FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Stones Corner Small Business Loans
Tell me what you think of the Stones Corner Small Business Loans
Stones Corner unsecured loans offers the range of $5,000 to $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What makes what makes the Unsecured Loan different from the traditional company loan?
The application for the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an instant response and the money could be in your account within 24 hours. Traditional company loans are based on an annual interest rate plus other fees and charges. The company loan is a pre-paid loan therefore you’ll know ahead of time the total amount to be paid, including any fees, charges or charges. This is then broken down into weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for virtually any business use, including the management of cash flow, company remodels and marketing, to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used for personal reasons.
About larger Stones Corner Business Loans
What is the Larger Stones Corner Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are either weekly or fortnightly, depending on your situation.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan of this size the company needs to have been trading for at least 3 years, and have an annual income of at least $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funding be used for?
A larger business loan can be used for almost every company reason, such as company renovations, purchase of inventory or new equipment, 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 required to obtain funding above $150,000. This can be done by taking a charge over assets, and may include registering this through the PPSR or filing as a caveat.
A director’s or personal ensure is a commitment to pay off a credit line that is general in nature rather than defining security over an asset. The person who is signing the guarantee is personally accountable if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including goods or assets). The PPSR permits the priority of personal property assigned according to the date the security interest has been registered.
A caveat is a legal form of document to offer the public notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re applying for an enterprise loan that exceeds $250,000 we can offer a preliminary pre-approval to help ease the process. We could be able to do this without credit checks and within 6 hours of your initial application. This pre-approval is made based on a preliminary assessment which includes answering a couple of financial health questions. It’s not an offer or guarantee of funds. Unconditional approval is subject to an extensive credit evaluation and any offer you are offered could be based on different conditions.
Application process
Do I have the right to receive funds?
You may be eligible for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must prove 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. Just complete the online application in just a few minutes, and an experienced company expert in lending will call you to guide you through the process.
To apply for up $100,000 you’ll require the right identification documents (valid Driver’s License) along with a valid NZBN/IRD as well as at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K-$250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent and 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, as well as interim financials from the current financial year such as age-related payables and aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K and up) We can usually provide a response in one hour – as long as you apply within standard company time and let us make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statements , we are able to provide an answer in just an company day.
For the Larger Business Loan ($100K and up) we might be in a position to offer you with pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Some agreements have been approved within just 24 hours.
The quickest method is to make sure you apply during standard business hours, and let us use the advanced bank verification system link to instantly check your bank’s information online. If you opt to upload documents from your account statements , it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K or more) We can usually offer a response in one hour – as long as you submit your request during normal business time and you allow us to use the bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statements, we are able to offer a decision in as little as 1 business day.
For Larger Business Loans ($100K up to $500,000) we might be capable of provide the conditional pre-approval within about 6 hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this could be shorter based on the particular circumstances of each application. Certain transactions have received approval within less than 24 hours.
The fastest way for you to apply is make sure you apply during normal business hours. You can also allow us to use our advanced bank verification system link to instantly check your bank’s information online. If you choose to send us documents from your account statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a particular amount, we consider a variety of variables to determine your well-being that is your business as well as the amount of the repayments your business is able to afford. The total amount of the loan will be determined by the specifics for your company.
If you apply for a set amount, we consider a variety of variables to assess how much we can lend you such as health that is your business and the extent of payments your business is able to afford. The amount you receive from your loan will be determined by the specifics that are unique to your company.
Fees & repayments
How much do you charge for an business loan?
When you make an application for business loans with us business financing, we will assess the risk profile that you have for your company and offer you with a tailored offer, including loan amount, term and interest rates. The company loan is a loan that is priced upfront which means you know the exact amount you will have to pay, including interest rates, fees or charges.
What is the factor that determines the price I am charged?
The interest rates on business loans rates depend on several variables like the amount to be of money borrowed, the company assets the money will be used for as well as the field the company is in, how long the company is in operation for, whether the company has sufficient cash flow to pay for the loan, and also the general health as well as creditworthiness business.
What are the costs?
There are no hidden fees with our company loans, and you’ll be aware of the amount you’ll need to pay, and when, from day one. There’s no compounding interest, and no additional fees (as as you make your payments punctually).
We don’t charge an application fee. You are able to get a cash loan no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated with setting up and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I repay the loan early?
You can repay all of your advance loan at any time.
If you choose to do this please contact our helpful company credit experts. They will offer you with repayment details and an early payment figure. This will be calculated as the total of the principal remaining and the accrued interest up to the time of early payment plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss due dates and also to be in line your cash flow schedule, we offer repayments either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being transparent about how we collect, use, exchange and safeguard your data, is vital and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We employ a highly sophisticated banking verification system to immediately verify the bank account details online so we can offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an business owner uses an asset they own to make a loan. The asset can be either an individual property, such as the family home or a business asset such as a truck or piece or equipment.
The vast majority of banks, even the banks with the biggest size, prefer to make loans secured by an asset. If you’re struggling to pay back the loan, then your assets could be offered for sale by the lender. In essence it’s means of securing new financing using the value of what you already own.
Do I need security for a business loan?
For loans of up to $150K, the requirement for asset security is not required in advance to gain access to the funds, however we require a personal guarantee. need an individual guarantee. As long as you follow your loan obligations (as specified in your loan contract) the security of assets will never be needed. For loans that exceed $150K, generally there is the option of a personal guarantee and security in the form the charge of assets.