FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Sunnyhills Small Business Loans
Tell me more about Sunnyhills Small Business Loans
Sunnyhills unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
What is the Unsecured Loan different from the traditional business loan?
Apply for this Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an answer within the same day and the money could be in your account within 24 hours. Traditional company loans reference an annual rate of interest along with other charges and fees. This company loan is an upfront priced loan and you’ll know ahead of time the amount you will have to pay, including any fees, charges or charges. This is then divided into a daily or weekly repayment figure.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for almost every company purpose including managing cash flows, business improvements, advertising, to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal purposes.
About the Larger Sunnyhills Business Loans
What is the Larger Sunnyhills Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. Repayments are either weekly or fortnightly, depending on your cash flow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan that is this large the business needs to have been trading for at least 3 years with an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funding be used for?
A large company loan can be used for almost any company reason, such as business renovations, purchase of equipment or inventory, as general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. It’s in the form of a charge on assets and can include the registration of this through the PPSR or filing a caveat.
A personal or director’s guarantee is a commitment to repay a loan which is generally in nature rather than specifying 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 registry run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including the assets or goods). The PPSR permits prioritisation over property that is personal to be granted depending on the date that a security interest has been registered.
Caveats are legal document lodged to provide notice of a legal claim to property.
What is a pre-approval minus Credit Check?
When you’re applying for a Larger Business Loan of more than $250,000 we may be able to provide an initial pre-approval in order to smooth out 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 is based upon an initial assessment, which involves you answering a few financial health questions. This is in no way an offer, nor is it a guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you may receive may be based on different terms.
The application process
Do I have the right to receive funds?
You are eligible to apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form within a few minutes and an experienced company lending specialist will be in touch to assist you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s Licence), a valid NZBN/IRD as well as at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Application details including credit consent twelve months of bank records, IRD statement and the last two years’ finalised financial statements, as well as interim financials from the current financial year including Aged Payables, Aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we can often offer an answer in just one hour, provided you apply within standard company timings and allow us to utilise the bank verification system link to instantly verify your bank details online. If you want to upload copies of your banking statements , we will be able to provide an answer within 1 company day.
For the Larger Business Loan ($100K up to $500,000) we could be in a position to provide you with conditional pre-approval within 6 hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, it could be faster based on the circumstances of each application. Certain transactions have received approval in the space of 24 hours.
The quickest way to apply can be ensure you apply during normal business hours and let us use the advanced bank verification system link to confirm your bank details online. If you opt to send us documents from your account statement, it will take a little longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K and up) we typically offer an answer in just one hour – as long as you apply during normal business hours and allow us to use the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your bank statements we can provide a decision in just the span of one business day.
If you are applying for Larger Business Loans ($100K or more) We may be capable of provide you with a conditional pre-approval within six hours. After you’ve signed the pre-approval document, you will need to wait around 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Certain agreements have been approved within just 24 hours.
The most efficient method for you to apply is make sure you apply during standard business hours. You can also permit us to use the modern bank verification link to instantly check your bank’s information online. If you choose to upload the copies of bank statements it will take a little longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you submit an application for a certain amount we look at a variety of variables that determine the health for your company as well as the amount of repayments that your company will be able to support. The amount you receive from your loan will be contingent on the specifics that are unique to your business.
When you submit an application for a certain amount, we take into consideration a variety of elements to assess how much we can lend you such as health that is your company as well as the amount of repayments that your business can afford. The amount you receive from your loan will be determined by the particulars for your business.
Fees & repayments
How much should you charge for an business loan?
If you decide to request one of our company financing, we will assess the risk profile of your company and offer an individualised offer that includes the loan amount, the terms and the interest rates. This business loan is an upfront cost loan which means you be aware in advance of the total amount payable including any interest rates, fees or charges.
What is the basis for the rate I pay?
The interest rates on business loans rates depend on several factors such as the amount that is borrowed, the business assets the money will be used for as well as the field the business is operating in, how long the business is in operation, in the event that the business has sufficient cash flow to support 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, and you’ll know precisely how much it is that you need to pay, and when, starting from the first day. There’s not any compounding interest and no extra fees (as long as you make your payments punctually).
We do not charge an application fee. You can make an application for loans with no cost upfront or the obligation to take action.
The Origination Fee covers the expenses involved with setting up and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan in advance?
You can decide to repay all of your advance loan at any time.
If you choose to take this route, please contact our helpful business credit professionals. They will offer you with details on repayment as well as an early payout amount. The figure will be calculated as the total of the principal balance and any accrued interest at the date of early payout and 1.5% of the principal amount remaining and any fees that remain unpaid.
How do repayments work?
To make sure that you don’t miss repayments and to fit in with your cash flow routine, we offer repayments either weekly or daily. They will be automatically deducted from your company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear how we collect data, process, exchange and ensure the security of your information is of paramount importance and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to security for our customers and security. We make use of an advanced bank verification system that allows you to instantly verify the bank account details online. This allows us to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a business owner utilises assets they own to make a loan. The asset can be an individual asset, such as the family home or it could be a company asset like a truck or other piece of machinery.
The vast majority of lending institutions, not just the major banks, prefer to make loans secured by assets. If you’re struggling to pay back the loan, your asset may be offered for sale by the lender. In essence, it’s an opportunity to secure additional financing using the value of what you already have.
Are I need security for a company loan?
For loans that exceed $150,000, there is no requirement for asset security in advance to gain access to the funds, however we do need an individual guarantee. As long as you follow the terms of your loan (as detailed in the loan contract) the security of assets will never be required. For loans of over $150,000 typically, you will need the option of a personal ensure and security that is in the form an asset charge.