FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Sadliers Crossing Small Business Loans
Tell me what you think of the Sadliers Crossing Small Business Loans
Sadliers Crossing unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
What is how is the Unsecured Loan different from an traditional business loan?
The application for this Small Business Loan in under 10 minutes online or over the phone, receive a same day response and the money could be in your account in 24 hours. Traditional business loans reference an interest rate per annum along with other charges and fees. The company loan is a loan that is priced upfront and you’ll be aware of the total amount due, which includes any interest, fees or charges. Then, it is broken down into a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any business use, including cash flow management, company renovations, marketing, to purchase inventory or new equipment, to fund general working capital and so much more. The loan is not available to fund personal expenses.
About larger Sadliers Crossing Business Loans
What is the Larger Sadliers Crossing Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size the business needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funds for?
A Larger Business Loan can be used for nearly all company purpose including company renovations, purchase of equipment or inventory, as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. It is usually as a result of an charge over assets and can be registered through the PPSR or registering as a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is general in nature, rather than defining the security of a specific asset. The person who signs the guarantee is personally responsible if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including objects or assets). The PPSR permits preference over private property granted according to the date the security interest that is registered.
A caveat is a legal document filed to provide the public notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re requesting the Larger Business Loan that is greater than $250,000, we may offer a preliminary pre-approval to help smooth out the process. It is possible to apply for this without credit checks and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves answering a couple of financial health questions. It’s not an offer or guarantee of funds. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer you receive could have different terms.
Application process
Are I eligible for funding?
You may apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Just fill out the online application within a couple minutes, and an experienced company lending specialist will be in touch to guide you.
To be eligible for up to $100,000 you’ll need proof of identity (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: Application details including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent twelve months of bank records, IRD statements as well as the two most recent years’ financial statements, plus interim financials for the current financial year such as age-related payables and aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K or more) we can often offer an answer in just one hour – as long as you submit your request in quality company time and let us use the advanced bank verification system link to instantly verify your bank details online. If you opt to send us copies of your bank statements , we will be able to provide an answer in as little as an company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be capable of provide you with pre-approval conditional to your application in about 6 hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Some agreements have been approved within just 24 hours.
The quickest way to apply is to ensure you apply during normal business hours and let us use the modern bank verification link to confirm your bank details online. If you decide to send us the copies of bank statements it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we typically offer an answer within an hour – provided you apply within normal business times and let us make use of the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statements, we will be able to offer a decision in just one business day.
For Larger Business Loans ($100K to $500K) we could be likely to provide you with a conditional pre-approval within 6 hours. Once you have signed the 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 offers have been approved within just 24 hours.
The fastest method is to make sure you apply during standard business hours. Also, allow us to use our modern bank verification to instantly check your bank’s information online. If you opt to send us duplicates of your banking statements it takes a bit longer.
What’s the minimum amount I can borrow?
We provide 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 in order to assess the well-being of the business and the level of the repayments your business can afford. The amount you receive from the loan will be determined by the specific circumstances that are unique to your company.
When you apply for a set amount, we consider a variety of factors to determine the well-being of the business and the amount of payments your company will be able to support. The amount you receive from your loan will be contingent on the particular circumstances for your company.
Fees & repayments
How much do you charge for a business loan?
When you apply for one of our business credit, we’ll assess the risk assessment for your company and provide you with a tailored proposal that includes the amount of loan, the term and interest rates. It is a company loan is a loan that is priced upfront which means you be aware in advance of the total amount you will have to pay, including interest rates, fees or charges.
What is the basis for the rate I pay?
Business loan interest rates vary due to factors like the amount of money borrowed, the business assets the money are used to purchase in addition to the industry that the business operates in, the long the company has been in operation, what percentage of the company has enough cash flow to support the loan, as well as the general well-being as well as creditworthiness business.
What are the costs?
There are no hidden fees with our business loans. You’ll know exactly how much it is that you need to pay and when, right from the first day. There’s not any compounding interest and there are no additional charges (as long as you are able to make your payments on time).
We do not charge an Application Fee. You are able to get a cash loan no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I repay the loan in advance?
You can choose to repay the entire amount of your advance loan at any time.
If you choose to do this please contact our helpful business loans professionals. They will offer you with details on repayment and an early payout figure. It will be calculated using the total of the principal amount remaining and accrued interest to the date of early payout and 1.5 percent of the principal remaining and any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payment dates and to align your cash flow schedule, we provide payments that are either weekly or daily. These are automatically deducted from your business account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about how we collect, use, exchange and protect your information, is of paramount importance and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our commitment to the security of our customers as well as their privacy. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account information online. This allows us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where a business owner uses an asset that they own to make a loan. The asset can be either a personal asset like the family home or it could be a business asset such as a vehicle or piece of equipment.
The majority of lenders, not just the big banks, tend to make loans secured by assets. If you’re having trouble paying back the loan then your assets could be sold by the lender. In essence, it’s an opportunity to secure new financing using the value of what you already own.
Are I need security to secure an business loan?
Up to $150,000 in loans the requirement for asset security is not required prior to the loan’s access but we require a personal guarantee. need the personal guarantee. So long as you comply with the loan terms (as detailed in the loan contract) Asset security is not required. For loans that exceed $150K, generally, there is a personal ensure and security in the form an asset charge.