FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the South Wharf Small Business Loans
Tell me how you are able to avail the South Wharf Small Business Loans
South Wharf unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
How is what makes the Unsecured Loan different from an traditional business loan?
Apply to get this Small Business Loan in under 10 minutes online or on the phone. You’ll receive an instant response and the money could be in your account within 24 hours. Traditional company loans have an interest rate per annum as well as other fees and charges. We offer a business loan is a cash-based loan therefore you’ll be aware in advance of the amount you will have to pay, including any fees, charges or charges. This is then divided into weekly or daily payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for nearly any business purpose including cash flow management, business renovations, marketing to purchase inventory, new equipment, for general working capital and much more. The loan is not available for personal purposes.
About the Larger South Wharf Business Loans
What is the Larger South Wharf Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. The repayments are made weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
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 that is this large the business needs to have been operating for at least three years and have an annual turnover of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funds be utilised?
A large company loan can be used to fund almost any company use, including business renovations, purchase of equipment or inventory or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. It is usually by taking a charge over assets and can be registered with the PPSR or registering as a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is generally based rather than stating the security for a particular asset. The person who signs the ensure is personally responsible if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including items or assets). The PPSR gives the priority of personal property assigned depending on the date that a security interest that is registered.
The caveat can be described as a formal form of document to provide notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan of $250K or more we may be able to provide an initial pre-approval in order to make the process. It is possible to do this without a credit check and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes the answer to a series of financial well-being questions. It’s in no way an offer, nor is it a guarantee of funds. A conditional approval is subject a full credit assessment and any offer you might receive could be subject to different conditions.
The application process
Do I have the right to receive 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 business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application in few minutes and a dedicated company credit specialist will call you to guide you.
To apply for up $100,000 you’ll require proof of identity (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, 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: Details of the application, including credit consent twelve months of bank records, IRD statement and the last two years’ finalised financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K and up) We can usually offer a response in one hour – as long as you apply during quality company time and allow us to utilise the bank verification system link to instantly verify your bank information online. If you decide to upload copies of your banking statement, we’ll offer a decision in just the span of one business day.
For the Larger Business Loan ($100K or more) we may be in a position to offer you with pre-approval conditional to your application within about six hours. After you’ve signed your pre-approval document, you will require to wait about 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Some offers have been approved in just 24 hours.
The most effective method can be make sure you apply during standard business hours. You can also let us use the advance bank verification link to check your bank’s information online. If you upload the copies of bank statement, it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) we typically offer an answer within an hour, provided you submit your request during normal business timings and let us use the advanced bank verification system to instantly verify your bank information online. If you want to send us copies of your bank statements, we are able to provide a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we may be in a position to provide the conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, it could be faster based on the particular circumstances of each application. Some deals have been approved within the space of 24 hours.
The fastest way is to ensure you apply during normal business hours, and allow us to use the advance bank verification to verify your bank account information online. If you choose to upload duplicates of your banking statements it will take a little longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a particular amount, we consider a variety of variables in order to assess how much we can lend you health for your company and the extent of the repayments your company will be able to support. The amount you receive from the loan will be determined by the specifics for your company.
When you submit an application for a particular amount, we will consider a number of factors to determine how much we can lend you such as health of the business and the level of repayments that your business can afford. The amount you receive from the loan will be determined by the specific circumstances of your company.
Fees & repayments
How much should you charge for an company loan?
When you make an application for one of our company financing, we’ll assess the risk profile the business and provide you with a customised offer that includes the amount of loan, the term and interest rates. The company loan is an upfront cost loan which means you know in advance the total amount you will have to pay, including interest rates, fees or charges.
What determines the amount I will be charged?
Interest rates for business loans rates depend on several variables like the amount to be borrowed, the business assets the funds will be used for as well as the field the company is in, how long the company has been in operation, in the event that the business has sufficient cash flow to support the loan, and overall well-being or financial standing of the company.
What are the charges?
There are no hidden costs for our business loans. You’ll know precisely what you need to pay, and at what time, from the first day. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments punctually).
We don’t charge an Application Fee. You are able to get a cash loan no cost upfront or any obligation to sign up.
The Origination Fee includes the expenses associated with establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay off the loan early?
You can choose to repay the entire amount of your loan in full at any time.
If you choose to pursue this option, please talk to one of our helpful business lending professionals. The specialists will provide you with details on repayment along with an early payout estimate. The figure will be calculated as the total of the principal remaining and any accrued interest at the time of early payment in addition to 1.5% of the principal amount remaining and any fees that remain unpaid.
How do repayments work?
To ensure you do not miss payment dates and to align with your cash flow cycle we offer repayments that are either weekly or daily. They will be automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing how we collect the information we collect, use, share and secure your information, is of huge importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to protecting the security of customers and security. We make use of an advanced bank verification system that allows you to immediately verify your bank account details online to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a business owner uses an asset that they own to secure the funds for a loan. The asset can be either a personal asset like the family home, or an company asset such as a vehicle or piece of equipment.
The vast majority of the lenders even the banks with the biggest size, prefer to secure loans against an asset. If you are having difficulty paying back the loan then the asset could be offered for sale by the lender. In essence, it is a way of securing new funding using the value of what you already own.
Should I need security for an company loan?
For loans of up to $150,000, the requirement for asset security is not required upfront to access the money but we do require a personal guarantee. So long as you comply with the terms of your loan (as stated in the loan contract) Asset security is not needed. For loans of over $150,000 generally, you are able to get a personal guarantee and security in the form of an asset charge.