FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Surrey Downs Small Business Loans
Let me know more about Surrey Downs Small Business Loans
Surrey Downs unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from an ordinary company loan?
You can apply to the Small Business Loan in under 10 minutes over the phone. You’ll get an instant response and have the funds on your account within 24 hours. Traditional business loans reference an annual interest rate together with additional fees and charges. Our business loan is a loan that is priced upfront so you will know in advance the total amount due, which includes any fees, charges or charges. This is then broken down into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any business use, including control of cash flow company renovations, marketing to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal use.
Concerning Larger Surrey Downs Business Loans
What is the Larger Surrey Downs Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to have been trading for at least 3 years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old 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.
How can the funds be utilised?
A Business Loan of a larger size can be used to fund almost all company reason, such as company remodeling, buying inventory or new equipment or as general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. It’s as a result of an charge on assets, which could also be registered on the PPSR or making a caveat.
A director’s or personal ensure is a commitment to repay credit that is general in nature, rather than specifying security over a particular asset. The person who is signing the ensure is personally accountable if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR allows preference over private property granted in accordance with the date on which a security interest has been registered.
An affidavit is an official document that is filed to offer notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re requesting the Larger Business Loan of more than $250,000 it’s possible to offer a preliminary pre-approval to help smooth out the process. We could be able to get this done without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial health checks. It is not an offer of credit or guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer that you may receive may be on different conditions.
The application process
Do I qualify for funds?
You can apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a few minutes and an experienced company credit specialist will contact you to assist you.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s License), a valid NZBN/IRD and at least six months of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Application details including credit consent and 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we usually provide an answer within an hour if you submit your request in standard business time and you allow us to utilise the bank verification system to immediately verify your bank account information online. If you want to upload copies of your banking statement, we’ll provide an answer in as little as 1 business day.
For Larger Business Loans ($100K up to $500,000) we could be in a position to offer the conditional pre-approval in around six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however it could be faster based on the circumstances of each application. Some deals have been approved in less than 24 hours.
The quickest method can be make sure you apply during standard business hours. Also, permit us to use the modern bank verification to instantly confirm your bank details online. If you upload copies of your bank statements , it will take a little longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) we usually offer an answer within one hour – as long as you apply within standard business timings and permit us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you opt to submit copies of your bank statements, we are able to provide an answer in just an business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be in a position to provide the conditional pre-approval in around 6 hours. After you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this could be shorter based on the particular circumstances of each application. Certain transactions have received approval in less than 24 hours.
The quickest method for you to apply is make sure you apply during standard business hours. You can also allow us to use the sophisticated bank verification link to confirm your bank details online. If you opt to send us duplicates of your banking statement, it can take a bit longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of aspects for determining your health for your business and the level of repayments that your company can support. The amount you receive from your loan will depend on the specifics that are unique to your business.
When you apply for a particular amount, we take into consideration a variety of factors to determine how much we can lend you such as well-being for your business as well as the amount of payments your business will be able to support. The total amount of your loan will be contingent on the particular circumstances of your company.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to request one of our business financing, we’ll assess the risk assessment for your business and offer you with a tailored proposal that includes the amount of the loan, the duration and interest rates. The company loan is an upfront priced loan and you’ll know the exact amount payable including any costs, fees, or interest rates.
What is the basis for the rate I’m charged?
The interest rates on company loans rates differ based on various factors such as the amount that is that is borrowed, what business assets the money are used to purchase and the sector the business operates in, the long the business has been in operation as well as in the event that the company has sufficient cash flow to pay for the loan, and the overall well-being and creditworthiness of the company.
What are the charges?
There aren’t any hidden costs with our business loans. You’ll be aware of the amount you be required to pay, and when, right from the very first day. 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 can apply for a loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I repay the loan earlier?
You may choose to pay back the entire amount of the loan early at any time.
If you decide to take this route, please talk to one of our helpful business credit professionals. They’ll offer you with repayment details 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 early payout and 1.5% of the remaining principal as well as any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align with your cash flow general, we provide repayments either weekly or daily. They are automatically deducted from your nominated business account.
Security & privacy
Will my information be protected?
Security of your data, and being transparent about how we collect the information we collect, use, share and protect your information, is vital 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 protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to the security of our clients as well as their privacy. We employ an exceptionally sophisticated bank verification system that allows you to immediately verify your bank account information online. This allows us to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a company owner borrows from an asset that they own to get the funds for a loan. The asset can be either an individual property, such as the family home, or an business property like a truck or piece of equipment.
The majority of lending institutions, even the largest banks, are inclined to make loans secured by assets. If you’re struggling to pay back the loan then the asset might be transferred to the lender. In essence, it’s an opportunity to secure new financing using the value of what you already have.
Are I require security to get a company loan?
For loans that exceed $150,000, the requirement for asset security is not required in advance to gain access to the funds However, we do require a personal guarantee. If you adhere to your loan commitments (as stated in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans over $150K typically, you will need an individual ensure and security in the form the charge of assets.