FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Slackers Creek Small Business Loans
Let me know about the Slackers Creek Small Business Loans
Slackers Creek unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from a traditional business loan?
You can apply to get your Small Business Loan in under 10 minutes online or on the phone. You’ll receive an immediate response, and funds may be available in just 24 hours. Traditional company loans reference an annual interest rate plus other fees and charges. We offer a company loan is a cash-based loan and you’ll know in advance the total amount payable including any interest, fees or charges. This is then broken down into either a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company need, such as control of cash flow company remodeling, marketing to purchase inventory or new equipment, for general working capital, and much more. The loan cannot be used for personal use.
Concerning Larger Slackers Creek Business Loans
What is the Larger Slackers Creek Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans range between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to be in operation for at least 3 years with an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years as well as own 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 larger business loan can be used for almost every company use, including business renovations, purchase of inventory or new equipment for general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. It’s by taking a charge over assets and can include registration in the PPSR or the registration of as a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is general in nature, rather than stipulating security over a particular asset. The person who signs the guarantee is personally liable in the event that the business borrower is unable to repay 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 granted to individuals who own personal property (including goods or assets). The PPSR permits the priority of personal property assigned in accordance with the date on which a security interest has been registered.
Caveats are legal form of document to offer the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250K we may be able to provide an initial pre-approval that will help ease the process. We may be able to apply for this without credit checks and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves the answer to a series of financial health checks. It is neither an offer nor a guarantee of credit. A conditional approval is subject a full credit assessment and any offer you may receive may have different terms.
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 over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and simple. Complete the online form in few minutes and an experienced business loan specialist will be in touch to guide you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s License) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Details for application including credit consent twelve months of bank statements, IRD statement and the last two years’ finalised financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K or more) we can often provide an answer in just one hour if you submit your request in standard company timings and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your banking statement, we’ll offer the decision in just one company day.
For the Larger Business Loan ($100K to $500K) we could be capable of offer the conditional pre-approval within six hours. Once you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain agreements have been approved within less than 24 hours.
The fastest way is to ensure you apply during standard business hours and let us use the modern bank verification link to instantly confirm your bank details online. If you send us duplicates of your banking statement, it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K or more) we can often provide a response in one hour if you apply at standard business times and you allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statements we can offer an answer in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be in a position to offer the conditional pre-approval within about 6 hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this can be faster depending on the circumstances of each application. Some agreements have been approved within the space of 24 hours.
The most effective method for you to apply is ensure you apply during standard business hours. Also, let us use the modern bank verification to confirm your bank details online. If you opt to upload the copies of bank accounts, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a certain amount, we look at a variety of elements to determine how much we can lend you health for your company and the level of payments your business will be able to support. The total amount of your loan will depend on the specifics for your business.
When you submit an application for a set amount, we take into consideration a variety of aspects to assess how much we can lend you such as well-being of the business and the amount of payments your company is able to afford. The total amount of your loan will be contingent on the specific circumstances of your business.
Fees & repayments
How much do you charge for a business loan?
If you decide to apply for business loans with us business credit, we’ll assess the risk profile for your business and offer you with a tailored offer, including the amount of the loan, the duration and the interest rates. This business loan is an upfront cost loan so you will be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I will be charged?
The interest rates on business loans rates vary due to variables like the amount to be that is borrowed, what business assets the funds will be used for as well as the field the company is in, how long the company has been running and in the event that the company has sufficient cash flow to pay for the loan, and also the overall well-being or creditworthiness of the company.
What are the fees?
There aren’t any hidden costs for our business loans, and you’ll be aware of the amount you be required to pay and when, from the very first day. There’s no compounding interest, and the loan comes with no additional fees (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You can make an application for loans with no cost upfront or commitment to apply.
The Origination Fee includes the expenses associated with the setting up and management of the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5% of the amount of the loan.
Can I pay off the loan early?
You may choose to pay back all of your loan in full at any time.
If you do decide to pursue this option, please call our helpful company credit experts. The experts will provide you with repayment details as well as an early payout amount. It will be calculated using the total of the remaining principal amount and any accrued interest at the time of early payout and 1.5 percent of the principal remaining and any fees that remain unpaid.
What are the repayment methods?
In order to help you avoid missing payments and to work with your cash flow routine, we provide repayments either daily or weekly. They are automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
Protecting your information, and knowing the ways we gather, use, exchange and secure your information, is crucial and a vital 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 and financial data and our funders are ISO 27001 certified for our commitment to the security of our customers as well as their privacy. We use an advanced banking verification system to immediately verify the bank account details online, allowing us to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when a business owner borrows from the assets they have to secure the loan. The asset may be an asset belonging to the personal, like the family home, or a company asset such as a vehicle or other piece of machinery.
The majority of lending institutions, not just the major banks, prefer to guarantee loans against assets. If you’re struggling to pay back the loan, then your assets could be sold by the lender. In essence, it is a way of securing new financing making use of the value of what you already have.
Do I require security for a company loan?
For loans of up to $150,000, it is not necessary to secure assets upfront to access the money, however we do require a personal guarantee. If you adhere to your loan obligations (as detailed in your loan contract document), asset security will never be needed. If you take out loans in excess of $150K generally, you can get an individual ensure and security in the form an asset charge.