FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Sunshine North Small Business Loans
Let me know about the Sunshine North Small Business Loans
Sunshine North unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from an traditional business loan?
It is possible to apply to get your Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and the money could be in your account within 24 hours. Traditional business loans have an interest rate per annum along with other charges and fees. This business loan is a cash-based loan therefore you’ll be aware of the total amount due, which includes the interest, fees and charges. This is then broken down into weekly or daily installment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for almost every company purpose including managing cash flows, company remodeling, marketing for purchasing inventory or new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
Concerning Larger Sunshine North Business Loans
What is the Larger Sunshine North Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your company needs to have been operating for a minimum of 3 years with an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funding be used for?
A large business loan can be used for almost all business reason, such as company improvements, purchasing new equipment or inventory for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It’s as a result of an charge over assets, and may be registered through the PPSR or registering a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is general in nature, rather than stating security over a particular asset. The person who signs the guarantee is personally liable in the event that the business 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 records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR grants priority over personal property to be granted in accordance with the date on which a security interest that is registered.
Caveats are legal document that is filed to offer notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan that is greater than $250,000 it’s possible to offer a preliminary pre-approval to help simplify the process. We might be able to apply for this without a credit verification and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves you answering some financial well-being questions. It’s not an offer or guarantee of financing. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer you are offered could be based on different conditions.
The application process
Can I be eligible for funding?
You may apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application within a few minutes and a dedicated business lending specialist will contact you to assist you.
To be eligible for up to $100,000, you’ll require proof of identity (valid Driver’s License) and an NZBN/IRD that is valid and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent, 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, and interim current financial year financials as well as Aged Payables and Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K or more) we can often offer an answer within an hour if you apply in quality company timings and allow us to utilise the bank verification system link to immediately verify your bank account information online. If you want to send us copies of your bank statements we can provide an answer in as little as 1 company day.
For the Larger Business Loan ($100K up to $500,000) we might be likely to provide the conditional pre-approval in about six hours. Once you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Certain transactions have received approval within the space of 24 hours.
The fastest way would be to make sure you apply during standard company hours and permit us to use the modern bank verification to check your bank’s information online. If you send us the copies of bank statement, it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we typically provide a response in one hour – provided you apply in normal business time and allow us to 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 are able to provide the decision within an business day.
If you are applying for Larger Business Loans ($100K and up) we might be capable of provide the conditional pre-approval within about 6 hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval. However, this can be faster depending upon the circumstances for each application. Certain offers have been approved in just 24 hours.
The quickest method is to make sure you apply during standard business hours. You can also permit us to use the modern bank verification link to verify your bank information online. If you choose to send us copies of your bank accounts, it may take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. When you make an application for a specific amount we will consider a number of factors that determine the health for your company and the amount of payments your business can afford. The total amount of the loan will be determined by the particular circumstances that are unique to your company.
When you make an application for a certain amount, we take into consideration a variety of aspects to determine your health for your business and the extent of payments your company can support. The total amount of your loan will be contingent on the particular circumstances of your company.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to request business loans with us company loan, we will assess the risk assessment that you have for your company and offer you with a customised offer including the amount of loan, the term and interest rates. A business loan is an upfront cost loan therefore you will know in advance the total amount payable including any charges, interest rates or fees.
What is the basis for the rate I pay?
The interest rates on business loans rates vary due to factors such as the amount that is of money borrowed, the business assets the funds will be used for as well as the field the business operates in, the long the business is in operation for, in the event that the company has sufficient cash flow to fund the loan, and also the general well-being as well as creditworthiness business.
What are the fees?
There are no hidden fees with our company loans. You’ll know precisely how much it is that you be required 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 are able to make your payments on time).
We do not charge an Application Fee. You can apply for a loan with no upfront cost or commitment to apply.
The Origination Fee covers the costs associated with setting up and managing the loan. This is only a fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan early?
You may choose to pay back the entire amount of the loan at any point in time.
If you are deciding to pursue this option, please call our helpful company loan specialists. They will offer you with repayment details and an early payment figure. This will be calculated as the sum of the principal amount remaining plus any accrued interest as of the time of early payment in addition to 1.5% of the remaining principal as well as any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss due dates and also to be in line your cash flow cycle we provide repayments either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and being upfront about the ways we gather data, process, exchange and secure your information, is of huge importance and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and privacy. We use an advanced bank verification system link to immediately verify the bank account details online so we can offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a company owner utilises the assets they have to get the funds for a loan. The asset can be a personal asset like the family home or a company property like a truck as well as a piece of machine.
The vast majority of the lenders not just the big banks, tend to make loans secured by an asset. If you have trouble paying back the loan then your assets could be transferred to the lender. In essence it’s a way of securing new financing using the worth of the asset you already have.
Should I require security for an company loan?
Up to $150,000 in loans there is no requirement for asset security upfront to access the money but we do require a personal guarantee. If you adhere to the loan terms (as stipulated in your loan contract document) and you are able to meet your obligations, asset security is not needed. For loans of over $150K typically, you will need personal ensure and security in the form of charges on assets.