FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Scoresby Small Business Loans
Let me know more about Scoresby Small Business Loans
Scoresby unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from the traditional business loan?
The application to this Small Business Loan in under 10 minutes online or over the phone. You’ll get an immediate response, and have the funds available in just 24 hours. Traditional company loans refer to an annual rate of interest plus other fees and charges. The company loan is a cash-based loan which means you know ahead of time the total amount due, which includes any fees, charges or charges. This is then broken down into either weekly or daily installment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business use, including the management of cash flow, company remodeling, marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan cannot be used for personal purposes.
Concerning Larger Scoresby Business Loans
What is the Larger Scoresby 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 over a fixed term with a maximum of 36 months. The repayments are made weekly or fortnightly, depending on you cashflow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large the business needs to be in operation for at least 3 years and have an annual turnover of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can the funding be used for?
A large business loan can be used for almost all company need, including business improvements, purchasing inventory or new equipment or as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It’s by taking a charge against assets, and could include registration with the PPSR or registering a caveat.
A personal or director’s ensure is a promise to repay credit that is generally based rather than specifying the security of a specific asset. The person signing the ensure is personally liable if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including items or assets). The PPSR grants the priority of personal property granted depending on the date that a security interest that is registered.
An affidavit is an official document lodged to offer the legal claim against a property.
What exactly is a preapproval without Credit Check?
When you’re applying for a Larger Business Loan of $250,000 or more we may be able to provide an initial pre-approval to ease the process. It is possible to do this without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves the answer to a series of financial well-being checks. This is in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to a full credit assessment and any offer that you receive could have different conditions.
The application process
Do I have the right to receive funds?
You can apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for you to qualify for 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 simple and simple. Just fill out the online application within a couple minutes, and a dedicated business lending specialist will call you to help you.
To apply for up to $100,000, you’ll need ID details (valid Driver’s License) and an NZBN/IRD that is valid and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Application details including credit consent and 12 months of bank statements, IRD statements, last 2 years finalised financial statements, in addition to interim current financial year financials including Aged Payables, Aged Receivables summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) We can usually offer an answer in just one hour, provided you make your application during quality company times and allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statements , we’ll be able to provide an answer within 1 business day.
For the Larger Business Loan ($100K to $500K) we may be likely to provide you with a conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this can be quicker based on the particular circumstances of each application. Some transactions have received approval within 24 hours.
The quickest method can be ensure you apply during standard business hours, and allow us to use our advance bank verification to instantly confirm your bank details online. If you send us duplicates of your banking accounts, it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) we usually provide an answer within an hour – provided you submit your request within standard business hours and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statements we can provide the decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be able to provide you with a conditional pre-approval within six hours. After you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Some transactions have received approval in the space of 24 hours.
The most effective method is to make sure you apply during standard business hours, and allow us to use the modern bank verification link to verify your bank account information online. If you decide to send us copies of your bank accounts, it will take a little longer.
What is the maximum amount I can 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 factors for determining the well-being of the company and the amount of repayments your company can support. The amount you receive from your loan will be contingent on the particular circumstances of your business.
When you apply for a set amount, we consider a variety of factors to determine your well-being of the business and the amount of the repayments your business is able to afford. The amount you receive from your loan will depend on the specific circumstances the business.
Fees & repayments
How do you charge for a business loan?
When you request business loans with us company loan, we’ll assess the risk assessment for your company and offer you with a tailored offer including the amount of the loan, the duration and interest rates. A business loan is an upfront-priced loan and you’ll be aware of the total amount you will have to pay, including charges or interest.
What is the basis for the rate I am charged?
Business loan interest rates depend on several factors including the amount that is borrowed, what company assets the funds will be used for and the sector the business is in, how long the business has been operating for, how long the business has enough cash flow to pay for the loan, as well as the general well-being and creditworthiness of the company.
What are the charges?
There aren’t any hidden costs for our company loans, and you’ll know exactly how much it is that you be required to pay and when, right from day one. There’s no compounding interest and the loan comes with no additional fees (as as you make your payments in time).
We don’t charge an application fee. You are able to apply for a loan without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan in advance?
You can choose to repay the entire amount of your loan early at any time.
If you choose to do this please talk to one of our helpful business loans professionals. They’ll provide you with details on repayment as well as an early payout amount. It will be calculated using the sum of the remaining principal amount plus any accrued interest as of the date of early payout and 1.5 percent of the principal balance as well as any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payment dates and to align your cash flow schedule, we provide repayments either weekly or daily. These are automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being clear about the ways we gather, use, exchange and protect your information, is vital and a vital 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 secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and security. We make use of an advanced bank verification system that allows you to immediately confirm your bank account information online, allowing us to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a business owner makes use of the assets they have to make a loan. The asset can be either an individual asset, such as the family home or a company property like a truck or other piece of machinery.
The vast majority of banks, including the largest banks, are inclined to make loans secured by assets. If you’re struggling to pay back the loan then the asset could be transferred to the lender. In essence, it’s an opportunity to secure new funding making use of the value of what you already have.
Are I need security for a company loan?
Up to $150,000 in loans it is not necessary to secure assets upfront to access the money However, we do require the personal guarantee. If you adhere to your loan commitments (as detailed in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans over $150K generally there is the option of a personal ensure and security is provided in the form of an asset charge.