FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Seaford Small Business Loans
Tell me how you are able to avail the Seaford Small Business Loans
Seaford unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
How is the Unsecured Loan different from an ordinary company loan?
The application for the Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and the funds could be on your account within 24 hours. Traditional company loans are based on an annual interest rate along with other charges and fees. We offer a business loan is a pre-paid loan which means you know in advance the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into either a daily or weekly payment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business purpose including the management of cash flow, company remodels and marketing, to purchase inventory or new equipment, or as general working capital, and much more. The loan is not available to fund personal expenses.
About larger Seaford Business Loans
What is the Larger Seaford Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are either weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your company needs to have been trading for at least 3 years, and have an annual income of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and 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 can be used to fund almost all company use, including business improvements, purchasing equipment or inventory as well as for general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed to access funding over $150,000. It’s in the form of a charge over assets, which could also include the registration of this through the PPSR or filing as a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is generally in nature rather than specifying the security of a specific asset. The person who signs the guarantee is personally responsible if the business creditor 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 that are registered for personal property (including the assets or goods). The PPSR gives the priority of personal property granted in accordance with the date on which a registration of a security interest.
An affidavit is an official document lodged to offer the public notice of a 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 that exceeds $250,000 we may be able to provide an initial pre-approval that will help smooth out the process. We might be able to do this without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes the answer to a series of financial health checks. This is not an offer of credit or guarantee of funds. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you are offered could be subject to different terms.
Application process
Do I have the right to receive funds?
You are eligible to apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application in just a few minutes, and an experienced business loan specialist will be in touch to guide you.
To be eligible for up to $100,000, you’ll require the right identification documents (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details of the application, including credit consent as well as 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we can often offer a response in one hour – as long as you apply at quality company timings and let us utilise the bank verification system link to instantly verify your bank information online. If you choose to upload copies of your banking statements we can provide a decision in just the span of one company day.
For Larger Business Loans ($100K or more) we may be able to offer you with conditional pre-approval within six hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval, however this could be shorter based on the circumstances of each application. Certain deals have been approved within just 24 hours.
The quickest method would be to make sure you apply during normal business hours, and allow us to use the modern bank verification to instantly verify your bank account information online. If you opt to send us documents from your account statements , it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we can often provide an answer within an hour – provided you submit your request during standard business hours and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your bank statement, we’ll provide a decision in as little as 1 business day.
For Larger Business Loans ($100K up to $500,000) We may be in a position to provide you with a conditional pre-approval in 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. Some agreements have been approved within 24 hours.
The most effective method can be ensure you apply during standard business hours. You can also permit us to use the advanced bank verification system to confirm your bank details online. If you upload copies of your bank statements it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a certain amount, we look at a variety of aspects that determine the well-being of the business and the extent of repayments that your company is able to afford. The amount you receive from your loan will depend on the specifics that are unique to your business.
If you apply for a specific amount we look at a range of aspects to assess your health of your business as well as the amount of payments your company is able to afford. The total amount of your loan will depend on the particular circumstances the business.
Fees & repayments
How do you charge for an business loan?
If you decide to request our company financing, we’ll assess the risk profile the company and provide you with a tailored offer, including the loan amount, the terms and the interest rates. This business loan is an upfront cost loan therefore you will know in advance the total amount to be paid, including any charges, interest rates or fees.
What determines the rate that I am charged?
The interest rates on business loans rates depend on several variables like the amount to be of money borrowed, the company assets the money are used to purchase in addition to the industry that the business operates in, how long the company is in operation as well as whether the company has sufficient cash flow to cover the loan, and the overall well-being and creditworthiness of the business.
What are the fees?
There are no hidden fees with our company loans. You’ll know precisely how much you’ll be required to pay, and when, right from day one. There’s no compounding interest, and the loan comes with no additional fees (as long as you are able to make your payments on time).
We don’t charge an application fee. You can get a cash loan no cost upfront or any obligation to sign up.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percent of the loan amount.
Can I pay off the loan in advance?
You can choose to repay the entire amount of your loan early at any time.
If you do decide to take this route, please call our helpful business loan professionals. They will offer you with details for repayment and an early payout figure. It will be calculated using the sum of the principal amount remaining and any accrued interest at the time of early payment in addition to 1.5 percent of the principal remaining and any outstanding fees.
How do repayments work?
To ensure you do not miss due dates and also to be in line with your cash flow routine, we offer repayments that are either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my data be secure?
Protecting your information, and knowing how we collect the information we collect, use, share and safeguard your data, is of paramount importance and is an essential part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their privacy. We utilise a sophisticated bank verification system that allows you to immediately verify your bank account details online. This allows us to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when the company owner makes use of an asset that they own to obtain the loan. The asset can be an individual property, such as the family home or a company property like a truck or other piece of machinery.
The vast majority of lenders, not just the banks with the biggest size, prefer to guarantee loans against assets. If you are having difficulty paying back the loan, then your asset may be sold by the lender. In essence, it is means of securing new funding using the value of what you already own.
What do I require security to get an company loan?
For loans that exceed $150,000, it is not necessary to secure assets before you are able to access the money, however we do need an individual guarantee. In the event that you fulfill the loan terms (as stated in the loan contract) and you are able to meet your obligations, asset security will never be needed. For loans that exceed $150,000, generally, you can get personal ensure and security in the form an asset charge.