FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Springvale Small Business Loans
Tell me how you can avail the Springvale Small Business Loans
Springvale unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What is this Unsecured Loan different from the traditional business loan?
Apply for the Small Business Loan in under 10 minutes via the internet or over the phone, receive an answer within the same day and the money could be available in just 24 hours. Traditional business loans have an interest rate per annum plus other fees and charges. Our company loan is a pre-paid loan therefore you’ll know in advance the total amount due, which includes any fees, interest or charges. This is then broken down into a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for almost every company purpose including cash flow management, company remodeling, marketing for purchasing inventory or new equipment, or as general working capital and so much more. The loan is not available to fund personal expenses.
About Larger Springvale Business Loans
What is the Larger Springvale Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of for up to 36 months. The repayments are made weekly or fortnightly to work with your situation.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size, your company needs to be operating for at least three years, and have an annual income of at least $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funding be used for?
A Larger Business Loan can be used for almost every business purpose including business improvements, purchasing inventory or new equipment for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. This is as a result of an charge over assets and can include the registration of this on the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a commitment to repay credit that is general in nature, rather than defining the security of a specific asset. The person who signs the ensure is personally accountable if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including items or assets). The PPSR permits priority over personal property to be granted according to the date a security interest has been registered.
An affidavit is an official document filed to offer the legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan that exceeds $250K we can offer an initial pre-approval that will help make the process. It is possible to do this without a credit verification and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes answering a couple of financial well-being checks. It is not an offer or guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer you may receive may have different terms.
The application process
Are I eligible for funding?
You can apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months worth of trade (for a 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. Complete the online form in few minutes and a dedicated business expert in lending will call you to guide you.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s Licence) and a valid NZBN/IRD and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Information on the application including credit consent, 12 months bank statement, an IRD statements as well as the two most recent years’ financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we typically provide an answer within an hour – as long as you apply within standard business times and let us use 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 in just the span of one business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we might be capable of offer you with a conditional pre-approval in 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 specifics of each application. Some transactions have received approval in just 24 hours.
The most efficient method is to ensure you apply during normal company hours. You can also allow us to use our modern bank verification to instantly verify your bank account information online. If you opt to send us duplicates of your banking accounts, it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K to $100K) We can usually offer a response in one hour if you make your application during standard business timings and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you decide to upload copies of your banking statements, we will be able to offer an answer in just one business day.
If you are applying for Larger Business Loans ($100K or more) We may be likely to offer the conditional pre-approval within six hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, it could be faster based on the specifics of each application. Some offers have been approved within less than 24 hours.
The fastest way can be make sure you apply during normal business hours, and allow us to use the advanced bank verification system to verify your bank account information online. If you opt to send us duplicates of your banking statements, it may take a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a certain amount, we take into consideration a range of elements that determine what is the health for your company as well as the amount of repayments that your business can afford. The total amount of the loan will be determined by the particular circumstances that are unique to your company.
When you make an application for a set amount, we look at a range of aspects to assess the health of the company and the extent of repayments that your business can afford. The amount you receive from the loan will be determined by the particular circumstances for your company.
Fees & repayments
What is the cost for an company loan?
When you request business loans with us company financing, we will assess the risk assessment the business and provide an individualised proposal that includes the amount of the loan, the duration and interest rates. It is a company loan is an upfront priced loan which means you know in advance the total amount due, which includes any costs, fees, or interest rates.
What determines the amount I pay?
Interest rates for business loans rates depend on several factors such as the amount that is that is borrowed, what company assets the money will be used for and the sector the business is in, how long the business has been running, how long the business has enough cash flow to support the loan, as well as the overall well-being as well as creditworthiness business.
What are the fees?
There aren’t any hidden charges with our company loans. You’ll know precisely how much it is that you be required to pay, and when, starting from the very first day. There’s no compounding and no extra fees (as as you make your payments punctually).
We don’t charge an application fee. You are able to apply for a loan absolutely no upfront cost and no obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan in advance?
You can repay the entire amount of the loan in full at any time.
If you do decide to do this please speak to our friendly business credit experts. They will offer you with the details of your repayment along with an early payout estimate. This is calculated as the sum of the principal amount remaining and any accrued interest at the time of early payment, plus 1.5 percent of the principal remaining and any fees that remain unpaid.
How do repayments work?
To help you avoid missing payment dates and to align with your cash flow routine, we offer repayments either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing how we collect, use, exchange and protect your information, is of paramount importance and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard 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 link to immediately verify your bank account information online so we can provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an company owner utilises assets they own to obtain a loan. The asset could be an individual property, such as the family home or a company asset like a truck or piece of equipment.
The vast majority of lenders, even the major banks, prefer to guarantee loans against assets. If you are having difficulty paying back the loan then the asset might be sold by the lender. In essence, it is an opportunity to secure new financing by making use of the value of what you already have.
Should I need security to get an company loan?
Up to $150,000 in loans no asset security is required upfront to access the money however, we do need a personal guarantee. If you adhere to your loan commitments (as stated in your loan contract) and you are able to meet your obligations, asset security will never be needed. For loans over $150,000 generally, you can get a personal guarantee and security is provided in the form of an asset charge.