FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Stafford Heights Small Business Loans
Tell me what you think of the Stafford Heights Small Business Loans
Stafford Heights unsecured loans offers amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
How is the Unsecured Loan different from a traditional company loan?
You can apply to get the Small Business Loan in under 10 minutes over the phone, receive an instant response and have the funds in your account within 24 hours. Traditional company loans refer to an interest rate per annum along with other charges and fees. The company loan is an upfront priced loan which means you know ahead of time the amount you will have to pay, including any fees, charges or charges. This is then divided into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually every company purpose including managing cash flows, company remodeling, marketing to purchase inventory, new equipment, or as general working capital, and much more. The loan cannot be used for personal use.
About Larger Stafford Heights Business Loans
What is the Larger Stafford Heights Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are either weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is 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 company needs to have been operating for at least three years and have an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can I use the funds for?
A Business Loan of a larger size can be used for nearly every business reason, such as business renovations, purchase of equipment or inventory, as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. This is as a result of an charge over assets, and may include the registration of this in the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a promise to repay credit that is generally in nature rather than defining the security of a specific asset. The person who signs the guarantee is personally responsible if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online registry 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 grants prioritisation over property that is personal to be granted according to the date a security interest was registered.
The caveat can be described as a formal document lodged to provide an official notice of a claim to property.
What exactly is a preapproval without Credit Check?
If you’re applying for an enterprise loan that exceeds $250K it’s possible to offer a preliminary pre-approval to help ease the process. It is possible to get this done without credit checks and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves the answer to a series of financial well-being checks. It is not an offer or guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer you might receive could be based on different conditions.
The application process
Do I have the right to receive funds?
You may be eligible for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for 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. Just complete the online application within a couple minutes, and an experienced business credit specialist will be in touch to assist you.
To be eligible for up to $100,000, you’ll need proof of identity (valid Driver’s Licence) along with an active NZBN/IRD, and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll 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: Information on the application including credit consent as well as 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, and interim current financial year financials as well as Aged Payables and Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) We can usually offer an answer within an hour – as long as you submit your request during standard company hours and let us utilise the advanced bank verification system link to instantly verify your bank details online. If you decide to send us copies of your bank statement, we’ll provide a decision in just one company day.
For the Larger Business Loan ($100K and up) we could be able to provide the conditional pre-approval in about 6 hours. After you’ve signed your pre-approval document, you will require to wait around 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Certain deals have been approved within 24 hours.
The quickest method for you to apply is make sure you apply during normal company hours, and permit us to use the advanced bank verification system to check your bank’s information online. If you decide to upload the copies of bank accounts, it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K to $100K) we can often offer an answer within an hour – as long as you apply in normal business hours and allow us to use the bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statements we can offer an answer in as little as the span of one business day.
For Larger Business Loans ($100K up to $500,000) we may be able to provide you with a conditional pre-approval in about 6 hours. Once you’ve signed your pre-approval, turnaround times are around 2-3 days for final approval. However, this can be faster depending upon the circumstances for each application. Certain agreements have been approved in just 24 hours.
The quickest method is to ensure you apply during normal business hours and permit us to use the advanced bank verification system link to instantly check your bank’s information online. If you opt to send us the copies of bank accounts, it can 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 certain amount we will consider a number of aspects to determine your well-being for your company as well as the amount of repayments that your business can support. The amount you receive from your loan will be contingent on the specific circumstances of your business.
When you submit an application for a certain amount, we take into consideration a variety of factors to assess how much we can lend you such as health of the company and the level of repayments your company can afford. The total amount of your loan will depend on the particular circumstances that are unique to your business.
Fees & repayments
How much should you charge for an company loan?
If you decide to apply for our business financing, we’ll assess the risk profile the business and provide you with a customised offer, including the loan amount, the terms and the interest rates. It is a business loan is an upfront-priced loan so you will know the exact amount due, which includes any interest rates, fees or charges.
What is the factor that determines the price I am charged?
Business loan interest rates differ based on various factors like the amount of money of money borrowed, the company assets the money are used to purchase and the sector the business operates in, the long the company has been running for, whether the business has enough cash flow to pay for the loan, and also the overall health and creditworthiness of the company.
What are the cost?
There are no hidden fees with our company loans, and you’ll know precisely how much it is that you need to pay and at what time, from the first day. There’s no compounding interest, and no extra fees (as long as you are able to make your payments on time).
We don’t charge an Application Fee. You can request a credit loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated with setting up and managing the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan earlier?
You may choose to pay back the entire amount of your loan at any point in time.
If you decide to take this route, please talk to one of our helpful business lending experts. The specialists will provide you with the details of your repayment along with an early payout estimate. This is calculated as the total of the principal balance and the accrued interest up to the time of the early payout, plus 1.5 percent of the principal remaining and any fees that remain unpaid.
How do repayments work?
To ensure you do not miss repayments and to fit in with your cash flow routine, we provide payments that are either weekly or daily. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being transparent about the ways we gather the information we collect, use, share and ensure the security of your information is of paramount importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We make use of an advanced bank verification system link to instantly verify your bank account information online. This allows us to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where a business owner makes use of assets they own to secure a loan. The asset can be either a personal asset like the family home or a company property like a truck or piece of equipment.
The majority of banks, not just the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan then your assets could be sold by the lender. In essence it is the process of securing additional financing using the worth of the asset you already own.
What do I need security to secure a company loan?
For loans of up to $150K, there is no requirement for asset security prior to the loan’s access but we do require the personal guarantee. So long as you comply with your loan commitments (as stated in your loan contract) and you are able to meet your obligations, asset security is not needed. For loans that exceed $150,000, generally, you can get an individual ensure and security in the form of charges on assets.