FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Upper Sturt Small Business Loans
Tell me what you think of the Upper Sturt Small Business Loans
Upper Sturt unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What makes this Unsecured Loan different from the traditional company loan?
You can apply to get your Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and the funds could be available in just 24 hours. Traditional company loans refer to an annual rate of interest together with additional fees and charges. Our company loan is a pre-paid loan therefore you’ll know ahead of time the amount you will have to pay, including any fees, interest or charges. This is then broken down into either a daily or weekly repayment figure.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for almost every business need, such as cash flow management, company improvements, advertising to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal reasons.
About Larger Upper Sturt Business Loans
What is the Larger Upper Sturt Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term that can last up to 36 months. Repayments are weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size, your business needs to have been operating for at least three years with an annual turnover of $700,000. It is necessary to be 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 to demonstrate at the least 12 months of operating.
What can the funding be used for?
A larger business loan can be used for nearly any business need, including company improvements, purchasing new equipment or inventory, as general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. It is usually as a result of an charge against assets, and may include the registration of this through the PPSR or filing a caveat.
A director’s or personal ensure is a commitment to repay a loan which is generally in nature rather than stipulating security over an asset. The person who is signing the guarantee is personally responsible if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR allows the priority of personal property granted depending on the date that a registration of a security interest.
An affidavit is an official document that is filed to offer the public notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re requesting an enterprise loan of $250,000 or more, we may offer an initial pre-approval to simplify the process. We may be able to make this decision without credit checks and within 6 hours of the initial application. The pre-approval is based upon an initial evaluation that involves you answering some financial well-being checks. It is not an offer of credit or guarantee of financing. A conditional approval is subject a full credit assessment and any offer that you receive could be on different terms.
Application process
Can I be eligible for funding?
You are eligible to 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 business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form in just a few minutes, and a dedicated business loan specialist will be in touch to assist you.
For a loan of up to $100,000 you’ll require proof of identity (valid Driver’s Licence) as well as an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Application details including credit consent as well as 12 months of bank statements, IRD statement, last 2 years finalised financial statements, as well as interim financials from the current financial year as well as Aged Payables and Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we can often provide an answer in just one hour, provided you apply during standard company timings and permit us to use the advanced bank verification system to instantly verify your bank details online. If you choose to send us copies of your bank statement, we’ll offer the decision in as little as the span of one company day.
For the Larger Business Loan ($100K and up) we might be able to provide the conditional pre-approval within 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based on the circumstances of each application. Certain deals have been approved within 24 hours.
The fastest way is to make sure you apply during standard business hours and let us use the advance bank verification link to instantly verify your bank account information online. If you choose to upload copies of your bank statements , it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we can often provide an answer within one hour – provided you apply in standard business times and allow us to use the bank verification system to instantly verify your bank’s information online. If you choose to upload copies of your banking statements we can offer a decision in just one business day.
If you are applying for Larger Business Loans ($100K and up) we might be in a position to offer you with a conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Certain offers have been approved in just 24 hours.
The fastest method can be ensure you apply during standard business hours. Also, let us use the sophisticated bank verification link to verify your bank account information online. If you send us the copies of bank statements it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loans that range from $5,000 and $500,000. When you submit an application for a specific amount we consider a variety of factors that determine your health of your business as well as the amount of repayments that your company can support. The total amount of your loan will be contingent on the specifics of your company.
If you apply for a particular amount, we look at a range of factors to determine the health of your company as well as the amount of payments your business can afford. The amount you receive from your loan will be determined by the specific circumstances that are unique to your business.
Fees & repayments
How do you charge for the cost of a company loan?
When you make an application for the business loan, we’ll assess the risk profile of your business and offer you with a customised offer, including the amount of the loan, the duration and interest rates. This company loan is an upfront-priced loan which means you be aware of the total amount due, which includes any interest rates, fees or charges.
What determines the amount I pay?
Business loan interest rates depend on several factors such as the amount that is of money borrowed, the business assets the funds are used to purchase in addition to the industry that the business is in, how long the business has been operating, what percentage of the business has sufficient cash flow to cover the loan, and also the general health or financial standing of the business.
What are the charges?
There are no hidden fees with our company loans. You’ll be aware of the amount you’ll be required to pay and when, from the first day. There’s no compounding interest and no extra fees (as long as you are able to make your payments on time).
We do not charge an Application Fee. You can apply for a loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I repay the loan in advance?
You can decide to repay the entire amount of the loan in full at any time.
If you decide to take this route, please speak to our friendly business loans specialists. The specialists will offer you with details on repayment along with an early payout estimate. This is calculated as the sum of the remaining principal amount and any accrued interest at the time of early payment and 1.5% of the remaining principal and any fees that remain unpaid.
What is the process for repayments?
To help you avoid missing due dates and also to be in line your cash flow schedule, we provide repayments either daily or weekly. These are automatically deducted from your business account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing the ways we gather data, process, exchange and protect your information, is crucial and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our customers as well as their privacy. We make use of an advanced bank verification system link to instantly verify your bank account information online to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an company owner makes use of an asset they own to obtain a loan. The asset can be a personal asset like the family home or it could be a business property like a truck or piece or equipment.
The majority of the lenders including the banks with the biggest size, prefer to secure loans against an asset. If you have trouble paying back the loan, then the asset could be transferred to the lender. In essence it’s an opportunity to secure new financing making use of the value of what you already have.
Should I require security to secure an business loan?
For loans up to $150,000 no asset security is required before you are able to access the money however, we do require an individual guarantee. As long as you follow your loan commitments (as stipulated in the loan contract) Asset security is not required. For loans of over $150,000 generally, there is a personal guarantee and security that is in the form a charge over assets.