FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Stretton Small Business Loans
Tell me more about Stretton Small Business Loans
Stretton unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from an ordinary company loan?
You can apply for the Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an answer within the same day and the money could be on your account within 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. We offer a business loan is a pre-paid loan which means you know in advance the total amount due, which includes any fees, interest or charges. This is then divided into weekly or daily payment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company purpose including cash flow management, business remodeling, marketing, to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal purposes.
About the Larger Stretton Business Loans
What is the Larger Stretton Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to be trading for at least 3 years and have an annual turnover 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 company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
What can I use the funds for?
A large company loan can be used to fund almost every company purpose including company improvements, purchasing equipment or inventory or as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. It is usually by way of charge on assets, and could include the registration of this with the PPSR or filing as a caveat.
A director’s or personal ensure is a promise to repay a loan which is general in nature rather than defining security over a particular asset. The person who signs the guarantee is personally liable in the event that the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including the assets or goods). The PPSR allows the priority of personal property assigned in accordance with the date on which a security interest was registered.
A caveat is a legal document lodged to provide notice of a legal claim to a property.
What is a pre-approval without Credit Check?
When you’re applying for larger business loans of more than $250,000, we may offer an initial pre-approval that will help make the process. It is possible to apply for this without credit checks and within 6 hours of your initial application. The pre-approval is based upon an initial assessment, which involves answering a couple of financial health checks. It’s in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer that you receive could be on different terms.
The application process
Are I eligible for funding?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Just complete the online application in just a few minutes, and a dedicated business lending specialist will call you to assist you.
To apply for up $100,000 you’ll need the right identification documents (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent, 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, in addition to interim financials from the current financial year as well as Aged Payables and Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we usually offer an answer within an hour, provided you submit your request at quality company time and you allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you opt to send us copies of your bank statements , we are able to offer a decision in as little as one business day.
For the Larger Business Loan ($100K or more) we may be in a position to offer you with conditional pre-approval in about 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this can be quicker based on the particular circumstances of each application. Certain deals have been approved within 24 hours.
The fastest way is to make sure you apply during standard business hours. You can also let us use the advance bank verification link to verify your bank information online. If you opt to upload documents from your account statement, it can take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K and up) we typically offer an answer within an hour if you apply within standard business times and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you opt to upload copies of your banking statements, we’ll be able to provide the decision in just an business day.
If you are applying for Larger Business Loans ($100K or more) We may be able to offer you with pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this can be faster depending on the circumstances of each application. Certain offers have been approved within 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours and permit us to use the advance bank verification to confirm your bank details online. If you opt to send us duplicates of your banking accounts, it takes a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you submit an application for a specific amount we will consider a number of elements in order to assess how much we can lend you health that is your company as well as the amount of the repayments your company is able to afford. The total amount of your loan will be contingent on the specific circumstances that are unique to your business.
When you apply for a certain amount, we consider a variety of factors to determine how much we can lend you such as health of the company as well as the amount of the repayments your company will be able to support. The amount you receive from your loan will be determined by the specifics that are unique to your company.
Fees & repayments
What is the cost for an company loan?
When you request the company loans, we will assess the risk profile that you have for your business and provide you with a customised offer including the amount of loan, the term and the interest rates. A business loan is a loan that is priced upfront which means you be aware in advance of the total amount payable including any charges or interest.
What is the basis for the rate I will be charged?
The interest rates on company loans rates depend on several factors including the amount of money borrowed, the company assets the money will be used for in addition to the industry that the company is in, how long the company has been running and whether the company has sufficient cash flow to cover the loan, and also the general well-being or creditworthiness of the company.
What are the cost?
There are no hidden costs for our business loans, and you’ll be aware of the amount you’ll need to pay and when, from the very first day. There’s no compounding interest, and no additional fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You can apply for a loan with without any upfront costs or obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I repay the loan earlier?
You may choose to pay back the entire amount of the advance loan at any time.
If you are deciding to do this please speak to our friendly business lending specialists. We will offer you with details for repayment and an early payment figure. This is calculated as the sum of the principal amount remaining and any accrued interest at the time of early payout plus 1.5% of the principal balance and any fees that remain unpaid.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line with your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my information be protected?
Protecting your information, and being upfront about how we collect information, use it, and exchange it, as well as ensure the security of your information is crucial and an integral element 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 sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to customer security and security. We make use of an advanced banking verification system to immediately verify your bank account details 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 the business owner uses an asset that they own to secure a loan. The asset can be either a personal asset like the family home, or an business property like a truck or other piece of machinery.
The majority of the lenders even the largest banks, are inclined to make loans secured by an asset. If you’re having trouble paying back the loan then the asset might be transferred to the lender. In essence it is an opportunity to secure new funding taking advantage of the value of what you already own.
Are I need security to secure an business loan?
For loans of up to $150K, there is no requirement for asset security upfront to access the money but we require a personal guarantee. need the personal guarantee. In the event that you fulfill your loan commitments (as stated in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans of over $150K typically, you will need a personal ensure and security in the form charges on assets.