FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Anstead Small Business Loans
Tell me about the Anstead Small Business Loans
Anstead unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from an ordinary business loan?
It is possible to apply for the Small Business Loan in under 10 minutes online or on the phone. You’ll receive a same day response and funds may be in your account in 24 hours. Traditional company loans are based on an interest rate per annum plus other fees and charges. The company loan is a loan that is priced upfront which means you be aware of the total amount payable including the interest, fees and charges. This is then broken down into either a daily or weekly installment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company need, such as control of cash flow company renovations, marketing, to purchase inventory or new equipment, or as general working capital and much more. The loan is not available for personal reasons.
About the Larger Anstead Business Loans
What is the Larger Anstead Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of with a maximum of 36 months. Repayments are scheduled weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee that is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size the business needs to be trading for at least 3 years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can I use the funding for?
A large business loan can be used to fund almost any company use, including business improvements, purchasing inventory or new equipment for general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. This can be done as a result of an charge on assets, and may include registering this on the PPSR or filing as a caveat.
A director’s or personal ensure is a promise to pay off a credit line that is generally in nature rather than defining the security of a specific asset. The person signing the ensure is personally liable in the event that the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including items or assets). The PPSR gives the priority of personal property granted in accordance with the date on which a security interest that is registered.
The caveat can be described as a formal document filed to offer an official notice of a claim against a property.
What is a pre-approval without Credit Check?
If you’re requesting an enterprise loan of $250K or more, we may offer an initial pre-approval to make the process. It is possible to apply for this without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves you answering a few financial well-being checks. This is in no way an offer, nor is it a guarantee of funds. A conditional approval is subject a full credit assessment and any offer that you may receive may be based on different conditions.
The application process
Do I have the right to receive funds?
You may apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application within a few minutes and a dedicated business credit specialist will call you to help you.
For a loan of up to $100,000, you’ll require ID details (valid Driver’s Licence) and a valid NZBN/IRD and at least six months of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Information on the application including credit consent, 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) We can usually offer a response in one hour, provided you make your application within standard company times and you allow us to use the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statement, we’ll offer a decision in just the span of one company day.
For Larger Business Loans ($100K or more) we might be capable of provide the conditional pre-approval within about 6 hours. After you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Some offers have been approved within 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal business hours and let us use the advance bank verification to check your bank’s information online. If you opt to upload the copies of bank statements , it can take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) we typically offer an answer in just one hour, provided you apply at normal business timings and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your banking statements, we are able to offer a decision in as little as one business day.
For Larger Business Loans ($100K and up) we might be likely to provide you with a conditional pre-approval within six hours. Once you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Some transactions have received approval in just 24 hours.
The quickest method would be to make sure you apply during standard business hours. You can also let us use the advanced bank verification system link to instantly verify your bank account information online. If you opt to send us the copies of bank statement, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a specific amount we look at a variety of factors that determine the well-being that is your company and the level of repayments your company will be able to support. The total amount of the loan will be determined by the particular circumstances the business.
When you apply for a particular amount, we take into consideration a variety of aspects to determine the health of your business as well as the amount of repayments that your company can support. The amount you receive from your loan will depend on the specific circumstances the business.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to make an application for the company loan, we’ll assess the risk assessment for your business and provide you with a customised offer, including loan amount, term and interest rates. It is a business loan is a loan that is priced upfront therefore you will be aware of the total amount you will have to pay, including charges, interest rates or fees.
What determines the rate that I pay?
The interest rates on company loans rates depend on several factors including the amount borrowed, the business assets the money will be used for as well as the field the company operates in, how long the company has been in operation and how long the business has enough cash flow to fund the loan, as well as the general health or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges for our business loans, and you’ll know exactly how much it is that you be required to pay and at what time, from the very first day. There’s no compounding and there are no additional charges (as as you make your payments punctually).
We don’t charge an Application Fee. You are able to get a cash loan absolutely no upfront cost and no obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan in advance?
You can repay the total amount of your loan at any point in time.
If you are deciding to pursue this option, please contact our helpful business credit experts. They will provide you with details on repayment and an early payout figure. This will be calculated as the total of the principal remaining and accrued interest to the time of the early payout in addition to 1.5 percent of the principal remaining and any outstanding fees.
How do you make repayments work?
To ensure you do not miss payments and to work your cash flow cycle we offer repayments that are either weekly or daily. These are automatically withdrawn from your company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being transparent about the ways we gather, use, exchange and protect your information, is vital and an integral 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 secure your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to the security of our clients as well as their security. We utilise a sophisticated bank verification system to instantly confirm your bank account information online. This allows us to provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a business owner uses assets they own to get the funding. The asset can be either an individual asset, such as the family home, or an business asset such as a vehicle or piece or equipment.
The vast majority of lending institutions, including the largest banks, are inclined to make loans secured by an asset. If you have trouble paying back the loan, your assets could be transferred to the lender. In essence, it is an opportunity to secure new financing using the value of what you already have.
Should I need security for a company loan?
For loans that exceed $150,000, no asset security is required in advance to gain access to the funds, however we do require a personal guarantee. In the event that you fulfill your loan obligations (as detailed in the loan contract) and you are able to meet your obligations, asset security will never be needed. If you take out loans in excess of $150,000 generally there is a personal guarantee and security in the form the charge of assets.