FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Strathewen Small Business Loans
Let me know more about Strathewen Small Business Loans
Strathewen unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from an ordinary business loan?
It is imaginable to apply to the Small Business Loan in under 10 minutes online or by phone. You will receive an immediate response, and the funds could be in your account in 24 hours. Traditional business loans reference an annual interest rate as well as other fees and charges. The business loan is a loan that is priced upfront which means you know ahead of time the amount you will have to pay, including the interest, fees and charges. Then, it is broken down into a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company need, such as managing cash flows, company remodeling, marketing, to purchase inventory or new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
Concerning Larger Strathewen Business Loans
What is the Larger Strathewen 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 up to 36 months. Repayments are weekly or fortnightly to work with you cashflow.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee which is determined at 2.5% of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to be operating for at least three years and have an annual turnover of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
How can the funds be utilised?
A large company loan can be used for nearly any 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 use.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. It’s as a result of an charge against assets, and could include the registration of this on the PPSR or filing a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is general in nature, rather than defining security over an asset. The person who signs the ensure is personally responsible if the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been that are registered for personal property (including goods or assets). The PPSR allows prioritisation over property that is personal to be assigned according to the date a security interest was registered.
A caveat is a legal document lodged to offer the legal claim against a property.
What is a pre-approval without Credit Check?
If you’re requesting an enterprise loan of more than $250,000 we can offer an initial pre-approval that will help smooth out the process. We might be able to get this done without credit checks and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering a few financial health checks. This is neither an offer nor a guarantee of finance. Acceptance without condition is subject to an extensive credit evaluation and any offer that you may receive may be subject to different terms.
The application process
Do I qualify for funds?
You can apply for an company 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)
- you must demonstrate at minimum 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form within a few minutes and a dedicated company loan specialist will be in touch to help you.
To apply for up to $100,000 you’ll require proof of identity (valid Driver’s License), an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K – $250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details of the application, including credit consent, 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials, Aged Payables and Aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we usually offer an answer within an hour if you apply within quality business times and you allow us to use the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statements , we’ll be able to provide the decision in as little as an company day.
For the Larger Business Loan ($100K and up) we might be capable of provide the conditional pre-approval within about six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Some deals have been approved in less than 24 hours.
The most efficient method is to make sure you apply during normal company hours. You can also allow us to use the advanced bank verification system link to confirm your bank details online. If you opt to upload duplicates of your banking statements , it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K to $100K) we can often offer an answer within an hour – as long as you submit your request within standard business times and permit us to make use of the advanced bank verification system link to instantly verify your bank details online. If you opt to submit copies of your bank statement, we’ll offer an answer in as little as an business day.
For the Larger Business Loans ($100K to $500K) We may be capable of offer you with pre-approval conditional to your application in about six hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Certain deals have been approved in less than 24 hours.
The most efficient method would be to ensure you apply during standard business hours. Also, allow us to use the modern bank verification to confirm your bank details online. If you choose to upload documents from your account accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We provide loan amounts between $5,000 and $500,000. When you submit an application for a certain amount we look at a variety of factors in order to assess what is the health that is your business and the extent of repayments that your business will be able to support. The total amount of your loan will be contingent on the particular circumstances the business.
When you apply for a set amount, we will consider a number of factors to assess your well-being of the business as well as the amount of the repayments your business can support. The total amount of your loan will be contingent on the specific circumstances that are unique to your business.
Fees & repayments
How do you charge for a business loan?
When you request business loans with us business financing, we’ll assess the risk assessment the company and offer you with a customised offer including the amount of loan, the term and interest rates. It is a company loan is a loan that is priced upfront therefore you will know in advance the total amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I am charged?
Interest rates for company loans rates differ based on various factors such as the amount that is that is borrowed, what business assets the money are used to purchase, the industry the company is operating in, how long the business has been running, whether the company has sufficient cash flow to fund the loan, and also the overall well-being or financial standing of the business.
What are the cost?
There are no hidden costs with our business loans. You’ll know precisely what you’ll need to pay, and when, from the first day. There’s not any compounding interest and no additional fees (as long as you make your payments on time).
We do not charge an Application Fee. You are able to request a credit loan without any upfront costs or the obligation to take action.
The Origination Fee covers the costs associated with establishing and managing the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay off the loan early?
You can choose to repay all of your advance loan at any time.
If you decide to do this please call our helpful company credit professionals. They will provide you with details for repayment as well as an early payout amount. It will be calculated using the sum of the principal amount remaining plus any accrued interest as of the time of early payment and 1.5 percent of the principal balance and any fees that remain unpaid.
What is the process for repayments?
To make sure you do not miss due dates and also to be in line with your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Protecting your information, and knowing the ways we gather the information we collect, use, share and ensure the security of your information is vital and an integral part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We make use of an advanced bank verification system link to immediately confirm your bank account information online to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an company owner uses assets they own to get the funds for a loan. The asset can be an asset belonging to the personal, like the family home, or an company asset like a truck as well as a piece of machine.
The vast majority of lending institutions, including the major banks, prefer to guarantee loans against assets. If you have trouble paying back the loan, the asset could be offered for sale by the lender. In essence it is a way of securing new financing taking advantage of the value of what you already have.
What do I need security to secure an business loan?
For loans that exceed $150,000, there is no requirement for asset security in advance to gain access to the funds However, we require a personal guarantee. require a personal guarantee. As long as you follow your loan obligations (as stipulated in the loan contract) the security of assets will never be required. For loans that exceed $150K, generally there is the option of a personal ensure and security is provided in the form of a charge over assets.