FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Sheidow Park Small Business Loans
Tell me what you think of the Sheidow Park Small Business Loans
Sheidow Park unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
How is this Unsecured Loan different from an ordinary company loan?
Apply to get the Small Business Loan in under 10 minutes via the internet or over the phone, receive an answer within the same day and the money could be on your account within 24 hours. Traditional business loans refer to an annual interest rate together with additional fees and charges. Our business loan is a pre-paid loan and you’ll know in advance the total amount payable including any fees, interest or charges. This is then divided into a daily or weekly repayment figure.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually any business need, such as managing cash flows, company remodels and marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal reasons.
About the Larger Sheidow Park Business Loans
What is the Larger Sheidow Park Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are scheduled weekly or fortnightly, depending on you cashflow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan in this amount the business needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can I use the funding for?
A larger company loan can be used to fund almost all company purpose including business renovations, purchase of inventory or new equipment or as general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It is usually in the form of a charge on assets, and may include registration on the PPSR or registering a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is generally based rather than stipulating the security of a specific asset. The person who is signing the ensure is personally liable in the event that 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 lists security interests that are registered in respect of personal property (including the assets or goods). The PPSR allows priority over personal property to be assigned according to the date a registration of a security interest.
The caveat can be described as a formal form of document to offer the legal claim to a property.
What exactly is a preapproval without Credit Check?
If you’re requesting a Larger Business Loan of more than $250K it’s possible to offer an initial pre-approval in order to smooth out the process. We could be able to do this without a credit check, and within 6 hours of the initial application. This pre-approval is based on an initial evaluation that involves you answering some financial well-being checks. This is neither an offer nor a guarantee of credit. Unconditional approval is subject to an extensive credit evaluation and any offer you might receive could be subject to different conditions.
The application process
Do I qualify for funds?
You are eligible to apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (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 process for applying is fast and simple. Complete the online form within a couple minutes, and a dedicated business loan specialist will call you to guide you.
For a loan of up to $100,000 you’ll require identification details (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details for application including credit consent and 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, and interim financials for the current financial year such as age-related payables and aged Receivables summaries.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we usually provide an answer within one hour – as long as you make your application during quality business time and permit us to make use of the advanced bank verification system link to instantly verify your bank information online. If you want to send us copies of your bank statements we can offer a decision within just an business day.
If you are applying for a Larger Business Loan ($100K or more) we might be likely to offer you with pre-approval conditional to your application within about 6 hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based on the specifics of each application. Certain offers have been approved in the space of 24 hours.
The quickest method is to make sure you apply during standard business hours. Also, permit us to use the modern bank verification to instantly confirm your bank details online. If you decide to upload copies of your bank statements it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K and up) we typically offer an answer in just one hour, provided you make your application in standard business time and you allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you decide to submit copies of your bank statement, we’ll provide the decision within the span of one business day.
For Larger Business Loans ($100K to $500K) we might be capable of offer you with pre-approval conditional to your application in around six hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Certain agreements have been approved within the space of 24 hours.
The fastest method is to ensure you apply during normal business hours and permit us to use the modern bank verification link to verify your bank account information online. If you decide to send us the copies of bank statements, it may take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a certain amount we consider a variety of aspects for determining the well-being that is your company 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 apply for a certain amount, we take into consideration a variety of aspects to assess your well-being of the business and the amount of repayments that your business will be able to support. The total amount of your loan will depend on the particulars the business.
Fees & repayments
How do you charge for a company loan?
When you make an application for business loans with us company loan, we’ll assess the risk assessment for your business and provide you with a tailored offer, including the amount of the loan, the duration and interest rates. The company loan is an upfront priced loan so you will be aware of the total amount payable including any charges or interest.
What is the basis for the rate I pay?
Interest rates for business loans rates vary due to factors like the amount of money that is borrowed, what business assets the funds will be used for and the sector the company is operating in, how long the business has been in operation for, in the event that the business has sufficient cash flow to pay for the loan, and the general health or creditworthiness of the company.
What are the costs?
There are no hidden fees with our business loans, and you’ll be aware of the amount you be required to pay, and when, right from the first day. There’s no compounding interest, and no extra fees (as as long as you pay your payments on time).
We do not charge an application fee. You can apply for a loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan early?
You can choose to repay the entire amount of the loan at any point in time.
If you decide to do this please talk to one of our helpful company credit professionals. They will provide you with details on repayment and an early payout figure. The figure will be calculated as the sum of the principal remaining and the accrued interest up to the time of early payment, plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
How do repayments work?
To make sure you do not miss repayments and to fit in your cash flow schedule, we offer repayments either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as making it clear the ways we gather the information we collect, use, share and ensure the security of your information is of paramount importance and is an essential aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 qualified for our commitment to customer security and security. We make use of an advanced bank verification system that allows you to immediately verify your bank account information online. This allows us to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an company owner borrows from the assets they have to secure the funds for a loan. The asset may be an asset belonging to the personal, like the family home or an company asset like a truck as well as a piece of machine.
The majority of lending institutions, including the largest banks, are inclined to make loans secured by assets. If you are having difficulty paying back the loan, then your asset may be transferred to the lender. In essence it is an opportunity to secure additional financing using the value of what you already have.
Are I need security to get a business loan?
For loans up to $150K the requirement for asset security is not required prior to the loan’s access However, we do require a personal guarantee. So long as you comply with your loan obligations (as detailed in your loan contract document), asset security will never be required. For loans that exceed $150K, generally there is the option of a personal ensure and security is provided in the form of charges on assets.