FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Sellicks Beach Small Business Loans
Let me know what you think of the Sellicks Beach Small Business Loans
Sellicks Beach unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What makes what makes the Unsecured Loan different from a traditional business loan?
The application to get your Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an answer within the same day and the funds could be available in just 24 hours. Traditional company loans refer to an annual interest rate together with additional fees and charges. This company loan is a loan that is priced upfront therefore you’ll know in advance the amount you will have to pay, including any interest, fees or charges. This is then broken down into either a daily or weekly installment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business use, including control of cash flow business remodeling, marketing to purchase inventory, new equipment, to fund general working capital, and much more. The loan cannot be used for personal purposes.
About Larger Sellicks Beach Business Loans
What is the Larger Sellicks Beach Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your company needs to have been trading for at least 3 years, and have an annual income of at least $700K. 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 demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A Business Loan of a larger size is a great option for almost all company use, including company renovations, purchase of new equipment or inventory as well as for 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 access funding over $150,000. This can be done by way of charge against assets and can be registered on the PPSR or registering as a caveat.
A personal or director’s ensure is a commitment to pay back a loan that is general in nature rather than defining the security of a specific asset. The person who is signing the ensure is personally responsible if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including items or assets). The PPSR allows priority over personal property to be assigned in accordance with the date on which a security interest was registered.
An affidavit is an official form of document to offer the legal claim to property.
What is a pre-approval without Credit Check?
If you’re seeking a Larger Business Loan that exceeds $250,000 we can offer a preliminary pre-approval to help make the process. We might be able to do this without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial health checks. This is not an offer of credit or guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer you may receive may be subject to different terms.
Application process
Do I have the right to receive funds?
You may apply for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form within a couple minutes, and an experienced company lending specialist will contact you to guide you.
To apply for up to $100,000, you’ll require identification details (valid Driver’s License) along with an active NZBN/IRD, and at least six months worth of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K-$250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent, 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, plus interim financials from the current financial year such as age-related payables and aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K up to $100,000) We can usually provide an answer within one hour – as long as you apply at standard business timings and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you opt to upload copies of your bank statements , we’ll be able to provide the decision within just an business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be likely to provide you with a conditional pre-approval within 6 hours. After you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval, however it could be faster based on the particular circumstances of each application. Some transactions have received approval within 24 hours.
The quickest method for you to apply is make sure you apply during normal company hours and allow us to use the modern bank verification link to instantly verify your bank information online. If you choose to upload duplicates of your banking accounts, it will take a little longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) We can usually offer an answer in just one hour, provided you apply within standard business time and let us use the advanced bank verification system link to instantly verify your bank information online. If you decide to submit copies of your bank statements, we will be able to provide the decision within one business day.
For the Larger Business Loans ($100K to $500K) we may be likely to offer you with a conditional pre-approval within about 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending upon the circumstances for each application. Certain deals have been approved in less than 24 hours.
The fastest way can be ensure you apply during standard business hours and let us use the sophisticated bank verification to instantly verify your bank information online. If you upload the copies of bank statements, it will take a little longer.
What’s the minimum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a certain amount we look at a variety of elements in order to assess what is the well-being that is your business and the amount of payments your company will be able to 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 particular amount, we look at a range of aspects to determine your health for your business as well as the amount of payments your business is able to afford. The total amount of the loan will be determined by the particular circumstances that are unique to your business.
Fees & repayments
How much should you charge for the cost of a company loan?
When you apply for business loans with us company loan, we will assess the risk assessment the company and offer an individualised offer that includes the amount of loan, the term and the interest rates. The business loan is an upfront-priced loan therefore you will be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What determines the amount I’m charged?
Interest rates for business loans rates depend on a variety of factors such as the amount that is that is borrowed, what business assets the funds are used to purchase, the industry the business is in, how long the business has been operating and how long the business has sufficient cash flow to support the loan, and the general health or creditworthiness of the company.
What are the fees?
There are no hidden costs with our company loans, and you’ll be aware of the amount it is that you be required to pay and when, right from the very first day. There’s no compounding interest and no additional fees (as as long as you pay your payments on time).
We don’t charge an application fee. You are able to apply for a loan with absolutely no upfront cost and no any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the loan amount.
Can I pay out the loan in advance?
You may choose to pay back the total amount of your loan in full at any time.
If you do decide to do this please talk to one of our helpful company loan experts. We will provide you with details for repayment as well as an early payout amount. The figure will be calculated as the total of the principal balance and any accrued interest at the time of early payment, plus 1.5 percent of the principal remaining and any fees that remain unpaid.
What is the process for repayments?
To ensure you do not miss repayments and to fit in your cash flow cycle we offer repayments that are either weekly or daily. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Security of your data, and being clear about how we collect information, use it, and exchange it, as well as safeguard your data, is of huge importance and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We make use of an advanced bank verification system that allows you to instantly confirm your bank account information online to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where the company owner borrows from the assets they have to make the funding. The asset may be an individual property, such as the family home, or an company property like a truck as well as a piece of machine.
The vast majority of lending institutions, including the largest banks, are inclined to secure loans against assets. If you are having difficulty paying back the loan then your assets could be offered for sale by the lender. In essence, it is a way of securing new financing by using the value of what you already own.
Should I need security for an business loan?
For loans up to $150K there is no requirement for asset security prior to the loan’s access However, we do need an individual guarantee. As long as you follow the loan terms (as stated in your loan contract) and you are able to meet your obligations, asset security is not needed. For loans of over $150,000 generally there is a personal guarantee and security that is in the form an asset charge.