FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Swanson Small Business Loans
Tell me about the Swanson Small Business Loans
Swanson unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What makes the Unsecured Loan different from an ordinary company loan?
It is possible to apply to your Small Business Loan in under 10 minutes via the internet or over the phone, receive an immediate response, and the funds could be on your account within 24 hours. Traditional company loans reference an interest rate per annum together with additional fees and charges. The business loan is a pre-paid loan and you’ll be aware in advance of the amount you will have to pay, including any fees, charges or charges. Then, it is broken down into weekly or daily payment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost any business use, including control of cash flow business improvements, advertising, to purchase inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Swanson Business Loans
What is the Larger Swanson Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of for up to 36 months. Repayments are either weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan that is this large, your business needs to have been in operation for at least 3 years and generate an annual revenue of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funds be utilised?
A large company loan is a great option for almost every business reason, such as business renovations, purchase of new equipment or inventory or as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. It is usually in the form of a charge against assets and can include registering this with the PPSR or making as a caveat.
A director’s or personal ensure is a commitment to pay back a loan that is generally based rather than stipulating the security for a particular asset. The person who signs the guarantee is personally liable if the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including objects or assets). The PPSR allows the priority of personal property assigned depending on the date that a security interest was registered.
An affidavit is an official document that is filed to provide the public notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking larger company loans that exceeds $250K it’s possible to offer an initial pre-approval in order to smooth out the process. We might be able to make this decision without a credit verification and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering a few financial well-being questions. It is neither an offer nor a guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you might receive could be subject to different terms.
Do I have the right to receive funds?
You are eligible to apply for a company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Just complete the online application within a couple minutes, and a dedicated business credit specialist will call you to assist you.
To apply for up to $100,000 you’ll need the right identification documents (valid Driver’s Licence) and an NZBN/IRD that is valid and at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll also require:
$100K to $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent as well as 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, in addition to interim financial statements for the current year such as age-related payables and aged Receivables summary.
How fast will I get an answer?
For an unsecured loan ($5K or more) we typically provide an answer within an hour if you make your application during standard business times and allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you want to upload copies of your bank statements , we are able to provide the decision in just the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we could be capable of offer you with pre-approval conditional to your application in around 6 hours. Once you have signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, it could be faster based on the specifics of each application. Certain transactions have received approval in just 24 hours.
The most efficient method would be to ensure you apply during standard business hours. Also, let us use the advanced bank verification system link to verify your bank information online. If you decide to send us duplicates of your banking statement, it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) We can usually provide a response in one hour – as long as you make your application during normal business times and you allow us to utilise the advanced bank verification system to instantly verify your bank information online. If you opt to send us copies of your bank statement, we’ll offer a decision in just 1 business day.
For Larger Business Loans ($100K or more) we might be likely to offer you with conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval document, you will need to wait between 2 and 3 days for the final approval, however this may be quicker depending on the particular circumstances of each application. Some deals have been approved in 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours. You can also let us use the sophisticated bank verification to verify your bank account information online. If you opt to upload documents from your account statements, it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a certain amount we will consider a number of variables that determine what is the health of the company and the extent of repayments that your company will be able to support. The amount you receive from your loan will be contingent on the particular circumstances the business.
When you make an application for a certain amount, we will consider a number of aspects to assess the well-being of your business and the amount of payments your company will be able to support. The amount you receive from the loan will be determined by the specifics the business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to make an application for our company loans, we will assess the risk profile the business and provide you with a customised proposal that includes the amount of loan, the term and the interest rates. This company loan is a loan that is priced upfront therefore you will know in advance the total amount due, which includes any charges or interest.
What determines the amount I pay?
Business loan interest rates differ based on various 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, how long the business has been in operation, how long the business has sufficient cash flow to pay for the loan, and overall health as well as creditworthiness business.
What are the fees?
There aren’t any hidden charges with our business loans, and you’ll know precisely what you need to pay and when, starting from the first day. There’s no compounding interest and there are no additional charges (as long as you make your payments on time).
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 expenses involved with the setting up and management of the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I repay the loan earlier?
You can repay all of your advance loan at any time.
If you do decide to pursue this option, please contact our helpful business credit specialists. The professionals will provide you with details for repayment and an early payment figure. This is calculated as the sum of the principal amount remaining and accrued interest to the date of early payout plus 1.5% of the principal remaining and any outstanding fees.
How do you make repayments work?
To make sure you do not miss payments and to work your cash flow cycle we provide repayments either daily or weekly. These are automatically withdrawn from your designated business 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 is an essential 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 sensitive, personal and financial data and our funders are ISO 27001 certified for our commitment to security for our clients and privacy. We employ an exceptionally sophisticated banking verification system to instantly confirm your bank account information online, allowing us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an business owner borrows from the assets they have to make the funds for a loan. The asset may be an asset belonging to the personal, like the family home or it could be a business asset such as a truck as well as a piece of machine.
The vast majority of banks, even the major banks, prefer to secure loans against an asset. If you have trouble paying back the loan then the asset could be sold by the lender. In essence it’s means of securing new funding making use of the value of what you already own.
What do I require security for an company loan?
For loans up to $150K it is not necessary to secure assets before you can access the money but we require a personal guarantee. need a personal guarantee. If you adhere to the loan terms (as specified in your loan contract) and you are able to meet your obligations, asset security will never be required. If you take out loans in excess of $150,000 typically, you will need an individual ensure and security in the form a charge over assets.