FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Spring Hill Small Business Loans
Tell me what you think of the Spring Hill Small Business Loans
Spring Hill unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from a traditional business loan?
It is imaginable to apply for this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an instant response and the money could be available in just 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. We offer a business loan is a pre-paid loan therefore you’ll know ahead of time the amount you will have to pay, including any interest, fees or charges. This is then broken down into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually any company use, including managing cash flows, business remodeling, marketing to purchase inventory, new equipment, as general working capital and so much more. The loan is not available for personal use.
Concerning Larger Spring Hill Business Loans
What is the Larger Spring Hill Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range from $100,000 to $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?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size, your business needs to be trading for at least 3 years and have an annual turnover of at least $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can I use the funding for?
A large company loan is a great option for almost every company need, including business improvements, purchasing new equipment or inventory for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary to access funding over $150,000. This is by taking a charge over assets, which could also include the registration of this with the PPSR or making a caveat.
A personal or director’s guarantee is a commitment to pay off a credit line that is general in nature, rather than stipulating the security of a specific asset. The person who is signing the guarantee is personally accountable if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR allows preference over private property assigned in accordance with the date on which a security interest has been registered.
The caveat can be described as a formal document that is filed to offer an official notice of a claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for the Larger Business Loan of $250,000 or more we may be able to provide an initial pre-approval that will help ease the process. It is possible to do this without a credit check and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial well-being checks. It’s not an offer of credit or guarantee of funds. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you might receive could be based on different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for a company 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)
- you must prove at least 6 months of business (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $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 expert in lending will contact you to guide you.
For a loan of up to $100,000 you’ll need ID details (valid Driver’s License), an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Application details including credit consent, 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, plus interim current financial year financials including Aged Payables, Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we can often offer a response in one hour – as long as you apply within standard company timings and permit us to utilise the bank verification system link to instantly verify your bank details online. If you decide to upload copies of your banking statements , we will be able to offer a decision in as little as an business day.
For Larger Business Loans ($100K or more) we might be able to provide the conditional pre-approval within 6 hours. Once you have signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, it could be faster based upon the circumstances for each application. Some transactions have received approval in less than 24 hours.
The most effective method for you to apply is make sure you apply during normal company hours and allow us to use our modern bank verification to verify your bank information online. If you send us duplicates of your banking statement, it may take a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we typically offer an answer in just one hour if you make your application within normal business times and you allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your banking statements we can provide a decision in just 1 business day.
For Larger Business Loans ($100K to $500K) we might be able to provide the conditional pre-approval in about 6 hours. Once 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 upon the circumstances for each application. Certain offers have been approved within the space of 24 hours.
The fastest method for you to apply is ensure you apply during standard business hours. Also, allow us to use the sophisticated bank verification to confirm your bank details online. If you opt to send us duplicates of your banking statement, it may take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a specific amount we consider a variety of factors that determine how much we can lend you health of your business as well as the amount of the repayments your business can support. The total amount of your loan will be contingent on the specifics the company.
When you submit an application for a particular amount, we will consider a number of factors to assess the well-being that is your business and the amount of the repayments your business is able to afford. The amount you receive from your loan will be contingent on the specific circumstances for your business.
Fees & repayments
What is the cost for the cost of a business loan?
When you apply for one of our business loan, we’ll assess the risk assessment the company and provide you with a tailored proposal that includes loan amount, term and interest rates. This business loan is a loan that is priced upfront which means you know in advance the total amount to be paid, including any charges, interest rates or fees.
What determines the amount I’m charged?
Interest rates for business loans rates depend on several factors such as the amount that is that is borrowed, what company assets the money will be used for as well as the field the business operates in, how long the company has been running and in the event that the company has sufficient cash flow to support the loan, as well as the overall health or creditworthiness of the company.
What are the fees?
There aren’t any hidden charges with our company loans. You’ll know precisely how much it is that you be required to pay and at what time, from day one. There’s no compounding interest, and there are no additional charges (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You can get a cash loan without any upfront costs or any obligation to sign up.
The Origination Fee covers the costs associated 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 percent of the amount of the loan.
Can I pay out the loan early?
You may choose to pay back the entire amount of your loan early at any time.
If you decide to pursue this option, please call our helpful company lending experts. We will provide you with details for repayment and an early payout figure. This is calculated as the sum of the principal remaining and the accrued interest up to the time of early payment plus 1.5 percent of the remaining principal and any fees that remain unpaid.
What is the process for repayments?
To ensure that you don’t miss due dates and also to be in line your cash flow cycle we provide repayments either weekly or daily. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my data be protected?
Security of your data, and being transparent about the ways we gather information, use it, and exchange it, as well as protect your information, is crucial and an integral 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 and financial data and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their security. We employ an exceptionally sophisticated bank verification system that allows you to instantly verify your bank account information online. This allows us to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a company owner utilises the assets they have to obtain the loan. The asset may be a personal asset like the family home or an company property like a truck or other piece of machinery.
The vast majority of lending institutions, not just the big banks, tend to make loans secured by assets. If you’re having trouble paying back the loan, your asset may be taken over by the lender. In essence it’s a way of securing new funding using the value of what you already have.
Should I need security to secure an business loan?
For loans that exceed $150,000, it is not necessary to secure assets prior to the loan’s access however, we require a personal guarantee. need an individual guarantee. If you adhere to the terms of your loan (as stated in your loan contract) Asset security will never be required. For loans that exceed $150,000, generally, there is a personal ensure and security in the form an asset charge.