FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Stonefields Small Business Loans
Let me know more about Stonefields Small Business Loans
Stonefields unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
How is how is the Unsecured Loan different from an traditional company loan?
Apply to get the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive a same day response and funds may be in your account within 24 hours. Traditional business loans refer to an interest rate per annum as well as other fees and charges. The business loan is a loan that is priced upfront therefore you’ll be aware in advance of the total amount payable including the interest, fees and charges. This is then broken down into either a daily or weekly installment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every business use, including control of cash flow business remodeling, marketing to purchase inventory, new equipment, as general working capital, and much more. The loan is not available to fund personal expenses.
Concerning Larger Stonefields Business Loans
What is the Larger Stonefields Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are scheduled weekly or fortnightly depending on your cash flow.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount, your business needs to have been in operation for at least 3 years with an annual turnover of $700,000. Your company 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 the least 12 months of operating.
What can the funding be used for?
A Business Loan of a larger size can be used for nearly all company use, including company remodeling, buying inventory or new equipment for general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This is by way of charge over assets, and could include registering this with the PPSR or registering a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is general in nature, rather than stipulating the security for a particular asset. The person signing the ensure is personally liable in the event that the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including items or assets). The PPSR allows priority over personal property to be granted according to the date a security interest was registered.
An affidavit is an official document that is filed to offer notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re applying for a Larger Business Loan that is greater than $250,000 we may be able to provide an initial pre-approval that will help ease the process. We may be able to get this done without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial evaluation that involves you answering some financial health checks. This is in no way an offer, nor is it a guarantee of funds. Acceptance without condition is subject to an extensive credit evaluation and any offer you receive could be based on different terms.
The application process
Do I have the right to receive funds?
You are eligible to 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)
- must show at least six months’ worth of transactions (for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Simply complete the online form in few minutes and an experienced company expert in lending will be in touch to guide you through the process.
For a loan of up to $100,000, you’ll require proof of identity (valid Driver’s License) along with a valid NZBN/IRD and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Details of application, including credit consent, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Application details including credit consent as well as 12 month bank accounts, the 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.
How fast will I get a decision?
For an unsecured loan ($5K and up) we typically offer a response in one hour, provided you submit your request at quality company times and allow us to utilise the bank verification system link to instantly verify your bank information online. If you want to upload copies of your bank statements , we will be able to offer the decision within an business day.
For the Larger Business Loan ($100K up to $500,000) we could be capable of offer the conditional pre-approval within about 6 hours. After you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval. However, this can be quicker based upon the circumstances for each application. Certain agreements have been approved in 24 hours.
The quickest way to apply is to make sure you apply during normal company hours. You can also permit us to use the advanced bank verification system link to confirm your bank details online. If you decide to send us documents from your account statements it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K to $100K) we can often offer an answer within one hour if you apply during standard business time and you allow us to use the advanced bank verification system to instantly verify your bank details online. If you opt to submit copies of your bank statements we can provide a decision within the span of one business day.
For Larger Business Loans ($100K up to $500,000) we may be able to provide you with a conditional pre-approval in about 6 hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this can be faster depending on the circumstances of each application. Certain agreements have been approved in the space of 24 hours.
The fastest way for you to apply is ensure you apply during normal business hours, and permit us to use the advance bank verification link to verify your bank account information online. If you opt to send us duplicates of your banking statements, it takes a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you make an application for a certain amount, we take into consideration a range of elements that determine your health that is your company and the extent of repayments that your business will be able to support. The amount you receive from the loan will be determined by the specific circumstances of your company.
If you apply for a particular amount, we consider a variety of aspects to determine how much we can lend you such as well-being for your company and the amount of repayments your business can afford. The total amount of your loan will be contingent on the specifics the business.
Fees & repayments
How do you charge for a company loan?
If you decide to make an application for one of our company loan, we’ll assess the risk profile that you have for your company and provide you with a customised offer, including the amount of the loan, the duration and interest rates. A company loan is an upfront cost loan which means you be aware of the total amount to be paid, including any charges, interest rates or fees.
What determines the amount I’m charged?
Business loan interest rates depend on a variety of factors such as the amount that is that is borrowed, what company assets the money will be used for in addition to the industry that the company is in, how long the business has been in operation for, in the event that the company has sufficient cash flow to support the loan, and general well-being or financial standing of the company.
What are the costs?
There are no hidden fees with our business loans, and you’ll know precisely how much you be required to pay and when, right from the first day. There’s no compounding interest, and no extra fees (as long as you make your payments in time).
We don’t charge an application fee. You are able to get a cash loan with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated with setting up and managing the loan. The only way to pay this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I repay the loan early?
You can decide to repay all of your loan in full at any time.
If you decide to do this please speak to our friendly business loan professionals. They’ll offer you with details on repayment and an early payment figure. This is calculated as the total of the principal balance and accrued interest to the time of early payment plus 1.5 percent of the principal amount remaining as well as any outstanding fees.
How do repayments work?
To ensure that you don’t miss payment dates and to align your cash flow cycle we provide payments that are either daily or weekly. These are automatically deducted from the nominated company account.
Security & privacy
Will my information be secure?
Protecting your information, and being transparent about the ways we gather the information we collect, use, share and safeguard your data, is of huge importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to customer security and privacy. We employ an exceptionally sophisticated bank verification system link to immediately verify your bank account information online, allowing us to offer a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an company owner borrows from an asset they own to get the funding. The asset could be a personal asset like the family home, or an business property like a truck as well as a piece of machine.
The majority of banks, including the major banks, prefer to secure loans against an asset. If you’re struggling to pay back the loan, your assets could be transferred to the lender. In essence it is means of securing new funding using the worth of the asset you already have.
Do I need security to get a company loan?
For loans of up to $150,000, there is no requirement for asset security in advance to gain access to the funds but we do need an individual guarantee. As long as you follow your loan obligations (as stipulated in your loan contract) the security of assets is not required. For loans over $150K generally, you are able to get a personal guarantee and security in the form the charge of assets.