FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Safety Beach Small Business Loans
Tell me how you can avail the Safety Beach Small Business Loans
Safety Beach unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What is the Unsecured Loan different from the traditional company loan?
It is possible to apply for your Small Business Loan in under 10 minutes online or over the phone, receive a same day response and the money could be on your account within 24 hours. Traditional business loans refer to an interest rate per annum as well as other fees and charges. The company loan is an upfront priced loan and you’ll be aware in advance of the total amount payable including any fees, charges or charges. This is then divided into a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business need, such as the management of cash flow, company renovations, marketing, to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal reasons.
About larger Safety Beach Business Loans
What is the Larger Safety Beach Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of that can last up to 36 months. The repayments are made weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your business needs to be operating for a minimum of 3 years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can I use the funds for?
A large business loan can be used for nearly every business purpose including company improvements, purchasing inventory or new equipment as well as for general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. This can be done by way of charge against assets, and may include registering this with the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is generally based rather than specifying security over an asset. The person who is signing the ensure is personally responsible if the company borrower is unable to pay back 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 which are registered with respect to personal property (including the assets or goods). The PPSR allows preference over private property assigned depending on the date that a registration of a security interest.
The caveat can be described as a formal document that is filed to offer the legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan of more than $250,000 we can offer a preliminary pre-approval to help ease the process. We could be able to get this done without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves the answer to a series of financial well-being questions. This is not an offer of credit or guarantee of financing. A conditional approval is subject an assessment of your creditworthiness and any offer that you might receive could be on different terms.
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 the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and simple. Just complete the online application in few minutes and a dedicated business loan specialist will call you to guide you through the process.
To apply for up to $100,000 you’ll require identification details (valid Driver’s License) as well as a valid NZBN/IRD and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent twelve months bank statement, an IRD statement and the last two years’ finalised financial statements, in addition to interim financials for the current financial year such as age-related payables and aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K or more) We can usually offer a response in one hour, provided you submit your request during quality business timings and let us utilise the bank verification system to instantly verify your bank details online. If you decide to upload copies of your bank statements , we are able to provide an answer within 1 business day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be likely to provide you with 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 it could be faster based on the specifics of each application. Certain deals have been approved in 24 hours.
The quickest way to apply can be make sure you apply during normal company hours and let us use the advanced bank verification system to instantly check your bank’s information online. If you opt to upload the copies of bank statements , it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K or more) we typically offer a response in one hour, provided you make your application in normal business hours and permit us to make use of the advanced bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statement, we’ll offer a decision within one business day.
For the Larger Business Loans ($100K and up) we could be in a position to provide you with pre-approval conditional to your application in around 6 hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however this could be shorter based on the specifics of each application. Some agreements have been approved within the space of 24 hours.
The fastest method is to ensure you apply during normal business hours. You can also permit us to use the modern bank verification to check your bank’s information online. If you opt to send us duplicates of your banking statements, it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a certain amount, we will consider a number of factors that determine the well-being of your business and the level of payments your company can afford. The amount you receive from your loan will depend on the particular circumstances of your company.
If you apply for a certain amount, we will consider a number of variables to assess how much we can lend you such as health of your company and the level of repayments that your company can support. The total amount of the loan will be determined by the particular circumstances of your company.
Fees & repayments
How do you charge for an business loan?
When you apply for our company credit, we’ll assess the risk assessment for your company and provide you with a customised proposal that includes the amount of loan, the term and the interest rates. It is a business loan is an upfront cost loan which means you know the exact amount to be paid, including any charges, interest rates or fees.
What is the basis for the rate I will be charged?
Interest rates for company loans rates vary due to factors like the amount of money borrowed, the company assets the money are used to purchase in addition to the industry that the business is operating in, how long the company has been in operation, how long the company has enough cash flow to fund the loan, and the general well-being or creditworthiness of the company.
What are the charges?
There are no hidden fees with our company loans. You’ll know exactly how much you’ll be required to pay and when, from the first day. There’s no compounding and the loan comes with no additional fees (as long as you make your payments on time).
We do not charge an Application Fee. You can get a cash loan absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the costs associated with establishing and managing the loan. The only way to pay this cost if you take out 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 can repay all of your advance loan at any time.
If you are deciding to pursue this option, please talk to one of our helpful company loan professionals. They will provide you with repayment details and an early payment figure. This will be calculated as the total of the principal balance and accrued interest to the time of early payout in addition to 1.5 percent of the remaining principal and any fees that remain unpaid.
How do you make repayments work?
In order to help you avoid missing payments and to work your cash flow schedule, we offer repayments either weekly or daily. They will be automatically deducted from your nominated business account.
Security & privacy
Will my information be secure?
Security of your data, and making it clear the ways we gather the information we collect, use, share and safeguard your data, is crucial and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to the security of our clients as well as their privacy. We make use of an advanced bank verification system to instantly verify your bank account information online to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an business owner utilises an asset they own to secure the funds for a loan. The asset may be a personal asset like the family home, or a business asset such as a truck or other piece of machinery.
The vast majority of the lenders not just the banks with the biggest size, prefer to make loans secured by an asset. If you are having difficulty paying back the loan, then the asset might be taken over by the lender. In essence it is a way of securing new financing making use of the value of what you already own.
What do I need security for an business loan?
For loans that exceed $150,000, no asset security is required in advance to gain access to the funds however, we require a personal guarantee. require an individual guarantee. If you adhere to the terms of your loan (as specified in your loan contract) Asset security is not required. For loans over $150,000 typically, you will need a personal guarantee and security in the form of charges on assets.