FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Springvale South Small Business Loans
Let me know how you are able to avail the Springvale South Small Business Loans
Springvale South unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from a traditional business loan?
It is imaginable to apply for your Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive a same day response and the funds could be on your account within 24 hours. Traditional company loans refer to an annual rate of interest as well as other fees and charges. Our company loan is a pre-paid loan and you’ll be aware in advance of the total amount payable including any fees, interest or charges. This is then divided into a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company use, including the management of cash flow, company renovations, marketing to purchase inventory, new equipment, or as general working capital and much more. The loan cannot be used for personal purposes.
About larger Springvale South Business Loans
What is the Larger Springvale South Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term that can last up to 36 months. The repayments are made weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount the company needs to be operating for a minimum of 3 years and have an annual turnover of at least $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funding be utilised?
A Larger Business Loan can be used to fund almost all company reason, such as business remodeling, buying inventory or new equipment for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. It is usually by way of charge on assets, and could include registering this through 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 general in nature, rather than stating security over an asset. The person signing the guarantee is personally accountable if the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be assigned according to the date a registration of a security interest.
Caveats are legal document lodged to provide notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re applying for an enterprise loan of $250,000 or more we may be able to provide an initial pre-approval to ease the process. We might be able to get this done without a credit check and within 6 hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering a few financial well-being checks. It’s not an offer or guarantee of funds. A conditional approval is subject a full credit assessment and any offer you receive could be based 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 at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for the 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 simple. Simply complete the online form within a couple minutes, and a dedicated company credit specialist will call you to assist you.
To apply for up to $100,000, you’ll need identification details (valid Driver’s Licence) and a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K – $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details for application including credit consent twelve month bank accounts, the IRD statements and the last two years’ finalised financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we typically provide an answer within one hour – as long as you apply in quality company time and let us utilise the advanced bank verification system link to instantly verify your bank’s information online. If you choose to submit copies of your bank statements , we will be able to offer an answer within just 1 company day.
For the Larger Business Loan ($100K or more) we may be likely to provide you with pre-approval conditional to your application within about six hours. Once you have 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 particular circumstances of each application. Certain agreements have been approved in just 24 hours.
The most effective method can be ensure you apply during standard company hours, and permit us to use the modern bank verification link to confirm your bank details online. If you opt to send us copies of your bank 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 offer an answer within an hour if you make your application during normal business timings and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statements, we will be able to offer an answer in just one business day.
If you are applying for Larger Business Loans ($100K or more) we may be able to provide the conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this may be quicker depending upon the circumstances for each application. Some agreements have been approved within less than 24 hours.
The quickest method would be to make sure you apply during standard business hours. Also, allow us to use the advance bank verification link to verify your bank account information online. If you decide to upload documents from your account statements it can take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a certain amount, we look at a variety of aspects that determine the health for your business as well as the amount of repayments that your company will be able to support. The total amount of your loan will be contingent on the particular circumstances that are unique to your business.
When you make an application for a particular amount, we take into consideration a variety of elements to determine the health of the company as well as the amount of the repayments your company is able to afford. The amount you receive from your loan will be determined by the specifics the company.
Fees & repayments
How much should you charge for an business loan?
When you request one of our company loans, we will assess the risk profile of your company and offer you with a customised offer including the loan amount, the terms and interest rates. A company loan is an upfront priced loan so you will know in advance the total amount to be paid, including any costs, fees, or interest rates.
What determines the amount I will be charged?
Business loan interest rates depend on several factors including the amount of money borrowed, the business assets the money are used to purchase in addition to the industry that the company operates in, the long the business has been in operation for, what percentage of the business has sufficient cash flow to pay for the loan, as well as the general well-being and creditworthiness of the business.
What are the cost?
There are no hidden fees for our company loans. You’ll know exactly how much it is that you need to pay and when, from the very first day. There’s no compounding interest and no extra fees (as long as you are able to make your payments punctually).
We do not charge an application fee. You can request a credit loan no cost upfront or commitment to apply.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the loan amount.
Do I have the option of paying off the loan early?
You can choose to repay the total amount of your loan in full at any time.
If you decide to do this please contact our helpful business loans experts. They will provide you with details on repayment and an early payout figure. This is calculated as the sum of the principal remaining plus any accrued interest as of the date of early payout in addition to 1.5 percent of the principal balance and any fees that remain unpaid.
How do you make repayments work?
To help you avoid missing payments and to work with your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Security of your data, and being upfront about how we collect, use, exchange and protect your information, is of huge importance and is a crucial part 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 sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to protecting the security of customers and security. We utilise a sophisticated bank verification system that allows you to immediately verify your bank account details online. This allows us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a company owner uses an asset that they own to make the funds for a loan. The asset can be an individual property, such as the family home, or a company property like a truck or piece or equipment.
The majority of the lenders not just the big banks, tend to secure loans against assets. If you’re struggling to pay back the loan, then the asset could be taken over by the lender. In essence it’s an opportunity to secure new financing taking advantage of the value of what you already own.
What do I require security to secure a business loan?
For loans up to $150K the requirement for asset security is not required upfront to access the money but we require a personal guarantee. need an individual guarantee. If you adhere to the loan terms (as detailed in your loan contract document) the security of assets will never be needed. For loans that exceed $150K, generally there is a personal ensure and security in the form of charges on assets.