FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Spearwood Small Business Loans
Let me know what you think of the Spearwood Small Business Loans
Spearwood unsecured loans provides amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What is this Unsecured Loan different from the traditional company loan?
You can apply to your Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and have the funds on your account within 24 hours. Traditional business loans reference an annual interest rate as well as other fees and charges. This company loan is an upfront priced loan and you’ll know ahead of time the total amount due, which includes any fees, interest or charges. This is then broken down into weekly or daily payment amount.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business need, such as the management of cash flow, company remodeling, marketing to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available for personal use.
Concerning Larger Spearwood Business Loans
What is the Larger Spearwood Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5% of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your company needs to be operating for a minimum of 3 years and have an annual turnover of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
What can the funds be used for?
A larger business loan can be used for almost all company reason, such as company renovations, to purchase inventory or new equipment or as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. This is by taking a charge over assets, which could also include registering this with the PPSR or the registration of a caveat.
A personal or director’s guarantee is a promise to pay back a loan that is generally based rather than specifying security over a particular 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 an online, central register operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including goods or assets). The PPSR permits priority over personal property to be granted according to the date a security interest was registered.
Caveats are legal form of document to provide an official notice of a claim on a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for an enterprise loan of more than $250,000 we may be able to provide a preliminary pre-approval to help ease the process. We could be able to make this decision without a credit check and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves you answering some financial well-being questions. It’s not an offer of credit or guarantee of financing. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you receive could be based on different terms.
The application process
Can I be eligible for funding?
You may be eligible for an business 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 trading (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in few minutes and an experienced business credit specialist will call you to assist you.
To apply for up $100,000 you’ll need the right identification documents (valid Driver’s Licence) and an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Application requirements, 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 and 12 months of bank statements, IRD statement as well as the two most recent years’ financial statements, as well as interim financials from the current financial year, Aged Payables and Aged Receivables Summary.
How quickly will I receive an answer?
For an unsecured loan ($5K up to $100,000) we usually provide a response in one hour, provided you apply within standard company hours and allow us to utilise the bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statements we can provide an answer in just the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we could be likely to provide you with a conditional pre-approval within about six hours. After you’ve signed your pre-approval, turnaround times are about 2-3 days for final approval. However, this may be quicker depending on the specifics of each application. Some offers have been approved within just 24 hours.
The quickest method can be make sure you apply during normal business hours. Also, permit us to use the modern bank verification to instantly confirm your bank details online. If you decide to upload documents from your account statements it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) we typically provide an answer within an hour – provided you make your application within standard business time and permit us to utilise the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statements, we are able to offer a decision in just the span of one business day.
For Larger Business Loans ($100K or more) We may be likely to offer you with pre-approval conditional to your application within about six hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval. However, this can be faster depending upon the circumstances for each application. Certain transactions have received approval within 24 hours.
The quickest method is to ensure you apply during standard business hours, and permit us to use the advance bank verification link to verify your bank account information online. If you decide to send us duplicates of your banking accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 and $500,000. When you submit an application for a certain amount we take into consideration a range of aspects that determine your health of your business as well as the amount of repayments that your company can afford. The amount you receive from your loan will be contingent on the specifics the business.
If you apply for a certain amount, we look at a range of variables to determine the well-being of the business as well as the amount of repayments your business can afford. The amount you receive from the loan will be determined by the particular circumstances of your company.
Fees & repayments
How much should you charge for the cost of a company loan?
If you decide to apply for one of our business credit, we’ll assess the risk assessment that you have for your business and provide an individualised offer including the amount of the loan, the duration and the interest rates. The business loan is an upfront priced loan and you’ll be aware in advance of the total amount to be paid, including any interest rates, fees or charges.
What is the factor that determines the price I am charged?
The interest rates on business loans rates vary due to factors like the amount of money of money borrowed, the business assets the funds are used to purchase in addition to the industry that the company operates in, how long the company has been operating, in the event that the company has sufficient cash flow to support the loan, and also the general health or financial standing of the company.
What are the charges?
There are no hidden fees for our business loans. You’ll be aware of the amount you’ll be required to pay and when, starting from day one. There’s no compounding and the loan comes with no additional fees (as as long as you pay your payments on time).
We don’t charge an application fee. You can make an application for loans with no cost upfront or obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan in advance?
You can choose to repay the total amount of your loan at any point in time.
If you are deciding to pursue this option, please contact our helpful company credit professionals. We will offer you with details for repayment along with an early payout estimate. The figure will be calculated as the total of the principal amount remaining and accrued interest to the time of early payment, plus 1.5% of the remaining principal and any fees that remain unpaid.
What is the process for repayments?
In order to help you avoid missing payment dates and to align with your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being upfront about how we collect, use, exchange and ensure the security of your information is crucial and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our dedication to the security of our customers as well as their privacy. We use an advanced bank verification system that allows you to immediately verify your bank account details online. This allows us to offer quick responses.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing occurs when an business owner makes use of an asset that they own to obtain a loan. The asset can be an asset belonging to the personal, like the family home or it could be a company property like a truck or piece of equipment.
The majority of banks, even the big banks, tend to secure loans against assets. If you’re having trouble paying back the loan, then your assets could be taken over by the lender. In essence, it’s a way of securing new funding taking advantage of the value of what you already have.
What do I require security to secure an business loan?
For loans of up to $150K, no asset security is required in advance to gain access to the funds, however we do need an individual guarantee. As long as you follow the loan terms (as specified in the loan contract) Asset security will never be needed. If you take out loans in excess of $150K generally, you are able to get a personal ensure and security in the form of the charge of assets.