FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The South Yarra Small Business Loans
Tell me about the South Yarra Small Business Loans
South Yarra unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
What is the Unsecured Loan different from the traditional company loan?
The application for the Small Business Loan in under 10 minutes via the internet or over the phone, receive an instant response and the funds could be available in just 24 hours. Traditional company loans refer to an annual interest rate plus other fees and charges. We offer a company loan is an upfront priced loan so you will know ahead of time the amount you will have to pay, including any fees, interest or charges. This is then broken down into weekly or daily installment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business use, including the management of cash flow, company renovations, marketing to purchase inventory or new equipment, or as general working capital and much more. The loan is not available for personal use.
Concerning Larger South Yarra Business Loans
What is the Larger South Yarra Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. The repayments are made weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your business needs to have been operating for a minimum of 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, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can the funds be used for?
A Larger Business Loan is a great option for almost every company reason, such as company renovations, purchase of new equipment or inventory or 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 needed for funding of more than $150,000. It is usually by way of charge on assets, which could also include registration through the PPSR or filing a caveat.
A personal or director’s ensure is a guarantee to repay credit that is generally based rather than stipulating the security of a specific asset. The person who is signing the ensure is personally liable if the business lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including items or assets). The PPSR permits priority over personal property to be granted according to the date the security interest that is registered.
A caveat is a legal document lodged to provide the public notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
If you’re applying for larger company loans that exceeds $250K we can offer an initial pre-approval to make the process. It is possible to apply for this without a credit verification and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes the answer to a series of financial health questions. It’s in no way an offer, nor is it a guarantee of credit. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you receive could be based on different terms.
Application process
Do I have the right to receive funds?
You can apply 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 prove at least 6 months of business (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Just complete the online application within a couple minutes, and an experienced company credit specialist will contact you to assist you.
To be eligible for up to $100,000 you’ll need identification details (valid Driver’s Licence) along with a valid NZBN/IRD and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K to $500K: Information on the application including credit consent twelve months bank statement, an IRD statement, last 2 years finalised financial statements, as well as interim financial statements for the current year, Aged 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 provide an answer within an hour – as long as you submit your request within quality company times and allow us to utilise the bank verification system link to instantly verify your bank information online. If you opt to send us copies of your bank statement, we’ll offer an answer within an company day.
For the Larger Business Loan ($100K to $500K) we may be in a position to offer the conditional pre-approval within six hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some deals have been approved within less than 24 hours.
The fastest way is to make sure you apply during normal company hours. Also, let us use the advanced bank verification system to instantly verify your bank information online. If you send us the copies of bank statement, it can take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we typically provide an answer within an hour – provided you make your application at normal business times and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you want to send us copies of your bank statements we can offer a decision within an business day.
For Larger Business Loans ($100K up to $500,000) we could be likely to provide you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this can be faster depending on the particular circumstances of each application. Certain offers have been approved within less than 24 hours.
The fastest method would be to make sure you apply during normal business hours and let us use the advance bank verification to check your bank’s information online. If you opt to upload duplicates of your banking statements, it takes a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. When you make an application for a particular amount, we take into consideration a range of factors for determining how much we can lend you health that is your business and the extent of the repayments your business can afford. The total amount of your loan will be contingent on the particular circumstances for your company.
When you apply for a particular amount, we look at a range of factors to assess the well-being of the company and the extent of repayments that your company can afford. The amount you receive from the loan will be determined by the specific circumstances for your company.
Fees & repayments
How do you charge for the cost of a business loan?
When you request one of our company loans, we will assess the risk assessment that you have for your business and provide you with a customised offer including the amount of the loan, the duration and the interest rates. The business loan is a loan that is priced upfront which means you be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What determines the rate that I pay?
The interest rates on company loans rates depend on several factors such as the amount that is of money borrowed, the business assets the money are used to purchase and the sector the business operates in, the long the business has been in operation for, whether the business has enough cash flow to support the loan, and the overall well-being and creditworthiness of the business.
What are the fees?
There are no hidden fees for our business loans, and you’ll know precisely how much you’ll be required to pay, and when, from the day you sign up. There’s no compounding interest, and the loan comes with no additional fees (as as you make your payments in time).
We do not charge an application fee. You can apply for a loan without any upfront costs or the obligation to take action.
The Origination Fee includes the expenses associated with setting up and managing the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percent of the loan amount.
Do I have the option of paying off the loan early?
You can decide to repay the entire amount of your loan at any point in time.
If you do decide to take this route, please call our helpful business credit professionals. They’ll offer you with the details of your repayment and an early payment figure. It will be calculated using the sum of the principal remaining and accrued interest to the time of early payout plus 1.5 percent of the principal remaining plus any outstanding fees.
What are the repayment methods?
In order to help you avoid missing payments and to work your cash flow cycle we provide payments that are either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as knowing how we collect information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to protecting the security of clients and privacy. We use an advanced bank verification system that allows you to immediately verify your bank account information online. This allows us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when the company owner uses the assets they have to get the funding. The asset could be an asset belonging to the personal, like the family home or an business asset like a truck or other piece of machinery.
The vast majority of banks, even the banks with the biggest size, prefer to secure loans against assets. If you are having difficulty paying back the loan, then your assets could be transferred to the lender. In essence it’s an opportunity to secure new financing making use of the value of what you already own.
Should I require security to get a company loan?
Up to $150,000 in loans it is not necessary to secure assets before you can access the money However, we require a personal guarantee. require the personal guarantee. As long as you follow your loan obligations (as detailed in your loan contract document) the security of assets is not needed. For loans that exceed $150,000, generally, there is the option of a personal guarantee and security in the form of the charge of assets.