FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Sumner Small Business Loans
Tell me how you are able to avail the Sumner Small Business Loans
Sumner unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow-friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from a traditional business loan?
Apply to get your Small Business Loan in under 10 minutes over the phone, receive an immediate response, and funds may be in your account within 24 hours. Traditional company loans have an annual interest rate plus other fees and charges. We offer a company loan is a cash-based loan therefore you’ll be aware of the total amount due, which includes any fees, charges or charges. Then, it is divided into a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost any business reason, such as control of cash flow business remodeling, marketing to purchase inventory or new equipment, to fund general working capital and much more. The loan is not available for personal reasons.
Concerning Larger Sumner Business Loans
What is the Larger Sumner Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are scheduled weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the company needs to be trading for at least 3 years and have an annual turnover of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funding for?
A larger company loan can be used for nearly all company need, including company renovations, to purchase equipment or inventory or as general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. It’s in the form of a charge against assets, and may include registering this in the PPSR or filing as a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is general in nature, rather than specifying the security of a specific asset. The person who signs the guarantee is personally liable if the business the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including items or assets). The PPSR allows preference over private property granted according to the date a registration of a security interest.
The caveat can be described as a formal document that is filed to provide the public notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
When you’re applying for a Larger Business Loan of $250,000 or more we can offer an initial pre-approval in order to make the process. It is possible to apply for this without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial evaluation that involves you answering some financial well-being questions. It is neither an offer nor a guarantee of financing. Unconditional approval is subject to a full credit assessment and any offer you receive could have different terms.
Application process
Do I qualify for funds?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for a 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 fast and simple. Just fill out the online application within a few minutes and a dedicated company credit specialist will be in touch to guide you through the process.
To be eligible for up to $100,000, you’ll require ID details (valid Driver’s License) and an active NZBN/IRD, and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K to $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details of the application, including credit consent and 12 months bank statement, an IRD statement, last 2 years finalised financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we usually offer a response in one hour, provided you make your application within quality business hours and you allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you decide to submit copies of your bank statements , we’ll be able to offer the decision in just 1 company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be capable of provide the conditional pre-approval within six hours. Once you have signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this could be shorter based upon the circumstances for each application. Some offers have been approved in just 24 hours.
The quickest method is to ensure you apply during standard company hours and let us use the advanced bank verification system link to instantly verify your bank account information online. If you choose to upload documents from your account statement, it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we typically offer an answer within one hour if you submit your request at normal business time and allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you decide to send us copies of your bank statements, we are able to provide a decision in as little as an business day.
If you are applying for Larger Business Loans ($100K or more) We may be capable of offer the conditional pre-approval in around six hours. Once you have signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Certain transactions have received approval in the space of 24 hours.
The fastest way can be ensure you apply during normal business hours, and permit us to use the advance bank verification link to check your bank’s information online. If you send us duplicates of your banking statements it takes a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a particular amount, we consider a variety of aspects in order to assess your well-being of the company and the extent of repayments that your business is able to afford. The amount you receive from your loan will be contingent on the specific circumstances for your business.
When you submit an application for a set amount, we take into consideration a variety of variables to assess the health that is your business and the extent of repayments that your company can support. The total amount of the loan will be determined by the specifics for your company.
Fees & repayments
How do you charge for an company loan?
If you decide to make an application for our company financing, we’ll assess the risk profile the company and provide you with a tailored offer that includes the amount of the loan, the duration and the interest rates. The company loan is an upfront priced loan so you will be aware in advance of the total amount payable including any charges or interest.
What determines the rate that I will be charged?
Interest rates for company loans rates depend on several variables like the amount to be that is borrowed, what company assets the money will be used for, the industry the business operates in, the long the business has been operating and how long the business has sufficient cash flow to support the loan, as well as the overall health or financial standing of the company.
What are the charges?
There aren’t any hidden charges for our company loans, and you’ll be aware of the amount it is that you need to pay, and when, starting from the first day. There’s no compounding and no extra fees (as as you make your payments on time).
We do not charge an application fee. You are able to apply for a loan with no upfront cost or commitment to apply.
The Origination Fee includes the expenses associated with establishing and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I repay the loan in advance?
You can repay all of your loan at any point in time.
If you choose to pursue this option, please talk to one of our helpful company lending experts. The specialists will provide you with the details of your repayment as well as an early payout amount. This is calculated as the total of the remaining principal amount and accrued interest to the time of early payout, plus 1.5% of the principal balance plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing due dates and also to be in line with your cash flow standard, we provide repayments either daily or weekly. They are automatically deducted from your business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being clear about how we collect data, process, exchange and safeguard your data, is of paramount importance and a vital 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 personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to security for our customers and privacy. We employ a highly sophisticated bank verification system to instantly verify the 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 occurs when an company owner uses an asset they own to get a loan. The asset may be an asset belonging to the personal, like the family home or an business asset like a truck or piece of equipment.
The vast majority of the lenders not just the largest banks, are inclined to secure loans against an asset. If you have trouble paying back the loan, the asset could be sold by the lender. In essence it’s an opportunity to secure additional financing using the value of what you already have.
What do I need security to get an business loan?
For loans up to $150,000 no asset security is required in advance to gain access to the funds but we require a personal guarantee. need a personal guarantee. As long as you follow the terms of your loan (as stated in your loan contract) the security of assets will never be required. For loans of over $150K typically, you will need personal ensure and security in the form of the charge of assets.