FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Serpentine Small Business Loans
Tell me about the Serpentine Small Business Loans
Serpentine 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 can be made daily or weekly.
What is what makes the Unsecured Loan different from an traditional business loan?
You can apply for your Small Business Loan in under 10 minutes on the phone. You’ll receive an instant response and the money could be in your account in 24 hours. Traditional company loans have an annual rate of interest as well as other fees and charges. The business loan is an upfront priced loan and you’ll know in advance the total amount to be paid, including any interest, fees or charges. This is then broken down into a daily or weekly repayment figure.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly any business purpose including the management of cash flow, business improvements, advertising, to purchase inventory or new equipment, as general working capital and much more. The loan is not available for personal purposes.
About larger Serpentine Business Loans
What is the Larger Serpentine Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company 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 your situation.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the company needs to be operating for a minimum of 3 years and have an annual turnover of at least $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funds for?
A large company loan can be used for almost any company reason, such as company renovations, to purchase new equipment or inventory for 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 necessary for accessing funds over $150,000. It is usually by taking a charge against assets, and could include registering this in the PPSR or the registration of a caveat.
A director’s or personal guarantee is a promise to repay a loan which is general in nature rather than specifying security over a particular asset. The person signing the ensure is personally liable if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including items or assets). The PPSR allows the priority of personal property assigned depending on the date that a security interest has been registered.
The caveat can be described as a formal document filed to offer the legal claim to property.
What is a pre-approval without Credit Check?
If you’re requesting a Larger Business Loan that is greater than $250K we may be able to provide an initial pre-approval that will help smooth out the process. It is possible to apply for this without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial health checks. It’s in no way an offer, nor is it a guarantee of funds. A conditional approval is subject an extensive credit evaluation and any offer that you might receive could be subject to different conditions.
Application process
Are I eligible for funding?
You may be eligible for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of trading (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and simple. Simply complete the online form within a couple minutes, and an experienced company lending specialist will be in touch to help you.
To apply for up to $100,000, you’ll require ID details (valid Driver’s Licence), a valid NZBN/IRD as well as at least 6 months of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K – $250K: Application details including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent and 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, in addition to interim financials for the current financial year, Aged Payables and Aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) We can usually offer an answer within an hour if you submit your request during quality business time and let us use the advanced bank verification system to immediately verify your bank account information online. If you want to submit copies of your bank statements , we will be able to provide an answer within 1 business day.
For Larger Business Loans ($100K up to $500,000) we may be in a position to provide you with a conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Certain transactions have received approval in the space of 24 hours.
The quickest method for you to apply is ensure you apply during standard company hours. Also, let us use the advance bank verification link to instantly confirm your bank details online. If you choose to upload copies of your bank statement, it takes a bit longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) We can usually offer an answer in just one hour – as long as you apply in standard business hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you decide to send us copies of your bank statements, we are able to provide the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be in a position to offer the conditional pre-approval within about six hours. After you’ve signed the pre-approval form, it will take about 2-3 days for final approval, however this can be faster depending on the specifics of each application. Certain agreements have been approved in just 24 hours.
The quickest method can be make sure you apply during normal business hours. You can also let us use the advance bank verification link to check your bank’s information online. If you choose to send us duplicates of your banking accounts, it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. When you submit an application for a certain amount, we consider a variety of variables to determine your health of the business and the extent of the repayments your business can afford. The amount you receive from your loan will depend on the particular circumstances that are unique to your company.
When you apply for a specific amount we consider a variety of factors to determine the well-being of the business as well as the amount of repayments your company is able to afford. The total amount of your loan will depend on the specific circumstances that are unique to your business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to apply for our business loan, we’ll assess the risk assessment for your business and offer you with a customised proposal that includes the amount of the loan, the duration and interest rates. It is a business loan is an upfront-priced loan so you will know in advance the total amount to be paid, including any costs, fees, or interest rates.
What determines the rate that I am charged?
Business loan interest rates depend on several factors such as the amount that is of money borrowed, the business assets the money are used to purchase, the industry the company is operating in, how long the business has been in operation as well as what percentage of the business has sufficient cash flow to pay for the loan, and also the general health as well as creditworthiness business.
What are the fees?
There aren’t any hidden costs with our company loans. You’ll know precisely what you’ll need to pay and when, from the very first day. There’s no compounding and no extra fees (as as long as you pay your payments in time).
We do not charge an application fee. You can make an application for loans with no upfront cost or commitment to apply.
The Origination Fee is the cost associated with setting up and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5 percent of the loan amount.
Do I have the option of paying off the loan earlier?
You may choose to pay back the entire amount of the loan at any point in time.
If you decide to pursue this option, please contact our helpful company lending experts. The specialists will offer you with details on repayment along with an early payout estimate. The figure will be calculated as the total of the principal amount remaining plus any accrued interest as of the date of early payout in addition to 1.5 percent of the principal remaining plus any outstanding fees.
How do you make repayments work?
To help you avoid missing payment dates and to align your cash flow cycle we provide repayments either weekly or daily. They will be automatically deducted from your nominated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear the ways we gather data, process, exchange and protect your information, 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 make use of industry-standard encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and privacy. We make use of an advanced banking verification system to immediately verify the bank account details online, allowing us to offer a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when a company owner uses an asset that they own to obtain the funds for a loan. The asset can be either an asset belonging to the personal, like the family home, or an company asset like a truck or piece of equipment.
The vast majority of banks, even the big banks, tend to make loans secured by an asset. If you’re having trouble paying back the loan, then your assets could be sold by the lender. In essence it’s the process of securing new financing by making use of the value of what you already own.
What do I need security to get a company loan?
Up to $150K in loans the requirement for asset security is not required before you are able to access the money but we do need a personal guarantee. In the event that you fulfill your loan commitments (as stipulated in the loan contract) the security of assets is not required. If you take out loans in excess of $150,000 generally, there is a personal ensure and security in the form of the charge of assets.