FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Stafford Heights Small Business Loans
Tell me more about Stafford Heights Small Business Loans
Stafford Heights unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from an ordinary company loan?
You can apply to get your Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and the funds could be in your account within 24 hours. Traditional company loans reference an annual interest rate along with other charges and fees. We offer a business loan is an upfront priced loan so you will know ahead of time the total amount to be paid, including the interest, fees and charges. Then, it is broken down into either weekly or daily installment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business purpose including cash flow management, company remodels and marketing to purchase inventory or new equipment, as general working capital and so much more. The loan cannot be used to fund personal expenses.
About Larger Stafford Heights Business Loans
What is the Larger Stafford Heights 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 with a term fixed for up to 36 months. Repayments are either weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the company needs to be in operation for at least 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funding be used for?
A large business loan can be used for almost any company reason, such as business improvements, purchasing new equipment or inventory as well as for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This can be done in the form of a charge against assets and can include registration with the PPSR or registering a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is general in nature, rather than stating the security for a particular asset. The person who signs the ensure is personally liable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests that are registered for personal property (including objects or assets). The PPSR permits the priority of personal property granted according to the date the registration of a security interest.
Caveats are legal document lodged to provide the public notice of a legal claim to property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan that is greater than $250K, we may offer an initial pre-approval that will help make the process. We might be able to get this done without credit checks and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves the answer to a series of financial well-being checks. It’s not an offer or guarantee of financing. Unconditional approval is subject to a full credit assessment and any offer you receive could be subject to different terms.
The application process
Do I qualify for funds?
You can apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (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 process for applying is fast and simple. Simply complete the online form within a few minutes and a dedicated business lending specialist will call you to assist you.
For a loan of up to $100,000 you’ll require identification details (valid Driver’s License) along with an NZBN/IRD that is valid and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K-$250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent twelve month bank accounts, the IRD statements as well as the two most recent years’ financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) We can usually offer a response in one hour, provided you make your application during quality company times and you allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your banking statements , we are able to provide an answer within 1 company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be capable of provide you with a conditional pre-approval in about six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, it could be faster based on the specifics of each application. Certain transactions have received approval within the space of 24 hours.
The quickest way to apply can be ensure you apply during standard business hours, and allow us to use our advanced bank verification system link to instantly confirm your bank details online. If you choose to send us the copies of bank statements , it can take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer in just one hour, provided you make your application at standard business timings and allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you decide to submit copies of your bank statements, we are able to provide a decision in as little as the span of one business day.
For the Larger Business Loans ($100K or more) we could be able to offer you with a conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this can be faster depending on the particular circumstances of each application. Certain deals have been approved in less than 24 hours.
The fastest way for you to apply is make sure you apply during normal business hours, and allow us to use our modern bank verification link to verify your bank information online. If you decide to send us duplicates of your banking statements, it can take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a specific amount we consider a variety of aspects to determine how much we can lend you health that is your company and the amount of the repayments your company can support. The total amount of the loan will be determined by the specific circumstances for your company.
If you apply for a specific amount we take into consideration a variety of variables to assess how much we can lend you such as well-being that is your business as well as the amount of payments your company is able to afford. The amount you receive from your loan will be contingent on the specific circumstances for your company.
Fees & repayments
What is the cost for an company loan?
When you apply for our company loan, we will assess the risk profile of your company and offer you with a tailored offer including loan amount, term and interest rates. A business loan is an upfront-priced loan so you will know in advance the total amount due, which includes any costs, fees, or interest rates.
What determines the amount I pay?
Interest rates for business loans rates differ based on various factors like the amount of money of money borrowed, the business assets the funds are used to purchase in addition to the industry that the business operates in, how long the company has been operating for, how long the company has sufficient cash flow to cover the loan, and also the overall well-being or creditworthiness of the business.
What are the costs?
There are no hidden costs with our company loans, and you’ll know precisely what you’ll be required to pay and when, right from the first day. There’s no compounding interest and no additional fees (as as long as you pay your payments punctually).
We don’t charge an Application Fee. You are able to get a cash loan with no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated with the setting up and management of the loan. It is only charged for this fee if you choose to proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan earlier?
You can decide to repay the entire amount of the loan at any point in time.
If you choose to pursue this option, please talk to one of our helpful business loans experts. They will provide you with details on repayment and an early payment figure. This will be calculated as the sum of the principal remaining and any accrued interest at the time of the early payout plus 1.5% of the principal remaining as well as any outstanding fees.
What is the process for repayments?
To ensure you do not miss repayments and to fit in your cash flow cycle we offer repayments either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Security of your data, and knowing the ways we gather the information we collect, use, share and ensure the security of your information is crucial and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to the security of our customers as well as their privacy. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account information online. This allows us to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when a business owner utilises the assets they have to make the funding. The asset can be either an individual property, such as the family home, or a company asset such as a vehicle as well as a piece of machine.
The majority of lending institutions, including the major banks, prefer to guarantee loans against an asset. If you’re struggling to pay back the loan, your asset may be transferred to the lender. In essence, it’s a way of securing new funding taking advantage of the value of what you already own.
What do I require security to get an business loan?
For loans of up to $150K, the requirement for asset security is not required in advance to gain access to the funds but we do need an individual guarantee. As long as you follow your loan obligations (as detailed in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans that exceed $150,000, generally, there is the option of a personal ensure and security in the form of a charge over assets.