FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The South Yarra Small Business Loans
Let me know how you are able to avail the South Yarra Small Business Loans
South Yarra unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What is what makes the Unsecured Loan different from a traditional business loan?
It is imaginable to apply to the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an immediate response, and the funds could be in your account in 24 hours. Traditional business loans have an interest rate per annum together with additional fees and charges. Our business loan is a loan that is priced upfront and you’ll know ahead of time the total amount due, which includes the interest, fees and charges. This is then divided into weekly or daily payment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company purpose including managing cash flows, company improvements, advertising to purchase inventory, new equipment, as general working capital, and much more. The loan cannot be used for personal use.
About larger South Yarra Business Loans
What is the Larger South Yarra Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range from $100,000 to $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly depending on your situation.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order 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 income of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funding for?
A Business Loan of a larger size is a great option for almost every business need, including company renovations, purchase of inventory or new equipment as well as for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. This is by way of charge on assets, which could also be registered through the PPSR or making as a caveat.
A personal or director’s guarantee is a guarantee to pay back a loan that is general in nature, rather than stating the security for a particular asset. The person who signs the ensure is personally accountable if the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It records security interests that have been registered in respect of personal property (including goods or assets). The PPSR grants the priority of personal property assigned according to the date a security interest was registered.
A caveat is a legal form of document to offer the public notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan that is greater than $250K, we may offer an initial pre-approval in order to smooth out the process. It is possible to get this done without credit checks and within 6 hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering a few financial health checks. It is neither an offer nor a guarantee of funds. Unconditional approval is subject to an extensive credit evaluation and any offer you may receive may have different conditions.
The application process
Do I qualify for funds?
You are eligible to 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 company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just complete the online application in just a few minutes, and an experienced business credit specialist will call you to assist you.
To be eligible for up to $100,000, you’ll need ID details (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent, 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials as well as Aged Payables and Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) We can usually offer an answer within an hour if you submit your request during quality company timings and let us make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statements we can provide a decision in just the span of one business day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be in a position to provide you with conditional pre-approval in around 6 hours. After you’ve signed your pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, it could be faster based on the specifics of each application. Certain deals have been approved in the space of 24 hours.
The quickest way to apply is to ensure you apply during normal company hours and let us use the advanced bank verification system to instantly verify your bank information online. If you opt to send us duplicates of your banking statement, it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer within an hour, provided you submit your request at normal business times and you allow us to use the bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your banking statements, we’ll be able to offer an answer in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might 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 document, you will need to wait about 2-3 days for final approval, however this can be faster depending on the specifics of each application. Certain offers have been approved in just 24 hours.
The most effective method for you to apply is make sure you apply during standard business hours, and permit us to use the modern bank verification link to instantly check your bank’s information online. If you upload documents from your account statements it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a particular amount, we will consider a number of variables in order to assess what is the well-being that is your company as well as the amount of the repayments your company will be able to support. The total amount of your loan will be contingent on the specifics of your business.
If you apply for a set amount, we look at a range of variables to assess the well-being that is your company and the level of repayments your company can support. The total amount of your loan will depend on the specifics for your company.
Fees & repayments
How do you charge for an business loan?
When you request our business loan, we will assess the risk assessment for your company and provide you with a customised offer that includes the amount of loan, the term and the interest rates. The business loan is an upfront-priced loan which means you be aware in advance of the total amount due, which includes any interest rates, fees or charges.
What determines the amount I will be charged?
Interest rates for company loans rates depend on several factors like the amount of money borrowed, the business assets the money will be used for, the industry the business is in, how long the business is in operation as well as whether the business has sufficient cash flow to pay for the loan, and the overall health or creditworthiness of the company.
What are the cost?
There are no hidden costs for our company loans, and you’ll know exactly how much you’ll be required to pay, and when, from the day you sign up. There’s no compounding interest and there are no additional charges (as long as you are able to make your payments in time).
We do not charge an application fee. You are able to make an application for loans with no upfront cost or commitment to apply.
The Origination Fee covers the costs associated in establishing and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay out the loan earlier?
You may choose to pay back all of your loan early at any time.
If you do decide to take this route, please talk to one of our helpful company loans specialists. They’ll offer you with the details of your repayment and an early payout figure. This will be calculated as the total of the principal balance plus any accrued interest as of the time of the early payout and 1.5% of the remaining principal and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in your cash flow schedule, we provide payments that are either weekly or daily. These are automatically withdrawn from your designated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear the ways we gather data, process, exchange and ensure the security of your information is of paramount importance and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and privacy. We make use of an advanced banking verification system to instantly verify the bank account details online, allowing us to provide rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when a business owner utilises an asset that they own to obtain a loan. The asset could be an individual asset, such as the family home or a company property like a truck or piece or equipment.
The vast majority of banks, including the major banks, prefer to guarantee loans against assets. If you’re struggling to pay back the loan, your asset may be transferred to the lender. In essence it’s the process of securing new financing making use of the value of what you already own.
Should I require security to get an business loan?
For loans that exceed $150K, there is no requirement for asset security in advance to gain access to the funds but we require a personal guarantee. need an individual guarantee. If you adhere to the terms of your loan (as stated in your loan contract document) the security of assets is not needed. For loans of over $150,000 generally, you are able to get the option of a personal ensure and security in the form a charge over assets.