FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Sinnamon Park Small Business Loans
Let me know more about Sinnamon Park Small Business Loans
Sinnamon Park unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from a traditional business loan?
The application to get your Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get a same day response and funds may be on your account within 24 hours. Traditional business loans reference an annual interest rate along with other charges and fees. This company loan is a pre-paid loan therefore you’ll know ahead of time the amount you will have to pay, including any fees, charges or charges. This is then broken down into weekly or daily payment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company use, including managing cash flows, company improvements, advertising, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available to fund personal expenses.
About the Larger Sinnamon Park Business Loans
What is the Larger Sinnamon Park Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan that is this large the business needs to be operating for a minimum of 3 years, and have an annual income of $700,000. You must be 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 demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A Business Loan of a larger size can be used for nearly any business need, including company renovations, to purchase inventory or new equipment as well as for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. This can be done in the form of a charge on assets and can include registration in the PPSR or making a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally in nature rather than stating security over a particular asset. The person who signs the guarantee is personally accountable if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including objects or assets). The PPSR permits the priority of personal property assigned depending on the date that a registration of a security interest.
A caveat is a legal document lodged to offer an official notice of a claim to a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger business loans that exceeds $250K, we may offer an initial pre-approval in order to smooth out the process. We might be able to apply for this without a credit check, and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes you answering some financial health checks. It’s neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you are offered could have different terms.
The application process
Are I eligible for funding?
You can apply for a 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)
- can demonstrate at least 6 months worth of trade (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application in just a few minutes, and a dedicated business lending specialist will be in touch to guide you.
For a loan of up to $100,000, you’ll need the right identification documents (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Application requirements, 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, 12 months bank statement, an IRD statements, last 2 years finalised financial statements, as well as interim financials for the current financial year as well as Aged Payables and Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K or more) we typically provide an answer in just one hour – as long as you submit your request at quality company times and allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you want to upload copies of your bank statements , we are able to offer a decision in as little as 1 company day.
For the Larger Business Loan ($100K or more) we could be capable of provide you with conditional pre-approval in around six hours. After you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Some offers have been approved within 24 hours.
The quickest way to apply would be to ensure you apply during normal business hours. You can also let us use the advanced bank verification system link to confirm your bank details online. If you opt to send us copies of your bank statements , it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within an hour – as long as you apply within standard business time and let us utilise the advanced bank verification system to instantly verify your bank information online. If you choose to submit copies of your bank statements, we are able to offer an answer in just one business day.
For Larger Business Loans ($100K to $500K) we could be able to provide you with 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 on the particular circumstances of each application. Some transactions have received approval in less than 24 hours.
The fastest method can be make sure you apply during standard business hours. You can also allow us to use the advance bank verification link to instantly check your bank’s information online. If you opt to send us copies of your bank statements, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a certain amount we consider a variety of variables for determining the health that is your business and the level of payments your business can afford. The total amount of your loan will be contingent on the specifics that are unique to your business.
When you make an application for a certain amount, we consider a variety of aspects to assess how much we can lend you such as well-being of the company as well as the amount of payments your company can afford. The total amount of your loan will be contingent on the particular circumstances the business.
Fees & repayments
How do you charge for an business loan?
When you apply for one of our business loan, we will assess the risk profile of your business and provide an individualised offer that includes the amount of the loan, the duration and interest rates. A company loan is an upfront priced loan therefore you will know the exact amount you will have to pay, including charges or interest.
What determines the amount I will be charged?
Interest rates for business loans rates depend on a variety of factors including the amount of money borrowed, the business assets the money will be used for and the sector the business is operating in, how long the business is in operation and in the event that the business has sufficient cash flow to fund the loan, as well as the overall well-being or financial standing of the business.
What are the charges?
There aren’t any hidden charges for our business loans. You’ll be aware of the amount you be required to pay, and when, from the very first day. There’s not any compounding interest and no extra fees (as long as you are able to make your payments on time).
We do not charge an Application Fee. You are able to get a cash loan without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. It is only charged for this fee if you decide to take the loan. Our Origination Fee is 2.5% of the amount of the loan.
Do I have the option of paying off the loan in advance?
You can repay all of your advance loan at any time.
If you choose to take this route, please talk to one of our helpful company credit specialists. We will offer you with repayment details and an early payout figure. This will be calculated as the sum of the principal remaining plus any accrued interest as of the date of early payout, plus 1.5% of the principal amount remaining and any fees that remain unpaid.
What are the repayment methods?
To ensure that you don’t miss payments and to work your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and being upfront about the ways we gather the information we collect, use, share and safeguard your data, is of huge importance and is an essential 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 protocols to safeguard your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We make use of an advanced banking verification system to immediately verify the bank account details online, allowing us to provide an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an business owner makes use of the assets they have to make the funds for a loan. The asset can be either a personal asset like the family home, or a company asset such as a truck or piece of equipment.
The vast majority of the lenders including the banks with the biggest size, prefer to guarantee loans against assets. If you’re struggling to pay back the loan then your asset may be sold by the lender. In essence, it’s an opportunity to secure new financing taking advantage of the value of what you already own.
What do I require security to get a company loan?
For loans that exceed $150K, the requirement for asset security is not required in advance to gain access to the funds but we require a personal guarantee. require an individual guarantee. So long as you comply with your loan obligations (as specified in the loan contract), asset security will never be required. For loans that exceed $150K, generally there is a personal ensure and security in the form the charge of assets.