FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Spring Mountain Small Business Loans
Let me know more about Spring Mountain Small Business Loans
Spring Mountain unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from an ordinary business loan?
The application for your Small Business Loan in under 10 minutes on 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 are based on an annual interest rate together with additional fees and charges. We offer a business loan is a cash-based loan which means you be aware in advance of the total amount payable including any interest, fees or charges. Then, it is broken down into weekly or daily repayment figure.
What could the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any company need, such as the management of cash flow, business remodeling, marketing, to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used to fund personal expenses.
About larger Spring Mountain Business Loans
What is the Larger Spring Mountain Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large, your business needs to be trading for at least 3 years and have an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A larger company loan can be used to fund almost all company reason, such as business improvements, purchasing new equipment or inventory or as general working capital and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is needed for funding of more than $150,000. This can be done in the form of a charge against assets, and could be registered on the PPSR or filing as a caveat.
A personal or director’s ensure is a promise to repay credit that is generally in nature rather than specifying the security for a particular asset. The person who is signing the ensure is personally liable in the event that the company lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including objects or assets). The PPSR gives the priority of personal property assigned according to the date a registration of a security interest.
A caveat is a legal document filed to offer an official notice of a claim to a property.
What is a pre-approval minus Credit Check?
If you’re requesting larger business loans of more than $250K it’s possible to offer an initial pre-approval in order to simplify the process. We could be able to make this decision without a credit check, and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves you answering some financial health checks. It is neither an offer nor a guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer you are offered could be based on different conditions.
The application process
Do I have the right to receive funds?
You can apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form in just a few minutes, and a dedicated company credit specialist will contact you to assist you.
For a loan of up to $100,000 you’ll require the right identification documents (valid Driver’s License) along with an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Details of the application, including credit consent twelve months of bank records, IRD statements, last 2 years finalised financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) We can usually provide an answer within an hour, provided you submit your request during standard business hours and allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements , we are able to offer the decision within just an business day.
If you are applying for a Larger Business Loan ($100K or more) we could be capable of provide you with conditional pre-approval in around 6 hours. After you’ve 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 offers have been approved in less than 24 hours.
The quickest method for you to apply is make sure you apply during normal business hours. Also, let us use the advance bank verification to verify your bank information online. If you upload documents from your account statements it takes a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K and up) We can usually provide an answer within an hour if you make your application during standard business time and let us make use of the advanced bank verification system to instantly verify your bank details online. If you decide to upload copies of your banking statements, we will be able to provide a decision in as little as one business day.
For Larger Business Loans ($100K and up) we may be capable of offer you with conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this can be faster depending upon the circumstances for each application. Certain deals have been approved in 24 hours.
The fastest way is to ensure you apply during standard business hours. You can also allow us to use the advanced bank verification system link to instantly verify your bank information online. If you send us duplicates of your banking statements, it will take a little longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you submit an application for a certain amount, we will consider a number of factors that determine the well-being for your business as well as the amount of the repayments your business can support. The total amount of the loan will be determined by the particular circumstances the business.
When you apply for a particular amount, we will consider a number of factors to determine how much we can lend you such as well-being of the company as well as the amount of repayments your business can afford. The amount you receive from your loan will be contingent on the particulars of your business.
Fees & repayments
How much do you charge for an business loan?
If you decide to make an application for the company credit, we’ll assess the risk profile that you have for your company and provide you with a customised offer, including loan amount, term and interest rates. This company loan is an upfront-priced loan therefore you will be aware in advance of the total amount payable including any costs, fees, or interest rates.
What is the basis for the rate I’m charged?
Business loan interest rates vary due to variables like the amount to be borrowed, what business assets the funds are used to purchase, the industry the business is operating in, how long the company has been running and what percentage of the business has sufficient cash flow to support the loan, and also the overall health as well as creditworthiness company.
What are the cost?
There aren’t any hidden costs for our company loans. You’ll be aware of the amount you’ll need to pay and when, from the very first day. There’s no compounding interest and there are no additional charges (as long as you are able to make your payments punctually).
We don’t charge an Application Fee. You are able to get a cash loan without any upfront costs or any obligation to sign up.
The Origination Fee is the cost associated with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I repay the loan early?
You can decide to repay the total amount of your loan in full at any time.
If you do decide to do this please talk to one of our helpful company loan specialists. They’ll provide you with repayment details and an early payout figure. The figure will be calculated as the total of the principal balance plus any accrued interest as of the date of early payout plus 1.5% of the principal amount remaining plus any outstanding fees.
How do you make repayments work?
To ensure you do not miss repayments and to fit in your cash flow schedule, we provide repayments either daily or weekly. These are automatically deducted from the nominated business account.
Security & privacy
Will my information be secure?
Security of your data, and knowing how we collect the information we collect, use, share and safeguard your data, is crucial and an integral 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 clients as well as their security. We utilise a sophisticated bank verification system that allows you to immediately verify your bank account details online, allowing us to offer quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where the company owner utilises an asset they own to obtain the loan. The asset can be an individual property, such as the family home or it could be a company asset like a truck or piece of equipment.
The majority of lenders, even the big banks, tend to secure loans against an asset. If you’re struggling to pay back the loan, then your assets could be taken over by the lender. In essence it’s means of securing new financing by taking advantage of the value of what you already have.
Do I need security for a company loan?
For loans that exceed $150,000, no asset security is required upfront to access the money However, we require a personal guarantee. require a personal guarantee. In the event that you fulfill the terms of your loan (as stipulated in the loan contract), asset security will never be needed. For loans of over $150K generally, you are able to get a personal guarantee and security that is in the form a charge over assets.