FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Strathewen Small Business Loans
Tell me more about Strathewen Small Business Loans
Strathewen unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
What is what makes the Unsecured Loan different from an traditional business loan?
Apply for this 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 are based on an annual interest rate plus other fees and charges. Our company loan is a cash-based loan therefore you’ll be aware of the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into weekly or daily amount to be paid back.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company need, such as cash flow management, company improvements, advertising to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal use.
About Larger Strathewen Business Loans
What is the Larger Strathewen Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed up to 36 months. The repayments are made weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size the company needs to be in operation for at least 3 years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A Business Loan of a larger size can be used for nearly any company purpose including business remodeling, buying new equipment or inventory, as general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is needed to obtain funding above $150,000. This is by taking a charge over assets, and could include registering this through the PPSR or registering as a caveat.
A personal or director’s ensure is a promise to repay a loan which is generally based rather than stating security over a particular asset. The person who is signing the ensure is personally accountable if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including goods or assets). The PPSR allows priority over personal property to be assigned in accordance with the date on which a registration of a security interest.
An affidavit is an official form of document to provide the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for an enterprise loan that exceeds $250,000 we may be able to provide an initial pre-approval that will help make the process. We might be able to apply for this without a credit check and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes answering a couple of financial health checks. It’s neither an offer nor a guarantee of finance. Unconditional approval is subject to a full credit assessment and any offer that you may receive may be based on different terms.
The 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 over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Just complete the online application in few minutes and an experienced business expert in lending will be in touch to help you.
To apply for up $100,000 you’ll require ID details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Application details including credit consent, 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we can often offer an answer in just one hour, provided you make your application during standard business times and allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statements , we will be able to provide the decision within an business day.
For Larger Business Loans ($100K or more) we could be in a position to offer you with pre-approval conditional to your application within six hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Some offers have been approved within the space of 24 hours.
The fastest way can be ensure you apply during standard business hours, and allow us to use the advance bank verification to instantly check your bank’s information 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 or more) we usually offer an answer within one hour – as long as you submit your request in normal business times and let us use the advanced bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statement, we’ll offer an answer in just the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be able to provide you with conditional pre-approval within six hours. Once you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval. However, this can be faster depending upon the circumstances for each application. Certain offers have been approved within just 24 hours.
The most effective method is to make sure you apply during standard business hours. You can also allow us to use our advance bank verification link to verify your bank account information online. If you opt to upload duplicates of your banking statements it will take a little longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a certain amount we look at a variety of factors for determining the well-being of the business and the extent of payments your company can afford. The amount you receive from 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 consider a variety of variables to determine the well-being of your company and the extent of repayments that your business can support. The amount you receive from your loan will depend on the particulars that are unique to your business.
Fees & repayments
How much do you charge for an company loan?
If you decide to apply for one of our company financing, we’ll assess the risk profile that you have for your company and provide you with a customised offer including loan amount, term and interest rates. A business loan is a loan that is priced upfront therefore you will be aware in advance of the total amount you will have to pay, including charges or interest.
What is the basis for the rate I’m charged?
Interest rates for business loans rates differ based on various factors including the amount that is borrowed, what company assets the money will be used for, the industry the company operates in, the long the business has been in operation as well as in the event that the business has enough cash flow to support the loan, as well as the overall health or financial standing of the business.
What are the charges?
There aren’t any hidden charges with our company loans. You’ll know exactly how much you’ll need to pay and when, right from the very first day. There’s no compounding interest and no extra fees (as long as you make your payments on time).
We don’t charge an Application Fee. You are able to make an application for loans with no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated with the setting up and management of the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Do I have the option of paying off the loan earlier?
You may choose to pay back the total amount of your loan in full at any time.
If you do decide to do this please talk to one of our helpful company loans experts. They will offer you with the details of your repayment along with an early payout estimate. This is calculated as the total of the remaining principal amount and the accrued interest up to the time of early payout, plus 1.5% of the principal remaining and any fees that remain unpaid.
How do you make repayments work?
To help you avoid missing repayments and to fit in your cash flow schedule, we offer repayments either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing how we collect, use, exchange and protect your information, is of huge importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to security for our customers and privacy. We utilise a sophisticated bank verification system to instantly verify your bank account information online. This allows us to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where a company owner makes use of assets they own to get the funds for a loan. The asset may be an individual asset, such as the family home, or an company asset such as a truck or other piece of machinery.
The vast majority of banks, including the banks with the biggest size, prefer to guarantee loans against assets. If you’re having trouble paying back the loan then the asset might be sold by the lender. In essence, it is an opportunity to secure additional financing using the value of what you already own.
Should I need security to secure an company loan?
Up to $150K in loans there is no requirement for asset security in advance to gain access to the funds However, we do need an individual guarantee. If you adhere to the loan terms (as detailed in your loan contract), asset security is not needed. If you take out loans in excess of $150K typically, you will need a personal ensure and security in the form of a charge over assets.