FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Unley Park Small Business Loans
Tell me about the Unley Park Small Business Loans
Unley Park unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from an traditional business loan?
You can apply for this Small Business Loan in under 10 minutes on the internet or by phone. You will receive an answer within the same day and funds may be in your account within 24 hours. Traditional business loans refer to an interest rate per annum along with other charges and fees. The business loan is a cash-based loan therefore you’ll be aware in advance of the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into either a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for almost every business reason, such as cash flow management, business renovations, marketing, to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal use.
Concerning Larger Unley Park Business Loans
What is the Larger Unley Park Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee that is determined at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the company needs to be operating for at least three years, and have an annual income of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
How can the funds be used for?
A large company loan can be used to fund almost every business reason, such as company remodeling, buying inventory or new equipment for 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 to obtain funding above $150,000. It’s as a result of an charge against assets, and could include registering this on the PPSR or filing a caveat.
A director’s or personal ensure is a promise to pay back a loan that is general in nature, rather than specifying the security of a specific asset. The person who signs the guarantee is personally liable if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been registered in respect of personal property (including items or assets). The PPSR permits priority over personal property to be assigned according to the date the security interest has been registered.
A caveat is a legal document lodged to provide notice of a legal claim against a property.
What is a pre-approval without Credit Check?
When you’re applying for the Larger Business Loan that is greater than $250K, we may offer an initial pre-approval in order to ease the process. We might be able to make this decision without a credit check, and within six hours of your initial application. This pre-approval is made based on an initial assessment, which involves answering a couple of financial well-being questions. It is in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to an extensive credit evaluation and any offer that you might receive could be on different conditions.
The application process
Do I have the right to receive funds?
You may apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form in few minutes and an experienced company lending specialist will call you to help you.
To apply for up $100,000 you’ll need identification details (valid Driver’s License) and an NZBN/IRD that is valid and at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 month bank accounts, the IRD statements as well as the two most recent years’ financial statements, as well as interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) We can usually offer a response in one hour, provided you submit your request within standard business timings and you allow us to utilise the bank verification system link to instantly verify your bank’s information online. If you want to send us copies of your bank statements , we will be able to offer the decision in just one company day.
For the Larger Business Loan ($100K and up) we could be in a position to provide you with a conditional pre-approval in about six hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however it could be faster based on the specifics of each application. Certain agreements have been approved within 24 hours.
The fastest way would be to make sure you apply during standard company hours, and allow us to use the modern bank verification to instantly confirm your bank details online. If you opt to upload documents from your account statements it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we can often provide a response in one hour – provided you submit your request during standard business times and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your bank statements, we’ll be able to offer an answer in just one business day.
If you are applying for Larger Business Loans ($100K and up) we may be capable of offer you with a conditional pre-approval within about six hours. Once you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval, however it could be faster based upon the circumstances for each application. Certain agreements have been approved in the space of 24 hours.
The fastest way can be make sure you apply during normal business hours. You can also allow us to use our sophisticated bank verification link to confirm your bank details online. If you decide to upload copies of your bank statement, it may take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a particular amount, we will consider a number of variables to determine what is the well-being that is your company and the amount of repayments your company will be able to support. The total amount of your loan will depend on the specific circumstances that are unique to your business.
When you apply for a certain amount, we look at a range of variables to determine how much we can lend you such as well-being for your business and the level of repayments that your company will be able to support. The total amount of your loan will be determined by the specifics for your company.
Fees & repayments
What is the cost for a business loan?
If you decide to make an application for business loans with us company financing, we will assess the risk profile of your company and offer you with a customised proposal that includes the amount of loan, the term and interest rates. It is a company loan is a loan that is priced upfront so you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What determines the amount I am charged?
The interest rates on company loans rates depend on several factors like the amount of money that is borrowed, what business assets the money will be used for as well as the field the company operates in, the long the business has been in operation, what percentage of the company has sufficient cash flow to cover the loan, and also the overall well-being or creditworthiness of the business.
What are the charges?
There aren’t any hidden charges with our company loans, and you’ll know exactly how much you’ll be required to pay, and when, right from the very first day. There’s no compounding and the loan comes with no additional fees (as long as you make your payments punctually).
We do not charge an application fee. You are able to make an application for loans with with no upfront cost or commitment to apply.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay off the loan earlier?
You can repay the entire amount of your loan in full at any time.
If you do decide to take this route, please talk to one of our helpful company loan experts. We will provide you with details on repayment and an early payment figure. This will be calculated as the total of the principal amount remaining and the accrued interest up to the time of the early payout plus 1.5% of the principal remaining and any outstanding fees.
How do you make repayments work?
In order to help you avoid missing payment dates and to align your cash flow cycle we provide payments that are either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Protecting your information, and making it clear how we collect information, use it, and exchange it, as well as protect your information, is crucial and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal 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 an exceptionally sophisticated banking verification system to instantly confirm your bank account information online to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where an company owner utilises the assets they have to get the funding. The asset can be an asset belonging to the personal, like the family home, or an company asset such as a truck or piece of equipment.
The majority of the lenders including the major banks, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, then the asset could be sold by the lender. In essence it’s an opportunity to secure additional financing taking advantage of the value of what you already own.
Are I need security to get an company loan?
Up to $150,000 in loans it is not necessary to secure assets before you are able to access the money, however we require a personal guarantee. need the personal guarantee. So long as you comply with the terms of your loan (as stated in your loan contract document) and you are able to meet your obligations, asset security is not required. If you take out loans in excess of $150,000 typically, you will need a personal guarantee and security is provided in the form of charges on assets.