FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Sunnynook Small Business Loans
Tell me about the Sunnynook Small Business Loans
Sunnynook unsecured loans provides the range of $5,000 to $100,000 with terms between 3 and 24 months, cash flow-friendly repayments that are either daily or weekly.
What is how is the Unsecured Loan different from an ordinary business loan?
It is imaginable to apply for this Small Business Loan in under 10 minutes over the phone. You’ll get an instant response and funds may be in your account in 24 hours. Traditional company loans refer to an annual rate of interest together with additional fees and charges. Our business loan is a pre-paid loan which means you know in advance the total amount due, which includes any interest, fees or charges. Then, it is broken down into either a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any company use, including the management of cash flow, business renovations, marketing to purchase inventory or new equipment, to fund general working capital, and much more. The loan is not available to fund personal expenses.
About larger Sunnynook Business Loans
What is the Larger Sunnynook Business Loan?
The Larger Business Loan is a larger size loan to aid in company expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are scheduled weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the amount of the loan.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount the company needs to be trading for at least 3 years with an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
What can the funds be used for?
A larger business loan can be used for almost all business purpose including company renovations, purchase of inventory or new equipment or as general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is necessary to access funding over $150,000. This can be done in the form of a charge over assets, and may include registration with the PPSR or making as a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is generally based rather than defining the security of a specific asset. The person who is signing the ensure is personally responsible if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It contains security interests that are registered for personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be assigned according to the date a security interest has been registered.
Caveats are legal form of document to offer notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan of more than $250K it is possible to offer an initial pre-approval in order to simplify the process. We may be able to get this done without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial assessment that includes you answering a few financial health questions. It’s neither an offer nor a guarantee of finance. A conditional approval is subject an assessment of your creditworthiness and any offer you may receive may be on different conditions.
Application process
Do I have the right to receive funds?
You may apply for a company 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)
- must show at least six months worth of trade (for you to qualify for 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 simple. Complete the online form in few minutes and an experienced business loan specialist will be in touch to guide you through the process.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s License), an active NZBN/IRD, and at least 6 months’ worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent as well as 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, as well as interim financials from the current financial year 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 an answer within an hour – as long as you apply within standard company timings and you allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your banking statements we can offer a decision in as little as the span of one company day.
For the Larger Business Loan ($100K or more) we could be able to provide you with conditional pre-approval within 6 hours. Once you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Certain offers have been approved in less than 24 hours.
The quickest way to apply would be to make sure you apply during standard company hours, and permit us to use the modern bank verification link to verify your bank information online. If you upload documents from your account accounts, it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K or more) We can usually provide an answer in just one hour, provided you submit your request at normal business hours and let us utilise 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 can offer the decision in as little as 1 business day.
For Larger Business Loans ($100K and up) we might be likely to offer the conditional pre-approval within 6 hours. Once you have signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this may be quicker depending on the specifics of each application. Some agreements have been approved in 24 hours.
The fastest way for you to apply is ensure you apply during standard business hours, and allow us to use our advance bank verification link to instantly verify your bank account information online. If you decide to send us documents from your account statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a certain amount, we will consider a number of variables to determine the health of your business as well as the amount of repayments that your company can afford. The amount you receive from your loan will depend on the specific circumstances for your business.
If you apply for a certain amount, we will consider a number of factors to assess how much we can lend you such as health for your business and the level of repayments that your company will be able to support. The amount you receive from your loan will be contingent on the specific circumstances that are unique to your company.
Fees & repayments
How much should you charge for a company loan?
When you apply for our business credit, we will assess the risk assessment for your business and provide an individualised offer that includes loan amount, term and interest rates. A business loan is an upfront-priced loan which means you know in advance the total amount to be paid, including any charges or interest.
What determines the rate that I pay?
Interest rates for business loans rates vary due to factors such as the amount that is of money borrowed, the business assets the funds will be used for as well as the field the company is in, how long the company has been running as well as in the event that the company has sufficient cash flow to support the loan, and overall well-being as well as creditworthiness business.
What are the fees?
There aren’t any hidden costs with our company loans. You’ll know precisely how much you be required to pay and when, from day one. There’s not any compounding interest and no additional fees (as long as you make your payments on time).
We don’t charge an application fee. You are able to make an application for loans absolutely no upfront cost and no commitment to apply.
The Origination Fee includes the expenses associated in establishing and managing the loan. The only way to pay this fee if you proceed with the loan. Our Origination Fee is 2.5% of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can repay the entire amount of the loan at any point in time.
If you do decide to do this please contact our helpful business credit specialists. They’ll offer you with details for repayment along with an early payout estimate. The figure will be calculated as the total of the remaining principal amount plus any accrued interest as of the time of early payment in addition to 1.5 percent of the principal balance plus any outstanding fees.
How do repayments work?
To ensure that you don’t miss payments and to work your cash flow schedule, we provide repayments either weekly or daily. These are automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about how we collect the information we collect, use, share and secure your information, is vital and is a crucial 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 secure your sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to protecting the security of customers and security. We employ a highly sophisticated banking verification system to instantly confirm your bank account information online, allowing us to offer a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when a company owner uses an asset that they own to make the funds for a loan. The asset can be either an individual asset, such as the family home, or an company asset like a truck or other piece of machinery.
The vast majority of lenders, even the major banks, prefer to make loans secured by assets. If you’re struggling to pay back the loan, your asset may be taken over by the lender. In essence, it is the process of securing new financing using the worth of the asset you already have.
Are I need security to secure an business loan?
For loans that exceed $150,000, the requirement for asset security is not required upfront to access the money However, we do require the personal guarantee. As long as you follow 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 of over $150K generally there is personal ensure and security is provided in the form of charges on assets.