FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Unley Small Business Loans
Tell me how you are able to avail the Unley Small Business Loans
Unley unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from a traditional company loan?
It is imaginable to apply for the Small Business Loan in under 10 minutes online or over the phone, receive a same day response and the funds could be available in just 24 hours. Traditional company loans have an annual rate of interest as well as other fees and charges. The business loan is a loan that is priced upfront which means you be aware in advance of the total amount due, which includes any fees, interest or charges. This is then divided into weekly or daily payment amount.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company reason, such as managing cash flows, 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 the Larger Unley Business Loans
What is the Larger Unley Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are scheduled weekly or fortnightly, depending on you cashflow.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a credit in this amount, your business needs to have been in operation for at least 3 years, and have an annual income of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can the funding be used for?
A larger company loan can be used for almost every business reason, such as business 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 one that is secured?
Asset security is necessary to access funding over $150,000. It is usually as a result of an charge against assets, which could also be registered through the PPSR or filing a caveat.
A director’s or personal ensure is a commitment to repay credit that is general in nature, rather than specifying security over an asset. The person who signs the ensure is personally responsible if the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including the assets or goods). The PPSR allows priority over personal property to be assigned depending on the date that a security interest was registered.
An affidavit is an official form of document to offer notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking the Larger Business Loan of $250,000 or more we can offer an initial pre-approval to simplify the process. We may be able to get this done without credit checks and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes answering a couple of financial health questions. This is not an offer or guarantee of credit. The approval of a conditional loan is subject to a full credit assessment and any offer that you receive could be based on different conditions.
The application process
Do I qualify for funds?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is simple and simple. Simply complete the online form within a few minutes and a dedicated company lending specialist will be in touch to guide you through the process.
To be eligible for up to $100,000, you’ll need proof of identity (valid Driver’s Licence) along with a valid NZBN/IRD and at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K to $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details of the application, including credit consent and 12 months of bank statements, IRD statement Last 2 years’ finalised financial statements, in addition to interim financials from the current financial year including Aged Payables, Aged Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) We can usually provide an answer in just one hour if you submit your request during quality company time and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statements , we’ll be able to offer the decision within just one company day.
For the Larger Business Loan ($100K to $500K) we could be likely to provide the conditional pre-approval within six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval, however it could be faster based on the circumstances of each application. Some deals have been approved within just 24 hours.
The most efficient method for you to apply is make sure you apply during normal business hours and allow us to use our modern bank verification to verify your bank information online. If you decide to send us copies of your bank statements , it can take a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) We can usually offer an answer within one hour – as long as you apply in standard business time and let us use the advanced bank verification system link to immediately verify your bank account information online. If you want to submit copies of your bank statements, we are able to offer an answer in just an business day.
If you are applying for Larger Business Loans ($100K or more) We may be in a position to offer the conditional pre-approval in about six hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however it could be faster based on the particular circumstances of each application. Some agreements have been approved in just 24 hours.
The quickest method is to ensure you apply during standard business hours and let us use the modern bank verification link to check your bank’s information online. If you decide to upload documents from your account statements it can take a bit longer.
What is the maximum amount I can borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a certain amount we take into consideration a range of aspects for determining how much we can lend you health for your business and the level of repayments your business is able to afford. The amount you receive from the loan will be determined by the particular circumstances for your business.
When you make an application for a specific amount we take into consideration a variety of aspects to determine the health of your company and the extent of repayments that your company can support. The amount you receive from your loan will be determined by the particular circumstances that are unique to your company.
Fees & repayments
How much should you charge for the cost of a business loan?
When you apply for one of our business 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 the interest rates. It is a company loan is an upfront-priced loan and you’ll be aware of the total amount due, which includes any costs, fees, or interest rates.
What is the basis for the rate I pay?
Business loan interest rates depend on several variables like the amount to be borrowed, what company assets the money will be used for, the industry the company operates in, how long the company has been in operation and what percentage of the business has sufficient cash flow to fund the loan, and overall health or creditworthiness of the business.
What are the charges?
There aren’t any hidden charges with our business loans, and you’ll know exactly how much 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 punctually).
We do not 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 includes the expenses associated with the setting up and management of the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Do I have the option of paying off the loan early?
You may choose to pay back all of your loan early at any time.
If you are deciding to take this route, please talk to one of our helpful company loans experts. We will offer you with details on repayment and an early payment figure. It will be calculated using the sum of the principal amount remaining and any accrued interest at the time of early payment in addition to 1.5 percent of the principal remaining and any outstanding fees.
What are the repayment methods?
To make sure you do not miss payment dates and to align with 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 information 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 protect your information, is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to customer security and security. We make use of an advanced banking verification system to instantly verify your bank account details online, allowing us to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a business owner utilises the assets they have to obtain the funds for a loan. The asset can be an individual asset, such as the family home, or it could be a company asset such as a vehicle as well as a piece of machine.
The vast majority of banks, not just the major banks, prefer to guarantee loans against assets. If you are having difficulty paying back the loan then your assets could be taken over by the lender. In essence it’s an opportunity to secure new financing by using the worth of the asset you already own.
Are I require security to secure an company loan?
For loans up to $150K no asset security is required in advance to gain access to the funds however, we require a personal guarantee. need the personal guarantee. So long as you comply with your loan obligations (as specified in the loan contract), asset security is not required. For loans that exceed $150K, generally there is personal guarantee and security in the form an asset charge.