FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Semaphore South Small Business Loans
Tell me more about Semaphore South Small Business Loans
Semaphore South unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What makes how is the Unsecured Loan different from an traditional company loan?
The application for this Small Business Loan in under 10 minutes online or by phone. You will receive a same day response and the money could be in your account in 24 hours. Traditional business loans are based on an annual rate of interest as well as other fees and charges. This business loan is a pre-paid loan therefore you’ll be aware of the total amount due, which includes the interest, fees and charges. Then, it is broken down into either weekly or daily installment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost every company use, including managing cash flows, business remodels and marketing to purchase inventory or new equipment, for general working capital, and much more. The loan is not available to fund personal expenses.
About larger Semaphore South Business Loans
What is the Larger Semaphore South Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to be operating for a minimum of 3 years, and have an annual income of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funding for?
A large company loan can be used for almost any company reason, such as business renovations, purchase of inventory or new equipment as well as for general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. This is by taking a charge over assets and can include registering this with the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is generally in nature rather than stating the security of a specific asset. The person signing the ensure is personally liable in the event that the company lender is not able 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 reflects security interests which are registered with respect to personal property (including objects or assets). The PPSR grants the priority of personal property granted in accordance with the date on which a registration of a security interest.
A caveat is a legal document that is filed to offer the legal claim to a property.
What exactly is a preapproval without Credit Check?
When you’re applying for the Larger Business Loan of $250K or more we can offer an initial pre-approval in order to make the process. We might be able to get this done without a credit check, and within 6 hours of the initial application. This pre-approval is made based on a preliminary assessment which includes you answering a few financial health checks. It’s neither an offer nor a guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer you may receive may have different terms.
The application process
Are I eligible for funding?
You are eligible to apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Complete the online form in just a few minutes, and a dedicated company lending specialist will call you to help you.
To apply for up $100,000, you’ll require the right identification documents (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K to $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Application details including credit consent and 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, plus interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) We can usually offer a response in one hour if you submit your request within quality business timings and let us utilise the bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your bank statements , we are able to provide an answer in as little as the span of one company day.
For the Larger Business Loan ($100K to $500K) we may be able to offer the conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this can be quicker based on the specifics of each application. Certain agreements have been approved in the space of 24 hours.
The quickest method would be to make sure you apply during standard company hours. You can also permit us to use the advanced bank verification system to instantly verify your bank account information online. If you choose to upload duplicates of your banking accounts, it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we usually provide an answer within an hour – provided you apply within normal business timings and permit us to use the advanced bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statements we can offer the decision in just an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be likely to provide you with pre-approval conditional to your application in around six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Some offers have been approved in just 24 hours.
The quickest method is to ensure you apply during normal business hours. Also, let us use the advance bank verification to instantly check your bank’s information online. If you choose to send us duplicates of your banking statements it takes a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a certain amount we will consider a number of variables for determining your well-being of the business and the amount of payments your company can afford. The total amount of your loan will depend on the specific circumstances for your business.
When you apply for a specific amount we consider a variety of aspects to determine how much we can lend you such as health that is your business as well as the amount of repayments your company can support. The total amount of your loan will be contingent on the particular circumstances that are unique to your company.
Fees & repayments
What is the cost for a business loan?
When you apply for the company financing, we’ll assess the risk assessment for your business and offer an individualised offer, including loan amount, term and interest rates. The company loan is an upfront-priced loan therefore you will know in advance the total amount payable including any charges, interest rates or fees.
What is the factor that determines the price I will be charged?
Interest rates for company loans rates depend on a variety of factors like the amount of money borrowed, what company assets the funds are used to purchase as well as the field the business is operating in, how long the business has been operating as well as what percentage of the company has sufficient cash flow to pay for the loan, and general well-being or creditworthiness of the business.
What are the costs?
There aren’t any hidden charges for our business loans. You’ll be aware of the amount you need to pay, and when, from day one. There’s not any compounding interest and no additional fees (as long as you make your payments on time).
We don’t charge an Application Fee. You can get a cash loan with no cost upfront or the obligation to take action.
The Origination Fee is the cost associated in establishing 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 loan.
Can I pay off the loan earlier?
You can repay the entire amount of the loan early at any time.
If you choose to take this route, please call our helpful company loans professionals. They’ll provide you with details on repayment along with an early payout estimate. This is calculated as the total of the remaining principal amount and the accrued interest up to the time of early payment plus 1.5 percent of the principal remaining plus any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss payments and to work with your cash flow standard, we offer repayments either daily or weekly. These are automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
Protecting your information, and knowing the ways we gather information, use it, and exchange it, as well as protect your information, is crucial and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We make use of an advanced bank verification system link to immediately confirm your bank account information 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 an business owner utilises assets they own to obtain the funds for a loan. The asset can be a personal asset like the family home or it could be a company asset such as a vehicle or piece or equipment.
The majority of the lenders including the big banks, tend to secure loans against assets. If you are having difficulty paying back the loan, the asset might be taken over by the lender. In essence it’s the process of securing new financing by using the value of what you already own.
Are I require security for an business loan?
For loans that exceed $150K, no asset security is required upfront to access the money, however we require a personal guarantee. need the personal guarantee. As long as you follow the loan terms (as specified in your loan contract document), asset security will never be needed. If you take out loans in excess of $150,000 generally there is a personal guarantee and security is provided in the form of an asset charge.