FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Spotswood Small Business Loans
Let me know about the Spotswood Small Business Loans
Spotswood unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
What is this Unsecured Loan different from an ordinary company loan?
The application to get the Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an immediate response, and funds may be on your account within 24 hours. Traditional business loans are based on an annual rate of interest along with other charges and fees. The business loan is an upfront priced loan and you’ll know in advance the total amount to be paid, including any interest, fees or charges. This is then broken down into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company use, including managing cash flows, business improvements, advertising for purchasing inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal use.
About the Larger Spotswood Business Loans
What is the Larger Spotswood Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are either weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your company needs to be trading for at least 3 years and generate an annual revenue of $700,000. Your business must belong to 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 business.
How can the funds be utilised?
A Larger Business Loan can be used for nearly any company reason, such as business renovations, purchase of equipment or inventory, as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. It’s by way of charge on assets, which could also be registered in the PPSR or registering a caveat.
A personal or director’s guarantee is a commitment to repay credit that is generally based rather than stipulating the security for a particular asset. The person who signs the ensure is personally responsible if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be granted according to the date a registration of a security interest.
An affidavit is an official document filed to provide the legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan that exceeds $250K it’s possible to offer a preliminary pre-approval to help ease the process. We could be able to do this without a credit check and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial well-being questions. It is not an offer or guarantee of financing. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you receive could be based on different terms.
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 the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form within a couple minutes, and an experienced business lending specialist will contact you to help you.
For a loan of up to $100,000, you’ll require ID details (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll also need:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Details for application including credit consent as well as 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, as well as interim financial statements for the current year such as age-related payables and aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we usually provide an answer within an hour if you make your application within quality company timings 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 statement, we’ll provide the decision in as little as the span of one company day.
For the Larger Business Loan ($100K and up) we may be able to offer you with a conditional pre-approval within about 6 hours. After you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The most effective method can be make sure you apply during standard company hours. Also, permit us to use the modern bank verification to verify your bank information online. If you decide to upload the copies of bank accounts, it can take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) we typically offer an answer within an hour if you submit your request within standard business time and you allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to send us copies of your bank statements, we are able to offer a decision in as little as one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be capable of provide the conditional pre-approval within 6 hours. Once you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval. However, this can be faster depending on the specifics of each application. Some agreements have been approved in 24 hours.
The most efficient method is to make sure you apply during standard business hours. You can also let us use the modern bank verification to instantly confirm your bank details online. If you opt to upload copies of your bank accounts, it will take a little longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a certain amount we look at a variety of factors in order to assess what is the well-being of the company as well as the amount of repayments that your company will be able to support. The amount you receive from your loan will be contingent on the specific circumstances the company.
When you make an application for a specific amount we consider a variety of elements to determine how much we can lend you such as well-being for your business as well as the amount of repayments your company is able to afford. The amount you receive from your loan will be determined by the specifics the company.
Fees & repayments
How much do you charge for an company loan?
When you request the company loans, we will assess the risk assessment that you have for your business and offer an individualised offer that includes loan amount, term and interest rates. A business loan is an upfront cost loan therefore you will be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What determines the amount I am charged?
Business loan interest rates depend on a variety of factors like the amount of money that is borrowed, what company assets the money will be used for, the industry the business is in, how long the company has been running as well as in the event that the business has sufficient cash flow to pay for the loan, and also the overall health or financial standing of the company.
What are the costs?
There are no hidden fees for our company loans. You’ll be aware of the amount you’ll be required to pay, and when, from the first day. There’s no compounding interest, and no additional fees (as as you make your payments punctually).
We do not charge an Application Fee. You are able to make an application for loans without any upfront costs or commitment to apply.
The Origination Fee is the cost associated with setting up and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan earlier?
You can choose to repay the total amount of your advance loan at any time.
If you do decide to do this please contact our helpful business credit specialists. We will provide you with details on repayment along with an early payout estimate. This will be calculated as the total of the remaining principal amount and the accrued interest up to the time of early payout in addition to 1.5 percent of the principal amount remaining and any fees that remain unpaid.
What is the process for repayments?
To ensure you do not miss payment dates and to align with your cash flow general, we provide payments that are either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as making it clear the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and is an essential 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 financial and other data. Our funders are ISO 27001 certified for our commitment to security for our clients and privacy. We use an advanced bank verification system to immediately confirm your bank account information online to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a company owner uses the assets they have to get the funds for a loan. The asset can be an individual property, such as the family home or an company asset such as a vehicle or piece of equipment.
The majority of lending institutions, not just the largest banks, are inclined to guarantee loans against assets. If you have trouble paying back the loan, the asset could be offered for sale by the lender. In essence it is the process of securing additional financing using the worth of the asset you already own.
Are I require security for an company loan?
For loans that exceed $150K, there is no requirement for asset security prior to the loan’s access but we require a personal guarantee. need the personal guarantee. As long as you follow the terms of your loan (as specified in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans of over $150K generally, you can get an individual guarantee and security in the form the charge of assets.