FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Seaford Small Business Loans
Let me know how you are able to avail the Seaford Small Business Loans
Seaford unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from a traditional company loan?
It is imaginable to apply to the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an answer within the same day and funds may be in your account in 24 hours. Traditional business loans refer to an annual interest rate plus other fees and charges. Our company loan is an upfront priced loan so you will be aware in advance of the total amount due, which includes any interest, fees or charges. This is then broken down into either a daily or weekly installment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company reason, such as control of cash flow business remodeling, marketing to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used for personal use.
Concerning Larger Seaford Business Loans
What is the Larger Seaford Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan of this size the business needs to have been trading for at least 3 years, and have an annual income of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can I use the funding for?
A Business Loan of a larger size is a great option for almost any business need, including company renovations, purchase of equipment or inventory as well as for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. It’s in the form of a charge on assets, which could also include the registration of this through the PPSR or filing as a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is general in nature, rather than specifying security over a particular asset. The person signing the guarantee is personally liable in the event that the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR grants priority over personal property to be assigned in accordance with the date on which a security interest was registered.
The caveat can be described as a formal document lodged to offer notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re applying for a Larger Business Loan of more than $250,000, we may offer an initial pre-approval to ease the process. We may be able to get this done without credit checks and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering a few financial health questions. It’s neither an offer nor a guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer you might receive could have different terms.
Application process
Are I eligible for funding?
You are eligible to apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and simple. Complete the online form in few minutes and an experienced company loan specialist will be in touch to assist you.
To apply for up to $100,000 you’ll need identification details (valid Driver’s License) along with a valid NZBN/IRD 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 consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent and 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, and interim financial statements for the current year such as age-related payables and aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K and up) We can usually provide an answer within one hour – as long as you submit your request at standard business times and allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you opt to submit copies of your bank statements , we are able to provide the decision within just the span of one business day.
For Larger Business Loans ($100K up to $500,000) we might be likely to provide you with conditional pre-approval within six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Certain agreements have been approved within the space of 24 hours.
The most efficient method can be ensure you apply during normal company hours. Also, permit us to use the advance bank verification to instantly check your bank’s information online. If you opt to send us copies of your bank statements , it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we usually provide an answer within an hour – as long as you apply during normal business time and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statements, we will be able to provide the decision in just an business day.
For the Larger Business Loans ($100K up to $500,000) we might be able to provide you with conditional pre-approval within 6 hours. Once you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval. However, this could be shorter based upon the circumstances for each application. Some agreements have been approved in 24 hours.
The fastest way is to make sure you apply during normal business hours. You can also allow us to use our advanced bank verification system link to instantly check your bank’s information online. If you send us documents from your account accounts, it can take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you submit an application for a particular amount, we consider a variety of variables in order to assess what is the well-being for your 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 company.
When you make an application for a particular amount, we consider a variety of aspects to assess the health of the business and the level of payments your company will be able to support. The amount you receive from the loan will be determined by the particulars that are unique to your business.
Fees & repayments
How do you charge for an company loan?
If you decide to make an application for our company loan, we will assess the risk assessment that you have for your company and provide an individualised offer, including the amount of the loan, the duration and interest rates. This company loan is an upfront priced loan so you will be aware in advance of the total amount to be paid, including any costs, fees, or interest rates.
What determines the rate that I am charged?
Business loan interest rates vary due to factors such as the amount that is that is borrowed, what company assets the funds will be used for, the industry the business is in, how long the business has been running and in the event that the business has sufficient cash flow to pay for the loan, as well as the general well-being or creditworthiness of the company.
What are the costs?
There are no hidden costs with our company loans, and you’ll be aware of the amount you need to pay, and when, from day one. There’s not any compounding interest and the loan comes with no additional fees (as long as you make your payments in time).
We do not charge an application fee. You are able to make an application for loans with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated with setting up and managing the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay off the loan in advance?
You can decide to repay all of your loan early at any time.
If you decide to do this please speak to our friendly business loans specialists. We will provide you with repayment details and an early payment figure. It will be calculated using the total of the principal amount remaining and any accrued interest at the time of early payout, plus 1.5% of the remaining principal plus any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss due dates and also to be in line with your cash flow cycle we provide payments that are either daily or weekly. These are automatically deducted from your company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and knowing the ways we gather data, process, exchange and ensure the security of your information is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to protecting the security of clients and privacy. We make use of an advanced bank verification system that allows you to instantly verify your bank account details online, allowing us to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an business owner borrows from an asset that they own to secure the funds for a loan. The asset can be either an individual asset, such as the family home or it could be a business asset like a truck or other piece of machinery.
The majority of banks, even the banks with the biggest size, prefer to guarantee loans against an asset. If you are having difficulty paying back the loan, the asset could be taken over by the lender. In essence it is a way of securing new financing by making use of the value of what you already own.
Should I require security to get a business loan?
For loans up to $150,000 it is not necessary to secure assets upfront to access the money, however we do need a personal guarantee. As long as you follow the terms of your loan (as stated in your loan contract document) Asset security is not needed. For loans of over $150,000 generally, you are able to get an individual ensure and security in the form of charges on assets.