FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Springwood Small Business Loans
Tell me how you can avail the Springwood Small Business Loans
Springwood unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is what makes the Unsecured Loan different from an traditional business loan?
It is imaginable to apply to get this Small Business Loan in under 10 minutes online or over the phone. You’ll get a same day response and have the funds available in just 24 hours. Traditional business loans have an annual interest rate plus other fees and charges. Our company loan is a pre-paid loan and you’ll know ahead of time the total amount due, which includes any fees, interest or charges. Then, it is broken down into weekly or daily repayment figure.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for almost every company use, including managing cash flows, business renovations, marketing to purchase inventory, new equipment, as general working capital and much more. The loan is not available for personal purposes.
About larger Springwood Business Loans
What is the Larger Springwood Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. Loans range from $100,000 to $500,000 over a fixed term that can last up to 36 months. The repayments are made weekly or fortnightly depending on you cashflow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the loan amount.
Am I eligible for 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 generate an annual revenue of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funding be utilised?
A larger company loan can be used to fund almost all company need, including company remodeling, buying inventory or new equipment or as general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. It’s by taking a charge over assets, and may include registering this through the PPSR or making a caveat.
A director’s or personal ensure is a guarantee to repay credit that is generally in nature rather than specifying the security of a specific asset. The person signing the guarantee is personally responsible if the business the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR grants priority over personal property to be granted depending on the date that a security interest that is registered.
An affidavit is an official form of document to offer notice of a legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re applying for an enterprise loan of more than $250,000 we may be able to provide a preliminary pre-approval to help smooth out the process. We could be able to get this done without a credit verification and within 6 hours of the initial application. The pre-approval is based upon an initial assessment that includes you answering some financial health questions. This is in no way an offer, nor is it a guarantee of funds. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you might receive could be subject to different terms.
The application process
Can I be eligible for funding?
You are eligible to apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a few minutes and a dedicated business expert in lending will be in touch to guide you.
For a loan of up to $100,000 you’ll require ID details (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least six months of bank statements.
For larger loan sizes, you’ll also require:
$100K-$250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent twelve month bank accounts, the IRD statement as well as the two most recent years’ financial statements, in addition to interim financials for the current financial year including Aged Payables, Aged Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we usually offer an answer within one hour if you submit your request in standard business timings and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you want to submit copies of your bank statement, we’ll offer a decision in as little as one company day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to provide you with pre-approval conditional to your application in about 6 hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Certain offers have been approved in 24 hours.
The quickest way to apply is to make sure you apply during standard business hours. Also, allow us to use our modern bank verification link to instantly verify your bank information online. If you decide to upload the copies of bank accounts, it may take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer in just one hour if you make your application in standard business timings and let us make use of the advanced bank verification system to instantly verify your bank information online. If you want to submit copies of your bank statement, we’ll provide an answer in just 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be in a position to offer the conditional pre-approval within about six hours. Once you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this could be shorter based on the specifics of each application. Certain deals have been approved in 24 hours.
The most effective method for you to apply is make sure you apply during normal business hours. Also, permit us to use the sophisticated bank verification to confirm your bank details online. If you choose to upload the copies of bank statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a certain amount we consider a variety of factors in order to assess your well-being for your business as well as the amount of payments your business can afford. The amount you receive from your loan will depend on the particular circumstances the company.
If you apply for a set amount, we will consider a number of factors to determine your well-being that is your company and the amount of the repayments your business can support. The amount you receive from the loan will be determined by the particular circumstances the company.
Fees & repayments
How do you charge for an business loan?
If you decide to request one of our business loan, we’ll assess the risk profile for your company and offer you with a customised proposal 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 payable including any charges or interest.
What is the basis for the rate I pay?
The interest rates on company loans rates vary due to factors including the amount borrowed, what business assets the money will be used for, the industry the business is in, how long the company has been in operation for, what percentage of the company has enough cash flow to cover the loan, and overall well-being or creditworthiness of the business.
What are the charges?
There are no hidden fees with our company loans. You’ll be aware of the amount you be required to pay and when, right from the first day. There’s no compounding interest and no additional fees (as long as you are able to make your payments punctually).
We don’t charge an application fee. You can request a credit loan without any upfront costs or any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan in advance?
You can choose to repay the entire amount of the loan early at any time.
If you do decide to pursue this option, please contact our helpful business loan specialists. We will provide you with details on repayment and an early payout figure. It will be calculated using the total of the principal remaining and any accrued interest at the time of early payout, plus 1.5 percent of the principal remaining as well as any outstanding fees.
How do repayments work?
In order to help you avoid missing repayments and to fit in your cash flow cycle we provide payments that are either daily or weekly. These are automatically withdrawn from your business account.
Security & privacy
Will my information be secure?
Security of your data, and knowing how we collect data, process, exchange and protect your information, is of huge importance and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to the security of our clients as well as their security. We use an advanced bank verification system to immediately verify your bank account details online so we can 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 that they own to obtain a loan. The asset may be an asset belonging to the personal, like the family home or it could be a business asset like a truck as well as a piece of machine.
The vast majority of lending institutions, including the major banks, prefer to make loans secured by assets. If you are having difficulty paying back the loan then the asset could be offered for sale by the lender. In essence, it is a way of securing new funding making use of the value of what you already have.
Should I need security to secure a business loan?
For loans that exceed $150,000, it is not necessary to secure assets prior to the loan’s access but we do require a personal guarantee. If you adhere to your loan obligations (as specified in the loan contract) and you are able to meet your obligations, asset security is not needed. If you take out loans in excess of $150K typically, you will need a personal guarantee and security in the form of an asset charge.