FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Sailsbury Small Business Loans
Let me know about the Sailsbury Small Business Loans
Sailsbury unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
What is what makes the Unsecured Loan different from the traditional company loan?
It is possible to apply to get the Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and the funds could be in your account in 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. This company loan is a loan that is priced upfront and you’ll know in advance the total amount to be paid, including any fees, interest or charges. This is then divided into weekly or daily amount to be paid back.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company reason, such as the management of cash flow, company improvements, advertising for purchasing inventory or new equipment, to fund general working capital and so much more. The loan is not available to fund personal expenses.
About the Larger Sailsbury Business Loans
What is the Larger Sailsbury Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range from $100,000 to $500,000 with a term fixed for up to 36 months. The repayments are made weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to be operating for at least three years and have an annual turnover of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
How can the funds be utilised?
A Larger Business Loan is a great option for almost every company purpose including company renovations, purchase of equipment or inventory for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. It’s in the form of a charge on assets, and may be registered through the PPSR or making as a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is general in nature rather than stipulating security over an asset. The person signing the ensure is personally liable 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 reflects security interests that are registered for personal property (including objects or assets). The PPSR grants the priority of personal property assigned according to the date the security interest was registered.
The caveat can be described as a formal document that is filed to provide an official notice of a claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan of more than $250,000 it’s possible to offer an initial pre-approval to smooth out the process. We might be able to get this done without credit checks and within six hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering some financial well-being questions. It’s in no way an offer, nor is it a guarantee of financing. Unconditional approval is subject to an extensive credit evaluation and any offer that you are offered could have different conditions.
Application process
Can I be eligible for funding?
You are eligible to 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 company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application in few minutes and a dedicated business expert in lending will call you to help you.
For a loan of up to $100,000, you’ll require identification details (valid Driver’s License) as well as a valid NZBN/IRD and at least six months of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details of the application, including credit consent, 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, plus interim financial statements for the current year including Aged Payables, Aged Receivables reports.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we can often offer a response in one hour – as long as you make your application at quality business hours and allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements , we are able to offer an answer in just one business day.
For the Larger Business Loan ($100K and up) we may be capable of offer you with pre-approval conditional to your application in around 6 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 in just 24 hours.
The fastest way for you to apply is make sure you apply during normal business hours. Also, allow us to use our advance bank verification to verify your bank account information online. If you opt to send us duplicates of your banking statements it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer in just one hour – as long as you make your application in standard business hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your bank statements, we’ll be able to offer the decision within one business day.
For Larger Business Loans ($100K to $500K) we may be in a position to offer the conditional pre-approval in around six hours. Once you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Certain agreements have been approved within 24 hours.
The most efficient method can be make sure you apply during standard business hours. Also, allow us to use our advanced bank verification system to confirm your bank details online. If you opt to send us the copies of bank accounts, it takes a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a particular amount, we take into consideration a range of aspects to determine your well-being for your business and the amount of repayments your company can support. The amount you receive from your loan will depend on the specifics for your company.
When you apply for a specific amount we consider a variety of elements to assess how much we can lend you such as well-being for your company and the extent of repayments that your business can support. The amount you receive from the loan will be determined by the particulars of your company.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to request one of our company loan, we’ll assess the risk assessment for your company and provide you with a tailored offer that includes the amount of the loan, the duration and the interest rates. This company loan is an upfront priced loan and you’ll be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What determines the amount I’m charged?
Interest rates for business loans rates differ based on various variables like the amount to be borrowed, the business assets the money will be used for and the sector the company is in, how long the company has been in operation for, whether the company has sufficient cash flow to cover the loan, and general well-being and creditworthiness of the business.
What are the costs?
There aren’t any hidden charges with our company loans, and you’ll know precisely what you’ll need to pay and when, starting from the very first day. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments on time).
We do not charge an application fee. You can request a credit loan with absolutely no upfront cost and no the obligation to take action.
The Origination Fee includes the expenses associated with establishing and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I repay the loan early?
You may choose to pay back the total amount of your loan early at any time.
If you are deciding to do this please contact our helpful company credit professionals. The specialists will offer you with details on repayment as well as an early payout amount. This will be calculated as the total of the principal amount remaining and accrued interest to the time of the early payout in addition to 1.5% of the remaining principal plus any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss payment dates and to align with your cash flow cycle we provide repayments either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Security of your data, and being upfront about how we collect data, process, exchange and ensure the security of your information is of huge importance and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We use an advanced bank verification system to instantly verify the bank account details online so we can provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a business owner uses the assets they have to get the funding. The asset may be a personal asset like the family home, or an business property like a truck or other piece of machinery.
The vast majority of lenders, even the banks with the biggest size, prefer to guarantee loans against assets. If you are having difficulty paying back the loan, then the asset might be transferred to the lender. In essence, it’s the process of securing new financing using the worth of the asset you already own.
Are I need security to secure an business loan?
For loans of up to $150,000, no asset security is required in advance to gain access to the funds but we require a personal guarantee. require an individual guarantee. In the event that you fulfill your loan obligations (as stated in your loan contract) and you are able to meet your obligations, asset security will never be required. If you take out loans in excess of $150K generally, you can get a personal ensure and security in the form of the charge of assets.