FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Silverstream Small Business Loans
Tell me about the Silverstream Small Business Loans
Silverstream unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
How is the Unsecured Loan different from a traditional company loan?
You can apply to this Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and the money could be available in just 24 hours. Traditional company loans reference an annual rate of interest plus other fees and charges. We offer a company loan is a pre-paid loan and you’ll be aware of the total amount to be paid, including any interest, fees or charges. Then, it is broken down into weekly or daily payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for nearly any company use, including the management of cash flow, business improvements, advertising to purchase inventory or new equipment, to fund general working capital, and much more. The loan cannot be used to fund personal expenses.
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 growth opportunities. The loan ranges from $100,000 to $500,000 for a fixed period of with a maximum of 36 months. The repayments are made weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is determined at 2.5 percentage of the amount of the loan.
Can I get the Larger Business Loan?
To be eligible for a credit that is this large the company needs to be operating for a minimum of 3 years and generate an annual revenue of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand company (with a valid NZBN/IRD) and be able to demonstrate at the least 12 months of operating.
How can the funding be utilised?
A large company loan can be used for nearly all company reason, such as business remodeling, buying new equipment or inventory as well as for general working capital and so much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary for accessing funds over $150,000. This can be done by taking a charge over assets, which could also include registering this in the PPSR or registering a caveat.
A director’s or personal ensure is a guarantee 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 company borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It contains security interests granted to individuals who own personal property (including goods or assets). The PPSR grants the priority of personal property granted according to the date a registration of a security interest.
An affidavit is an official document that is filed to provide the public notice of a legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re seeking the Larger Business Loan that exceeds $250,000 we may be able to provide an initial pre-approval that will help smooth out the process. It is possible to get this done without a credit check, and within 6 hours of the initial application. This pre-approval is made based on an initial assessment that includes the answer to a series of financial health checks. It’s in no way an offer, nor is it a guarantee of funds. A conditional approval is subject an exhaustive credit evaluation, and any offer you might receive could be subject to different terms.
Application process
Can I be eligible for funding?
You can apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for the 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 quick and simple. Complete the online form within a few minutes and an experienced business credit specialist will be in touch to guide you through the process.
To apply for up $100,000, you’ll need the right identification documents (valid Driver’s Licence) along with a valid NZBN/IRD and at least six months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Information about the application including credit approval, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Information on the application including credit consent as well as 12 months of bank statements, IRD statements and the last two years’ finalised financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K to $100K) We can usually offer a response in one hour if you submit your request during standard business time and permit us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your bank statements , we will be able to offer an answer in just the span of one business day.
For Larger Business Loans ($100K or more) we could be able to offer you with a conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval. However, this may be quicker depending on the circumstances of each application. Certain deals have been approved in just 24 hours.
The quickest method would be to ensure you apply during normal business hours and allow us to use our advanced bank verification system to confirm your bank details online. If you upload the copies of bank statements , it can take a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer in just one hour, provided you make your application within standard business time and allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you choose to send us copies of your bank statements, we’ll be able to offer the decision in as little as one business day.
If you are applying for Larger Business Loans ($100K or more) we could be able to provide you with a conditional pre-approval in around 6 hours. Once you’ve signed your pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however it could be faster based upon the circumstances for each application. Certain transactions have received approval within just 24 hours.
The fastest way for you to apply is make sure you apply during standard business hours, and permit us to use the advance bank verification link to instantly confirm your bank details online. If you upload copies of your bank statements it can take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 to $500,000. When you make an application for a particular amount, we look at a variety of factors in order to assess how much we can lend you health that is your business as well as the amount of repayments your business can afford. The amount you receive from your loan will depend on the specifics that are unique to your company.
When you apply for a certain amount, we look at a range of variables to assess your health for your company and the extent of the repayments your company is able to afford. The total amount of your loan will depend on the specifics the business.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to apply for the business loans, we will assess the risk assessment for your business and offer an individualised offer that includes the amount of loan, the term and interest rates. It is a business loan is an upfront-priced loan which means you be aware of the total amount due, which includes any interest rates, fees or charges.
What determines the amount I’m charged?
The interest rates on business loans rates depend on several factors including the amount borrowed, what business assets the money will be used for as well as the field the business is operating in, how long the business has been running, what percentage of the company has enough cash flow to cover the loan, as well as the overall well-being or financial standing of the business.
What are the costs?
There aren’t any hidden costs for our business loans. You’ll know precisely how much you be required to pay, and at what time, from the day you sign up. There’s no compounding and there are no additional charges (as as you make your payments on time).
We do not charge an application fee. You are able to make an application for loans with no cost upfront or obligation to proceed.
The Origination Fee covers the expenses involved in establishing and managing the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of the loan.
Can I pay out the loan early?
You can decide to repay the entire amount of the loan early at any time.
If you decide to pursue this option, please talk to one of our helpful company credit experts. We will provide you with details on repayment and an early payout figure. It will be calculated using the total of the principal remaining and the accrued interest up to the date of early payout plus 1.5% of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
In order to help you avoid missing due dates and also to be in line your cash flow cycle we offer repayments that are either weekly or daily. They will be automatically deducted from your designated company account.
Security & privacy
Will my information be secure?
Protecting your information, and making it clear the ways we gather information, use it, and exchange it, as well as protect your information, is of huge importance and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal financial and other data. Our funders are ISO 27001 qualified for our dedication to protecting the security of customers and security. We employ a highly sophisticated bank verification system that allows you to instantly verify the bank account details online, allowing us to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a company owner borrows from an asset they own to make a loan. The asset can be either an individual property, such as the family home, or an business property like a truck or piece of equipment.
The majority of banks, including the big banks, tend to secure loans against an asset. If you’re having trouble paying back the loan then your assets could be offered for sale by the lender. In essence it is a way of securing new funding taking advantage of the value of what you already have.
Do I require security for a company loan?
For loans that exceed $150K, it is not necessary to secure assets prior to the loan’s access but we require a personal guarantee. require an individual guarantee. If you adhere to the terms of your loan (as stated in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans that exceed $150K, generally, you can get a personal ensure and security in the form of the charge of assets.