FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Stafford Small Business Loans
Let me know how you can avail the Stafford Small Business Loans
Stafford unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
How is this Unsecured Loan different from an ordinary company loan?
You can apply to get the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an immediate response, and the money could be in your account in 24 hours. Traditional company loans have an annual rate of interest plus other fees and charges. This business loan is a loan that is priced upfront therefore you’ll be aware of the total amount payable including any interest, fees or charges. Then, it is broken down into either a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly any business use, including managing cash flows, company remodeling, marketing for purchasing inventory or new equipment, as general working capital, and much more. The loan cannot be used to fund personal expenses.
Concerning Larger Stafford Business Loans
What is the Larger Stafford Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan in this amount the business needs to be in operation for at least 3 years with an annual turnover of at least $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funds be used for?
A larger company loan is a great option for almost every business purpose including company renovations, purchase of inventory or new equipment or as general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It’s as a result of an charge on assets, and could be registered on the PPSR or the registration of as a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is general in nature rather than stating security over a particular asset. The person who is signing the ensure is personally accountable if the company lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including goods or assets). The PPSR allows priority over personal property to be assigned depending on the date that a security interest was registered.
A caveat is a legal form of document to provide notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re applying for larger business loans of more than $250,000 we may be able to provide a preliminary pre-approval to help smooth out the process. It is possible to do this without credit checks and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves you answering a few financial health checks. This is neither an offer nor a guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer that you are offered could be based on different terms.
The application process
Are I eligible for funding?
You may apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months worth of trade (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form in few minutes and a dedicated company expert in lending will call you to guide you through the process.
To apply for up $100,000, you’ll require ID details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K-$250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Information on the application including credit consent twelve month bank accounts, the IRD statement Last 2 years’ finalised financial statements, in addition to interim current financial year financials as well as Aged Payables and Receivables summary.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) we typically provide an answer within one hour – as long as you submit your request at quality company times and let us utilise the bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statement, we’ll provide an answer in just 1 business day.
For the Larger Business Loan ($100K to $500K) we might be capable of provide you with conditional pre-approval in around six hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval. However, this could be shorter based on the specifics of each application. Certain transactions have received approval within the space of 24 hours.
The quickest method for you to apply is make sure you apply during standard company hours. You can also allow us to use the advanced bank verification system to confirm your bank details online. If you choose to send us duplicates of your banking accounts, it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K and up) We can usually offer a response in one hour – provided you apply during normal business timings and allow us to use the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your banking statements, we’ll be able to offer an answer in just 1 business day.
For Larger Business Loans ($100K and up) We may be able to offer you with a conditional pre-approval within 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this could be shorter based on the particular circumstances of each application. Certain deals have been approved within just 24 hours.
The fastest method can be ensure you apply during standard business hours and allow us to use our sophisticated bank verification to instantly verify your bank account information online. If you decide to send us duplicates of your banking statement, it will take a little longer.
How much can I borrow?
We offer loans that range from $5,000 to $500,000. If you apply for a particular amount, we look at a variety of aspects in order to assess how much we can lend you health of your business and the extent of payments your company can support. The total amount of your loan will depend on the particular circumstances of your business.
When you apply for a certain amount, we will consider a number of variables to assess the well-being that is your business and the amount of payments your company can afford. The amount you receive from the loan will be determined by the specific circumstances that are unique to your company.
Fees & repayments
How much should you charge for the cost of a company loan?
When you request one of our company loan, we’ll assess the risk assessment the company and provide you with a customised offer that includes the amount of the loan, the duration and interest rates. It is a business loan is an upfront-priced loan which means you be aware in advance of the total amount you will have to pay, including costs, fees, or interest rates.
What is the factor that determines the price I will be charged?
Interest rates for company loans rates vary due to factors including the amount borrowed, the business assets the funds will be used for as well as the field the business operates in, how long the business has been in operation for, how long the company has enough cash flow to pay for the loan, and the overall health as well as creditworthiness company.
What are the fees?
There aren’t any hidden charges with our company loans, and you’ll know precisely how much you’ll be required to pay, and when, from the day you sign up. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments on time).
We do not charge an Application Fee. You are able to get a cash loan without any upfront costs or the obligation to take action.
The Origination Fee covers the expenses involved with establishing and managing the loan. This is only a cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I repay the loan earlier?
You may choose to pay back the total amount of your loan at any point in time.
If you are deciding to take this route, please speak to our friendly business loan professionals. The experts will offer you with the details of your repayment and an early payout figure. This is calculated as the total of the remaining principal amount and the accrued interest up to the time of early payment in addition to 1.5% of the principal balance as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing repayments and to fit in with your cash flow routine, we provide payments that are either daily or weekly. They are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Protecting your information, and making it clear the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and an integral element 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 personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We employ a highly sophisticated bank verification system that allows you to immediately confirm your bank account information online. This allows us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an company owner makes use of the assets they have to obtain the funding. The asset can be either an asset belonging to the personal, like the family home, or it could be a business asset such as a truck or other piece of machinery.
The vast majority of banks, not just the major banks, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, then your assets could be taken over by the lender. In essence, it is an opportunity to secure new financing by taking advantage of the value of what you already own.
Are I require security to secure an company loan?
For loans up to $150,000 there is no requirement for asset security before you can access the money but we do require an individual guarantee. If you adhere to your loan commitments (as stipulated in your loan contract) the security of assets will never be required. For loans that exceed $150,000, generally, there is an individual ensure and security that is in the form charges on assets.