FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Seven Hills Small Business Loans
Let me know about the Seven Hills Small Business Loans
Seven Hills unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either per day or weekly.
What makes the Unsecured Loan different from a traditional company loan?
It is possible to apply to this Small Business Loan in under 10 minutes online or over the phone, receive an instant response and the funds could be on your account within 24 hours. Traditional company loans are based on an annual interest rate as well as other fees and charges. This company loan is an upfront priced loan and you’ll be aware of the total amount payable including any fees, interest or charges. Then, it is broken down into a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for almost any business reason, such as cash flow management, business improvements, advertising to purchase inventory or new equipment, or as general working capital and so much more. The loan is not available for personal purposes.
About larger Seven Hills Business Loans
What is the Larger Seven Hills Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are weekly or fortnightly depending on your cash flow.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the company needs to be operating for at least three years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A Business Loan of a larger size can be used for nearly every business need, including company remodeling, buying equipment or inventory for general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It is usually in the form of a charge over assets, and may include registration with the PPSR or the registration of as a caveat.
A director’s or personal ensure is a promise to repay a loan which is generally in nature rather than specifying security over a particular asset. The person who signs the ensure is personally liable in the event that the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It lists security interests that are that are registered for personal property (including goods or assets). The PPSR grants preference over private property assigned depending on the date that a security interest has been registered.
An affidavit is an official document that is filed to offer an official notice of a claim on a property.
What exactly is a preapproval without Credit Check?
When you’re applying for an enterprise loan of $250,000 or more we can offer a preliminary pre-approval to help simplify the process. We might be able to make this decision without a credit check and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves the answer to a series of financial well-being questions. It’s in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer you receive could be on different conditions.
Application process
Are I eligible for funding?
You may apply for an business 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)
- can demonstrate at least 6 months’ worth of transactions (for you to qualify for 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 quick and easy. Complete the online form within a couple minutes, and a dedicated business expert in lending will be in touch to assist you.
For a loan of up to $100,000, you’ll require the right identification documents (valid Driver’s Licence), a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K-$250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent, 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, in addition to interim financial statements for the current year such as age-related payables and aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we typically provide an answer within one hour – as long as you submit your request in standard company timings and permit us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you decide to submit copies of your bank statements , we are able to offer a decision within the span of one business day.
If you are applying for a Larger Business Loan ($100K and up) we may be capable of provide you with conditional pre-approval in about 6 hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Some transactions have received approval within 24 hours.
The quickest way to apply would be to make sure you apply during standard company hours. You can also allow us to use our advanced bank verification system link to instantly verify your bank account information online. If you decide to send us documents from your account statements , it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer in just one hour – as long as you submit your request during standard business timings and permit us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your bank statements, we are able to offer the decision in just the span of one business day.
For the Larger Business Loans ($100K and up) We may be capable of offer you with conditional pre-approval in about six hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however it could be faster based on the circumstances of each application. Certain agreements have been approved in less than 24 hours.
The most effective method for you to apply is make sure you apply during normal business hours, and let us use the advanced bank verification system to instantly verify your bank information online. If you choose to send us the copies of bank accounts, it will take a little longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a certain amount we consider a variety of variables for determining how much we can lend you health that is your company as well as the amount of repayments your business can afford. The total amount of your loan will be contingent on the specific circumstances that are unique to your business.
When you submit an application for a particular amount, we will consider a number of aspects to assess your health that is your business and the amount 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 an business loan?
If you decide to apply for one of our company credit, we’ll assess the risk profile for your business and provide you with a customised offer including loan amount, term and the interest rates. The business loan is an upfront priced loan and you’ll be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What determines the amount I’m charged?
Interest rates for company loans rates depend on a variety of factors like the amount of money borrowed, what business assets the funds will be used for, the industry the business is operating in, how long the company has been in operation as well as how long the business has enough cash flow to pay for the loan, and the overall health and creditworthiness of the business.
What are the charges?
There aren’t any hidden costs for our business loans, and you’ll know precisely what you need to pay, and at what time, from day one. There’s no compounding and no extra fees (as as you make your payments punctually).
We don’t charge an Application Fee. You are able to get a cash loan with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved with establishing and managing the loan. The only way to pay this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan in advance?
You can repay the total amount of your loan at any point in time.
If you choose to do this please speak to our friendly company loans experts. We will provide you with the details of your repayment as well as an early payout amount. It will be calculated using the sum of the principal remaining plus any accrued interest as of the time of the early payout and 1.5% of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
To help you avoid missing payments and to work with your cash flow general, we offer repayments that are either weekly or daily. They are automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Security of your data, and making it clear how we collect data, process, exchange and safeguard your data, is crucial and is an essential aspect 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 sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and privacy. We make use of an advanced bank verification system to immediately confirm your bank account information online to provide quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when the business owner uses an asset they own to secure the funding. The asset can be either an individual property, such as the family home, or a company asset like a truck or piece of equipment.
The majority of lending institutions, not just the major banks, prefer to guarantee loans against assets. If you have trouble paying back the loan, then your assets could be sold by the lender. In essence it is a way of securing new funding using the value of what you already own.
Are I need security to secure a company loan?
For loans up to $150,000 there is no requirement for asset security upfront to access the money but we require a personal guarantee. need a personal guarantee. If you adhere to your loan obligations (as specified in the loan contract) the security of assets is not required. For loans that exceed $150,000, typically, you will need a personal ensure and security in the form the charge of assets.