FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Sunnybank Small Business Loans
Tell me what you think of the Sunnybank Small Business Loans
Sunnybank unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from a traditional company loan?
The application to your 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 funds could be in your account within 24 hours. Traditional business loans refer to an annual interest rate plus other fees and charges. We offer a business loan is an upfront priced loan and you’ll be aware in advance of the total amount due, which includes any fees, interest or charges. Then, it is divided into a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business reason, such as managing cash flows, company remodels and marketing to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal reasons.
Concerning Larger Sunnybank Business Loans
What is the Larger Sunnybank Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a credit in this amount the business needs to be operating for a minimum of 3 years and generate an annual revenue of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funding for?
A Larger Business Loan can be used for almost any business reason, such as company renovations, purchase of new equipment or inventory as well as for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is required for funding of more than $150,000. It is usually by way of charge on assets, and may be registered on the PPSR or registering as a caveat.
A director’s or personal ensure is a guarantee to repay a loan which is generally in nature rather than stating the security of a specific asset. The person signing the guarantee is personally liable if the company the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including items or assets). The PPSR allows the priority of personal property granted depending on the date that a security interest has been registered.
The caveat can be described as a formal form of document to provide notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for larger company loans that is greater than $250K it’s possible to offer an initial pre-approval to smooth out the process. We may be able to make this decision without credit checks and within 6 hours of your initial application. The pre-approval process is based on an initial assessment, which involves you answering some financial health checks. This is not an offer of credit or guarantee of financing. A conditional approval is subject an assessment of your creditworthiness and any offer you receive could be subject to different conditions.
The application process
Do I have the right to receive funds?
You can apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months worth of trade (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application within a few minutes and an experienced company loan specialist will contact you to help you.
To apply for up $100,000 you’ll require identification details (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent, 12 month bank accounts, the IRD statements and the last two years’ finalised financial statements, and interim financials for the current financial year such as age-related payables and aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we usually offer an answer in just one hour – as long as you apply within quality company time and you allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements we can offer a decision in as little as an business day.
For the Larger Business Loan ($100K to $500K) we might be likely to offer you with conditional pre-approval within about 6 hours. After you’ve signed your pre-approval document, you will require to wait around 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Certain deals have been approved within just 24 hours.
The most efficient method would be to ensure you apply during standard company hours. You can also allow us to use our advance bank verification to confirm your bank details online. If you opt to upload duplicates of your banking statements it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we can often offer a response in one hour – provided you make your application during standard business time and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statement, we’ll provide a decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we might be capable of offer you with pre-approval conditional to your application in around 6 hours. Once you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval, however it could be faster based on the specifics of each application. Certain transactions have received approval within 24 hours.
The quickest method is to ensure you apply during normal business hours, and let us use the modern bank verification to verify your bank account information online. If you choose to send us copies of your bank statement, it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a specific amount we look at a variety of variables that determine what is the health that is your company as well as the amount of payments your business is able to afford. The amount you receive from your loan will depend on the specific circumstances of your company.
If you apply for a certain amount, we take into consideration a variety of elements to determine how much we can lend you such as well-being for your business and the level of repayments your company can support. The total amount of your loan will be determined by the specific circumstances of your business.
Fees & repayments
What is the cost for an business loan?
When you request business loans with us business loan, we will assess the risk assessment the company and offer you with a customised offer including the amount of loan, the term and interest rates. It is a company loan is an upfront priced loan therefore you will be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What determines the rate that I’m charged?
The interest rates on business loans rates vary due to variables like the amount to be borrowed, what business assets the money will be used for in addition to the industry that the business is operating in, how long the business is in operation as well as how long the business has enough cash flow to pay for the loan, and the overall well-being and creditworthiness of the company.
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 when, right from the first day. There’s no compounding and the loan comes with no additional fees (as as you make your payments on time).
We don’t charge an Application Fee. You can get a cash loan with no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay out the loan earlier?
You can repay the entire amount of your advance loan at any time.
If you do decide to pursue this option, please contact our helpful business loan professionals. They will provide you with details for repayment along with an early payout estimate. This is calculated as the sum of the principal remaining and accrued interest to the time of the early payout, plus 1.5 percent of the principal remaining and any fees that remain unpaid.
How do repayments work?
In order to help you avoid missing repayments and to fit in your cash flow cycle we provide repayments either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being transparent about how we collect data, process, exchange and safeguard your data, is of huge importance and a vital 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 qualified for our commitment to security for our clients and security. We make use of an advanced bank verification system link to immediately verify your bank account information online. This allows 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 a business owner utilises assets they own to secure the loan. The asset could be a personal asset like the family home, or it could be a company asset such as a truck or piece of equipment.
The majority of banks, including the major banks, prefer to guarantee loans against assets. If you are having difficulty paying back the loan, the asset could be offered for sale by the lender. In essence, it’s a way of securing new financing by using the value of what you already own.
Should I need security for a company loan?
For loans of up to $150K, it is not necessary to secure assets prior to the loan’s access however, we do need an individual guarantee. As long as you follow your loan commitments (as stated in your loan contract document) Asset security will never be needed. For loans that exceed $150K, generally, there is a personal ensure and security in the form an asset charge.