FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Sunnynook Small Business Loans
Let me know about the Sunnynook Small Business Loans
Sunnynook unsecured loans offers amounts 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 makes the Unsecured Loan different from an traditional business loan?
The application to get your Small Business Loan in under 10 minutes on the internet or over the phone, receive an immediate response, and have the funds in your account within 24 hours. Traditional business loans have an interest rate per annum together with additional fees and charges. We offer a company loan is an upfront priced loan and you’ll be aware in advance of the total amount due, which includes any interest, fees or charges. Then, it is broken down into weekly or daily repayment figure.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly every business need, such as managing cash flows, business renovations, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan is not available for personal purposes.
About the Larger Sunnynook Business Loans
What is the Larger Sunnynook Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount, your business needs to have been trading for at least 3 years, and have an annual income of $700,000. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can the funding be used for?
A larger business loan can be used for almost every company use, including business remodeling, buying inventory or new equipment or as general working capital and so much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that requires security?
Asset security is needed for funding of more than $150,000. This can be done by taking a charge on assets, which could also include registration on the PPSR or making as a caveat.
A director’s or personal ensure is a commitment to pay off a credit line that is general in nature rather than specifying the security for a particular asset. The person signing the ensure is personally responsible if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including objects or assets). The PPSR permits priority over personal property to be assigned according to the date the security interest that is registered.
An affidavit is an official form of document to provide the public notice of a legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking an enterprise loan of more than $250,000 we may be able to provide an initial pre-approval to smooth out the process. We could be able to make this decision without a credit verification and within 6 hours of your initial application. This pre-approval is based on a preliminary assessment which includes you answering some financial well-being checks. It’s neither an offer nor a guarantee of financing. A conditional approval is subject an extensive credit evaluation and any offer you may receive may have different terms.
The application process
Are I eligible for funding?
You may apply for an 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)
- can demonstrate at least 6 months of business (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is fast and easy. Just fill out the online application within a few minutes and a dedicated business loan specialist will be in touch to guide you.
To apply for up to $100,000 you’ll require the right identification documents (valid Driver’s License) and an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K-$250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K – $500K: Details for application including credit consent twelve months of bank records, IRD statements as well as the two most recent years’ financial statements, in addition to interim current financial year financials such as age-related payables and aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) we usually provide an answer within one hour if you make your application in standard company hours and let us utilise the bank verification system link to immediately verify your bank account information online. If you choose to send us copies of your bank statements , we will be able to offer a decision in just the span of one business day.
For the Larger Business Loan ($100K or more) we could be capable of provide you with conditional pre-approval in around six hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however it could be faster based on the specifics of each application. Certain offers have been approved within 24 hours.
The fastest way can be ensure you apply during standard company hours. You can also permit us to use the advance bank verification link to check your bank’s information online. If you upload duplicates of your banking statements it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K up to $100,000) we usually provide an answer within one hour – as long as you apply at normal business times and allow us to use the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your banking statements, we’ll be able to provide an answer in just an business day.
If you are applying for Larger Business Loans ($100K to $500K) we may be capable of provide you with a conditional pre-approval in around six hours. Once you have signed the pre-approval document, you will require to wait about 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Some deals have been approved within just 24 hours.
The quickest method is to make sure you apply during standard business hours. Also, let us use the sophisticated bank verification to instantly check your bank’s information online. If you choose to send us copies of your bank statements, it will take a little longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a particular amount, we consider a variety of aspects in order to assess how much we can lend you well-being for your business and the extent of payments your business can afford. The amount you receive from the loan will be determined by the specifics of your business.
If you apply for a certain amount, we consider a variety of factors to determine the health of the company as well as the amount of the repayments your company can afford. The total amount of your loan will be determined by the particulars of your business.
Fees & repayments
How much should you charge for a business loan?
If you decide to apply for our company financing, we will assess the risk profile that you have for your company and provide an individualised offer that includes loan amount, term and interest rates. It is a business loan is an upfront priced loan which means you be aware of the total amount payable including any costs, fees, or interest rates.
What determines the rate that I pay?
Business loan interest rates vary due to factors like the amount of money of money borrowed, the company assets the funds are used to purchase as well as the field the company operates in, how long the business is in operation, in the event that the business has sufficient cash flow to cover the loan, as well as the general well-being as well as creditworthiness company.
What are the costs?
There are no hidden costs with our business loans. You’ll know exactly how much you’ll need to pay, and when, right from day one. There’s not any compounding interest and no extra fees (as as long as you pay your payments on time).
We don’t charge an application fee. You are able to request a credit loan with absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated with the setting up and management of the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I repay the loan earlier?
You can decide to repay the entire amount of the advance loan at any time.
If you choose to do this please contact our helpful business credit specialists. The specialists will provide you with details on repayment and an early payment figure. This is calculated as the sum of the principal remaining plus any accrued interest as of the time of early payment, plus 1.5% of the principal balance and any outstanding fees.
What is the process for repayments?
To help you avoid missing payments and to work with your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing how we collect information, use it, and exchange it, as well as protect your information, is of huge importance and is an essential element 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 financial information and our funders are ISO 27001 certified for our dedication to protecting the security of customers and privacy. We utilise a sophisticated bank verification system link to immediately confirm your bank account information online. This allows us to provide rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when an company owner utilises assets they own to obtain the funds for a loan. The asset could be an individual asset, such as the family home or a company asset such as a vehicle or piece of equipment.
The vast majority of the lenders including the big banks, tend to make loans secured by assets. If you are having difficulty paying back the loan, then your assets could be sold by the lender. In essence, it’s means of securing new funding using the value of what you already have.
Do I require security to get an company loan?
For loans up to $150,000 it is not necessary to secure assets in advance to gain access to the funds, however we do require a personal guarantee. If you adhere to the terms of your loan (as stated in your loan contract document) and you are able to meet your obligations, asset security is not required. For loans over $150K generally, you can get an individual ensure and security is provided in the form of the charge of assets.