FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Safety Beach Small Business Loans
Let me know what you think of the Safety Beach Small Business Loans
Safety Beach unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from an traditional company loan?
The application to get this Small Business Loan in under 10 minutes on the internet or over the phone, receive an instant response and the money could be available in just 24 hours. Traditional business loans are based on an annual interest rate along with other charges and fees. The business loan is a loan that is priced upfront which means you know in advance the total amount to be paid, including any fees, charges or charges. Then, it is divided into a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every company reason, such as cash flow management, company improvements, advertising to purchase inventory or new equipment, to fund general working capital and much more. The loan is not available to fund personal expenses.
About Larger Safety Beach Business Loans
What is the Larger Safety Beach Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly in order to accommodate the flow of cash.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your company needs to have been in operation for at least 3 years with an annual turnover of $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can I use the funding for?
A larger business loan can be used for nearly all business purpose including company renovations, purchase of new equipment or inventory, as general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It’s by taking a charge over assets, and may include registration on the PPSR or the registration of a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is general in nature rather than stating the security of a specific asset. The person signing the ensure is personally liable if the business the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It reflects security interests that are registered for personal property (including the assets or goods). The PPSR grants preference over private property assigned according to the date the security interest was registered.
A caveat is a legal document filed to provide notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan of $250K or more it’s possible to offer a preliminary pre-approval to help ease the process. We might be able to get this done without a credit check, and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes answering a couple of financial well-being questions. It’s not an offer or guarantee of credit. A conditional approval is subject an extensive credit evaluation and any offer you may receive may be on different terms.
Application process
Do I have the right to receive funds?
You may apply for an company 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)
- must show at least six months of business (for a unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a few minutes and an experienced company credit specialist will call you to guide you.
To apply for up to $100,000 you’ll require identification details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K – $250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent twelve months bank statement, an IRD statement as well as the two most recent years’ financial statements, and interim financial statements for the current year, Aged Payables and Aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K to $100K) we usually offer an answer within an hour, provided you submit your request during quality company timings and permit us to use the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your banking statements , we are able to offer the decision in as little as the span of one company day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we may be likely to provide you with a conditional pre-approval in about six hours. Once you have signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this could be shorter based on the specifics of each application. Certain deals have been approved within the space of 24 hours.
The fastest way is to ensure you apply during standard company hours, and allow us to use the modern bank verification link to instantly verify your bank account information online. If you send us documents from your account statements , it takes a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer in just one hour, provided you submit your request within normal business timings and let us use the bank verification system link to instantly verify your bank details online. If you decide to upload copies of your bank statement, we’ll provide the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K or more) we may be likely to offer you with pre-approval conditional to your application within about 6 hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Certain transactions have received approval in less than 24 hours.
The fastest way is to ensure you apply during standard business hours. Also, let us use the advance bank verification link to check your bank’s information online. If you choose to send us copies of your bank statements it takes a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. If you apply for a particular amount, we take into consideration a range of elements to determine what is the health of the business and the level of payments your company is able to afford. The total amount of the loan will be determined by the specifics of your company.
When you make an application for a specific amount we look at a range of factors to assess how much we can lend you such as well-being for your business and the level of payments your business can support. The total amount of your loan will be contingent on the particulars of your company.
Fees & repayments
How much should you charge for a business loan?
If you decide to request business loans with us business loan, we’ll assess the risk assessment that you have for your company and provide an individualised offer, including loan amount, term and interest rates. A company loan is an upfront priced loan therefore you will know the exact amount payable including any costs, fees, or interest rates.
What determines the amount I pay?
Business loan interest rates vary due to factors such as the amount that is borrowed, the business assets the funds will be used for in addition to the industry that the company is operating in, how long the company has been running as well as what percentage of the company has sufficient cash flow to pay for the loan, and overall health as well as creditworthiness business.
What are the fees?
There are no hidden costs for our business loans, and you’ll know exactly how much you be required to pay and when, starting from the very first day. 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 can make an application for loans with no upfront cost or the obligation to take action.
The Origination Fee is the cost 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% of the loan amount.
Can I pay out the loan in advance?
You can choose to repay all of your advance loan at any time.
If you are deciding to take this route, please speak to our friendly company loans professionals. They will provide you with details on repayment along with an early payout estimate. This will be calculated as the total of the remaining principal amount plus any accrued interest as of the time of early payment in addition to 1.5 percent of the principal remaining as well as any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align your cash flow cycle we offer repayments that are either weekly or daily. These are automatically deducted from your company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being transparent about how we collect, use, exchange and safeguard your data, is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to security for our clients and security. We make use of an advanced bank verification system to instantly verify your bank account information online so we can provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where a business owner uses an asset they own to secure the loan. The asset may be a personal asset like the family home, or it could be a company asset like a truck or other piece of machinery.
The vast majority of the lenders including the largest banks, are inclined to secure loans against assets. If you are having difficulty paying back the loan then the asset might be transferred to the lender. In essence, it’s means of securing additional financing using the worth of the asset you already have.
Should I need security for a business loan?
For loans of up to $150,000, it is not necessary to secure assets before you can access the money however, we do require the personal guarantee. As long as you follow your loan commitments (as stipulated in your loan contract document) the security of assets is not needed. If you take out loans in excess of $150K generally, there is a personal ensure and security in the form an asset charge.