FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Silverstream Small Business Loans
Let me know more about Silverstream Small Business Loans
Silverstream unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from an ordinary business loan?
You can apply for this Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and the funds could be in your account in 24 hours. Traditional business loans are based on an interest rate per annum plus other fees and charges. This business loan is a pre-paid loan so you will know ahead of time the total amount to be paid, including any fees, charges or charges. This is then broken down into a daily or weekly payment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every company reason, such as the management of cash flow, company remodels and marketing to purchase inventory, new equipment, as general working capital, and much more. The loan is not available for personal purposes.
About Larger Silverstream Business Loans
What is the Larger Silverstream Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term 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 calculated?
This Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large the business needs to be in operation for at least 3 years, and have an annual income 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 prove at least 12 months of trading.
What can I use the funds for?
A Business Loan of a larger size is a great option for almost every company use, including company renovations, to purchase equipment or inventory or as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed to access funding over $150,000. It is usually in the form of a charge on assets, and could include registering this with the PPSR or the registration of as a caveat.
A personal or director’s ensure is a promise to repay a loan which is generally in nature rather than stipulating security over a particular asset. The person who is signing the ensure is personally liable if the business creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including goods or assets). The PPSR allows priority over personal property to be granted according to the date the security interest that is registered.
The caveat can be described as a formal document filed to offer the legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting the Larger Business Loan of more than $250K we can offer an initial pre-approval that will help simplify the process. We may be able to apply for this without a credit check and within six hours of your initial application. The pre-approval process is based on an initial assessment, which involves answering a couple of financial well-being checks. It is in no way an offer, nor is it a guarantee of financing. Acceptance without condition is subject to a full credit assessment and any offer that you are offered could be on different conditions.
The application process
Can I be eligible for funding?
You may apply 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 worth of trade (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Just complete the online application in few minutes and a dedicated company lending specialist will call you to guide you through the process.
For a loan of up to $100,000, you’ll need the right identification documents (valid Driver’s License) along with an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Application details including credit consent and 12 months bank statement, an IRD statement as well as the two most recent years’ financial statements, and interim financial statements for the current year including Aged Payables, Aged Receivables reports.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we usually offer an answer in just one hour, provided you make your application at standard company times and you allow us to utilise the bank verification system to instantly verify your bank information online. If you opt to send us copies of your bank statements , we are able to provide an answer within just 1 business day.
For the Larger Business Loan ($100K or more) we might be capable of provide you with a conditional pre-approval within six hours. After you’ve signed your pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, it could be faster based upon the circumstances for each application. Certain transactions have received approval in the space of 24 hours.
The fastest way is to ensure you apply during standard business hours. You can also allow us to use our advanced bank verification system link to instantly verify your bank account information online. If you decide to upload the copies of bank statements it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K or more) we typically offer an answer in just one hour, provided you make your application at normal business hours and let us utilise the advanced bank verification system to immediately verify your bank account information online. If you choose to submit copies of your bank statements, we are able to provide the decision in as little as an business day.
If you are applying for Larger Business Loans ($100K or more) We may be in a position to provide you with conditional pre-approval within six hours. Once you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Some agreements have been approved in less than 24 hours.
The fastest way is to ensure you apply during standard business hours. Also, let us use the sophisticated bank verification link to instantly verify your bank information online. If you opt to upload the copies of bank statement, it will take a little longer.
How much can I borrow?
We offer loans ranging from $5,000 to $500,000. When you make an application for a certain amount we look at a variety of factors in order to assess the well-being of the business as well as the amount of payments your company can support. The total amount of your loan will depend on the particular circumstances of your company.
If you apply for a set amount, we consider a variety of factors to determine your well-being of the company and the level of repayments that your company can support. The amount you receive from the loan will be determined by the particulars that are unique to your company.
Fees & repayments
How much should you charge for an company loan?
When you apply for business loans with us business financing, we will assess the risk profile for your business and provide you with a customised offer that includes the amount of loan, the term and the interest rates. This business loan is an upfront cost loan so you will know in advance the total amount payable including any charges or interest.
What is the factor that determines the price I am charged?
Interest rates for business loans rates depend on several factors such as the amount that is of money borrowed, the business assets the money will be used for as well as the field the business is in, how long the business is in operation for, in the event that the company has enough cash flow to cover the loan, and also the general health or financial standing of the company.
What are the costs?
There aren’t any hidden costs for our business loans, and you’ll know precisely how much it is that you need to pay and when, from day one. There’s not any compounding interest and the loan comes with no additional fees (as long as you make your payments in time).
We don’t charge an application fee. You are able to request a credit loan without any upfront costs or obligation to proceed.
The Origination Fee is the cost associated with the setting up and management of the loan. The only way to pay this fee if you decide to take the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay out the loan in advance?
You can choose to repay the entire amount of the loan at any point in time.
If you choose to take this route, please contact our helpful company loans professionals. They’ll provide you with repayment details along with an early payout estimate. This is calculated as the sum of the remaining principal amount and any accrued interest at the time of the early payout, plus 1.5 percent of the remaining principal plus any outstanding fees.
What are the repayment methods?
To help you avoid missing payments and to work with your cash flow cycle we provide repayments either daily or weekly. These are automatically withdrawn from your company account.
Security & privacy
Will my information be protected?
Security of your data, and making it clear how we collect data, process, exchange and protect your information, is of paramount importance and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to customer security and security. We use an advanced bank verification system link to instantly verify the bank account details online so we can offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the company owner uses the assets they have to obtain a loan. The asset can be an individual property, such as the family home or it could be a company asset such as a vehicle as well as a piece of machine.
The majority of the lenders not just the major banks, prefer to guarantee loans against assets. If you’re struggling to pay back the loan then the asset could be taken over by the lender. In essence it is an opportunity to secure new financing by using the value of what you already own.
Are I need security for an business loan?
Up to $150K in loans the requirement for asset security is not required before you are able to access the money However, we do require a personal guarantee. If you adhere to the loan terms (as specified in your loan contract), asset security will never be required. For loans of over $150,000 generally, you are able to get personal guarantee and security that is in the form a charge over assets.