FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Silverstream Small Business Loans
Tell me more about Silverstream Small Business Loans
Silverstream unsecured loans provides the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from the traditional company loan?
Apply for the Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an immediate response, and have the funds in your account within 24 hours. Traditional company loans are based on an annual rate of interest along with other charges and fees. Our business loan is an upfront priced loan and you’ll be aware in advance of the amount you will have to pay, including any interest, fees or charges. Then, it is divided into weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for almost any business reason, such as control of cash flow business remodels and marketing to purchase inventory, new equipment, or as general working capital and so much more. The loan cannot be used for personal use.
About Larger Silverstream Business Loans
What is the Larger Silverstream Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business expansion opportunities. Loans are between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly to work with you cashflow.
How is the Origination Fee determined?
This Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large, your company needs to be 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) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can the funding be used for?
A Business Loan of a larger size can be used to fund almost all business purpose including business remodeling, buying inventory or new equipment, as general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is needed for accessing funds over $150,000. This is by taking a charge against assets and can be registered in the PPSR or registering a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is generally in nature rather than specifying security over a particular asset. The person signing the guarantee is personally liable if the business lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR allows preference over private property assigned in accordance with the date on which a registration of a security interest.
The caveat can be described as a formal form of document to provide the legal claim to property.
What is a pre-approval that does not require Credit Check?
If you’re seeking a Larger Business Loan that exceeds $250K we can offer an initial pre-approval that will help simplify the process. We might be able to make this decision without credit checks and within 6 hours of your initial application. This pre-approval is made based on an initial assessment that includes the answer to a series of financial health questions. It’s neither an offer nor a guarantee of finance. A conditional approval is subject an exhaustive credit evaluation, and any offer you receive could have different conditions.
The application process
Do I have the right to receive funds?
You may be eligible for an business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Just fill out the online application in few minutes and an experienced company credit specialist will call you to help you.
To be eligible for up to $100,000, you’ll require proof of identity (valid Driver’s License) and a valid NZBN/IRD and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Application requirements, 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 as well as the two most recent years’ financial statements, as well as interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K or more) we usually offer an answer within an hour if you apply at quality company hours and you 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 are able to offer an answer in just one business day.
For the Larger Business Loan ($100K and up) we may be in a position to provide you with a conditional pre-approval in about 6 hours. Once you have signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however this could be shorter based on the circumstances of each application. Some offers have been approved within the space of 24 hours.
The quickest way to apply can be ensure you apply during normal business hours, and allow us to use our advanced bank verification system to verify your bank account information online. If you decide to upload duplicates of your banking statement, it will take a little longer.
How soon will I receive the funds?
For the Small Business Loan ($5K or more) we can often offer an answer within an hour – provided you submit your request at standard business timings and let us utilise the advanced bank verification system to instantly verify your bank details online. If you opt to upload copies of your banking statements, we are able to offer the decision in just 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be capable of offer you with conditional pre-approval in about six hours. Once you’ve signed your 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 agreements have been approved within just 24 hours.
The most efficient method for you to apply is ensure you apply during standard business hours. You can also allow us to use the modern bank verification to instantly confirm your bank details online. If you send us the copies of bank accounts, it will take a little longer.
How much can I borrow?
We provide loans that range from $5,000 to $500,000. When you make an application for a specific amount we consider a variety of factors to determine the health of the business and the amount of the repayments your company will be able to support. The amount you receive from your loan will be contingent on the specifics for your company.
When you make an application for a particular amount, we consider a variety of variables to assess the health that is your company and the level of the repayments your company will be able to support. The total amount of your loan will be determined by the particular circumstances for your company.
Fees & repayments
How much do you charge for a company loan?
If you decide to request the company credit, we’ll assess the risk profile that you have for your business and offer an individualised proposal that includes the amount of loan, the term and interest rates. The company loan is an upfront priced loan therefore you will know in advance the total amount due, which includes any charges, interest rates or fees.
What is the factor that determines the price I will be charged?
Business loan interest rates differ based on various factors including the amount of money borrowed, the business assets the money are used to purchase, the industry the business operates in, how long the company has been in operation, how long the company has sufficient cash flow to pay for the loan, and the overall health and creditworthiness of the business.
What are the costs?
There are no hidden costs for our company loans, and you’ll know precisely what it is that you need to pay, and at what time, from day one. There’s no compounding interest and no additional fees (as long as you make your payments on time).
We do not charge an Application Fee. You are able to make an application for loans with without any upfront costs or the obligation to take action.
The Origination Fee is the cost associated with establishing and managing the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Do I have the option of paying off the loan early?
You can repay the entire amount of your loan in full at any time.
If you do decide to pursue this option, please call our helpful company loans experts. The specialists will provide you with details for repayment and an early payout figure. This will be calculated as the sum of the principal remaining and the accrued interest up to the time of early payout and 1.5 percent of the remaining principal and any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss repayments and to fit in with your cash flow routine, we provide payments that are either daily or weekly. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and being transparent about how we collect information, use it, and exchange it, as well as ensure the security of your information is vital and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption protocols to safeguard your sensitive, personal financial information and our funders are ISO 27001 certified for our commitment to protecting the security of clients and security. We use an advanced bank verification system to instantly verify your bank account details online. This allows us to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when an company owner makes use of an asset that they own to secure the funding. The asset may be an asset belonging to the personal, like the family home, or a business asset such as a truck or piece or equipment.
The vast majority of banks, even the largest banks, are inclined to guarantee loans against an asset. If you have trouble paying back the loan, then your assets could be taken over by the lender. In essence it is an opportunity to secure new financing taking advantage of the value of what you already own.
Should I require security to get an business loan?
For loans up to $150K it is not necessary to secure assets in advance to gain access to the funds However, we do require the personal guarantee. In the event that you fulfill your loan obligations (as stipulated in your loan contract) Asset security will never be required. For loans over $150,000 generally there is a personal guarantee and security in the form of a charge over assets.