FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Semaphore Park Small Business Loans
Let me know about the Semaphore Park Small Business Loans
Semaphore Park unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
What makes how is the Unsecured Loan different from a traditional company loan?
Apply to get this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get a same day response and the money could be on your account within 24 hours. Traditional business loans refer to an annual interest rate as well as other fees and charges. This business loan is a pre-paid loan therefore you’ll know in advance the total amount to be paid, including the interest, fees and charges. This is then divided into weekly or daily repayment figure.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every company purpose including managing cash flows, business remodeling, marketing, to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used to fund personal expenses.
About larger Semaphore Park Business Loans
What is the Larger Semaphore Park Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee, calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the business needs to be in operation for at least 3 years and generate an annual revenue of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funds be utilised?
A Larger Business Loan can be used for almost all business purpose including company renovations, to purchase inventory or new equipment, as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is required for accessing funds over $150,000. This is by taking a charge on assets and can include registration in the PPSR or the registration of a caveat.
A director’s or personal ensure is a commitment to repay credit that is generally in nature rather than specifying security over an asset. The person signing the guarantee is personally liable if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It records security interests that have been that are registered for personal property (including objects or assets). The PPSR gives preference over private property granted depending on the date that a security interest that is registered.
Caveats are legal document filed to provide the legal claim to property.
What exactly is a preapproval without Credit Check?
If you’re applying for larger company loans of $250,000 or more it’s possible to offer a preliminary pre-approval to help smooth out 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 process is based on a preliminary assessment which includes you answering some financial health checks. This is in no way an offer, nor is it a guarantee of credit. A conditional approval is subject an extensive credit evaluation and any offer that you are offered could have different terms.
Application process
Do I have the right to receive funds?
You are eligible to apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application in just a few minutes, and a dedicated company loan specialist will call you to help you.
For a loan of up to $100,000 you’ll need identification details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Application details including credit consent as well as 12 months of bank statements, IRD statements, last 2 years finalised financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we usually offer an answer within one hour – as long as you submit your request in standard business times and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to upload copies of your banking statements , we are able to offer the decision within the span of one business day.
For Larger Business Loans ($100K or more) we could be in a position to offer you with a conditional pre-approval within about 6 hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval, however this can be quicker based on the circumstances of each application. Some deals have been approved within just 24 hours.
The fastest way is to make sure you apply during normal business hours. Also, let us use the advance bank verification link to instantly verify your bank information online. If you opt to send us duplicates of your banking accounts, it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer within an hour – as long as you make your application at normal business time and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you opt to submit copies of your bank statement, we’ll provide the decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be able to offer you with pre-approval conditional to your application in about 6 hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Certain deals have been approved in the space of 24 hours.
The fastest method is to ensure you apply during normal business hours. You can also allow us to use the advanced bank verification system to confirm your bank details online. If you choose to upload the copies of bank statements, it takes a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. When you submit an application for a certain amount we consider a variety of factors for determining your well-being of the company and the amount of the repayments your company can afford. The total amount of your loan will depend on the particular circumstances that are unique to your company.
If you apply for a specific amount we will consider a number of factors to determine the health for your business as well as the amount of the repayments your business will be able to support. The amount you receive from your loan will be contingent on the particulars for your business.
Fees & repayments
How much should you charge for the cost of a company loan?
When you request one of our business financing, we’ll assess the risk profile for your company and offer you with a tailored offer including loan amount, term and interest rates. A business loan is an upfront cost loan which means you be aware in advance of the total amount due, which includes any interest rates, fees or charges.
What is the basis for the rate I’m charged?
Business loan interest rates depend on several factors including the amount that is borrowed, what company assets the funds are used to purchase as well as the field the company is operating in, how long the company has been operating, whether the business has enough cash flow to fund the loan, and also the overall well-being or financial standing of the company.
What are the charges?
There are no hidden costs for our company loans. You’ll be aware of the amount you’ll be required to pay and at what time, from day one. There’s no compounding and there are no additional charges (as as you make your payments punctually).
We don’t charge an application fee. You can apply for a loan with with no upfront cost or commitment to apply.
The Origination Fee includes the expenses associated with the setting up and management of the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
Can I pay off the loan in advance?
You may choose to pay back the entire amount of your advance loan at any time.
If you choose to do this please call our helpful company loan specialists. They’ll offer you with the details of your repayment and an early payout figure. The figure will be calculated as the total of the principal amount remaining and accrued interest to the time of early payout, plus 1.5 percent of the principal amount remaining and any fees that remain unpaid.
What are the repayment methods?
To ensure you do not miss payments and to work your cash flow schedule, we provide payments that are either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as knowing the ways we gather data, process, exchange and protect your information, 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 standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to customer security and privacy. We make use of an advanced bank verification system link to instantly confirm your bank account information online, allowing us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when a company owner utilises an asset they own to get the funds for a loan. The asset may be an individual property, such as the family home or it could be a company asset like a truck as well as a piece of machine.
The majority of lenders, even the big banks, tend to secure loans against assets. If you have trouble paying back the loan then your assets could be sold by the lender. In essence it’s the process of securing new funding making use of the value of what you already own.
What do I need security to get an business loan?
For loans up to $150K the requirement for asset security is not required prior to the loan’s access but we require a personal guarantee. need the personal guarantee. As long as you follow the loan terms (as detailed in your loan contract) and you are able to meet your obligations, asset security will never be needed. For loans over $150K generally there is personal ensure and security is provided in the form of the charge of assets.