FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Springfield Lakes Small Business Loans
Let me know what you think of the Springfield Lakes Small Business Loans
Springfield Lakes unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from a traditional company loan?
Apply for this Small Business Loan in under 10 minutes by phone. You will receive a same day response and the funds could be available in just 24 hours. Traditional company loans refer to an interest rate per annum plus other fees and charges. The business loan is a pre-paid loan therefore you’ll know ahead of time the amount you will have to pay, including any interest, fees or charges. This is then divided into weekly or daily installment amount.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for almost any business purpose including managing cash flows, company renovations, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan is not available to fund personal expenses.
About Larger Springfield Lakes Business Loans
What is the Larger Springfield Lakes Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term for up to 36 months. The repayments are made weekly or fortnightly to work with your situation.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee which is calculated at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to be operating for at least three years and have an annual turnover of at least $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funds be utilised?
A Larger Business Loan can be used to fund almost any business need, including business remodeling, buying equipment or inventory or as general working capital and so much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that requires security?
Asset security is required to obtain funding above $150,000. This is in the form of a charge on assets, which could also be registered with the PPSR or registering as a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is generally based rather than specifying the security for a particular asset. The person who signs the ensure is personally liable in the event that the company lender is not able to repay 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 registered in respect of personal property (including goods or assets). The PPSR allows the priority of personal property granted according to the date a security interest has been registered.
A caveat is a legal document that is filed to offer the public notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan that is greater than $250,000 we can offer an initial pre-approval in order to simplify the process. We could be able to do this without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves answering a couple of financial health checks. It’s neither an offer nor a guarantee of credit. The approval of a conditional loan is subject to an extensive credit evaluation and any offer you are offered could be based on different terms.
The application process
Are I eligible for funding?
You may 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)
- can demonstrate at least 6 months’ worth of transactions (for a 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 simple and easy. Complete the online form in few minutes and a dedicated company expert in lending will contact you to guide you through the process.
To apply for up $100,000, you’ll require the right identification documents (valid Driver’s License) and an active NZBN/IRD, and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K-$500K: Application details including credit consent as well as 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, and interim financials from the current financial year such as age-related payables and aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we can often provide an answer within an hour if you apply at quality company time and let us utilise the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your bank statements we can offer an answer in just 1 business day.
For the Larger Business Loan ($100K to $500K) we might be in a position to provide you with a conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, this could be shorter based upon the circumstances for each application. Some deals have been approved in just 24 hours.
The fastest way for you to apply is make sure you apply during standard company hours. Also, permit us to use the advanced bank verification system to verify your bank account information online. If you choose to send us duplicates of your banking statements it may take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K up to $100,000) we usually offer an answer within one hour – as long as you make your application in normal business time and permit us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your banking statement, we’ll offer an answer within an business day.
For Larger Business Loans ($100K to $500K) we may be able to offer you with a conditional pre-approval within six hours. Once you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this could be shorter based on the specifics of each application. Some agreements have been approved in just 24 hours.
The fastest method for you to apply is make sure you apply during standard business hours. Also, allow us to use the advanced bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statement, it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a particular amount, we consider a variety of factors for determining the health of your business and the amount of repayments that your company will be able to support. The amount you receive from your loan will depend on the specifics that are unique to your company.
When you submit an application for a particular amount, we will consider a number of elements to assess the health that is your business and the extent of the repayments your company can afford. The total amount of your loan will depend on the particular circumstances of your company.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to apply for the business financing, we’ll assess the risk profile the business and provide you with a customised offer that includes the loan amount, the terms and interest rates. It is a business loan is an upfront priced loan and you’ll be aware of the total amount payable including any interest rates, fees or charges.
What determines the amount I pay?
Interest rates for company loans rates differ based on various factors such as the amount that is of money borrowed, the company assets the funds will be used for and the sector the company is in, how long the company is in operation for, whether the company has enough cash flow to support the loan, and overall well-being as well as creditworthiness company.
What are the cost?
There are no hidden costs for our company loans, and you’ll be aware of the amount you’ll need to pay and when, starting from the day you sign up. There’s not any compounding interest and there are no additional charges (as long as you make your payments punctually).
We do not charge an Application Fee. You can request a credit loan absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated in establishing and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan in advance?
You may choose to pay back the entire amount of the loan in full at any time.
If you are deciding to pursue this option, please contact our helpful company credit professionals. They will offer you with details for repayment and an early payout figure. This is calculated as the sum of the principal balance and any accrued interest at the time of early payout, plus 1.5% of the remaining principal and any outstanding fees.
What is the process for repayments?
In order to help you avoid missing 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 your nominated company account.
Security & privacy
Will my data be protected?
Security of your data, and being clear about how we collect data, process, exchange and protect your information, is of huge importance and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their privacy. We make use of an advanced banking verification system to instantly verify your bank account details online so we can offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an business owner uses the assets they have to make the funds for a loan. The asset can be an individual property, such as the family home or a company asset such as a vehicle or piece or equipment.
The vast majority of the lenders including the largest banks, are inclined to secure loans against an asset. If you’re struggling to pay back the loan then your assets could be transferred to the lender. In essence it is a way of securing new financing by using the worth of the asset you already have.
Do I require security for a business loan?
For loans of up to $150K, there is no requirement for asset security before you can access the money but we require a personal guarantee. require an individual guarantee. As long as you follow the terms of your loan (as stipulated in your loan contract document) Asset security is not needed. For loans over $150K generally there is the option of a personal guarantee and security is provided in the form of a charge over assets.