FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Sunnyhills Small Business Loans
Tell me how you are able to avail the Sunnyhills Small Business Loans
Sunnyhills unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow friendly repayments that are either per day or weekly.
What makes what makes the Unsecured Loan different from an ordinary company loan?
The application to get the Small Business Loan in under 10 minutes online or over the phone. You’ll get an answer within the same day and the money could be in your account in 24 hours. Traditional company loans are based on an interest rate per annum plus other fees and charges. The company loan is a pre-paid loan which means you be aware in advance of the total amount to be paid, including any interest, fees or charges. Then, it is divided into a daily or weekly repayment figure.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business use, including cash flow management, business improvements, advertising for purchasing inventory or new equipment, to fund general working capital, and much more. The loan cannot be used to fund personal expenses.
About larger Sunnyhills Business Loans
What is the Larger Sunnyhills Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of for up to 36 months. The repayments are made weekly or fortnightly, depending on you cashflow.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee that 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 in this amount the business needs to have been trading for at least 3 years, and have an annual income of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at least 12 months of trading.
What can the funds be used for?
A larger business loan is a great option for almost any company need, including business improvements, purchasing inventory or new equipment for general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed to access funding over $150,000. It is usually as a result of an charge on assets and can include registering this in the PPSR or registering a caveat.
A director’s or personal guarantee is a promise to pay off a credit line that is general in nature, rather than defining the security of a specific asset. The person signing the guarantee is personally accountable if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It reflects security interests registered in respect of personal property (including items or assets). The PPSR permits prioritisation over property that is personal to be granted in accordance with the date on which a security interest that is registered.
Caveats are legal document that is filed to provide the legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking an enterprise loan of more than $250K we can offer a preliminary pre-approval to help simplify the process. We might be able to apply for this without a credit verification and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering some financial well-being checks. It’s not an offer of credit or guarantee of finance. Unconditional approval is subject to a full credit assessment and any offer that you receive could have different terms.
Application process
Are I eligible for funding?
You are eligible to apply for a business 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)
- you must demonstrate at minimum 6 months of trading (for for the 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 easy. Complete the online form within a couple minutes, and an experienced company lending specialist will contact you to assist you.
To be eligible for up to $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-$250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K to $500K: Details of the application, including credit consent as well as 12 months of bank records, IRD statements, last 2 years finalised financial statements, plus interim financial statements for the current year, Aged Payables and Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we usually provide a response in one hour – as long as you submit your request at quality business time and allow us to utilise the advanced bank verification system to immediately verify your bank account information online. If you choose to upload copies of your bank statements , we’ll be able to offer a decision within the span of one business day.
For Larger Business Loans ($100K or more) we may be able to offer you with a conditional pre-approval in around six hours. Once you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Certain offers have been approved within 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours. Also, let us use the advanced bank verification system to instantly verify your bank information online. If you decide to upload documents from your account statements , it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer within an hour – as long as you make your application within standard business hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statements we can provide the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K and up) we may be in a position to offer you with a conditional pre-approval in around 6 hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this may be quicker depending on the particular circumstances of each application. Some transactions have received approval in less than 24 hours.
The most efficient method would be to make sure you apply during standard business hours, and let us use the advanced bank verification system to instantly confirm your bank details online. If you upload copies of your bank accounts, it will take a little longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a certain amount we consider a variety of factors for determining how much we can lend you well-being that is your company and the amount of repayments that your company is able to afford. The amount you receive from your loan will be contingent on the particular circumstances of your business.
When you submit an application for a set amount, we look at a range of elements to determine the well-being of the company and the extent of repayments that your business can afford. The amount you receive from your loan will be contingent on the particulars of your company.
Fees & repayments
How do you charge for the cost of a company loan?
If you decide to request our company financing, we’ll assess the risk profile the company and provide an individualised offer including the amount of the loan, the duration and interest rates. It is a company loan is an upfront-priced loan which means you know in advance the total amount to be paid, including any charges, interest rates or fees.
What is the basis for the rate I’m charged?
The interest rates on company loans rates differ based on various factors such as the amount that is borrowed, the business assets the money are used to purchase in addition to the industry that the company operates in, how long the company has been operating as well as how long the company has enough cash flow to pay for the loan, and also the overall well-being and creditworthiness of the company.
What are the fees?
There aren’t any hidden costs for our business loans, and you’ll be aware of the amount you need to pay and at what time, from the very first day. There’s no compounding interest 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 request a credit loan no cost upfront or the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay out the loan in advance?
You can decide to repay the entire amount of your advance loan at any time.
If you do decide to pursue this option, please call our helpful business loans specialists. We will offer you with the details of your repayment and an early payout figure. This is calculated as the total of the remaining principal amount and any accrued interest at the time of early payment, plus 1.5% of the remaining principal and any fees that remain unpaid.
How do repayments work?
To ensure that you don’t miss payments and to work with your cash flow standard, we offer repayments that are either daily or weekly. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be protected?
Protecting your information, and being transparent about the ways we gather data, process, exchange and secure your information, is vital and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We employ a highly sophisticated bank verification system to immediately verify your bank account information online to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when a business owner borrows from assets they own to make the funding. The asset may be an individual asset, such as the family home or it could be a company asset like a truck or piece or equipment.
The majority of banks, including the major banks, prefer to secure loans against assets. If you are having difficulty paying back the loan then the asset might be offered for sale by the lender. In essence it is a way of securing new financing making use of the value of what you already own.
Do I require security to secure a business loan?
For loans that exceed $150K, there is no requirement for asset security upfront to access the money however, we require a personal guarantee. require the personal guarantee. So long as you comply with the loan terms (as specified in the loan contract), asset security will never be needed. For loans over $150,000 typically, you will need a personal guarantee and security that is in the form charges on assets.