FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Shelly Park Small Business Loans
Tell me more about Shelly Park Small Business Loans
Shelly Park unsecured loans provides amounts between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from the traditional company loan?
Apply to get the Small Business Loan in under 10 minutes over the phone, receive an immediate response, and the funds could be on your account within 24 hours. Traditional business loans have an interest rate per annum as well as other fees and charges. The business loan is a cash-based loan therefore you’ll be aware of the amount you will have to pay, including any fees, interest or charges. This is then broken down into a daily or weekly installment amount.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used to fulfill almost any company reason, such as managing cash flows, company improvements, advertising to purchase inventory, new equipment, to fund general working capital and much more. The loan cannot be used for personal reasons.
About the Larger Shelly Park Business Loans
What is the Larger Shelly Park Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed up to 36 months. Repayments are either weekly or fortnightly to work with your situation.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan of this size, your business needs to be trading for at least 3 years, and have an annual income of at least $700K. You must be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
What can I use the funds for?
A Larger Business Loan can be used for almost any business reason, such as business improvements, purchasing equipment or inventory as well as for general working capital and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required for accessing funds over $150,000. It’s by taking a charge over assets, which could also be registered through the PPSR or filing a caveat.
A director’s or personal ensure is a promise to repay credit that is generally in nature rather than stating security over a particular asset. The person who signs the ensure is personally liable in the event that the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It reflects security interests that are registered for personal property (including the assets or goods). The PPSR grants preference over private property assigned according to the date the security interest that is registered.
A caveat is a legal document lodged to provide notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re applying for larger business loans of more than $250,000 it is possible to offer an initial pre-approval to simplify the process. We may be able to do this without a credit verification and within 6 hours of your initial application. The pre-approval is based upon an initial evaluation that involves the answer to a series of financial health questions. It is in no way an offer, nor is it a guarantee of financing. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you may receive may have different terms.
Application process
Are I eligible for funding?
You may be eligible for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for a 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 fast and easy. Just fill out the online application in just a few minutes, and an experienced business lending specialist will call you to guide you.
To apply for up $100,000, you’ll need ID details (valid Driver’s License) as well as a valid NZBN/IRD and at least 6 months of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Application details including credit approval, 6-12 months of IRD statements, bank statements (if loan above $150K).
$250K – $500K: Details of the application, including credit consent and 12 month bank accounts, the IRD statement as well as the two most recent years’ financial statements, as well as interim financial statements for the current year as well as Aged Payables and Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K or more) We can usually offer an answer in just one hour, provided you submit your request at quality business times and you allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you choose to send us copies of your bank statements we can provide an answer in just 1 business day.
For the Larger Business Loan ($100K or more) we may be likely to provide the conditional pre-approval within about six hours. Once you have signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Certain transactions have received approval in the space of 24 hours.
The quickest way to apply would be to ensure you apply during normal company hours and permit us to use the advance bank verification link to instantly verify your bank information online. If you decide to send us duplicates of your banking statement, it takes a bit longer.
How fast will I get the money?
For the Small Business Loan ($5K or more) we usually offer an answer in just one hour – provided you apply within standard business hours and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you want to submit copies of your bank statement, we’ll offer the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we could be in a position to offer you with conditional pre-approval in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval, however this could be shorter based on the particular circumstances of each application. Some transactions have received approval in just 24 hours.
The most efficient method is to ensure you apply during normal business hours. Also, allow us to use the advanced bank verification system link to instantly verify your bank account information online. If you upload copies of your bank statements, it will take a little longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 to $500,000. If you apply for a specific amount we consider a variety of factors to determine your well-being of the business and the amount of payments your business can support. The total amount of your loan will depend on the particular circumstances the business.
If you apply for a set amount, we consider a variety of aspects to assess how much we can lend you such as health for your company and the level of repayments that your company can support. The total amount of your loan will depend on the particulars the business.
Fees & repayments
How much do you charge for an business loan?
If you decide to request business loans with us company credit, we’ll assess the risk profile that you have for your business and offer you with a customised offer including the amount of loan, the term and interest rates. This business loan is a loan that is priced upfront which means you know in advance the total amount payable including any charges or interest.
What is the factor that determines the price I’m charged?
The interest rates on business loans rates depend on a variety of factors such as the amount that is borrowed, what company assets the money will be used for, the industry the business operates in, the long the company is in operation for, in the event that the business has enough cash flow to fund the loan, and also the overall well-being or creditworthiness of the company.
What are the charges?
There are no hidden costs with our business loans, and you’ll know precisely what you be required to pay, and when, right from the very first day. There’s no compounding and no additional fees (as long as you are able to make your payments in time).
We don’t charge an Application Fee. You can get a cash loan with no cost upfront or the obligation to take action.
The Origination Fee covers the expenses involved with setting up and managing the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I repay the loan in advance?
You can repay the entire amount of your loan at any point in time.
If you decide to pursue this option, please talk to one of our helpful business loans professionals. They will provide you with the details of your repayment along with an early payout estimate. This is calculated as the sum of the principal amount remaining and accrued interest to the time of early payout plus 1.5% of the principal balance and any fees that remain unpaid.
How do you make repayments work?
To ensure that you don’t miss repayments and to fit in with your cash flow general, we provide repayments either daily or weekly. They are automatically deducted from your company account.
Security & privacy
Will my information be secure?
Security of your data, and being upfront about how we collect information, use it, and exchange it, as well as secure your information, is crucial and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to customer security and security. We utilise a sophisticated bank verification system that allows you to instantly confirm your bank account information online so we can provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
The term "asset-based" refers to borrowing where an business owner uses assets they own to obtain the funding. The asset could be an individual asset, such as the family home or a business asset such as a truck or other piece of machinery.
The vast majority of lenders, not just the big banks, tend to secure loans against an asset. If you’re having trouble paying back the loan, then your asset may be transferred to the lender. In essence, it is means of securing additional financing taking advantage of the value of what you already own.
Should I need security for a company loan?
For loans that exceed $150K, no asset security is required upfront to access the money, however we do need the personal guarantee. So long as you comply with the loan terms (as stipulated in your loan contract) the security of assets will never be needed. For loans of over $150,000 generally there is a personal ensure and security that is in the form charges on assets.