FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Seacombe Gardens Small Business Loans
Let me know what you think of the Seacombe Gardens Small Business Loans
Seacombe Gardens unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from an traditional business loan?
Apply to the Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an instant response and have the funds in your account in 24 hours. Traditional company loans refer to an annual rate of interest along with other charges and fees. This company loan is a cash-based loan therefore you’ll be aware in advance of the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into either weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every business reason, such as managing cash flows, business remodeling, marketing to purchase inventory, new equipment, as general working capital and so much more. The loan cannot be used for personal reasons.
About larger Seacombe Gardens Business Loans
What is the Larger Seacombe Gardens Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee which is determined at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to have been operating for a minimum of 3 years with an annual turnover of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funds be utilised?
A Business Loan of a larger size can be used for nearly all business need, including business renovations, to purchase equipment or inventory or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. This can be done by taking a charge against assets, and may include registering this in the PPSR or making a caveat.
A director’s or personal ensure is a commitment to pay off a credit line that is general in nature, rather than defining security over an asset. The person who signs the ensure is personally responsible if the company lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be granted depending on the date that a registration of a security interest.
An affidavit is an official document that is filed to provide the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
When you’re applying for larger business loans of $250,000 or more we can offer a preliminary pre-approval to help ease the process. We could be able to make this decision without a credit check and within six hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering some financial health questions. It’s not an offer or guarantee of credit. Acceptance without condition is subject to a full credit assessment and any offer that you are offered could be based on different terms.
The application process
Are I eligible for funding?
You may apply for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Simply complete the online form within a few minutes and a dedicated business expert in lending will call you to guide you.
To be eligible for up to $100,000, you’ll require the right identification documents (valid Driver’s Licence), a valid NZBN/IRD and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Information on the application including credit consent as well as 12 months of bank records, IRD statements as well as the two most recent years’ financial statements, in addition to interim financials for the current financial year such as age-related payables and aged Receivables reports.
How quickly will I receive an answer?
For an unsecured loan ($5K or more) we can often provide a response in one hour – as long as you make your application at quality company timings and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your bank statements we can provide an answer in just an company day.
If you are applying for a Larger Business Loan ($100K or more) we may be able to offer the conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Some deals have been approved within the space of 24 hours.
The most efficient method is to ensure you apply during standard company hours, and allow us to use our modern bank verification link to check your bank’s information online. If you choose to upload documents from your account statement, it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer within an hour if you apply during normal business hours and permit us to utilise the advanced bank verification system to instantly verify your bank information online. If you choose to upload copies of your banking statements, we will be able to offer the decision within one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be able to offer you with conditional pre-approval in around six hours. Once you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval. However, it could be faster based on the circumstances of each application. Certain deals have been approved in the space of 24 hours.
The most effective method can be ensure you apply during standard business hours. You can also let us use the sophisticated bank verification to instantly confirm your bank details online. If you opt to send us documents from your account statements it can take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a certain amount, we take into consideration a range of elements that determine the health that is your company and the extent of payments your business will be able to support. The total amount of your loan will be contingent on the specific circumstances of your business.
If you apply for a particular amount, we look at a range of variables to assess the well-being of your company and the amount of repayments that your company can afford. The total amount of the loan will be determined by the particulars that are unique to your company.
Fees & repayments
How much should you charge for the cost of a company loan?
When you make an application for one of our company financing, we’ll assess the risk profile the business and offer an individualised offer that includes the loan amount, the terms and the interest rates. This company loan is an upfront priced loan therefore you will know the exact amount payable including any interest rates, fees or charges.
What is the basis for the rate I pay?
Business loan interest rates depend on several variables like the amount to be borrowed, what business assets the funds will be used for in addition to the industry that the business is in, how long the business has been operating for, what percentage of the business has sufficient cash flow to support the loan, as well as the overall health and creditworthiness of the business.
What are the charges?
There aren’t any hidden costs with our business loans. You’ll know exactly how much you be required to pay, and at what time, from the first day. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments in time).
We don’t charge an Application Fee. You are able to get a cash loan with without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with setting up 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 percentage of the amount of the loan.
Can I pay out the loan in advance?
You can choose to repay the total amount of your loan in full at any time.
If you choose to pursue this option, please speak to our friendly business loan professionals. The professionals will offer you with details on repayment and an early payment figure. This is calculated as the total of the principal balance and the accrued interest up to the time of the early payout in addition to 1.5% of the principal balance as well as any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payments and to work your cash flow cycle we provide repayments either weekly or daily. They are automatically deducted from the nominated 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 huge importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to the security of our clients as well as their security. We use an advanced bank verification system that allows you to immediately confirm your bank account information online. This allows us to offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where a business owner makes use of an asset that they own to secure a loan. The asset can be either a personal asset like the family home or a business asset such as a truck as well as a piece of machine.
The majority of banks, not just the largest banks, are inclined to guarantee loans against an asset. If you’re struggling to pay back the loan, then the asset could be sold by the lender. In essence it’s a way of securing new financing making use of the value of what you already own.
Do I require security for an company loan?
For loans of up to $150K, it is not necessary to secure assets in advance to gain access to the funds However, we do need an individual guarantee. If you adhere to the loan terms (as detailed in the loan contract), asset security will never be needed. If you take out loans in excess of $150K generally there is an individual ensure and security that is in the form the charge of assets.