FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Seventeen Mile Rocks Small Business Loans
Tell me how you are able to avail the Seventeen Mile Rocks Small Business Loans
Seventeen Mile Rocks unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What makes how is the Unsecured Loan different from a traditional business loan?
It is possible to apply to this Small Business Loan in under 10 minutes online or on the phone. You’ll receive a same day response and have the funds in your account in 24 hours. Traditional business loans are based on an interest rate per annum together with additional fees and charges. Our business loan is a loan that is priced upfront which means you know in advance the total amount to be paid, including any interest, fees or charges. This is then broken down into weekly or daily installment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company use, including managing cash flows, business remodels and marketing to purchase inventory, new equipment, as general working capital, and much more. The loan is not available to fund personal expenses.
About larger Seventeen Mile Rocks Business Loans
What is the Larger Seventeen Mile Rocks Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to have been operating for a minimum of 3 years, and have an annual income of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can the funds be used for?
A large business loan is a great option for almost all company need, including company improvements, purchasing inventory or new equipment for general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. It is usually in the form of a charge on assets, which could also include registering this on the PPSR or registering as a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is generally based rather than specifying security over a particular asset. The person who signs the guarantee is personally accountable if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including objects or assets). The PPSR grants the priority of personal property assigned according to the date the security interest has been registered.
A caveat is a legal form of document to offer notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking larger company loans of more than $250,000 we can offer a preliminary pre-approval to help simplify the process. It is possible to apply for this without a credit check and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves you answering some financial health checks. It is neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to a full credit assessment and any offer you might receive could have different terms.
Application process
Do I qualify for funds?
You may apply for an 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)
- must show at least six months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and easy. Just fill out the online application within a few minutes and an experienced company loan specialist will contact you to assist you.
To be eligible for up to $100,000, you’ll require ID details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details for application including credit consent, 12 month bank accounts, the IRD statements Last 2 years’ finalised financial statements, and interim financial statements for the current year such as age-related payables and aged Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K and up) we usually offer an answer in just one hour, provided you make your application in quality business time and permit us to make use of the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statements we can offer a decision within just 1 company day.
If you are applying for a Larger Business Loan ($100K and up) we may be in a position to offer you with conditional pre-approval in around 6 hours. After you’ve signed your pre-approval document, you will need to wait around 2-3 days for final approval, however this can be quicker based on the specifics of each application. Some deals have been approved in 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal company hours. You can also permit us to use the modern bank verification link to instantly confirm your bank details online. If you send us the copies of bank statements , it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) we usually provide an answer within an hour, provided you apply in normal business times and let us use the bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statement, we’ll provide a decision in just an business day.
If you are applying for Larger Business Loans ($100K or more) we may be able to offer you with pre-approval conditional to your application within 6 hours. After you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this could be shorter based on the particular circumstances of each application. Some deals have been approved within less than 24 hours.
The quickest method would be to make sure you apply during standard business hours, and allow us to use the modern bank verification to check your bank’s information online. If you opt to send us documents from your account statements, it takes a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you submit an application for a particular amount, we will consider a number of factors for determining how much we can lend you well-being of your company and the level of repayments your business will be able to support. The total amount of the loan will be determined by the specific circumstances the company.
When you make an application for a certain amount, we look at a range of factors to assess the well-being of the company and the extent of the repayments your company can support. The amount you receive from your loan will be contingent on the specifics the business.
Fees & repayments
How much should you charge for an business loan?
When you make an application for business loans with us company loans, we’ll assess the risk profile the business and offer you with a customised proposal that includes the amount of the loan, the duration and interest rates. It is a business loan is an upfront-priced loan so you will be aware of the total amount payable including any interest rates, fees or charges.
What is the basis for the rate I am charged?
Business loan interest rates vary due to factors like the amount of money of money borrowed, the business assets the funds are used to purchase, the industry the company is operating in, how long the company has been operating for, how long the business has sufficient cash flow to fund the loan, as well as the overall health and creditworthiness of the business.
What are the charges?
There are no hidden fees with our business loans, and you’ll know exactly how much you’ll need to pay and at what time, from the very first day. There’s no compounding interest and there are no additional charges (as as you make your payments punctually).
We don’t charge an Application Fee. You can apply for a loan no cost upfront or obligation to proceed.
The Origination Fee covers the costs associated with the setting up and management of the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay off the loan earlier?
You may choose to pay back the entire amount of the loan in full at any time.
If you do decide to pursue this option, please talk to one of our helpful business lending experts. They’ll provide you with details on repayment and an early payment figure. It will be calculated using the total of the principal balance and accrued interest to the date of early payout and 1.5 percent of the principal amount remaining plus any outstanding fees.
How do repayments work?
To make sure you do not miss due dates and also to be in line with your cash flow general, we offer repayments that are either weekly or daily. They will be automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being clear about how we collect data, process, exchange and ensure the security of your information is of paramount importance and is an essential 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 protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to customer security and security. We employ a highly sophisticated bank verification system to immediately verify the bank account details online. This allows us to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when the business owner makes use of the assets they have to obtain the funds for a loan. The asset could be an asset belonging to the personal, like the family home or a company asset such as a vehicle or piece of equipment.
The vast majority of lending institutions, including the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan then your asset may be taken over by the lender. In essence it’s an opportunity to secure new financing by taking advantage of the value of what you already have.
Are I need security to secure a business loan?
For loans that exceed $150,000, the requirement for asset security is not required in advance to gain access to the funds However, we require a personal guarantee. need the personal guarantee. So long as you comply with the terms of your loan (as specified in your loan contract document) Asset security will never be required. For loans over $150K generally there is the option of a personal ensure and security in the form an asset charge.