply to get the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an immediate response, and have the funds available in just 24 hours. Traditional company loans are based on an annual interest rate along with other charges and fees. Our business loan is a pre-paid loan and you’ll know ahead of time the total amount due, which includes any fees, interest or charges. This is then broken down into weekly or daily installment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business use, including control of cash flow company renovations, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan is not available for personal use.
Concerning Larger Unley Business Loans
What is the Larger Unley Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to be trading for at least 3 years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can I use the funds for?
A larger company loan can be used for nearly every company purpose including company improvements, purchasing inventory or new equipment, 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 necessary for accessing funds over $150,000. It is usually by taking a charge over assets and can be registered on the PPSR or filing a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is generally based rather than stating the security for a particular asset. The person who signs the guarantee is personally accountable if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including goods or assets). The PPSR gives preference over private property assigned in accordance with the date on which a security interest that is registered.
The caveat can be described as a formal form of document to offer the legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re seeking an enterprise loan of $250K or more we can offer an initial pre-approval that will help make the process. It is possible to get this done without credit checks and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves you answering a few financial well-being questions. It is neither an offer nor a guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you are offered could be on different conditions.
The application process
Are I eligible for funding?
You are eligible to apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just complete the online application in just a few minutes, and an experienced company loan specialist will call you to assist you.
To apply for up $100,000, you’ll need identification details (valid Driver’s License), an active NZBN/IRD, and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Information on the application including credit consent, 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, as well as interim financials from the current financial year as well as Aged Payables and Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we typically provide an answer within an hour – as long as you apply during standard company timings and allow us to use 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 will be able to offer an answer in as little as one company day.
If you are applying for a Larger Business Loan ($100K and up) we may be able to offer you with conditional pre-approval within about six hours. After you’ve signed your pre-approval form, it will take about 2-3 days for final approval, however it could be faster based on the specifics of each application. Certain transactions have received approval in the space of 24 hours.
The quickest way to apply for you to apply is ensure you apply during standard business hours. Also, allow us to use our modern bank verification to instantly verify your bank information online. If you decide to upload duplicates of your banking statements it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) We can usually provide an answer within an hour – as long as you apply at standard business timings and you allow us to use the bank verification system link to instantly verify your bank information online. If you want to upload copies of your banking statements, we’ll be able to offer a decision in just the span of one business day.
For the Larger Business Loans ($100K and up) we could be likely to provide the conditional pre-approval within six hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this could be shorter based on the specifics of each application. Some deals have been approved within less than 24 hours.
The fastest way can be ensure you apply during standard business hours. You can also allow us to use our advance bank verification to instantly verify your bank account information online. If you opt to upload documents from your account accounts, it can take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a certain amount we will consider a number of aspects for determining what is the health for your company and the level of repayments that your company can support. The amount you receive from the loan will be determined by the specific circumstances that are unique to your business.
If you apply for a particular amount, we consider a variety of aspects to assess how much we can lend you such as health for your company and the level of repayments that 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 a company loan?
When you request one of our business credit, we will assess the risk profile that you have for your company and offer you with a customised proposal that includes the amount of loan, the term and interest rates. A company loan is a loan that is priced upfront and you’ll know the exact amount to be paid, including any costs, fees, or interest rates.
What is the factor that determines the price I will be charged?
Interest rates for company loans rates depend on a variety of factors such as the amount that is borrowed, the business assets the funds are used to purchase as well as the field the company operates in, the long the company has been operating, how long the company has sufficient cash flow to pay for the loan, and also the overall well-being and creditworthiness of the business.
What are the costs?
There aren’t any hidden charges for our company loans. You’ll know precisely how much you’ll be required to pay, and when, starting from the very first day. There’s not any compounding interest and no extra fees (as long as you make your payments in time).
We do not charge an Application Fee. You can get a cash loan with without any upfront costs or the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan earlier?
You can decide to repay the entire amount of your loan at any point in time.
If you decide to take this route, please talk to one of our helpful company loans professionals. We will provide you with repayment details as well as an early payout amount. This will be calculated as the total of the remaining principal amount plus any accrued interest as of the time of the early payout plus 1.5% of the remaining principal and any outstanding fees.
How do repayments work?
To make sure that you don’t miss payment dates and to align with your cash flow routine, we offer repayments that are either daily or weekly. These are automatically deducted from your business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing the ways we gather, use, exchange and secure your information, is of huge importance and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to protecting the security of customers and security. We utilise a sophisticated banking verification system to instantly confirm your bank account information online. This allows us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when a company owner uses an asset they own to make the funds for a loan. The asset could be an asset belonging to the personal, like the family home or a business asset such as a truck as well as a piece of machine.
The vast majority of lending institutions, including the banks with the biggest size, prefer to secure loans against an asset. If you’re having trouble paying back the loan, your assets could be sold by the lender. In essence it’s the process of securing additional financing using the worth of the asset you already have.
What do I require security for a company loan?
For loans of up to $150,000, it is not necessary to secure assets in advance to gain access to the funds However, we require a personal guarantee. need an individual guarantee. In the event that you fulfill your loan obligations (as stated in your loan contract) and you are able to meet your obligations, asset security is not needed. For loans over $150K generally there is the option of a personal guarantee and security in the form of charges on assets.