FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Stirling Small Business Loans
Tell me what you think of the Stirling Small Business Loans
Stirling unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months. They also offer cash flow-friendly repayments, which are either daily or weekly.
How is how is the Unsecured Loan different from the traditional company loan?
The application to get your Small Business Loan in under 10 minutes online or over the phone. You’ll get a same day response and the funds could be on your account within 24 hours. Traditional business loans refer to an interest rate per annum plus other fees and charges. We offer a business loan is an upfront priced loan therefore you’ll be aware in advance of the total amount to be paid, including any fees, charges or charges. Then, it is divided into weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any company purpose including managing cash flows, company improvements, advertising for purchasing inventory or new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Stirling Business Loans
What is the Larger Stirling Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How’s 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.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to have been operating for at least three years and have an annual turnover of $700,000. 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 least 12 months of trading.
How can the funds be utilised?
A Larger Business Loan is a great option for almost all business purpose including business renovations, to purchase new equipment or inventory or as 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 needed to access funding over $150,000. It’s by way of charge against assets, which could also be registered on the PPSR or making as a caveat.
A personal or director’s ensure is a promise to repay credit that is generally in nature rather than stating security over an asset. The person who signs the guarantee is personally liable if the company creditor is unable to make the repayment.
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 prioritisation over property that is personal to be granted according to the date the registration of a security interest.
Caveats are legal document filed to offer notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re requesting larger business loans that exceeds $250K, we may offer an initial pre-approval that will help ease the process. We may be able to apply for this without a credit check and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes answering a couple of financial well-being questions. It’s not an offer or guarantee of funds. A conditional approval is subject an exhaustive 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 business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Complete the online form in few minutes and an experienced company lending specialist will call you to help you.
To apply for up $100,000, you’ll require ID details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months of bank statements.
If you’re looking for loans with larger sizes, you’ll also need:
$100K-$250K: Details of application, including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K to $500K: Details for application including credit consent, 12 months of bank records, IRD statements, last 2 years finalised financial statements, and interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) We can usually offer an answer within one hour if you apply during standard business times and allow us to use the advanced bank verification system to instantly verify your bank information online. If you decide to submit copies of your bank statement, we’ll provide the decision within an company day.
For Larger Business Loans ($100K to $500K) we might be able to offer you with conditional pre-approval in about 6 hours. Once you have signed the pre-approval document, you will need to wait around 2-3 days for final approval. However, this could be shorter based on the specifics of each application. Certain offers have been approved in less than 24 hours.
The quickest method would be to ensure you apply during normal company hours, and allow us to use the modern bank verification link to instantly verify your bank information online. If you choose to send us the copies of bank statement, it may take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K and up) we typically offer an answer within one hour, provided you make your application within standard business timings and you allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statements, we will be able to offer the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be in a position to provide you with conditional pre-approval within six hours. Once you have 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 particular circumstances of each application. Certain offers have been approved within the space of 24 hours.
The fastest way can be make sure you apply during normal business hours. You can also allow us to use our advance bank verification link to verify your bank information online. If you opt to send us duplicates of your banking accounts, it takes a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a particular amount, we take into consideration a range of variables for determining the health that is your business and the amount of payments your business can support. The total amount of your loan will be contingent on the specifics for your business.
When you apply for a particular amount, we will consider a number of variables to assess the health of your business as well as the amount of the repayments your business will be able to support. The amount you receive from your loan will be contingent on the specifics that are unique to your business.
Fees & repayments
How much should you charge for an company loan?
If you decide to apply for the business credit, we’ll assess the risk assessment the business and offer you with a customised offer that includes the amount of the loan, the duration and the interest rates. It is a company loan is an upfront priced loan and you’ll know the exact amount payable including any charges or interest.
What determines the rate that I am charged?
Interest rates for business loans rates depend on a variety of factors such as the amount that is borrowed, what business assets the funds are used to purchase and the sector the business is in, how long the business has been operating for, how long the business has enough cash flow to cover the loan, and the general health as well as creditworthiness business.
What are the costs?
There aren’t any hidden charges with our business loans, and you’ll know precisely how much you’ll be required to pay, and when, right from the first day. There’s no compounding interest and there are no additional charges (as long as you make your payments in time).
We do not charge an application fee. You can get a cash loan with with no upfront cost or obligation to proceed.
The Origination Fee covers the costs associated in 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 loan.
Can I pay off the loan earlier?
You can decide to repay the total amount of your loan early at any time.
If you do decide to do this please call our helpful company lending specialists. The experts will provide you with the details of your repayment as well as an early payout amount. This is calculated as the total of the principal balance and the accrued interest up to the time of early payment and 1.5% of the remaining principal as well as any outstanding fees.
What is the process for repayments?
To help you avoid missing payment dates and to align your cash flow schedule, we provide payments that are either weekly or daily. They are automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being transparent about how we collect the information we collect, use, share and protect your information, is of huge importance and is a crucial 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 as well as financial data. Our funders are ISO 27001 certified for our dedication to protecting the security of customers and privacy. We use an advanced bank verification system link to instantly verify your bank account details online. This allows us to offer quick responses.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when the company owner makes use of assets they own to make the funding. The asset could be an asset belonging to the personal, like the family home or it could be a company asset such as a truck or piece or equipment.
The majority of banks, not just the major banks, prefer to make loans secured by an asset. If you’re struggling to pay back the loan then the asset might be transferred to the lender. In essence, it is a way of securing new financing using the value of what you already have.
Should I require security for a company loan?
Up to $150,000 in loans the requirement for asset security is not required upfront to access the money, however we require a personal guarantee. require a personal guarantee. If you adhere to the loan terms (as detailed in your loan contract document) the security of assets is not required. For loans that exceed $150,000, generally there is the option of a personal guarantee and security in the form the charge of assets.