FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Sydenham Small Business Loans
Tell me what you think of the Sydenham Small Business Loans
Sydenham unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
What is the Unsecured Loan different from an traditional company loan?
You can apply for this Small Business Loan in under 10 minutes via the internet or over the phone, receive an answer within the same day and the funds could be available in just 24 hours. Traditional company loans reference an interest rate per annum along with other charges and fees. This company loan is a loan that is priced upfront so you will know in advance the total amount payable including any interest, fees or charges. This is then broken down into either weekly or daily repayment figure.
What can be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business purpose including control of cash flow company remodeling, marketing, to purchase inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal use.
About the Larger Sydenham Business Loans
What is the Larger Sydenham Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range from $100,000 to $500,000 with a term fixed up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your situation.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan in this amount, your business needs to have been operating for a minimum of 3 years and generate an annual revenue of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funds be utilised?
A Larger Business Loan is a great option for almost all business purpose including business improvements, purchasing inventory or new equipment for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. This can be done in the form of a charge against assets and can be registered in the PPSR or the registration of as a caveat.
A personal or director’s ensure is a commitment to repay credit that is general in nature, rather than specifying security over a particular asset. The person who is signing the ensure is personally responsible if the business creditor is unable to re-pay the debt.
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 that are registered for personal property (including items or assets). The PPSR grants priority over personal property to be assigned depending on the date that a security interest has been registered.
Caveats are legal form of document to offer an official notice of a claim to property.
What is a pre-approval minus Credit Check?
If you’re applying for the Larger Business Loan of more than $250K, we may offer an initial pre-approval in order to simplify the process. It is possible 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, which involves you answering a few financial health questions. It’s not an offer or guarantee of finance. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you are offered could have different conditions.
The application process
Do I have the right to receive funds?
You may apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form within a couple minutes, and a dedicated company expert in lending will contact you to assist you.
To apply for up $100,000 you’ll need proof of identity (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details for application including credit consent, 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, and interim financials from the current financial year such as age-related payables and aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) we usually provide an answer within an hour if you submit your request within quality company time and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you decide to send us copies of your bank statements , we’ll be able to offer a decision in just one business day.
If you are applying for a Larger Business Loan ($100K to $500K) we could be likely to offer you with pre-approval conditional to your application in about six hours. After you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this could be shorter based on the particular circumstances of each application. Some offers have been approved in less than 24 hours.
The quickest method would be to ensure you apply during normal company hours, and permit us to use the modern bank verification link to instantly check your bank’s information online. If you decide to upload duplicates of your banking accounts, it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) We can usually offer an answer in just one hour – provided you make your application in standard business time and permit us to use the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your banking statements, we are able to provide a decision within one business day.
If you are applying for Larger Business Loans ($100K or more) We may be capable of provide the conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however this can be faster depending on the specifics of each application. Some transactions have received approval in just 24 hours.
The fastest method would be to ensure you apply during normal business hours. You can also permit us to use the modern bank verification to instantly verify your bank account information online. If you choose to send us duplicates of your banking statements it will take a little longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a specific amount we consider a variety of aspects in order to assess how much we can lend you well-being of the company as well as the amount of repayments your business will be able to support. The total amount of your loan will be contingent on the particular circumstances for your business.
When you make an application for a certain amount, we will consider a number of variables to assess your health of the business and the level of repayments your business can support. The amount you receive from the loan will be determined by the particular circumstances for your business.
Fees & repayments
How do you charge for a business loan?
If you decide to apply for one of our business credit, we will assess the risk assessment of your business and offer an individualised proposal that includes loan amount, term and the interest rates. It is a company loan is an upfront-priced loan therefore you will be aware of the total amount payable including any costs, fees, or interest rates.
What is the basis for the rate I am charged?
Business loan interest rates differ based on various variables like the amount to be borrowed, what business assets the funds are used to purchase, the industry the company operates in, how long the company has been running and in the event that the company has sufficient cash flow to fund the loan, and overall health and creditworthiness of the company.
What are the costs?
There are no hidden fees for our business loans. You’ll know precisely how much it is that you need to pay, and when, from the very first day. There’s no compounding and there are no additional charges (as as long as you pay your payments punctually).
We do not charge an Application Fee. You are able to make an application for loans with without any upfront costs or the obligation to take action.
The Origination Fee includes the expenses associated with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I repay the loan early?
You can decide to repay the entire amount of the loan at any point in time.
If you do decide to take this route, please call our helpful business loan professionals. They will offer you with details for repayment along with an early payout estimate. It will be calculated using the total of the principal remaining and accrued interest to the time of early payment and 1.5% of the principal remaining plus any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss repayments and to fit in your cash flow cycle we provide repayments either daily or weekly. They are automatically deducted from your business account.
Security & privacy
Will my data be protected?
Protecting your information, and making it clear how we collect the information we collect, use, share and ensure the security of your information is of huge importance and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your sensitive, personal and financial data 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 link to immediately verify your bank account details online. This allows us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an business owner makes use of an asset they own to obtain the funds for a loan. The asset may be an individual asset, such as the family home, or it could be a company asset like a truck or piece of equipment.
The vast majority of lending institutions, even the largest banks, are inclined to secure loans against an asset. If you have trouble paying back the loan, your assets could be sold by the lender. In essence, it’s means of securing additional financing using the value of what you already own.
Do I need security for an company loan?
For loans of up to $150,000, there is no requirement for asset security upfront to access the money However, we do require an individual guarantee. In the event that you fulfill the loan terms (as detailed in the loan contract) the security of assets will never be required. For loans of over $150,000 generally, you are able to get personal guarantee and security in the form charges on assets.