FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Shorncliffe Small Business Loans
Tell me about the Shorncliffe Small Business Loans
Shorncliffe unsecured loans offers amounts between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
How is how is the Unsecured Loan different from an ordinary company loan?
It is imaginable to apply for the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an answer within the same day and the money could be in your account in 24 hours. Traditional business loans reference an annual interest rate along with other charges and fees. Our company loan is a loan that is priced upfront so you will know in advance the amount you will have to pay, including any fees, charges or charges. Then, it is divided into weekly or daily payment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company use, including control of cash flow company renovations, marketing for purchasing inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal use.
About Larger Shorncliffe Business Loans
What is the Larger Shorncliffe Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term for up to 36 months. The repayments are made weekly or fortnightly in order to accommodate your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large the business needs to have been operating for at least three years, and have an annual income of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (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 to fund almost every company purpose including company remodeling, buying new equipment or inventory as well as for general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. This can be done as a result of an charge against assets, and may include the registration of this in the PPSR or the registration of a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is general in nature rather than specifying the security for a particular asset. The person who is signing the guarantee is personally liable if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It lists security interests that are that are registered for personal property (including the assets or goods). The PPSR allows preference over private property granted according to the date a registration of a security interest.
The caveat can be described as a formal document filed to offer notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250K, we may offer an initial pre-approval that will help ease the process. We may be able to make this decision without credit checks and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering some financial health checks. It’s in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you might receive could be on different conditions.
Application process
Do I qualify for funds?
You may be eligible for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of trading (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form in just a few minutes, and a dedicated company expert in lending will contact you to help you.
To apply for up to $100,000 you’ll need identification details (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent, 12 months of bank records, IRD statement and the last two years’ finalised financial statements, as well as interim financial statements for the current year such as age-related payables and aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we typically offer an answer within one hour, provided you apply during quality company times and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statement, we’ll offer the decision within just an company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be in a position to offer the conditional pre-approval within about six hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval. However, this could be shorter based on the circumstances of each application. Some agreements have been approved within 24 hours.
The quickest way to apply would be to ensure you apply during normal business hours and permit us to use the advanced bank verification system to instantly check your bank’s information online. If you choose to upload the copies of bank statements it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer in just one hour – provided you make your application at normal business times and permit us to utilise the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your banking statements we can provide a decision in just 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be able to provide the conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be faster depending upon the circumstances for each application. Certain deals have been approved within just 24 hours.
The fastest method is to ensure you apply during normal business hours and allow us to use the advance bank verification link to verify your bank account information online. If you upload documents from your account accounts, it will take a little longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a certain amount, we take into consideration a range of elements that determine your health that is your company as well as the amount of repayments that your company can support. The amount you receive from your loan will depend on the particular circumstances that are unique to your business.
When you submit an application for a set amount, we look at a range of elements to determine the well-being that is your company and the level of repayments your company can afford. The amount you receive from your loan will be contingent on the particulars of your company.
Fees & repayments
How much do you charge for the cost of a business loan?
When you make an application for our business loan, we’ll assess the risk profile the business and provide you with a customised offer, including the loan amount, the terms and the interest rates. A company loan is an upfront-priced loan which means you know in advance the total amount payable including any charges or interest.
What determines the rate that I will be charged?
Business loan interest rates depend on several variables like the amount to be that is borrowed, what company assets the money are used to purchase in addition to the industry that the company operates in, the long the business has been in operation as well as whether the business has sufficient cash flow to pay for the loan, and general well-being as well as creditworthiness business.
What are the charges?
There are no hidden costs with our company loans. You’ll know precisely how much you be required to pay, and when, starting from the day you sign up. There’s no compounding interest, and the loan comes with no additional fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You are able to make an application for loans with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the loan amount.
Do I have the option of paying off the loan earlier?
You can repay the total amount of your loan at any point in time.
If you do decide to do this please call our helpful company credit professionals. They’ll provide you with the details of your repayment as well as an early payout amount. It will be calculated using the total of the principal amount remaining plus any accrued interest as of the time of early payment plus 1.5 percent of the principal remaining plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing repayments and to fit in your cash flow schedule, we offer repayments either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and knowing the ways we gather, use, exchange and ensure the security of your information is of huge importance and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of customers and security. We utilise a sophisticated bank verification system to immediately verify your bank account information online. This allows us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where the company owner utilises an asset that they own to get the funding. The asset may be an individual asset, such as the family home, or a company asset such as a vehicle as well as a piece of machine.
The majority of lenders, even the major banks, prefer to make loans secured by an asset. If you’re struggling to pay back the loan then your assets could be sold by the lender. In essence, it’s an opportunity to secure new funding making use of the value of what you already own.
Are I need security for an company loan?
Up to $150,000 in loans there is no requirement for asset security prior to the loan’s access, however we require a personal guarantee. need a personal guarantee. In the event that you fulfill the loan terms (as detailed in the loan contract) Asset security will never be needed. For loans over $150K generally, you are able to get the option of a personal ensure and security that is in the form the charge of assets.