FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Steiglitz Small Business Loans
Tell me how you are able to avail the Steiglitz Small Business Loans
Steiglitz unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from an ordinary company loan?
It is possible to apply for the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an answer within the same day 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. This company loan is an upfront priced loan which means you know in advance the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into either a daily or weekly repayment figure.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company purpose including cash flow management, business remodels and marketing, to purchase inventory or new equipment, or as general working capital and so much more. The loan is not available for personal reasons.
Concerning Larger Steiglitz Business Loans
What is the Larger Steiglitz Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term with a maximum of 36 months. Repayments are either weekly or fortnightly depending on your situation.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount, your company needs to have been operating for at least three years and have an annual turnover of $700,000. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, 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 funds be utilised?
A Larger Business Loan can be used for almost any business reason, such as business renovations, to purchase inventory or new equipment for general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It’s by way of charge over assets, and may be registered through the PPSR or the registration of as a caveat.
A personal or director’s ensure is a commitment to pay off a credit line that is generally in nature rather than stipulating the security for a particular asset. The person who is signing the ensure is personally responsible if the business creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including objects or assets). The PPSR grants prioritisation over property that is personal to be assigned in accordance with the date on which a registration of a security interest.
An affidavit is an official document filed to offer the legal claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger company loans of $250K or more it’s possible to offer an initial pre-approval in order to smooth out the process. We could be able to make this decision without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves answering a couple of financial well-being checks. This is not an offer of credit or guarantee of credit. A conditional approval is subject a full credit assessment and any offer you might receive could have different conditions.
The application process
Are I eligible for funding?
You can apply for a business 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)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a few minutes and a dedicated company loan specialist will be in touch to guide you.
To apply for up to $100,000 you’ll need ID details (valid Driver’s Licence), an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit approval, 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 months of bank records, IRD statement as well as the two most recent years’ financial statements, and interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K and up) we can often offer an answer within one hour if you make your application during standard company times and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you opt to send us copies of your bank statement, we’ll provide the decision within an business day.
For the Larger Business Loan ($100K or more) we could be likely to provide you with a conditional pre-approval in about six hours. After you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending on the specifics of each application. Some offers have been approved within 24 hours.
The quickest way to apply for you to apply is make sure you apply during standard company hours, and allow us to use our advance bank verification link to verify your bank account information online. If you upload duplicates of your banking accounts, it can take a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) we typically provide an answer in just one hour – as long as you apply within normal business timings and allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you decide to submit copies of your bank statements we can provide an answer within the span of one business day.
If you are applying for Larger Business Loans ($100K and up) We may be likely to offer the conditional pre-approval in about six hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Some offers have been approved within 24 hours.
The fastest way for you to apply is make sure you apply during normal business hours and let us use the modern bank verification link to instantly verify your bank information online. If you send us duplicates of your banking statement, it will take a little longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you submit an application for a certain amount we take into consideration a range of elements in order to assess your well-being of the business and the amount of the repayments your company will be able to support. The total amount of your loan will depend on the specifics for your business.
When you submit an application for a certain amount, we take into consideration a variety of elements to assess your well-being for your company and the level of the repayments your company can afford. The amount you receive from your loan will depend on the specifics the company.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to apply for one of our company financing, we will assess the risk assessment the company and offer you with a tailored offer that includes the amount of the loan, the duration and the interest rates. A business loan is an upfront-priced loan so you will know in advance the total amount due, which includes any charges, interest rates or fees.
What is the factor that determines the price I am charged?
Interest rates for company loans rates depend on several factors including the amount that is borrowed, what business assets the money will be used for in addition to the industry that the business operates in, how long the business has been in operation and what percentage of the business has sufficient cash flow to support the loan, and overall well-being or financial standing of the company.
What are the charges?
There are no hidden costs for our business loans. You’ll know precisely how much you be required to pay and when, from the very first day. 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 don’t charge an application fee. You are able to request a credit loan absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay off the loan early?
You can decide to repay the entire amount of your advance loan at any time.
If you are deciding to take this route, please contact our helpful company lending professionals. They’ll offer you with the details of your repayment and an early payment figure. This will be calculated as the total of the remaining principal amount and any accrued interest at the time of early payment and 1.5 percent of the principal balance plus any outstanding fees.
How do repayments work?
To ensure you do not miss payment dates and to align with your cash flow general, we offer repayments that are either daily or weekly. These are automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being clear about how we collect the information we collect, use, share and safeguard your data, is of huge importance and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to security for our customers and security. We employ a highly sophisticated bank verification system link to instantly verify your bank account details online. This allows us to offer rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a company owner utilises assets they own to get the funding. The asset could be an asset belonging to the personal, like the family home or an business asset like a truck or other piece of machinery.
The majority of the lenders including the major banks, prefer to secure loans against assets. If you’re having trouble paying back the loan, the asset could be sold by the lender. In essence it’s the process of securing new financing by taking advantage of the value of what you already have.
Should I need security for a business loan?
For loans that exceed $150K, the requirement for asset security is not required prior to the loan’s access However, we do require an individual guarantee. So long as you comply with your loan commitments (as stipulated in your loan contract) the security of assets is not needed. If you take out loans in excess of $150K generally there is personal ensure and security is provided in the form of charges on assets.