FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Sunnybank Hills Small Business Loans
Tell me about the Sunnybank Hills Small Business Loans
Sunnybank Hills unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from the traditional company loan?
Apply to get the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and funds may be on your account within 24 hours. Traditional company loans have an annual rate of interest along with other charges and fees. Our business loan is a cash-based loan so you will be aware of the total amount to be paid, including the interest, fees and charges. This is then broken down into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company need, such as the management of cash flow, business improvements, advertising to purchase inventory or new equipment, or as general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger Sunnybank Hills Business Loans
What is the Larger Sunnybank Hills Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range from $100,000 to $500,000 over a fixed term that can last up to 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size the business needs to have been operating for a minimum of 3 years and generate an annual revenue of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
What can I use the funding for?
A large company loan can be used for nearly all business purpose including business renovations, to purchase new equipment or inventory as well as for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. It is usually as a result of an charge on assets, and could include the registration of this in the PPSR or making a caveat.
A personal or director’s guarantee is a promise to repay credit that is general in nature rather than stipulating security over a particular asset. The person signing the ensure is personally responsible if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It lists security interests that are registered in respect of personal property (including goods or assets). The PPSR grants prioritisation over property that is personal to be granted depending on the date that a security interest that is registered.
An affidavit is an official document lodged to offer the public notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re applying for the Larger Business Loan of more than $250,000, we may offer a preliminary pre-approval to help ease the process. We may be able to get this done without a credit check, and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes the answer to a series of financial health questions. This is neither an offer nor a guarantee of funds. Unconditional approval is subject to a full credit assessment and any offer that you receive could be on different terms.
Application process
Are I eligible for funding?
You are eligible to apply 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 trade (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form within a few minutes and a dedicated company lending specialist will be in touch to assist you.
To apply for up $100,000, you’ll require proof of identity (valid Driver’s Licence) as well as an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also need:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Information on the application including credit consent and 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, plus interim current financial year financials as well as Aged Payables and Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we typically provide a response in one hour – as long as you make your application within quality company times and you allow us to utilise the bank verification system link to instantly verify your bank details online. If you want to send us copies of your bank statements , we are able to provide the decision within just one business day.
If you are applying for a Larger Business Loan ($100K or more) we may be capable of provide you with pre-approval conditional to your application in around 6 hours. After you’ve signed your pre-approval document, you will need to wait around 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Certain deals have been approved in the space of 24 hours.
The quickest method for you to apply is make sure you apply during standard company hours and allow us to use our advance bank verification link to instantly confirm your bank details online. If you decide to upload the copies of bank accounts, it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer within an hour – provided you apply during normal business time and allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statements, we are able to provide an answer in just the span of one business day.
For the Larger Business Loans ($100K up to $500,000) we may be likely to provide the conditional pre-approval within 6 hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Some transactions have received approval in less than 24 hours.
The most efficient method for you to apply is ensure you apply during standard business hours, and allow us to use the sophisticated bank verification link to verify your bank account information online. If you choose to send us documents from your account statements it takes a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a specific amount we consider a variety of variables for determining how much we can lend you health of the company and the level of the repayments your business can support. The total amount of your loan will be contingent on the specific circumstances that are unique to your business.
When you make an application for a set amount, we take into consideration a variety of elements to assess how much we can lend you such as health of your company and the extent of the repayments your company is able to afford. The amount you receive from the loan will be determined by the particular circumstances of your company.
Fees & repayments
How much do you charge for a business loan?
If you decide to request the business loan, we will assess the risk assessment for your company and offer an individualised offer including the amount of the loan, the duration and the interest rates. A company loan is an upfront cost loan and you’ll know in advance the total amount to be paid, including any costs, fees, or interest rates.
What is the factor that determines the price I’m charged?
The interest rates on company loans rates depend on a variety of factors including the amount that is borrowed, what company assets the money will be used for as well as the field the company is operating in, how long the company has been running and what percentage of the company has sufficient cash flow to cover the loan, as well as the overall health or financial standing of the business.
What are the costs?
There are no hidden fees with our company loans, and you’ll know precisely what it is that you be required to pay, and when, from day one. There’s no compounding and no additional fees (as as you make your payments on time).
We do not charge an application fee. You are able to apply for a loan absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the expenses involved with the setting up and management of the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan in advance?
You can repay the entire amount of the loan in full at any time.
If you are deciding to pursue this option, please talk to one of our helpful business 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, plus 1.5 percent of the remaining principal plus any outstanding fees.
What is the process for repayments?
To ensure you do not miss repayments and to fit in your cash flow schedule, we provide repayments either weekly or daily. These are automatically withdrawn from your business account.
Security & privacy
Will my information be secure?
Security of your data, and being upfront about how we collect the information we collect, use, share and ensure the security of your information is vital and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We employ a highly sophisticated bank verification system that allows you to instantly verify your bank account details online, allowing us to offer an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where the business owner makes use of assets they own to get the loan. The asset may be an asset belonging to the personal, like the family home, or a business asset like a truck or piece or equipment.
The majority of banks, even the major banks, prefer to guarantee loans against assets. If you’re having trouble paying back the loan then your asset may be transferred to the lender. In essence it’s the process of securing new funding taking advantage of the value of what you already own.
What do I need security to get a business loan?
For loans of up to $150,000, no asset security is required upfront to access the money however, we require a personal guarantee. require the personal guarantee. So long as you comply with the loan terms (as stated in your loan contract) the security of assets will never be needed. For loans of over $150K generally, there is personal guarantee and security is provided in the form of the charge of assets.