FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Sydney Small Business Loans
Let me know how you can avail the Sydney Small Business Loans
Sydney unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from an traditional business loan?
Apply to your Small Business Loan in under 10 minutes via the internet or by phone. You will receive an answer within the same day and the money could be available in just 24 hours. Traditional company loans reference an interest rate per annum along with other charges and fees. Our company loan is an upfront priced 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 divided into weekly or daily installment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any company purpose including control of cash flow business renovations, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan cannot be used for personal use.
About larger Sydney Business Loans
What is the Larger Sydney Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
To be eligible for a loan in this amount the business needs to be in operation for at least 3 years with an annual turnover of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funds be utilised?
A larger business loan is a great option for almost every business use, including company improvements, purchasing equipment or inventory or as general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. This is in the form of a charge over assets and can include registration through the PPSR or registering a caveat.
A director’s or personal ensure is a guarantee to pay back a loan that is general in nature, rather than defining security over an asset. The person who signs the ensure is personally responsible if the company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central registry 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 the priority of personal property assigned according to the date a security interest was registered.
A caveat is a legal document that is filed to provide the legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re applying for a Larger Business Loan that exceeds $250K we may be able to provide a preliminary pre-approval to help simplify the process. We could be able to do this without a credit verification and within 6 hours of the initial application. This pre-approval is based on an initial assessment that includes you answering some financial well-being checks. It’s not an offer or guarantee of credit. A conditional approval is subject an exhaustive credit evaluation, and any offer that you receive could be based on different terms.
The application process
Can I be eligible for funding?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Complete the online form in just a few minutes, and an experienced business loan specialist will be in touch to guide you through the process.
To be eligible for up to $100,000, you’ll require proof of identity (valid Driver’s Licence), an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Application requirements, including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Application details including credit consent, 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables Summary.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we usually offer an answer in just one hour – as long as you apply at quality company time and allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statement, we’ll provide the decision within just an business day.
For Larger Business Loans ($100K to $500K) we could be likely to provide you with pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this can be quicker based on the circumstances of each application. Certain transactions have received approval in 24 hours.
The quickest way to apply can be ensure you apply during normal business hours and allow us to use our advanced bank verification system link to verify your bank account information online. If you choose to send us copies of your bank accounts, it may take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we usually provide an answer within an hour – provided you submit your request during normal business times and permit us to use the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your bank statements, we are able to offer the decision in as little as an business day.
For Larger Business Loans ($100K and up) we could be likely to provide you with pre-approval conditional to your application within six hours. Once you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, it could be faster based on the particular circumstances of each application. Some transactions have received approval in just 24 hours.
The quickest method for you to apply is make sure you apply during normal business hours, and allow us to use our advanced bank verification system to instantly confirm your bank details online. If you opt to upload duplicates of your banking statements it may take a bit longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a certain amount, we take into consideration a range of variables for determining what is the well-being for your company as well as the amount of the repayments your business is able to afford. The total amount of the loan will be determined by the particular circumstances for your company.
If you apply for a specific amount we take into consideration a variety of variables to assess how much we can lend you such as health for your business as well as the amount of payments your business can afford. The amount you receive from your loan will be contingent on the particulars for your company.
Fees & repayments
What is the cost for a company loan?
If you decide to request business loans with us company loans, we’ll assess the risk profile that you have for your business and offer you with a tailored proposal that includes the amount of loan, the term and the interest rates. A business loan is an upfront cost loan which means you know the exact amount you will have to pay, including costs, fees, or interest rates.
What is the basis for the rate I pay?
Business loan interest rates vary due to variables like the amount to be borrowed, the business assets the money will be used for, the industry the company operates in, how long the company is in operation for, in the event that the business has sufficient cash flow to fund the loan, and overall well-being and creditworthiness of the business.
What are the charges?
There are no hidden fees for our company loans. You’ll be aware of the amount you need to pay, and at what time, from the first day. There’s not any compounding interest and no extra fees (as as long as you pay your payments punctually).
We don’t charge an application fee. You can make an application for loans with no upfront cost or the obligation to take action.
The Origination Fee covers the costs associated with the setting up and management of the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan in advance?
You may choose to pay back the entire amount of your loan in full at any time.
If you are deciding to take this route, please call our helpful business credit experts. The professionals will provide you with the details of your repayment along with an early payout estimate. It will be calculated using the sum of the remaining principal amount and accrued interest to the time of early payment plus 1.5 percent of the remaining principal and any outstanding fees.
How do you make repayments work?
To help you avoid missing payments and to work your cash flow cycle we provide repayments either daily or weekly. They will be automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Security of your data, and making it clear the ways we gather information, use it, and exchange it, as well as ensure the security of 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 protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We use an advanced bank verification system that allows you to instantly verify your bank account details online to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where the company owner borrows from assets they own to get the funding. The asset could be an asset belonging to the personal, like the family home, or it could be a company asset such as a truck as well as a piece of machine.
The majority of lenders, even the big banks, tend to make loans secured by an asset. If you’re struggling to pay back the loan then the asset might be sold by the lender. In essence it is an opportunity to secure new financing taking advantage of the value of what you already own.
Should I need security to get a business loan?
For loans of up to $150K, no asset security is required upfront to access the money however, we do need an individual guarantee. If you adhere to your loan obligations (as stated in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans over $150K typically, you will need a personal ensure and security in the form an asset charge.
