FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Silkstone Small Business Loans
Let me know what you think of the Silkstone Small Business Loans
Silkstone unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from the traditional company loan?
The application to this Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an instant response and the funds could be in your account within 24 hours. Traditional company loans have an interest rate per annum along with other charges and fees. Our business loan is a pre-paid loan which means you be aware of the total amount payable including any fees, interest or charges. Then, it is divided into weekly or daily repayment figure.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost every business need, such as managing cash flows, business remodels and marketing to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal purposes.
About Larger Silkstone Business Loans
What is the Larger Silkstone Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of that can last up to 36 months. Repayments are either weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to be operating for a minimum of 3 years and generate an annual revenue of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funding be used for?
A Business Loan of a larger size can be used for almost every company purpose including business remodeling, buying equipment or inventory or as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed for accessing funds over $150,000. This can be done by taking a charge over assets, and could include registration on the PPSR or the registration of a caveat.
A director’s or personal ensure is a promise to pay off a credit line that is generally based rather than stipulating security over an asset. The person signing the guarantee is personally accountable if the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests registered in respect of personal property (including the assets or goods). The PPSR allows priority over personal property to be granted depending on the date that a security interest was registered.
A caveat is a legal document that is filed to provide notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger business loans of more than $250,000 it is possible to offer an initial pre-approval to make the process. We could be able to apply for this without a credit check and within six hours of your initial application. This pre-approval is based on an initial assessment, which involves you answering a few financial well-being checks. It is not an offer or guarantee of funds. A conditional approval is subject a full credit assessment and any offer you might receive could be on different conditions.
The application process
Can I be eligible for funding?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application in few minutes and a dedicated company lending specialist will contact you to assist you.
To be eligible for up to $100,000, you’ll need proof of identity (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Information on the application including credit consent, 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, and interim financials from the current financial year as well as Aged Payables and Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) We can usually provide an answer within one hour, provided you apply during standard company time and allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you choose to send us copies of your bank statement, we’ll provide the decision within an company day.
If you are applying for a Larger Business Loan ($100K to $500K) we may be able to offer the conditional pre-approval within 6 hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however it could be faster based on the circumstances of each application. Certain agreements have been approved within 24 hours.
The quickest way to apply would be to ensure you apply during standard business hours, and permit us to use the advance bank verification to verify your bank account information online. If you decide to send us copies of your bank accounts, it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we can often provide an answer in just one hour – as long as you submit your request during standard business timings and let us use the bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your banking statements, we will be able to offer a decision in just one business day.
For Larger Business Loans ($100K or more) we may be likely to provide you with conditional pre-approval within about 6 hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Some deals have been approved in the space of 24 hours.
The fastest way can be ensure you apply during normal business hours. You can also allow us to use our sophisticated bank verification link to instantly verify your bank information online. If you choose to upload the copies of bank statement, it will take a little longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a specific amount we look at a variety of factors that determine how much we can lend you health of your business as well as the amount of repayments that your company can support. The total amount of your loan will be contingent on the specific circumstances that are unique to your company.
If you apply for a certain amount, we take into consideration a variety of elements to assess how much we can lend you such as well-being for your business and the amount of payments your company can afford. The total amount of the loan will be determined by the particulars that are unique to your company.
Fees & repayments
How do you charge for an company loan?
When you apply for one of our company loan, we’ll assess the risk assessment for your company and offer an individualised offer including the loan amount, the terms and the interest rates. This business loan is an upfront-priced loan therefore you will know in advance the total amount you will have to pay, including interest rates, fees or charges.
What determines the amount I will be charged?
The interest rates on company loans rates depend on several variables like the amount to be borrowed, the company assets the funds are used to purchase and the sector the business operates in, the long the company has been in operation and what percentage of the business has sufficient cash flow to cover the loan, and also the general well-being and creditworthiness of the business.
What are the cost?
There are no hidden fees with our company loans, and you’ll know exactly how much it is that you be required to pay and when, right from day one. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments on time).
We do not charge an application fee. You can request a credit loan with no upfront cost or commitment to apply.
The Origination Fee covers the expenses involved in establishing and managing the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay out the loan early?
You can choose to repay the entire amount of the loan at any point in time.
If you do decide to pursue this option, please talk to one of our helpful company credit specialists. They will provide you with the details of your repayment as well as an early payout amount. This is calculated as the sum of the principal remaining plus any accrued interest as of the time of the early payout plus 1.5% of the principal remaining and any outstanding fees.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line your cash flow schedule, we offer repayments that are either weekly or daily. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my information be secure?
Protecting your information, and making it clear the ways we gather, use, exchange and secure your information, is vital and is an essential aspect 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 sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to customer security and security. We use an advanced bank verification system link to immediately verify your bank account details online. This allows us to provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an company owner uses an asset they own to obtain the funding. The asset may be an individual asset, such as the family home or an company asset such as a vehicle or piece or equipment.
The majority of lending institutions, even the banks with the biggest size, prefer to make loans secured by assets. If you are having difficulty paying back the loan, the asset could be taken over by the lender. In essence, it’s an opportunity to secure new financing using the worth of the asset you already have.
What do I need security to secure a business loan?
For loans of up to $150K, the requirement for asset security is not required upfront to access the money However, we do require a personal guarantee. As long as you follow your loan obligations (as detailed in your loan contract document) Asset security is not needed. If you take out loans in excess of $150,000 generally, you are able to get a personal ensure and security in the form of a charge over assets.