FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Singleton Small Business Loans
Tell me more about Singleton Small Business Loans
Singleton unsecured loans provides amounts 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.
What is what makes the Unsecured Loan different from the traditional business loan?
Apply to get your Small Business Loan in under 10 minutes online or over the phone, receive an instant response and have the funds in your account in 24 hours. Traditional company loans have an annual interest rate as well as other fees and charges. The business loan is a loan that is priced upfront which means you be aware in advance of the amount you will have to pay, including any interest, fees or charges. This is then broken down into a daily or weekly installment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for nearly every company use, including cash flow management, company improvements, advertising for purchasing inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal reasons.
About larger Singleton Business Loans
What is the Larger Singleton Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, calculated at 2.5% of the loan amount.
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 trading for at least 3 years, and have an annual income of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
What can I use the funding for?
A Business Loan of a larger size can be used for nearly all company need, including company renovations, purchase of new equipment or inventory, as general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It’s in the form of a charge against assets, and could include registering this in the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a commitment to repay credit that is general in nature rather than specifying the security for a particular asset. The person signing the ensure is personally liable in the event that the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It records security interests that have been 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 registration of a security interest.
An affidavit is an official document filed to offer an official notice of a claim on a property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan of $250,000 or more, we may offer an initial pre-approval in order to simplify the process. We could be able to get this done without a credit check and within 6 hours of the initial application. This pre-approval is based on an initial assessment that includes you answering some financial well-being questions. It is not an offer or guarantee of finance. Unconditional approval is subject to an assessment of your creditworthiness and any offer you may receive may be based on different conditions.
The application process
Can I be eligible for funding?
You may 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 business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application in few minutes and an experienced business loan specialist will contact you to guide you.
To apply for up $100,000, you’ll require the right identification documents (valid Driver’s Licence) along with an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details for application including credit consent, 12 months of bank statements, 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 reports.
How quickly will I receive a decision?
For an unsecured loan ($5K and up) we typically offer an answer within one hour, provided you apply in quality company time and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statement, we’ll provide the decision within just an business day.
For Larger Business Loans ($100K and up) we might be likely to provide the conditional pre-approval within six hours. After you’ve signed your pre-approval, turnaround times are between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Some agreements have been approved in the space of 24 hours.
The quickest method can be make sure you apply during normal company hours, and allow us to use our advance bank verification to verify your bank information online. If you upload duplicates of your banking statements it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K and up) We can usually offer an answer in just one hour – as long as you apply in normal business hours and you allow us to use the bank verification system link to instantly verify your bank details online. If you decide to upload copies of your bank statement, we’ll provide an answer within an business day.
For the Larger Business Loans ($100K or more) We may be capable of provide the conditional pre-approval in around 6 hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval. However, it could be faster based on the specifics of each application. Some transactions have received approval within less than 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours, and allow us to use the advance bank verification link to verify your bank account information online. If you decide to upload documents from your account statements it takes a bit longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a certain amount we consider a variety of aspects for determining what is the health for your company and the amount of payments your company can support. The total amount of your loan will be contingent on the particular circumstances that are unique to your company.
When you make an application for a specific amount we take into consideration a variety of variables to assess your health for your company as well as the amount of repayments that your business will be able to support. The total amount of the loan will be determined by the specific circumstances of your business.
Fees & repayments
What is the cost for an company loan?
If you decide to apply for our business credit, we will assess the risk assessment of your company and provide you with a customised offer that includes the loan amount, the terms and the interest rates. A business loan is a loan that is priced upfront and you’ll know the exact amount to be paid, including any charges or interest.
What determines the amount I’m charged?
The interest rates on business loans rates depend on several factors like the amount of money borrowed, the company assets the money are used to purchase and the sector the company operates in, the long the company has been in operation for, what percentage of the company has enough cash flow to support the loan, and also the overall well-being and creditworthiness of the company.
What are the cost?
There aren’t any hidden costs for our business loans, and you’ll know precisely how much it is that you be required to pay, and when, right from the day you sign up. There’s not any compounding interest and the loan comes with no additional fees (as as you make your payments in time).
We don’t charge an application fee. You are able to get a cash loan with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved in establishing and managing the loan. The only way to pay this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay off the loan in advance?
You can decide to repay the total amount of your loan at any point in time.
If you choose to take this route, please contact our helpful company lending specialists. They’ll provide you with details for repayment and an early payout figure. The figure will be calculated as the sum of the remaining principal amount plus any accrued interest as of the date of early payout and 1.5% of the remaining principal as well as any outstanding fees.
What is the process for repayments?
In order to help you avoid missing payment dates and to align with your cash flow cycle we offer repayments either daily or weekly. They are automatically deducted from your designated business account.
Security & privacy
Will my data be secure?
Security of your data, and making it clear how we collect information, use it, and exchange it, as well as safeguard your data, is of paramount importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to security for our customers and security. We use an advanced banking verification system to instantly verify the bank account details online, allowing us to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when the company owner utilises assets they own to get the funds for a loan. The asset can be an individual property, such as the family home or an business asset like a truck as well as a piece of machine.
The vast majority of banks, not just the largest banks, are inclined to secure loans against assets. If you have trouble paying back the loan then the asset could be transferred to the lender. In essence it is a way of securing additional financing using the value of what you already have.
Should I need security to secure a company loan?
Up to $150K in loans there is no requirement for asset security prior to the loan’s access, however we require a personal guarantee. need the personal guarantee. In the event that you fulfill the loan terms (as detailed in your loan contract document) and you are able to meet your obligations, asset security will never be needed. For loans of over $150,000 generally, there is an individual guarantee and security in the form of an asset charge.