FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Strathpine Small Business Loans
Let me know how you are able to avail the Strathpine Small Business Loans
Strathpine unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
What makes what makes the Unsecured Loan different from a traditional company loan?
It is imaginable to apply to this Small Business Loan in under 10 minutes by phone. You will receive a same day response and funds may be on your account within 24 hours. Traditional company loans have an interest rate per annum as well as other fees and charges. This company loan is a pre-paid loan and you’ll be aware of the total amount payable including any fees, interest or charges. Then, it is broken down into weekly or daily installment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every company purpose including cash flow management, company improvements, advertising to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal purposes.
About the Larger Strathpine Business Loans
What is the Larger Strathpine Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are weekly or fortnightly to work with the flow of cash.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size, your business needs to have been in operation for at least 3 years, and have an annual income of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funding for?
A Business Loan of a larger size is a great option for almost every business use, including business renovations, to purchase inventory or new equipment or as general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This is by taking a charge against assets, which could also include the registration of this with the PPSR or making a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is general in nature rather than stating the security of a specific asset. The person who is signing the guarantee is personally liable in the event that the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including the assets or goods). The PPSR permits preference over private property granted according to the date the security interest was registered.
Caveats are legal document filed to offer notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking the Larger Business Loan of $250K or more it’s possible to offer a preliminary pre-approval to help smooth out the process. We may be able to do this without a credit check, and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial health questions. This is not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer that you are offered could be subject to different terms.
The application process
Do I have the right to receive funds?
You are eligible to apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Just complete the online application within a couple minutes, and a dedicated business lending specialist will call you to guide you.
To be eligible for up to $100,000 you’ll require ID details (valid Driver’s License), an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Application details including credit consent twelve months of bank records, IRD statement as well as the two most recent years’ financial statements, in addition to interim current financial year financials as well as Aged Payables and Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K and up) we typically provide an answer in just one hour, provided you apply within quality business times and you allow us to utilise the 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 a decision within just the span of one business day.
For the Larger Business Loan ($100K or more) we may be able to offer you with pre-approval conditional to your application within about 6 hours. After you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Certain transactions have received approval within just 24 hours.
The most efficient method would be to ensure you apply during normal business hours and allow us to use the modern bank verification to instantly verify your bank information online. If you decide to send us documents from your account statement, it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) we usually offer an answer in just one hour – as long as you make your application within normal business hours and let us use the bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your banking statements we can offer an answer within one business day.
For the Larger Business Loans ($100K to $500K) we might be in a position to offer the conditional pre-approval in about six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Certain transactions have received approval within the space of 24 hours.
The most effective method can be make sure you apply during standard business hours, and let us use the modern bank verification link to instantly confirm your bank details online. If you decide to upload documents from your account statement, it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a certain amount we consider a variety of variables in order to assess what is the health that is your business as well as the amount of repayments that your company will be able to support. The amount you receive from your loan will be contingent on the specifics that are unique to your business.
If you apply for a certain amount, we take into consideration a variety of variables to assess your health that is your company as well as the amount of payments your business is able to afford. The amount you receive from the loan will be determined by the specifics the company.
Fees & repayments
What is the cost for an company loan?
When you apply for one of our company loan, we’ll assess the risk profile of your company and offer an individualised offer including the amount of loan, the term and the interest rates. It is a company loan is an upfront priced loan therefore you will be aware in advance of the total amount you will have to pay, including charges or interest.
What determines the rate that I’m charged?
Business loan interest rates vary due to factors including the amount that is borrowed, what company assets the funds are used to purchase in addition to the industry that the business operates in, the long the business is in operation for, in the event that the company has sufficient cash flow to support the loan, and also the overall health or financial standing of the business.
What are the charges?
There aren’t any hidden costs with our company loans, and you’ll know precisely what you need to pay, and at what time, from day one. There’s no compounding 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 can get a cash loan absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated with establishing and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of loan.
Do I have the option of paying off the loan early?
You can choose to repay the entire amount of your loan early at any time.
If you decide to do this please call our helpful company loan specialists. We will offer you with details on repayment and an early payout figure. This is calculated as the sum of the principal amount remaining and any accrued interest at the date of early payout and 1.5% of the principal remaining as well as any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align your cash flow cycle we offer repayments that are either daily or weekly. They will be automatically deducted from your company account.
Security & privacy
Will my data be protected?
Protecting your information, and being upfront about how we collect, use, exchange and protect your information, is vital and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and privacy. We employ a highly sophisticated bank verification system link to instantly verify your bank account details online. This allows us to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a company owner borrows from assets they own to get the funding. The asset can be an individual property, such as the family home or an company property like a truck or other piece of machinery.
The majority of the lenders including the largest banks, are inclined to secure loans against an asset. If you’re having trouble paying back the loan, then the asset could be taken over by the lender. In essence, it is means of securing additional financing taking advantage of the value of what you already have.
Are I need security to get a business loan?
For loans up to $150K the requirement for asset security is not required upfront to access the money but we require a personal guarantee. require a personal guarantee. So long as you comply with the terms of your loan (as detailed in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans over $150K typically, you will need personal ensure and security that is in the form charges on assets.