FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the South Bank Small Business Loans
Let me know how you can avail the South Bank Small Business Loans
South Bank unsecured loans provides 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 what makes the Unsecured Loan different from a traditional company loan?
The application to get the Small Business Loan in under 10 minutes online or over the phone. You’ll get an instant response and funds may be available in just 24 hours. Traditional business loans refer to an interest rate per annum along with other charges and fees. Our company loan is a cash-based loan therefore you’ll be aware of the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into either a daily or weekly installment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business reason, such as managing cash flows, business remodeling, marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan is not available for personal reasons.
Concerning Larger South Bank Business Loans
What is the Larger South Bank Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee determined?
It is crucial to note that the 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?
In order to be eligible for a loan in this amount the business needs to be operating for a minimum of 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funding for?
A Larger Business Loan can be used for almost any business need, including business remodeling, buying equipment or inventory, as general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. This is as a result of an charge on assets, and could be registered in the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a promise to repay credit that is general in nature, rather than specifying the security for a particular asset. The person who signs the ensure is personally responsible if the company lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including the assets or goods). The PPSR grants priority over personal property to be granted according to the date a registration of a security interest.
The caveat can be described as a formal form of document to offer the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting an enterprise loan of $250,000 or more we can offer an initial pre-approval in order to simplify the process. We may be able to apply for this without a credit check and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes you answering some financial well-being checks. 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 receive could be based on different terms.
The application process
Can I be eligible for funding?
You can apply for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of trading (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form in few minutes and a dedicated company lending specialist will contact you to help you.
For a loan of up to $100,000, you’ll need identification details (valid Driver’s Licence), an NZBN/IRD that is valid and at least six months worth of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent and 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, and interim current financial year financials including Aged Payables, Aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we usually provide an answer within an hour, provided you make your application in quality business times and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you want to send us copies of your bank statements , we are able to provide a decision within an company day.
For the Larger Business Loan ($100K and up) we might be in a position to offer you with conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this could be shorter based on the specifics of each application. Certain deals have been approved within just 24 hours.
The most effective method is to make sure you apply during standard business hours. Also, allow us to use the advanced bank verification system to instantly verify your bank account information online. If you opt to upload documents from your account accounts, it can take a bit longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K and up) we usually provide a response in one hour – provided you apply within standard business hours and allow us to use the bank verification system link to instantly verify your bank details online. If you want to upload copies of your banking statements we can offer the decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be able to offer you with a conditional pre-approval in around 6 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 on the circumstances of each application. Certain deals have been approved in less than 24 hours.
The quickest method is to make sure you apply during standard business hours. Also, allow us to use the advance bank verification link to instantly confirm your bank details online. If you decide to upload duplicates of your banking accounts, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a certain amount, we look at a variety of factors that determine how much we can lend you health that is your company and the extent of repayments that your business can support. The amount you receive from your loan will depend on the particular circumstances the business.
When you apply for a set amount, we take into consideration a variety of variables to assess the well-being that is your business as well as the amount of the repayments your company can afford. The amount you receive from your loan will be contingent on the particulars that are unique to your company.
Fees & repayments
How much should you charge for an company loan?
If you decide to apply for one of our company financing, we will assess the risk assessment that you have for your company and offer you with a customised offer that includes the loan amount, the terms and the interest rates. A business loan is an upfront cost loan and you’ll be aware of the total amount you will have to pay, including charges or interest.
What is the basis for the rate I will be charged?
The interest rates on company loans rates vary due to factors like the amount of money borrowed, what business assets the money will be used for in addition to the industry that the business operates in, how long the business has been in operation, whether the company has enough cash flow to fund the loan, as well as the general health and creditworthiness of the company.
What are the fees?
There aren’t any hidden charges with our business loans. You’ll be aware of the amount it is that 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 as long as you pay your payments in time).
We don’t charge an Application Fee. You can get a cash loan with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated in establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I repay the loan in advance?
You can choose to repay all of your loan at any point in time.
If you decide to take this route, please speak to our friendly business credit experts. We will provide you with details on repayment and an early payment figure. It will be calculated using the total of the remaining principal amount and accrued interest to the date of early payout plus 1.5% of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
To ensure that you don’t miss repayments and to fit in your cash flow schedule, we offer repayments either weekly or daily. They will be automatically deducted from your nominated business account.
Security & privacy
Will my data be secure?
Protecting your information, and making it clear the ways we gather data, process, exchange and safeguard your data, is vital and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to customer security and privacy. We utilise a sophisticated bank verification system to immediately confirm your bank account information online. This allows us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when an company owner utilises the assets they have to make a loan. The asset can be a personal asset like the family home or an business property like a truck as well as a piece of machine.
The majority of banks, not just the major banks, prefer to guarantee loans against assets. If you’re having trouble paying back the loan, then the asset could be taken over by the lender. In essence, it is the process of securing new financing making use of the value of what you already have.
What do I require security to secure a business loan?
For loans of up to $150,000, the requirement for asset security is not required prior to the loan’s access however, we require a personal guarantee. need an individual guarantee. In the event that you fulfill the loan terms (as stated in the loan contract) and you are able to meet your obligations, asset security is not needed. For loans that exceed $150K, typically, you will need personal ensure and security that is in the form the charge of assets.