FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Semaphore Small Business Loans
Tell me how you are able to avail the Semaphore Small Business Loans
Semaphore unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from the traditional company loan?
It is possible to apply for your Small Business Loan in under 10 minutes via the internet or over the phone, receive an answer within the same day and the funds could be on your account within 24 hours. Traditional business loans are based on an annual interest rate along with other charges and fees. We offer a company loan is a loan that is priced upfront so you will be aware of the total amount payable including any fees, interest or charges. Then, it is divided into a daily or weekly installment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company use, including cash flow management, company improvements, advertising for purchasing inventory or new equipment, for general working capital and so much more. The loan is not available for personal reasons.
About Larger Semaphore Business Loans
What is the Larger Semaphore Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans range from $100,000 to $500,000 with a term fixed that can last up to 36 months. The repayments are made weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large, your business needs to have been operating for a minimum of 3 years and have an annual turnover of at least $700K. You must 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 to demonstrate at minimum 12 months of continuous trading.
What can the funding be used for?
A Larger Business Loan can be used for almost any business need, including company renovations, purchase of new equipment or inventory for 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 required to obtain funding above $150,000. It is usually by way of charge on assets, which could also be registered on the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is general in nature, rather than defining the security for a particular asset. The person signing the guarantee is personally responsible if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including the assets or goods). The PPSR grants the priority of personal property assigned depending on the date that a security interest was registered.
A caveat is a legal document that is filed to offer the public notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan that is greater than $250K we may be able to provide an initial pre-approval to make the process. We could be able to make this decision without a credit check, and within 6 hours of your initial application. This pre-approval is based on a preliminary assessment which includes the answer to a series of financial health questions. It’s not an offer of credit or guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer you may receive may have different terms.
Application process
Do I qualify for funds?
You may be eligible for an business 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)
- must show at least six months worth of trade (for for the 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 easy. Complete the online form in few minutes and a dedicated company credit specialist will contact you to assist you.
To apply for up to $100,000, you’ll require identification details (valid Driver’s Licence), an active NZBN/IRD, and at least 6 months of bank statements.
For larger loan sizes, you’ll also require:
$100K – $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Information on the application including credit consent, 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, in addition to interim financial statements for the current year including Aged Payables, Aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K and up) we typically offer a response in one hour if you apply at standard company timings and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you want to upload copies of your banking statements , we are able to offer the decision in just an company day.
For the Larger Business Loan ($100K up to $500,000) we may be able to offer you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this may be quicker depending on the specifics of each application. Some transactions have received approval in less than 24 hours.
The fastest way for you to apply is make sure you apply during normal business hours, and permit us to use the modern bank verification link to instantly confirm your bank details online. If you opt to send us the copies of bank statements , it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we can often provide an answer within one hour – as long as you submit your request at standard business times and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your bank statements we can offer the decision within the span of one business day.
For Larger Business Loans ($100K up to $500,000) we might be likely to offer you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval, however it could be faster based on the specifics of each application. Some deals have been approved in the space of 24 hours.
The fastest method for you to apply is ensure you apply during standard business hours. You can also allow us to use the sophisticated bank verification to instantly verify your bank information online. If you send us duplicates of your banking statements, it takes a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a particular amount, we take into consideration a range of aspects in order to assess the well-being that is your company and the amount of payments your company is able to afford. The amount you receive from the loan will be determined by the particular circumstances for your business.
If you apply for a particular amount, we consider a variety of aspects to assess your well-being of your company and the level of the repayments your company can afford. The amount you receive from your loan will be determined by the particulars of your company.
Fees & repayments
How much should you charge for a business loan?
If you decide to request one of our company credit, we’ll assess the risk assessment the business and offer you with a customised proposal that includes loan amount, term and interest rates. This business loan is an upfront-priced loan which means you know the exact amount payable including any charges, interest rates or fees.
What determines the amount I’m charged?
The interest rates on company loans rates depend on a variety of variables like the amount to be borrowed, the company assets the funds will be used for in addition to the industry that the business operates in, the long the business has been operating as well as whether the company has sufficient cash flow to cover the loan, and the general well-being or creditworthiness of the business.
What are the cost?
There aren’t any hidden charges with our business loans, and you’ll know precisely how much it is that you need to pay, and when, right from day one. There’s not any compounding interest and there are no additional charges (as long as you are able to make your payments in time).
We do not charge an Application Fee. You can make an application for loans with no cost upfront or the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. This is only a fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan early?
You can repay all of your loan at any point in time.
If you choose to pursue this option, please talk to one of our helpful business loans experts. They’ll offer you with repayment details and an early payment figure. The figure will be calculated as the total of the remaining principal amount and accrued interest to the time of early payout plus 1.5% of the principal balance as well as any outstanding fees.
How do you make repayments work?
In order to help you avoid missing repayments and to fit in your cash flow schedule, we offer repayments either weekly or daily. They are automatically deducted from your company account.
Security & privacy
Will my information be protected?
Protecting your information, and being clear about how we collect information, use it, and exchange it, as well as ensure the security of your information is crucial 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 techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their privacy. We employ a highly sophisticated banking verification system to instantly verify your bank account details online, allowing us to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when a business owner uses the assets they have to secure the funding. The asset can be either a personal asset like the family home, or it could be a business asset such as a vehicle as well as a piece of machine.
The majority of lending institutions, not just the largest banks, are inclined to make loans secured by an asset. If you’re having trouble paying back the loan, your assets could be taken over by the lender. In essence, it’s an opportunity to secure additional financing making use of the value of what you already own.
What do I need security to secure a company loan?
For loans up to $150,000 no asset security is required before you are able to access the money but we require a personal guarantee. need the personal guarantee. As long as you follow the terms of your loan (as stipulated in the loan contract) the security of assets will never be needed. For loans that exceed $150K, generally, there is personal ensure and security in the form of an asset charge.