FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Sandringham Small Business Loans
Let me know how you can avail the Sandringham Small Business Loans
Sandringham unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments that are either daily or weekly.
How is what makes the Unsecured Loan different from an ordinary company loan?
Apply to get your Small Business Loan in under 10 minutes over the phone, receive a same day response and have the funds available in just 24 hours. Traditional company loans reference an annual rate of interest along with other charges and fees. This business loan is a pre-paid loan which means you know in advance the total amount payable including any fees, interest or charges. Then, it is divided into weekly or daily repayment figure.
What can 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 renovations, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan is not available to fund personal expenses.
Concerning Larger Sandringham Business Loans
What is the Larger Sandringham Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are weekly or fortnightly, depending on your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your business needs to be trading for at least 3 years, and have an annual income of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) over 18 years and have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funding be utilised?
A Business Loan of a larger size is a great option for almost any company use, including business improvements, purchasing equipment or inventory, as general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. It’s by taking a charge against assets, which could also include the registration of this through the PPSR or making as a caveat.
A director’s or personal ensure is a promise to repay credit that is generally in nature rather than defining the security for a particular asset. The person who is signing the guarantee is personally liable in the event that the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR gives preference over private property granted according to the date the registration of a security interest.
An affidavit is an official document lodged to provide the legal claim to property.
What exactly is a preapproval without Credit Check?
When you’re applying for larger company loans that exceeds $250K it’s possible to offer an initial pre-approval in order to simplify the process. We may be able to get this done without a credit check, and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes you answering a few financial health checks. It is in no way an offer, nor is it a guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer that you may receive may be subject to different terms.
Are I eligible for funding?
You are eligible to apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of trading (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 quick and simple. Just complete the online application within a couple minutes, and a dedicated business loan specialist will contact you to guide you.
For a loan of up to $100,000 you’ll require identification details (valid Driver’s License), a valid NZBN/IRD as well as at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K – $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, plus interim financials for the current financial year such as age-related payables and aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) We can usually provide an answer within one hour if you make your application within standard business timings and let us use the advanced bank verification system link to instantly verify your bank details online. If you want to submit copies of your bank statement, we’ll provide an answer within an company day.
If you are applying for a Larger Business Loan ($100K and up) we might be in a position to provide you with a conditional pre-approval within 6 hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Some deals have been approved in 24 hours.
The fastest way would be to make sure you apply during normal business hours. You can also let us use the modern bank verification link to verify your bank information online. If you opt to send us duplicates of your banking statements , it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K and up) we can often provide an answer in just one hour, provided you make your application at normal business timings and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your bank statements, we’ll be able to offer an answer within the span of one business day.
For Larger Business Loans ($100K to $500K) we could be able to provide the conditional pre-approval in about 6 hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Some offers have been approved in the space of 24 hours.
The most efficient method can be ensure you apply during normal business hours, and permit us to use the sophisticated bank verification to instantly confirm your bank details online. If you opt to send us duplicates of your banking statements, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans ranging from $5,000 to $500,000. If you apply for a particular amount, we consider a variety of elements for determining the well-being for your business and the amount of repayments your business is able to afford. The total amount of your loan will be contingent on the particular circumstances that are unique to your business.
When you make an application for a set amount, we will consider a number of variables to assess how much we can lend you such as well-being that is your business and the amount of repayments that your business can afford. The total amount of your loan will be contingent on the specifics for your business.
Fees & repayments
How much do you charge for an business loan?
When you make an application for the company credit, we’ll assess the risk profile of your company and offer you with a customised offer including the loan amount, the terms and interest rates. The business loan is a loan that is priced upfront which means you know the exact amount payable including any charges or interest.
What determines the rate that I pay?
Business loan interest rates vary due to factors such as the amount that is that is borrowed, what company assets the funds will be used for in addition to the industry that the company is operating in, how long the company has been running for, in the event that the company has sufficient cash flow to pay for the loan, and the overall health and creditworthiness of the company.
What are the charges?
There aren’t any hidden charges for our company loans, and you’ll know precisely what you be required to pay, and when, right from day one. There’s no compounding interest, and no extra fees (as as you make your payments on time).
We do not charge an application fee. You are able to apply for a loan with no cost upfront or commitment to apply.
The Origination Fee covers the expenses involved with setting up and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay off the loan in advance?
You may choose to pay back the entire amount of your loan early at any time.
If you are deciding to do this please call our helpful company lending professionals. They’ll offer you with details on repayment and an early payment figure. It will be calculated using the total of the principal balance and the accrued interest up to the time of the early payout and 1.5% of the principal balance and any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss repayments and to fit in your cash flow cycle we provide payments that are either daily or weekly. They are automatically deducted from your nominated company account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being clear about the ways we gather, use, exchange and ensure the security of your information is vital and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to security for our customers and privacy. We make use of an advanced banking verification system to instantly verify the bank account details online to provide rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when a company owner borrows from the assets they have to get a loan. The asset may be an individual property, such as the family home, or it could be a company property like a truck as well as a piece of machine.
The majority of lenders, including the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan, then the asset might be offered for sale by the lender. In essence, it’s means of securing new financing using the value of what you already own.
Should I require security to secure an business loan?
For loans up to $150K no asset security is required prior to the loan’s access However, we require a personal guarantee. require the personal guarantee. As long as you follow the loan terms (as stated in your loan contract), asset security will never be needed. For loans over $150,000 generally there is personal guarantee and security is provided in the form of the charge of assets.