FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Salisbury Plain Small Business Loans
Let me know more about Salisbury Plain Small Business Loans
Salisbury Plain unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from the traditional business loan?
The application to get the Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and funds may be on your account within 24 hours. Traditional company loans are based on an interest rate per annum plus other fees and charges. This 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 broken down into a daily or weekly payment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company purpose including control of cash flow company renovations, marketing to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal purposes.
About the Larger Salisbury Plain Business Loans
What is the Larger Salisbury Plain Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. The loan ranges from $100,000 to $500,000 with a term fixed for up to 36 months. Repayments are weekly or fortnightly, depending on your cash flow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan that is this large, your company needs to be 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) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funding be utilised?
A Larger Business Loan can be used for nearly any company use, including company renovations, purchase of equipment or inventory, as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. It is usually by way of charge against assets, which could also include registering this on the PPSR or the registration of a caveat.
A director’s or personal ensure is a guarantee to pay off a credit line that is general in nature rather than defining security over an asset. The person who is signing the guarantee is personally liable if the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including objects or assets). The PPSR allows the priority of personal property granted according to the date the security interest that is registered.
The caveat can be described as a formal document that is filed to offer notice of a legal claim to a property.
What is a pre-approval without Credit Check?
When you’re applying for a Larger Business Loan that is greater than $250,000, we may offer an initial pre-approval that will help simplify the process. We may be able to do this without a credit verification and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes the answer to a series of financial well-being checks. This is neither an offer nor a guarantee of financing. A conditional approval is subject a full credit assessment and any offer you receive could be subject to 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 over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for a 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 easy. Simply complete the online form within a couple minutes, and an experienced business credit specialist will contact you to guide you through the process.
For a loan of up to $100,000, you’ll require the right identification documents (valid Driver’s License) as well as an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll also need:
$100K to $250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Information on the application including credit consent and 12 months of bank records, IRD statement, last 2 years finalised financial statements, plus interim financials for the current financial year, Aged Payables and Aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we usually offer an answer within an hour if you submit your request within standard company time and permit us to utilise the bank verification system link to immediately verify your bank account information online. If you opt to submit copies of your bank statements , we will be able to provide a decision in just one company day.
For the Larger Business Loan ($100K and up) we may be capable of provide you with pre-approval conditional to your application within about six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, this can be quicker based on the specifics of each application. Certain offers have been approved within less than 24 hours.
The most efficient method can be make sure you apply during standard company hours. You can also permit us to use the advanced bank verification system to confirm your bank details online. If you decide to send us duplicates of your banking statements it takes a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K or more) we can often offer an answer within one hour – provided you submit your request during normal business time and you allow us to use the bank verification system link to instantly verify your bank information online. If you decide to upload copies of your bank statement, we’ll provide a decision in as little as the span of one business day.
For Larger Business Loans ($100K to $500K) we might be capable of offer the conditional pre-approval in about six hours. Once you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Certain transactions have received approval within the space of 24 hours.
The quickest method would be to make sure you apply during standard business hours, and permit us to use the sophisticated bank verification to instantly check your bank’s information online. If you opt to upload the copies of bank statements it may take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. When you make an application for a certain amount we will consider a number of elements for determining what is the health of the business and the extent of payments your company is able to afford. The total amount of your loan will be contingent on the particular circumstances for your business.
If you apply for a particular amount, we take into consideration a variety of aspects to assess the health of the business and the extent of repayments that your business can support. The amount you receive from your loan will be determined by the specifics of your company.
Fees & repayments
What is the cost for a business loan?
If you decide to make an application for our company financing, we will assess the risk profile of your business and provide an individualised offer, including the amount of loan, the term and the interest rates. It is a business loan is an upfront priced loan therefore you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What determines the amount I’m charged?
The interest rates on company loans rates differ based on various factors like the amount of money of money borrowed, the business assets the money will be used for, the industry the business is operating in, how long the company has been in operation as well as what percentage of the business has enough cash flow to cover the loan, and the overall well-being as well as creditworthiness company.
What are the cost?
There are no hidden costs with our business loans, and you’ll be aware of the amount it is that you be required to pay, and at what time, from the first day. There’s not any compounding interest and no additional fees (as long as you are able to make your payments punctually).
We don’t charge an application fee. You can make an application for loans with no cost upfront or any obligation to sign up.
The Origination Fee covers the expenses involved with the setting up and management of the loan. This is only a fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Do I have the option of paying off the loan early?
You may choose to pay back the entire amount of your loan at any point in time.
If you choose to pursue this option, please talk to one of our helpful business loan specialists. They will provide you with repayment details as well as an early payout amount. This will be calculated as the sum of the principal amount remaining plus any accrued interest as of the time of early payment plus 1.5% of the principal remaining plus any outstanding fees.
What is the process for repayments?
To help you avoid missing repayments and to fit in your cash flow cycle we provide payments that are either weekly or daily. These are automatically withdrawn from your company account.
Security & privacy
Will my data be protected?
Security of your data, and knowing the ways we gather information, use it, and exchange it, as well as secure your information, is vital and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 certified for our dedication to customer security and security. We utilise a sophisticated banking verification system to instantly verify your bank account details online so we can provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an business owner makes use of assets they own to obtain a loan. The asset could be a personal asset like the family home or a company asset such as a truck as well as a piece of machine.
The majority of the lenders including the big banks, tend to secure loans against an asset. If you’re struggling to pay back the loan then the asset could be offered for sale by the lender. In essence it is means of securing additional financing using the worth of the asset you already have.
What do I require security to get an business loan?
For loans up to $150K there is no requirement for asset security before you can access the money, however we require a personal guarantee. need a personal guarantee. If you adhere to your loan obligations (as specified in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150K generally there is personal guarantee and security in the form of an asset charge.