FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Scarborough Small Business Loans
Tell me how you can avail the Scarborough Small Business Loans
Scarborough unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from an ordinary company loan?
Apply to get this 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 company loans are based on an annual interest rate as well as other fees and charges. Our business loan is an upfront priced loan which means you know in advance the total amount due, which includes any fees, charges or charges. Then, it is broken down into either a daily or weekly payment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for almost every business purpose including cash flow management, company remodeling, marketing to purchase inventory or new equipment, for general working capital and so much more. The loan is not available for personal reasons.
About the Larger Scarborough Business Loans
What is the Larger Scarborough Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly depending on you cashflow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large the company needs to have been trading for at least 3 years and have an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can the funds be used for?
A Business Loan of a larger size can be used for almost all company reason, such as business renovations, purchase of new equipment or inventory for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It’s as a result of an charge against assets, and may include registration through the PPSR or registering as a caveat.
A director’s or personal guarantee is a commitment to repay credit that is general in nature rather than stipulating the security for a particular asset. The person who is signing the ensure is personally accountable if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including goods or assets). The PPSR permits priority over personal property to be assigned in accordance with the date on which a security interest has been registered.
An affidavit is an official document filed to provide notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re seeking a Larger Business Loan of $250,000 or more we can offer a preliminary pre-approval to help ease the process. We might be able to make this decision without a credit verification and within six hours of your initial application. This pre-approval is based on an initial assessment that includes you answering some financial well-being questions. This is not an offer or guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you receive could be subject to different terms.
The application process
Do I have the right to receive funds?
You are eligible to apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form in just a few minutes, and a dedicated business lending specialist will call you to guide you.
To be eligible for up to $100,000 you’ll require identification details (valid Driver’s Licence) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K to $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent as well as 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K or more) we typically provide an answer within an hour if you make your application within standard business timings and allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you want to send us copies of your bank statements , we will be able to provide the decision in just the span of one business day.
If you are applying for a Larger Business Loan ($100K and up) we may be able to offer you with pre-approval conditional to your application within about 6 hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this may be quicker depending on the specifics of each application. Certain offers have been approved within less than 24 hours.
The quickest way to apply can be ensure you apply during normal company hours and allow us to use our advance bank verification to verify your bank information online. If you choose to upload the copies of bank statement, it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we typically provide an answer within one hour, provided you make your application in standard business times and let us use the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statement, we’ll offer the decision within an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be in a position to provide the conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this can be faster depending upon the circumstances for each application. Certain deals have been approved within 24 hours.
The quickest method would be to ensure you apply during normal business hours. Also, allow us to use the advance bank verification link to verify your bank account information online. If you choose to upload documents from your account statement, it will take a little longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a certain amount we look at a variety of elements to determine how much we can lend you health that is your company as well as the amount of payments your business will be able to support. The total amount of the loan will be determined by the specific circumstances that are unique to your business.
When you submit an application for a set amount, we take into consideration a variety of variables to determine how much we can lend you such as well-being for your company and the extent of repayments your business can support. The amount you receive from your loan will depend on the specific circumstances for your business.
Fees & repayments
How much should you charge for an business loan?
When you apply for business loans with us company credit, we will assess the risk profile that you have for your business and provide you with a customised offer including the amount of the loan, the duration and the interest rates. It is a business loan is an upfront cost loan which means you know the exact amount due, which includes any costs, fees, or interest rates.
What is the basis for the rate I pay?
Business loan interest rates depend on several variables like the amount to be borrowed, what business assets the funds are used to purchase as well as the field the company operates in, the long the business has been in operation, what percentage of the company has enough cash flow to pay for the loan, and the overall health and creditworthiness of the company.
What are the costs?
There aren’t any hidden charges with our company loans, and you’ll know precisely what it is that you be required to pay and at what time, from day one. There’s no compounding interest, and there are no additional charges (as long as you are able to make your payments in time).
We do not charge an Application Fee. You can get a cash loan no cost upfront or commitment to apply.
The Origination Fee is the cost associated with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay out the loan in advance?
You can choose to repay all of your loan early at any time.
If you are deciding to take this route, please call our helpful company lending specialists. They will offer you with details for repayment as well as an early payout amount. The figure will be calculated as the total of the remaining principal amount and the accrued interest up to the time of early payout, plus 1.5 percent of the principal balance and any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss due dates and also to be in line with your cash flow general, we provide repayments either daily or weekly. They will be automatically deducted from your company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being clear about how we collect, use, exchange and safeguard your data, is of paramount importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to protecting the security of clients and privacy. We utilise a sophisticated banking verification system to immediately verify the bank account details online, allowing us to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when a business owner uses the assets they have to secure the loan. The asset may be a personal asset like the family home or it could be a business asset such as a vehicle or piece or equipment.
The majority of banks, even the largest banks, are inclined to guarantee loans against an asset. If you are having difficulty paying back the loan, then the asset might be offered for sale by the lender. In essence, it’s an opportunity to secure additional financing taking advantage of the value of what you already own.
Are I require security for a business loan?
For loans up to $150,000 it is not necessary to secure assets upfront to access the money however, we require a personal guarantee. need the personal guarantee. In the event that you fulfill your loan commitments (as stated in your loan contract document), asset security will never be needed. If you take out loans in excess of $150,000 generally, you can get personal ensure and security is provided in the form of the charge of assets.