FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Seven Hills Small Business Loans
Let me know more about Seven Hills Small Business Loans
Seven Hills unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from an ordinary business loan?
Apply to get your Small Business Loan in under 10 minutes on the internet or by phone. You will receive a same day response and the funds could be in your account within 24 hours. Traditional business loans reference an interest rate per annum together with additional fees and charges. Our company loan is an upfront priced loan so you will be aware in advance of the total amount payable including any interest, fees or charges. Then, it is divided into weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every company need, such as the management of cash flow, company remodels and marketing, to purchase inventory or new equipment, or as general working capital and so much more. The loan is not available for personal reasons.
About the Larger Seven Hills Business Loans
What is the Larger Seven Hills Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been operating for at least three years with an annual turnover of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funds be utilised?
A large business loan can be used to fund almost any company reason, such as business remodeling, buying inventory or new equipment or as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. This is as a result of an charge on assets, which could also be registered in the PPSR or the registration of as a caveat.
A director’s or personal ensure is a commitment to repay a loan which is generally in nature rather than defining security over a particular asset. The person who is signing the guarantee is personally liable in the event that the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including goods or assets). The PPSR allows preference over private property assigned according to the date a security interest that is registered.
A caveat is a legal form of document to provide notice of a legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan that is greater than $250,000 it’s possible to offer an initial pre-approval that will help smooth out the process. We might be able to do this without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial well-being questions. It is not an offer or guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you are offered could be on different terms.
The application process
Do I have the right to receive funds?
You may be eligible for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application in just a few minutes, and an experienced company lending specialist will contact you to help you.
To apply for up to $100,000 you’ll require ID details (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K – $250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details for application including credit consent twelve month bank accounts, the IRD statement, last 2 years finalised financial statements, in addition to interim financial statements for the current year as well as Aged Payables and Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) we usually offer an answer within one hour if you apply in standard business time and allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statements , we are able to offer the decision within just 1 company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be in a position to offer you with conditional pre-approval in about 6 hours. After you’ve signed your pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this can be quicker based on the specifics of each application. Certain transactions have received approval in the space of 24 hours.
The fastest way is to make sure you apply during normal business hours, and allow us to use the advance bank verification link to check your bank’s information online. If you upload the copies of bank statements , it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we typically offer a response in one hour – as long as you submit your request in standard business time and you allow us to use the bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statements, we’ll be able to provide an answer in just the span of one business day.
For Larger Business Loans ($100K up to $500,000) We may be in a position to offer the conditional pre-approval in around six hours. Once you’ve signed your pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this may be quicker depending on the specifics of each application. Certain transactions have received approval in just 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours. You can also allow us to use our advance bank verification link to instantly confirm your bank details online. If you opt to send us duplicates of your banking accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you make an application for a particular amount, we take into consideration a range of elements in order to assess how much we can lend you well-being of your business as well as the amount of the repayments your company can afford. The amount you receive from your loan will be contingent on the specifics of your business.
When you apply for a certain amount, we will consider a number of elements to assess how much we can lend you such as well-being of your business and the amount of repayments your company can afford. The total amount of your loan will be determined by the specifics of your business.
Fees & repayments
What is the cost for an business loan?
If you decide to request one of our business credit, we’ll assess the risk profile for your business and provide an individualised offer that includes the loan amount, the terms and interest rates. It is a company loan is an upfront cost loan which means you know in advance the total amount you will have to pay, including charges or interest.
What is the basis for the rate I’m charged?
The interest rates on business loans rates vary due to factors including the amount of money borrowed, the business assets the money will be used for in addition to the industry that the company is operating in, how long the business has been in operation, in the event that the company has sufficient cash flow to fund the loan, as well as the overall well-being as well as creditworthiness company.
What are the cost?
There are no hidden fees with our business loans. You’ll know precisely what you’ll be required to pay, and when, from the very first day. There’s not any compounding interest and no additional fees (as long as you are able to make your payments on time).
We don’t charge an application fee. You can make an application for loans absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the costs associated with the setting up and management of the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay off the loan early?
You may choose to pay back the entire amount of the loan in full at any time.
If you do decide to do this please contact our helpful company lending specialists. 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 early payout and 1.5 percent of the principal balance and any outstanding fees.
How do you make repayments work?
To help you avoid missing due dates and also to be in line your cash flow cycle we offer repayments that are either daily or weekly. These are automatically withdrawn from your nominated business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and knowing the ways we gather data, process, exchange and protect your information, is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of clients and security. We utilise a sophisticated bank verification system that allows you to instantly verify the bank account details online. This allows us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when an company owner borrows from an asset that they own to secure the loan. The asset can be either an asset belonging to the personal, like the family home or a company property like a truck as well as a piece of machine.
The vast majority of banks, not just the big banks, tend to secure loans against an asset. If you’re struggling to pay back the loan, your asset may be transferred to the lender. In essence it is means of securing new funding using the value of what you already have.
What do I need security to get an company loan?
For loans up to $150K it is not necessary to secure assets upfront to access the money, however we do require a personal guarantee. If you adhere to the terms of your loan (as stipulated in your loan contract document), asset security is not needed. For loans that exceed $150K, generally, you are able to get a personal ensure and security in the form the charge of assets.