FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Strathmore Park Small Business Loans
Tell me about the Strathmore Park Small Business Loans
Strathmore Park unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What makes how is the Unsecured Loan different from an traditional company loan?
It is imaginable to apply to get your Small Business Loan in under 10 minutes on the phone. You’ll receive an instant response and have the funds in your account within 24 hours. Traditional business loans have an annual interest rate together with additional fees and charges. We offer a business loan is a cash-based loan so you will know in advance the total amount due, which includes any fees, charges or charges. This is then divided into a daily or weekly installment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every company reason, such as control of cash flow company renovations, marketing to purchase inventory or new equipment, or as general working capital, and much more. The loan cannot be used for personal reasons.
About the Larger Strathmore Park Business Loans
What is the Larger Strathmore Park Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company growth opportunities. The loan ranges from $100,000 to $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How’s the Origination Fee determined?
The 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?
To qualify for a loan in this amount, your business needs to have been operating for at least three years and have an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 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 to fund almost all business use, including company remodeling, buying equipment or inventory for general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. This can be done as a result of an charge against assets, and could include registration through the PPSR or the registration of as a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally in nature rather than stating security over an asset. The person who signs the guarantee is personally accountable if the company creditor is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR grants the priority of personal property granted in accordance with the date on which a security interest was registered.
A caveat is a legal document that is filed to provide an official notice of a claim on a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for an enterprise loan of more than $250,000, we may offer an initial pre-approval that will help simplify the process. We may be able to get this done without a credit check and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial well-being questions. It is neither an offer nor a guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you receive could have different terms.
Do I have the right to receive funds?
You can apply for a 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 you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form in just a few minutes, and an experienced company loan specialist will be in touch to guide you through the process.
To apply for up $100,000, you’ll need proof of identity (valid Driver’s Licence), a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Information on the application including credit consent twelve month bank accounts, the 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.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we can often offer an answer within one hour, provided you make your application in quality business times and permit us to utilise the bank verification system link to instantly verify your bank information online. If you decide 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 could be capable of provide the conditional pre-approval within 6 hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however it could be faster based on the particular circumstances of each application. Some agreements have been approved in less than 24 hours.
The quickest method would be to make sure you apply during standard company hours, and let us use the advanced bank verification system to verify your bank account information online. If you opt to upload the copies of bank statements , it takes a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) we usually offer an answer within one hour – as long as you make your application at standard business time and let us make use of the advanced bank verification system to instantly verify your bank information online. If you choose to send us copies of your bank statements, we are able to offer the decision in just an business day.
For Larger Business Loans ($100K or more) we could be capable of provide the conditional pre-approval in about six hours. Once you’ve signed your pre-approval document, you will need to wait about 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Certain offers have been approved in 24 hours.
The fastest way is to make sure you apply during normal business hours and permit us to use the advanced bank verification system link to check your bank’s information online. If you decide to upload duplicates of your banking accounts, it may take a bit longer.
How much can I borrow?
We provide loans that range from $5,000 and $500,000. If you apply for a certain amount we take into consideration a range of variables for determining your well-being of your business and the level of payments your company can support. The total amount of the loan will be determined by the particular circumstances of your company.
If you apply for a particular amount, we consider a variety of elements to determine how much we can lend you such as well-being of your business as well as the amount of repayments your company will be able to support. The amount you receive from the loan will be determined by the specifics that are unique to your company.
Fees & repayments
How much should you charge for a company loan?
When you apply for our business loans, we’ll assess the risk assessment of your business and offer you with a customised offer that includes the amount of the loan, the duration and the interest rates. This company loan is an upfront priced loan and you’ll know in advance the total amount payable including any charges, interest rates or fees.
What determines the amount I will be charged?
The interest rates on business loans rates depend on a variety of factors like the amount of money borrowed, what business assets the funds are used to purchase as well as the field the company is in, how long the business has been in operation and in the event that the business has enough cash flow to support the loan, as well as the general well-being as well as creditworthiness business.
What are the fees?
There aren’t any hidden costs for our business loans. You’ll know precisely how much it is that you need to pay and at what time, from the day you sign up. There’s no compounding interest, and no extra fees (as as you make your payments punctually).
We do not charge an Application Fee. You can apply for a loan absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the costs associated in establishing and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay out the loan early?
You can repay all of your loan at any point in time.
If you decide to pursue this option, please call our helpful business lending professionals. The experts will offer you with repayment details and an early payment figure. The figure will be calculated as 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 plus any outstanding fees.
What is the process for repayments?
To help you avoid missing repayments and to fit in your cash flow cycle we provide repayments either daily or weekly. These are automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
Security of your data, and knowing how we collect data, process, exchange and safeguard your data, is vital and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to security for our clients and security. We utilise a sophisticated bank verification system to instantly verify your bank account details online, allowing us to provide quick responses.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when an business owner borrows from assets they own to make the loan. The asset may be an individual property, such as the family home, or it could be a business asset such as a vehicle or other piece of machinery.
The majority of lending institutions, not just the big banks, tend to make loans secured by an asset. If you are having difficulty paying back the loan, your asset may be taken over by the lender. In essence, it’s means of securing new financing by using the value of what you already own.
Should I require security for a business loan?
For loans of up to $150K, it is not necessary to secure assets in advance to gain access to the funds but we require a personal guarantee. need a personal guarantee. In the event that you fulfill your loan commitments (as stated in your loan contract) Asset security is not required. For loans over $150K generally there is the option of a personal guarantee and security in the form an asset charge.