FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Salisbury Small Business Loans
Tell me what you think of the Salisbury Small Business Loans
Salisbury unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from the traditional business loan?
The application for this Small Business Loan in under 10 minutes online or over the phone, receive an instant response and funds may be on your account within 24 hours. Traditional company loans reference an annual rate of interest plus other fees and charges. Our company loan is a cash-based loan which means you be aware in advance of the total amount due, which includes any fees, interest or charges. Then, it is divided into weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business reason, such as managing cash flows, company renovations, marketing for purchasing inventory or new equipment, or as general working capital, and much more. The loan cannot be used to fund personal expenses.
About the Larger Salisbury Business Loans
What is the Larger Salisbury Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term with a maximum of 36 months. Repayments are weekly or fortnightly, depending on your cash flow.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan in this amount the company needs to have been operating for a minimum of 3 years, and have an annual income of at least $700,000. Your business must belong to 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 of proving at minimum 12 months of continuous trading.
How can the funding be used for?
A large company loan is a great option for almost every business reason, such as business remodeling, buying new equipment or inventory, as general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. It is usually by taking a charge over assets, which could also include the registration of this in the PPSR or the registration of a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is generally in nature rather than stipulating the security of a specific asset. The person signing the guarantee is personally liable if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests registered in respect of personal property (including goods or assets). The PPSR gives priority over personal property to be assigned according to the date a registration of a security interest.
The caveat can be described as a formal document lodged to provide notice of a legal claim to property.
What exactly is a preapproval without Credit Check?
When you’re applying for an enterprise loan of $250,000 or more we may be able to provide an initial pre-approval in order to make the process. We might be able to apply for this without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes the answer to a series of financial well-being checks. It’s not an offer of credit or guarantee of credit. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you may receive may be subject to different terms.
The application process
Are I 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 have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for 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 fast and easy. Simply complete the online form in few minutes and an experienced business lending specialist will be in touch to guide you.
For a loan of up to $100,000 you’ll require ID details (valid Driver’s License), an NZBN/IRD that is valid and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Application details including credit consent, 12 months bank statement, an IRD statement, last 2 years finalised financial statements, as well as interim financials for the current financial year including Aged Payables, Aged Receivables reports.
What speed will I be able to get a decision?
For an unsecured loan ($5K and up) We can usually offer an answer within one hour – as long as you submit your request in standard company hours and you allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statement, we’ll offer an answer within just an business day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to offer you with a conditional pre-approval within 6 hours. Once you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this can be quicker based upon the circumstances for each application. Certain transactions have received approval within the space of 24 hours.
The most efficient method is to ensure you apply during normal business hours, and let us use the modern bank verification link to instantly confirm your bank details online. If you send us copies of your bank statements it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) we typically provide a response in one hour – as long as you submit your request during normal business timings and allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statement, we’ll offer a decision in just 1 business day.
For Larger Business Loans ($100K up to $500,000) we may be able to provide you with a conditional pre-approval in around six hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this can be faster depending upon the circumstances for each application. Certain agreements have been approved in just 24 hours.
The fastest method is to ensure you apply during normal business hours. Also, allow us to use the modern bank verification to instantly check your bank’s information online. If you upload documents from your account statements, it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a certain amount we take into consideration a range of variables for determining the health for your company as well as the amount of the repayments your company can afford. The amount you receive from your loan will be contingent on the particular circumstances that are unique to your company.
When you make an application for a certain amount, we consider a variety of variables to assess your health that is your business and the level of payments your business can support. The amount you receive from your loan will depend on the specifics the business.
Fees & repayments
What is the cost for an company loan?
If you decide to make an application for our company loans, we will assess the risk profile for your business and offer an individualised offer, including the amount of loan, the term and interest rates. The company loan is an upfront cost loan therefore you will be aware in advance of the total amount payable including any costs, fees, or interest rates.
What determines the rate that I am charged?
Business loan interest rates depend on a variety of variables like the amount to be borrowed, the company assets the money will be used for as well as the field the business operates in, the long the company has been running, what percentage of the business has enough cash flow to support the loan, and general well-being and creditworthiness of the company.
What are the costs?
There are no hidden fees with our company loans. You’ll know precisely what you’ll need to pay and when, starting from day one. There’s no compounding interest, and no extra fees (as as long as you pay your payments punctually).
We do not charge an Application Fee. You are able to request a credit loan no cost upfront or commitment to apply.
The Origination Fee covers the costs associated with setting up and managing the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I repay the loan earlier?
You can repay the entire amount of your loan early at any time.
If you do decide to take this route, please contact our helpful company lending professionals. The specialists will provide you with the details of your repayment along with an early payout estimate. This will be calculated as the total of the principal remaining plus any accrued interest as of the time of the early payout, plus 1.5 percent of the principal remaining and any outstanding fees.
What are the repayment methods?
To ensure you do not miss payments and to work with your cash flow routine, 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 being clear about the ways we gather the information we collect, use, share and safeguard your data, is crucial and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to security for our customers and security. We utilise a sophisticated banking verification system to instantly verify your bank account information online to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an company owner borrows from the assets they have to obtain a loan. The asset could be a personal asset like the family home or an business asset like a truck or other piece of machinery.
The majority of the lenders even the big banks, tend to secure loans against assets. If you’re struggling to pay back the loan then your assets could be taken over by the lender. In essence it is the process of securing new funding taking advantage of the value of what you already own.
Are I require security to secure an company loan?
Up to $150K in loans no asset security is required 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 detailed in your loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150K generally, there is an individual guarantee and security that is in the form charges on assets.