FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The St Heliers Small Business Loans
Let me know what you think of the St Heliers Small Business Loans
St Heliers unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months. They also offer cash flow friendly repayments that are either daily or weekly.
How is what makes the Unsecured Loan different from a traditional business loan?
You can apply to your Small Business Loan in under 10 minutes by phone. You will receive an instant response and funds may be in your account in 24 hours. Traditional company loans are based on an interest rate per annum together with additional fees and charges. The company loan is a cash-based loan therefore you’ll be aware in advance of the amount you will have to pay, including any fees, interest or charges. Then, it is broken down into weekly or daily payment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every business use, including managing cash flows, company renovations, marketing to purchase inventory, new equipment, as general working capital and much more. The loan is not available for personal purposes.
About the Larger St Heliers Business Loans
What is the Larger St Heliers Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed with a maximum of 36 months. The repayments are made 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.
Can I get the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been operating for a minimum of 3 years with an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
What can I use the funding for?
A Larger Business Loan can be used for almost any business purpose including business renovations, purchase of equipment or inventory for general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan a secured loan?
Asset security is necessary to obtain funding above $150,000. It’s by way of charge over assets and can include registering this in the PPSR or making as a caveat.
A director’s or personal guarantee is a commitment to repay credit that is general in nature, rather than stipulating security over an asset. The person who signs the guarantee is personally accountable if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including the assets or goods). The PPSR grants the priority of personal property assigned depending on the date that a security interest has been registered.
A caveat is a legal form of document to offer notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re requesting an enterprise loan that is greater than $250,000 it’s possible to offer an initial pre-approval that will help simplify the process. It is possible to do this without a credit check and within six hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering a few financial well-being checks. This is in no way an offer, nor is it a guarantee of credit. The approval of a conditional loan is subject to a full credit assessment and any offer you are offered could have different terms.
Do I qualify for funds?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of business (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Complete the online form in few minutes and an experienced business loan specialist will call you to help you.
To apply for up to $100,000, you’ll need proof of identity (valid Driver’s Licence) along with a valid NZBN/IRD and at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Details of application, 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 twelve months of bank records, IRD statement and the last two years’ finalised financial statements, in addition to interim financial statements for the current year as well as Aged Payables and Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we can often provide an answer in just one hour, provided you make your application in standard company hours and allow us to utilise the bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your bank statements we can provide an answer in as little as 1 company day.
If you are applying for a Larger Business Loan ($100K to $500K) we might be able to offer you with pre-approval conditional to your application in around six hours. After you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this could be shorter based upon the circumstances for each application. Some agreements have been approved within less than 24 hours.
The most efficient method would be to make sure you apply during normal company hours. Also, permit us to use the advance bank verification to confirm your bank details online. If you choose to upload documents from your account statements it can take a bit longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) We can usually offer an answer within one hour, provided you apply within standard business timings and allow us to make use of the advanced bank verification system to immediately verify your bank account information online. If you opt to submit copies of your bank statements we can provide the decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be capable of offer you with a conditional pre-approval in around six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Some transactions have received approval within just 24 hours.
The fastest method can be ensure you apply during normal business hours. You can also let us use the modern bank verification link to instantly check your bank’s information online. If you choose to upload copies of your bank statements, it will take a little longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. When you make an application for a specific amount we consider a variety of factors for determining how much we can lend you health for your business as well as the amount of the repayments your business will be able to support. The total amount of your loan will depend on the specific circumstances that are unique to your business.
When you make an application for a set amount, we consider a variety of factors to determine your health of your business and the level of the repayments your company is able to afford. The amount you receive from the loan will be determined by the particulars that are unique to your business.
Fees & repayments
What is the cost for an company loan?
When you make an application for the company credit, we will assess the risk profile for your company and provide you with a customised offer, including loan amount, term and interest rates. It is a business loan is a loan that is priced upfront which means you know in advance the total amount payable including any costs, fees, or interest rates.
What determines the rate that I pay?
Interest rates for company loans rates depend on several factors like the amount of money that is borrowed, what business assets the funds are used to purchase and the sector the business operates in, the long the company has been running, whether the company has enough cash flow to support the loan, and also the overall well-being as well as creditworthiness company.
What are the fees?
There aren’t any hidden charges for our company loans. You’ll know precisely what you’ll need to pay, and at what time, from day one. There’s no compounding interest, and no extra fees (as long as you make your payments punctually).
We do not charge an application fee. You are able to make an application for loans with with no upfront cost or any obligation to sign up.
The Origination Fee covers the costs associated with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay out the loan early?
You may choose to pay back the entire amount of the advance loan at any time.
If you do decide to take this route, please talk to one of our helpful business lending specialists. They’ll provide you with details on repayment along with an early payout estimate. It will be calculated using the sum of the principal amount remaining and accrued interest to the date of early payout, plus 1.5 percent of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
To help you avoid missing payments and to work with your cash flow routine, we provide repayments 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 making it clear the ways we gather data, process, exchange and protect your information, is crucial and a vital 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 personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to customer security and security. We employ an exceptionally sophisticated banking verification system to immediately verify your bank account details online to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an company owner utilises assets they own to make the loan. The asset may be an asset belonging to the personal, like the family home, or it could be a company asset such as a truck or piece of equipment.
The vast majority of lending institutions, including the major banks, prefer to secure loans against assets. If you’re having trouble paying back the loan then the asset could be taken over by the lender. In essence it is a way of securing new funding using the worth of the asset you already own.
Should I need security to get a business loan?
For loans of up to $150K, it is not necessary to secure assets in advance to gain access to the funds However, we require a personal guarantee. require a personal guarantee. So long as you comply with your loan commitments (as specified in your loan contract document) Asset security is not needed. If you take out loans in excess of $150,000 typically, you will need personal ensure and security in the form the charge of assets.