FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Springbrook Small Business Loans
Tell me about the Springbrook Small Business Loans
Springbrook unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from an traditional company loan?
It is possible to apply for your Small Business Loan in under 10 minutes online or over the phone. You’ll get an immediate response, and have the funds in your account within 24 hours. Traditional company loans refer to an annual rate of interest as well as other fees and charges. The business loan is a cash-based loan which means you be aware in advance of the total amount to be paid, including any interest, fees or charges. This is then broken down into weekly or daily payment amount.
What can the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business need, such as the management of cash flow, company improvements, advertising to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal purposes.
Concerning Larger Springbrook Business Loans
What is the Larger Springbrook Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Can I get the Larger Business Loan?
In order to be eligible for a loan of this size, your business needs to be operating for a minimum of 3 years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
How can the funds be utilised?
A Business Loan of a larger size can be used for almost any business need, including company remodeling, buying equipment or inventory as well as for general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. It is usually by way of charge over assets, which could also be registered on the PPSR or the registration of a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is generally in nature rather than stating the security for a particular asset. The person who is signing the ensure is personally liable if the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It contains security interests registered in respect of personal property (including items or assets). The PPSR allows priority over personal property to be granted according to the date the security interest that is registered.
A caveat is a legal document that is filed to provide the legal claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for the Larger Business Loan of $250,000 or more we can offer an initial pre-approval that will help smooth out the process. It is possible to make this decision without credit checks and within 6 hours of your initial application. This pre-approval is based on a preliminary assessment which includes you answering some financial well-being questions. It’s not an offer or guarantee of financing. The approval of a conditional loan is subject to a full credit assessment and any offer you may receive may be based on different conditions.
The application process
Are I eligible for funding?
You may be eligible for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application in just a few minutes, and an experienced company loan specialist will be in touch to guide you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s License) and a valid NZBN/IRD as well as at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll require:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details of the application, including credit consent and 12 months bank statement, an IRD statements, last 2 years finalised financial statements, in addition to interim financials from the current financial year, Aged Payables and Aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we typically provide an answer in just one hour, provided you apply within quality business timings and allow us to use the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statements , we are able to offer a decision in as little as 1 business day.
For Larger Business Loans ($100K to $500K) we may be likely to provide you with a conditional pre-approval 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 may be quicker depending upon the circumstances for each application. Some deals have been approved within just 24 hours.
The most efficient method for you to apply is make sure you apply during normal business hours. Also, allow us to use our advanced bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K and up) We can usually offer an answer within one hour – provided you submit your request at normal business timings and allow us to use the bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statements, we will be able to provide a decision in as little as one business day.
If you are applying for Larger Business Loans ($100K or more) We may be likely to offer you with conditional pre-approval in around six hours. Once you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be faster depending on the particular circumstances of each application. Some agreements have been approved in just 24 hours.
The quickest method is to ensure you apply during standard business hours. Also, allow us to use our sophisticated bank verification link to check your bank’s information online. If you choose to send us the copies of bank accounts, it can take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. If you apply for a particular amount, we look at a variety of factors to determine how much we can lend you well-being that is your company and the level of the repayments your company is able to afford. The amount you receive from the loan will be determined by the specific circumstances of your company.
When you apply for a certain amount, we take into consideration a variety of elements to determine the well-being of your business and the level of the repayments your company can afford. The total amount of your loan will be determined by the particulars for your business.
Fees & repayments
How much do you charge for an company loan?
If you decide to make an application for business loans with us business credit, we will assess the risk profile the business and offer you with a customised offer including the amount of the loan, the duration and interest rates. This business loan is an upfront-priced loan therefore you will be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What is the basis for the rate I am charged?
Interest rates for business loans rates differ based on various factors such as the amount that is of money borrowed, the business assets the funds will be used for, the industry the company operates in, how long the company has been in operation, in the event that the business has sufficient cash flow to fund the loan, and the overall health or financial standing of the company.
What are the cost?
There are no hidden costs for our company loans. You’ll know precisely what it is that you need to pay and at what time, from the first day. There’s no compounding interest and there are no additional charges (as long as you are able to make your payments in time).
We do not charge an application fee. You can get a cash loan absolutely no upfront cost and no commitment to apply.
The Origination Fee covers the expenses involved with establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay out the loan early?
You can choose to repay the total amount of your loan in full at any time.
If you decide to do this please talk to one of our helpful business loans professionals. They will offer you with the details of your repayment and an early payment figure. This is calculated as the sum of the principal amount remaining and accrued interest to the time of early payment in addition to 1.5 percent of the principal balance and any outstanding fees.
How do repayments work?
To ensure that you don’t miss payments and to work with your cash flow standard, we offer repayments that are either daily or weekly. These are automatically withdrawn from your designated business account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as making it clear the ways we gather, use, exchange and safeguard your data, is vital and a vital part 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 financial information and our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We utilise a sophisticated bank verification system link to instantly verify the bank account details online to provide an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when a business owner utilises assets they own to secure the funding. The asset could be an individual asset, such as the family home, or a company asset like a truck or piece or equipment.
The vast majority of banks, not just the banks with the biggest size, prefer to make loans secured by assets. If you are having difficulty paying back the loan, your assets could be transferred to the lender. In essence, it’s the process of securing additional financing using the value of what you already have.
Are I require security for a business loan?
For loans that exceed $150,000, it is not necessary to secure assets in advance to gain access to the funds but we do require a personal guarantee. So long as you comply with the terms of your loan (as detailed in your loan contract), asset security will never be needed. For loans over $150,000 generally there is the option of a personal ensure and security in the form of a charge over assets.