FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Salter Point Small Business Loans
Let me know about the Salter Point Small Business Loans
Salter Point unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments which can be made daily or weekly.
What is what makes the Unsecured Loan different from the traditional company loan?
You can apply for this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and the money could be available in just 24 hours. Traditional company loans refer to an interest rate per annum as well as other fees and charges. The business loan is a pre-paid loan so you will be aware in advance of the amount you will have to pay, including the interest, fees and charges. This is then broken down into weekly or daily repayment figure.
What could the Small Business Loan be used for?
The Small Business Loan can be used for almost every business reason, such as the management of cash flow, business renovations, marketing to purchase inventory, new equipment, for general working capital and much more. The loan cannot be used for personal use.
Concerning Larger Salter Point Business Loans
What is the Larger Salter Point Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly to work with the flow of cash.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is calculated at 2.5% of the loan amount.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large the company needs to be operating for at least three years, and have an annual income of at least $700,000. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funding for?
A large company loan can be used for almost every company need, including company renovations, to purchase equipment or inventory, as general working capital, and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. This can be done in the form of a charge against assets, and could include the registration of this in the PPSR or the registration of as a caveat.
A director’s or personal ensure is a promise to pay back a loan that is general in nature, rather than specifying security over an asset. The person who signs the guarantee is personally liable if the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including items or assets). The PPSR gives preference over private property granted according to the date a registration of a security interest.
Caveats are legal form of document to offer notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re requesting a Larger Business Loan of $250K or more we can offer an initial pre-approval in order to make the process. We may be able to do this without a credit check, and within 6 hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering a few financial health questions. This is neither an offer nor a guarantee of financing. Unconditional approval is subject to an extensive credit evaluation and any offer you may receive may have different conditions.
Application process
Do I qualify for funds?
You can apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (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 application process is simple and simple. Simply complete the online form within a couple minutes, and an experienced company loan specialist will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll require proof of identity (valid Driver’s Licence), a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K-$250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statement Last 2 years’ finalised financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables summary.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we typically offer an answer within one hour, provided you make your application during quality company times and permit us to utilise the bank verification system to instantly verify your bank’s information online. If you decide to upload copies of your bank statements we can offer an answer in as little as an company day.
For the Larger Business Loan ($100K up to $500,000) we could be able to offer you with conditional pre-approval within about six hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Some deals have been approved within 24 hours.
The most effective method can be make sure you apply during normal business hours and let us use the advance bank verification to verify your bank account information online. If you choose to upload documents from your account statements it takes a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K and up) We can usually offer a response in one hour, provided you apply in normal business hours and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you want to upload copies of your banking statements we can provide an answer in as little as one business day.
For Larger Business Loans ($100K and up) We may be capable of provide you with conditional pre-approval within six hours. Once you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this can be faster depending on the specifics of each application. Certain deals have been approved within just 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours and let us use the modern bank verification link to check your bank’s information online. If you decide to upload duplicates of your banking statements, it can take a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a certain amount, we consider a variety of elements that determine your health of your company and the level of the repayments your business can afford. The amount you receive from the loan will be determined by the specific circumstances that are unique to your business.
If you apply for a set amount, we look at a range of elements to determine your health of your business and the amount of repayments your company is able to afford. The amount you receive from your loan will be contingent on the specific circumstances the company.
Fees & repayments
How much do you charge for the cost of a business loan?
When you apply for our business loans, we’ll assess the risk assessment of your business and offer an individualised offer, including the amount of the loan, the duration and interest rates. The business loan is a loan that is priced upfront which means you know the exact amount payable including any costs, fees, or interest rates.
What determines the rate that I’m charged?
The interest rates on business loans rates depend on a variety of variables like the amount to be that is borrowed, what company assets the money are used to purchase, the industry the company operates in, how long the business is in operation for, how long the business has sufficient cash flow to fund the loan, and also the overall well-being as well as creditworthiness company.
What are the charges?
There aren’t any hidden costs with our company loans. You’ll be aware of the amount you’ll need to pay and when, right from the day you sign up. There’s no compounding interest and there are no additional charges (as long as you make your payments punctually).
We don’t charge an Application Fee. You can request a credit loan with without any upfront costs or any obligation to sign up.
The Origination Fee covers the expenses involved with establishing and managing the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay out the loan in advance?
You may choose to pay back all of your advance loan at any time.
If you are deciding to take this route, please call our helpful company loans professionals. The professionals will provide you with details on repayment along with an early payout estimate. It will be calculated using the total of the principal amount remaining and accrued interest to the time of the early payout and 1.5 percent of the principal remaining plus any outstanding fees.
How do you make repayments work?
To ensure you do not miss payment dates and to align your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically deducted from your nominated business account.
Security & privacy
Will my data be protected?
Security of your data, and being clear about the ways we gather, use, exchange and safeguard your data, is vital and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and security. We utilise a sophisticated banking verification system to instantly confirm your bank account information online so we can provide a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the company owner uses an asset that they own to secure the funds for a loan. The asset could be a personal asset like the family home or a company asset such as a truck or other piece of machinery.
The majority of lending institutions, including the banks with the biggest size, prefer to make loans secured by an asset. If you have trouble paying back the loan then your asset may be offered for sale by the lender. In essence, it’s means of securing new financing by taking advantage of the value of what you already own.
Do I need security to secure a company loan?
Up to $150K in loans there is no requirement for asset security upfront to access the money however, we require a personal guarantee. need an individual guarantee. As long as you follow your loan obligations (as stipulated in your loan contract) the security of assets is not needed. For loans over $150,000 generally there is the option of a personal ensure and security in the form the charge of assets.