FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Seaview Small Business Loans
Let me know how you can avail the Seaview Small Business Loans
Seaview unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
How is this Unsecured Loan different from an ordinary business loan?
It is imaginable to apply to your Small Business Loan in under 10 minutes via the internet or over the phone, receive a same day response and the funds could be on your account within 24 hours. Traditional business loans have an interest rate per annum as well as other fees and charges. The business loan is a cash-based loan and you’ll be aware of the amount you will have to pay, including any fees, interest or charges. This is then broken down into weekly or daily installment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any company need, such as the management of cash flow, company improvements, advertising for purchasing inventory or new equipment, as general working capital and so much more. The loan is not available for personal use.
About Larger Seaview Business Loans
What is the Larger Seaview Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is determined at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan of this size the company needs to have been in operation for at least 3 years and generate an annual revenue of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funds for?
A Business Loan of a larger size can be used for almost any business use, including company renovations, purchase of new equipment or inventory, as general working capital, and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. It’s as a result of an charge against assets, which could also include registering this through the PPSR or registering a caveat.
A director’s or personal guarantee is a promise to pay back a loan that is general in nature, rather than stipulating security over an asset. The person who is signing the guarantee is personally accountable if the business lender is not able 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 the priority of personal property granted according to the date the security interest was registered.
The caveat can be described as a formal document filed to provide notice of a legal claim to a property.
What is a pre-approval without Credit Check?
When you’re applying for an enterprise loan that is greater than $250K we may be able to provide an initial pre-approval to make the process. We could be able to do this without credit checks and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves answering a couple of financial health questions. It is not an offer or guarantee of credit. A conditional approval is subject a full credit assessment and any offer that you are offered could be subject to different terms.
The application process
Do I have the right to receive funds?
You may apply for an business 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)
- must show at least six months worth of trade (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Complete the online form within a couple minutes, and an experienced company expert in lending will call you to guide you.
To apply for up $100,000, you’ll require the right identification documents (valid Driver’s License), a valid NZBN/IRD and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K to $500K: Details for 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 such as age-related payables and aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) We can usually offer an answer in just one hour, provided you submit your request in quality company times and permit us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your bank statement, we’ll provide an answer in as little as 1 company day.
If you are applying for a Larger Business Loan ($100K and up) we could be in a position to provide you with a conditional pre-approval within 6 hours. Once you have signed the pre-approval document, you will require to wait around 2-3 days for final approval, however this can be quicker based upon the circumstances for each application. Certain offers have been approved in just 24 hours.
The quickest method for you to apply is make sure you apply during normal company hours, and allow us to use the advance bank verification link to confirm your bank details online. If you choose to send us the copies of bank accounts, it takes a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) we usually offer an answer within an hour if you apply in normal business hours and allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you want to send us copies of your bank statement, we’ll provide a decision in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be likely to provide the conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Certain deals have been approved within less than 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours. Also, let us use the advanced bank verification system to verify your bank information online. If you send us copies of your bank accounts, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. If you apply for a certain amount, we take into consideration a range of variables in order to assess what is the health of your company and the amount of the repayments your business will be able to support. The total amount of your loan will be contingent on the specific circumstances that are unique to your company.
If you apply for a set amount, we take into consideration a variety of elements to determine how much we can lend you such as health of the business and the extent of the repayments your company is able to afford. The total amount of your loan will depend on the particular circumstances for your company.
Fees & repayments
What is the cost for a company loan?
When you request one of our business loan, we will assess the risk assessment that you have for your company and offer you with a customised offer including the loan amount, the terms and the interest rates. It is a company loan is an upfront priced loan therefore you will be aware of the total amount to be paid, including any interest rates, fees or charges.
What determines the rate that I’m charged?
The interest rates on business loans rates depend on several variables like the amount to be that is borrowed, what company assets the funds are used to purchase, the industry the business operates in, how long the business has been in operation, what percentage of the company has enough cash flow to fund the loan, and the overall well-being as well as creditworthiness business.
What are the charges?
There are no hidden fees for our business loans. You’ll know exactly how much it is that you be required to pay, and when, starting from the day you sign up. There’s no compounding interest and the loan comes with no additional fees (as as long as you pay your payments in time).
We don’t charge an application fee. You can apply for a loan with without any upfront costs or commitment to apply.
The Origination Fee covers the costs associated with establishing and managing the loan. It is only charged for this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of loan.
Can I pay out the loan earlier?
You may choose to pay back all of your loan early at any time.
If you are deciding to take this route, please call our helpful business lending specialists. They’ll provide you with the details of your repayment and an early payout figure. It will be calculated using the total of the remaining principal amount and the accrued interest up to the time of early payout, plus 1.5% of the principal balance and any fees that remain unpaid.
How do repayments work?
In order to help you avoid missing repayments and to fit in with your cash flow routine, we provide payments that are either weekly or daily. These are automatically deducted from your nominated business 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 crucial 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 protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to security for our customers and security. We utilise a sophisticated bank verification system to immediately confirm your bank account information online so we can provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when a business owner utilises an asset they own to secure the loan. The asset can be an individual property, such as the family home or an company asset like a truck or piece or equipment.
The majority of lenders, not just the major banks, prefer to secure loans against an asset. If you are having difficulty paying back the loan then your assets could be taken over by the lender. In essence it is an opportunity to secure new financing by making use of the value of what you already have.
Do I need security to secure a company loan?
For loans that exceed $150K, it is not necessary to secure assets before you can access the money but we require a personal guarantee. require an individual guarantee. If you adhere to the terms of your loan (as stipulated in your loan contract document) Asset security will never be needed. For loans of over $150K generally there is personal guarantee and security that is in the form an asset charge.