FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Salisbury Heights Small Business Loans
Tell me how you are able to avail the Salisbury Heights Small Business Loans
Salisbury Heights unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
What is how is the Unsecured Loan different from a traditional business loan?
The application for this Small Business Loan in under 10 minutes online or by phone. You will receive an answer within the same day and the funds could be available in just 24 hours. Traditional company loans reference an interest rate per annum together with additional fees and charges. The company loan is a pre-paid loan which means you be aware of the amount you will have to pay, including any fees, interest or charges. Then, it is divided into a daily or weekly amount to be paid back.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for nearly any business use, including the management of cash flow, business remodeling, marketing to purchase inventory or new equipment, or as general working capital and much more. The loan is not available for personal use.
About Larger Salisbury Heights Business Loans
What is the Larger Salisbury Heights Business Loan?
The Larger Business Loan is a larger amount of loan to help 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 your cash flow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size the company needs to have been operating for at least three years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A larger business loan is a great option for almost all business use, including business renovations, purchase of new equipment or inventory or as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. This can be done in the form of a charge against assets, and could include the registration of this in the PPSR or making a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is generally based rather than specifying the security for a particular asset. The person signing the guarantee is personally accountable if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR grants prioritisation over property that is personal to be granted in accordance with the date on which a security interest was registered.
An affidavit is an official form of document to offer notice of a legal claim on a property.
What is a pre-approval without Credit Check?
When you’re applying for a Larger Business Loan of $250,000 or more, we may offer a preliminary pre-approval to help simplify the process. We could be able to get this done without credit checks and within 6 hours of your initial application. The pre-approval process is based on an initial assessment, which involves the answer to a series of financial well-being checks. It’s neither an offer nor a guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer you receive could be subject to different conditions.
Application process
Can I be eligible for funding?
You are eligible to apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have 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 trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Just complete the online application within a few minutes and an experienced business expert in lending will contact you to assist you.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s License) as well as a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K-$250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Information on the application including credit consent as well as 12 months bank statement, an IRD statement, last 2 years finalised financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we usually offer a response in one hour – as long as you submit your request during standard business timings and you allow us to use the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your bank statements , we are able to provide an answer within just 1 business day.
For the Larger Business Loan ($100K to $500K) we may be capable of provide you with a conditional pre-approval within about 6 hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Some offers have been approved in the space of 24 hours.
The quickest way to apply is to ensure you apply during normal business hours, and allow us to use the advance bank verification to verify your bank account information online. If you send us copies of your bank statement, it takes a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often provide a response in one hour, provided you submit your request in normal business time and permit us to use the advanced bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statements we can offer the decision in as little as one business day.
For the Larger Business Loans ($100K and up) we could be capable of offer you with pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this can be faster depending on the circumstances of each application. Some transactions have received approval in 24 hours.
The fastest method is to ensure you apply during standard business hours. You can also allow us to use our modern bank verification link to instantly verify your bank information online. If you opt to send us copies of your bank accounts, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a certain amount we consider a variety of variables that determine how much we can lend you well-being of the business and the extent of payments your company will be able to support. The amount you receive from your loan will be contingent on the specifics of your business.
If you apply for a certain amount, we look at a range of factors to assess how much we can lend you such as health of your business and the level of repayments your company can support. The total amount of the loan will be determined by the specifics that are unique to your company.
Fees & repayments
What is the cost for the cost of a company loan?
When you apply for our business loans, we’ll assess the risk assessment the company and offer you with a tailored offer, including the amount of loan, the term and the interest rates. It is a company loan is an upfront priced loan therefore you will 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 depend on a variety of factors such as the amount that is borrowed, the business assets the funds are used to purchase, the industry the company operates in, how long the business has been running, in the event that the business has sufficient cash flow to cover the loan, and the general health as well as creditworthiness business.
What are the fees?
There aren’t any hidden costs with our company loans. You’ll be aware of the amount you’ll be required to pay and when, from the very first day. There’s not any compounding interest and there are no additional charges (as as long as you pay your payments in time).
We don’t charge an Application Fee. You can get a cash loan absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated with establishing and managing the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay off the loan early?
You can choose to repay the entire amount of the loan in full at any time.
If you are deciding to pursue this option, please call our helpful business credit experts. They will provide you with details for repayment and an early payout figure. This will be calculated as the sum of the principal balance and any accrued interest at the time of early payment and 1.5 percent of the principal balance and any fees that remain unpaid.
What are the repayment methods?
To make sure you do not miss payment dates and to align with your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my data be protected?
Security of your data, and being upfront about the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of huge importance and an integral 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 personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to protecting the security of customers and privacy. We make use of an advanced bank verification system link to immediately verify your bank account information online so we can provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an company owner utilises assets they own to get the funding. The asset can be either an individual asset, such as the family home or it could be a business asset like a truck or piece of equipment.
The majority of lenders, not just the big banks, tend to make loans secured by an asset. If you have trouble paying back the loan, then the asset might be sold by the lender. In essence, it’s means of securing additional financing taking advantage of the value of what you already have.
Are I need security to get a business loan?
For loans up to $150K it is not necessary to secure assets prior to the loan’s access, however we do need the personal guarantee. As long as you follow the loan terms (as detailed in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans of over $150,000 generally there is the option of a personal guarantee and security that is in the form an asset charge.