FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Safety Beach Small Business Loans
Let me know about the Safety Beach Small Business Loans
Safety Beach unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from an traditional business loan?
You can apply to get your Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and funds may be in your account within 24 hours. Traditional company loans have an interest rate per annum plus other fees and charges. This business loan is an upfront priced loan and you’ll be aware of the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into a daily or weekly repayment figure.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company use, including the management of cash flow, business improvements, advertising, to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used to fund personal expenses.
About the Larger Safety Beach Business Loans
What is the Larger Safety Beach Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range from $100,000 to $500,000 with a term fixed for up to 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a loan of this size the company needs to have been operating for at least three years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funding be used for?
A Larger Business Loan is a great option for almost all company use, including business renovations, purchase of inventory or new equipment as well as for general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. This can be done as a result of an charge over assets, and may include the registration of this through the PPSR or registering a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is generally based rather than stating security over an asset. The person signing the guarantee is personally accountable if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests registered in respect of personal property (including objects or assets). The PPSR gives preference over private property granted depending on the date that a security interest was registered.
An affidavit is an official document that is filed to offer notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for larger business loans that exceeds $250K, we may offer an initial pre-approval in order to smooth out the process. We might be able to get this done without a credit check and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial health questions. It’s not an offer or guarantee of financing. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you receive could have different terms.
Application process
Do I qualify for funds?
You are eligible to apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form within a couple minutes, and an experienced business credit specialist will call you to assist you.
For a loan of up to $100,000, you’ll need ID details (valid Driver’s License) and an NZBN/IRD that is valid and at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K-$250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details for application including credit consent, 12 months of bank statements, IRD statement and the last two years’ finalised financial statements, and interim current financial year financials such as age-related payables and aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) We can usually offer a response in one hour, provided you apply within quality company time and let us utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statements , we will be able to provide an answer within just an company day.
For Larger Business Loans ($100K and up) we might be likely to provide you with conditional pre-approval within 6 hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Certain deals have been approved within the space of 24 hours.
The quickest way to apply can be make sure you apply during standard company hours. Also, allow us to use our advanced bank verification system link to confirm your bank details online. If you choose to send us copies of your bank statements it takes a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) we typically provide an answer in just one hour – as long as you apply within standard business times and allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you decide to send us copies of your bank statements, we are able to provide the decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be in a position to offer you with pre-approval conditional to your application within about 6 hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Certain transactions have received approval in the space of 24 hours.
The fastest method is to make sure you apply during normal business hours. Also, permit us to use the advance bank verification link to confirm your bank details online. If you decide to upload documents from your account statement, it will take a little longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a certain amount we consider a variety of variables to determine the well-being for your company and the amount of the repayments your company will be able to support. The total amount of the loan will be determined by the specific circumstances the 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 health for your company as well as the amount of repayments that your business is able to afford. The total amount of your loan will be contingent on the specific circumstances the business.
Fees & repayments
How much do you charge for the cost of a company loan?
If you decide to make an application for our business credit, we’ll assess the risk assessment for your business and offer an individualised offer, including the amount of loan, the term and interest rates. It is a business loan is a loan that is priced upfront so you will be aware in advance of the total amount you will have to pay, including costs, fees, or interest rates.
What determines the rate that I pay?
Business loan interest rates differ based on various factors such as the amount that is of money borrowed, the business assets the funds are used to purchase and the sector the business operates in, how long the company is in operation, what percentage of the business has sufficient cash flow to fund the loan, and the overall well-being or creditworthiness of the company.
What are the costs?
There are no hidden costs for our business loans, and you’ll know exactly how much you be required to pay and at what time, from the day you sign up. There’s no compounding interest and no additional fees (as long as you make your payments in time).
We do not charge an application fee. You can make an application for loans with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I repay the loan in advance?
You can repay the entire amount of your loan at any point in time.
If you choose to pursue this option, please talk to one of our helpful company lending professionals. They will offer you with repayment details and an early payout figure. This will be calculated as the sum of the principal balance and accrued interest to the time of early payout and 1.5% of the principal balance plus any outstanding fees.
What is the process for repayments?
To ensure that you don’t miss payments and to work your cash flow schedule, we provide payments that are either daily or weekly. These are automatically withdrawn from your company account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing how we collect the information we collect, use, share and secure your information, is vital and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to security for our customers and privacy. We make use of an advanced bank verification system to instantly confirm your bank account information online so we can provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when the company owner uses assets they own to obtain the loan. The asset could be a personal asset like the family home, or it could be a company asset such as a truck or piece or equipment.
The majority of lenders, even the banks with the biggest size, prefer to make loans secured by assets. If you have trouble paying back the loan, the asset might be taken over by the lender. In essence, it’s the process of securing new funding making use of the value of what you already own.
Do I need security for a business loan?
For loans up to $150,000 no asset security is required in advance to gain access to the funds, however we do need the personal guarantee. In the event that you fulfill the loan terms (as stated in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans of over $150,000 generally, there is personal ensure and security that is in the form charges on assets.