FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Steiglitz Small Business Loans
Let me know what you think of the Steiglitz Small Business Loans
Steiglitz unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments which can be made daily or weekly.
How is how is the Unsecured Loan different from a traditional business loan?
Apply to this Small Business Loan in under 10 minutes online or by phone. You will receive an immediate response, and the money could be on your account within 24 hours. Traditional company loans refer to an annual rate of interest along with other charges and fees. This company loan is a pre-paid loan which means you know ahead of time the total amount due, which includes any fees, interest or charges. Then, it is broken down into either weekly or daily repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost any company purpose including control of cash flow business remodeling, marketing to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal purposes.
About Larger Steiglitz Business Loans
What is the Larger Steiglitz 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 over a fixed term with a maximum of 36 months. Repayments are either weekly or fortnightly depending on your cash flow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to be operating for a minimum of 3 years, and have an annual income of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
How can the funds be utilised?
A large company loan is a great option for almost any company reason, such as business renovations, purchase of equipment or inventory or as general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. It’s in the form of a charge against assets, and could include registration on the PPSR or the registration of a caveat.
A personal or director’s guarantee is a commitment to repay credit that is generally in nature rather than specifying the security of a specific asset. The person who signs the ensure is personally accountable if the business 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 lists security interests that are registered in respect of personal property (including objects or assets). The PPSR grants the priority of personal property granted depending on the date that a security interest was registered.
The caveat can be described as a formal document that is filed to provide the legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re requesting the Larger Business Loan of $250,000 or more, we may offer a preliminary pre-approval to help make the process. We may be able to make this decision without a credit check, and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes answering a couple of financial health questions. It is neither an offer nor a guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer that you receive could be subject to different terms.
The application process
Can I be eligible for funding?
You are eligible to apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Just complete the online application in just a few minutes, and a dedicated company credit specialist will be in touch to help you.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s Licence), an NZBN/IRD that is valid and at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K-$250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Information on the application including credit consent, 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, plus interim financials for the current financial year as well as Aged Payables and Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we typically provide an answer within an hour – as long as you apply at quality company times and allow us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to upload copies of your banking statement, we’ll provide an answer in as little as an company day.
For Larger Business Loans ($100K and up) we may be capable of offer you with conditional pre-approval in around six hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this can be quicker based on the particular circumstances of each application. Certain transactions have received approval in just 24 hours.
The fastest way is to make sure you apply during normal company hours, and let us use the advance bank verification to instantly verify your bank account information online. If you opt to send us duplicates of your banking statements it can take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K or more) we typically offer an answer in just one hour if you apply in normal business hours and let us make use of the advanced bank verification system to instantly verify your bank information online. If you decide to send us copies of your bank statements we can provide a decision within an business day.
For Larger Business Loans ($100K up to $500,000) we might be in a position to provide you with conditional pre-approval in around 6 hours. After you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Some transactions have received approval within the space of 24 hours.
The quickest method can be make sure you apply during normal business hours, and allow us to use our advance bank verification to verify your bank information online. If you upload documents from your account statement, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. When you submit an application for a particular amount, we look at a variety of elements that determine what is the well-being for your business as well as the amount of payments your business can afford. The amount you receive from your loan will be contingent on the specifics the business.
When you apply for a set amount, we will consider a number of factors to determine how much we can lend you such as well-being of your business and the level of repayments that your company can afford. The total amount of your loan will depend on the particular circumstances for your company.
Fees & repayments
How do you charge for a company loan?
If you decide to request the business financing, we’ll assess the risk assessment the company and offer you with a tailored offer including loan amount, term and the interest rates. A business loan is a loan that is priced upfront so you will be aware in advance of the total amount you will have to pay, including charges or interest.
What determines the rate that I pay?
Business loan interest rates depend on several factors like the amount of money borrowed, what business assets the funds are used to purchase, the industry the business operates in, the long the business has been in operation and whether the business has sufficient cash flow to support the loan, and overall well-being as well as creditworthiness company.
What are the charges?
There are no hidden fees for our company loans, and you’ll know precisely how much it is that you be required to pay and at what time, from the first day. There’s no compounding interest and no additional fees (as as you make your payments in time).
We don’t charge an application fee. You are able to make an application for loans with with no upfront cost or commitment to apply.
The Origination Fee includes the expenses associated in establishing and managing the loan. This is only a fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay out the loan early?
You can decide to repay the entire amount of the loan at any point in time.
If you decide to do this please contact our helpful company loan professionals. We will provide you with repayment details as well as an early payout amount. The figure will be calculated as the total of the principal remaining plus any accrued interest as of the time of the early payout, plus 1.5 percent of the principal amount remaining plus any outstanding fees.
How do repayments work?
In order to help you avoid missing payments and to work with your cash flow general, we provide payments that are either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my information be secure?
Protecting your information, and being transparent about how we collect, use, exchange and ensure the security of your information is crucial and an integral part of our relationship with 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 information and our funders are ISO 27001 qualified for our commitment to customer security and privacy. We employ a highly sophisticated bank verification system that allows you to immediately verify your bank account information online so we can provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where an business owner uses an asset that they own to secure the loan. The asset can be an asset belonging to the personal, like the family home or it could be a business asset such as a vehicle or piece or equipment.
The vast majority of banks, not just the largest banks, are inclined to secure loans against an asset. If you’re struggling to pay back the loan, then the asset might be offered for sale by the lender. In essence it is a way of securing new financing using the value of what you already own.
Should I require security to secure a company loan?
For loans of up to $150,000, it is not necessary to secure assets prior to the loan’s access However, we do need an individual guarantee. So long as you comply with the loan terms (as stipulated in your loan contract document) the security of assets is not required. If you take out loans in excess of $150K typically, you will need personal ensure and security in the form a charge over assets.