lady receiving a small business loan

Small Business Loans – What Are They and How Do I Qualify?

Whether you’re looking to start a new business, be your own boss, get more inventory, or just need to pay a bill for your business ASAP, getting a small business loan could be the answer. At QuickCash, we can help you get a small business loan and come up with a business plan that’ll help you out in the financial department. Each business plan we make is tailored to the particular needs and priorities of your business. This article will answer your questions about what small business loans are and how you can qualify.

How do I get a small business loan?

You can apply for a small business loan on the QuickCash website. Simply fill out the application form with your details. The application form will ask for information such as how much cash you need, how long you’ll take to pay it back, how often you’ll make the repayments, the date of the first repayment and whether it’s a joint application or if you’re the only one applying for the business loan.

You’ll also need to put down something that can be used for security on the loan. The value of the security item needs to be more than the amount you’re applying to borrow for your small business loan. If you decide to put a vehicle down as the security, make sure it has a current warrant of fitness and registration.

Lastly, complete the application form by entering your personal details, contact details, income information, expenses, and bank account details. Once the application is submitted, we’ll assess your application in less than 25 minutes. Once approved you can sign the contract electronically. The cash will be advanced and cleared the same day or overnight depending on the circumstances of your application.

How hard is it to get a small business loan?

If you’re using QuickCash, it’s easy to get a small business loan. You don’t have to wait for a middleman, or a lending officer to get approval from someone else or approval from the credit department. At QuickCash, whoever you talk to is the same person who’ll help you secure the small business loan. This makes it easier and faster for you to get a loan as you only have to deal with one person. When evaluating who can get a small business loan, we use software that scores everyone’s application using data from credit checks as well as records of property and vehicle ownership.

We’ll also look at your public records and repayment history with other lenders in the past. The system we use also takes into account how many times you’ve changed your mobile numbers, changed address, changed jobs and also if you usually keep your WOF and registration of your vehicles up to date. To maintain or improve your ‘Applicant Score’, keep us informed of your circumstances and let us know if anything changes.

woman getting small business loan approved

How much can I get for a small business loan?

Working out how much you can get for your business loan depends on your personal circumstances, nature of your business and what you’re using the loan for. We also take into consideration the amount of savings you have, the value of the security you put down and the time you’re going to take to repay the loan. This will all have an impact on how much you can get for your small business loan. If you apply online on our website, you can select a loan amount of up to $10,000. If you need a loan over this amount, please call us on 0800 784 252 to get a custom rate on the loan. We will do our best to help you out and get you the loan that you need for your business.

What can I use a small business loan for?

The small business loan can be used for anything that’s associated with your business. You can use it to purchase real estate if you are looking to expand your operations or need more space. You can use it to buy or lease equipment that you might need to run your business, whether you need it for a one-off event or long term to run your business. You can use the business loan to purchase inventory. If your business is seasonal, you can use the loan to make inventory purchases to help you get ready for clients and sales during busy periods such as Christmas. The small business loan is also used to keep your business running. It can go towards costs that help your business to run such as electricity, transport, and phone bills. If you want to promote your business and reach a larger audience you can use the extra cash for marketing campaigns, print advertisements, social media, targeted emails, and events. Additionally you can use the loan to purchase supplies such as furniture, fixtures, machinery, or equipment. If you’re looking to renovate or update your operating systems you can use the business loan for that too. If you need to pay suppliers ASAP, buy stock, hire extra staff or just need some extra help with your everyday business, you can use your small business loan to keep your business moving forward.

Is there anything you can’t use a small business loan for?

You can’t use a small business loan for anything that is not related to your business. This means you can’t use it for a holiday, your personal house rent, buying or paying off a loan on your personal cars. Basically, you can’t use the small business loan for things that are not part of your business expenses or things that don’t help your business to keep operating. You cannot use it to go and have a shopping spree, pay existing debts that are not related to the business, or purchase personal real estate.

Luckily we offer personal loans for such situations. A personal loan can be used however you want on both business or personal expenses. You can get a car loan, boat loan, emergency loan, holiday loan, and many more!

For more information, read our article on “9 Good Reasons to Get a Personal Loan“.

florist getting a small business loan approved

What is required to get a small business loan?

One of the most important things required to get a small business loan is a plan of how you intend to use the loan. This means showing where you’ll be using the money you borrow and what sorts of things you’ll be using it on. The age of your business may also be looked at when you’re getting a small business loan. You’ll also need details of your annual revenue from the business and details of net operating income to show that you can make the repayments. Each lender has their own criteria and prioritise loan factors differently. For some it might be the annual revenue of your business while others may focus on how long you’ve been in business, the kind of business it is, or what you intend on actually using the loan for.

When applying for a small business loan with QuickCash you will need to have either a passport or driver’s licence, bank account statements, and security ready to put down for the loan. All loan types require a security item worth more than the amount you are applying to borrow. You can use cars, vehicles, boats, trailers, and real estate as security. Make sure the vehicle is registered in your name, has no outstanding debt, and has a current WOF and registration. If you’re applying for a small business loan, we’ll also need to check your accounts to make sure we can help you in the area you need the most. For example, whether it be providing finances for machinery, bills, inventory purchases or helping you catch up on your payments.

Do you need a deposit for a business loan?

The amount you need to put down for a business loan depends on your situation. It comes down to the type of loan you want and what you’re planning to do with the loan. Some places don’t require a deposit because of their structure, while others may require a deposit depending on the amount you’re looking at borrowing. Either way, you’ll need to offer something in exchange for the loan you’re taking out. When applying for a small business loan through QuickCash, you only need to put down an item for security. This security can be personal or belong to your business. Examples include, house, commercial property, vehicle or boat. You don’t need a cash deposit, whether you get approved for the business loan is all based on your existing assets. This means the security you put down just needs to have a value more than the amount you’re borrowing for your small business loan.

Do you need a good credit score to get a business loan?

In New Zealand, credit scores, credit reports, and credit checks are not as commonly talked about compared to other countries like the USA for example. A credit history and credit file is a list of all your credit transactions. This includes any loans you’ve taken, credit card history, if you have a mortgage – basically any borrowing of money. A credit report sums up all this history and calculates a credit score. It’s used to figure out whether you are a good risk for a loan company to lend you money. The higher the credit score, the better it is. This determines your creditworthiness. Every company has their own way of calculating this and your resulting credit score. It depends company to company what a good credit score is.

At QuickCash, we use software that scores everyone’s application using data from credit checks as well as records of property and vehicle ownership. Additionally, all the information in your application will help shape the picture and determine your situation when applying for a business loan. If you don’t have an existing credit history it can be difficult to come up with a credit score and figure out your credit, spending, borrowing patterns. The history helps determine your future habits.

Can you qualify for a small business loan with bad credit?

If you have bad credit we might still be able to approve your loan, but it will depend on all of the other factors. These factors may include considering the risk of late payments, the value of the security you’ve put down, and how much you’re thinking of borrowing. With every application, we do a credit check. This is used to assess your application for the small business loan with all the other information that you provide. Any unpaid credit card bills or missed mortgage payments can affect your application process for a small business loan.

What are the interest rates?

Loan interest rates vary depending on the details of your application. At QuickCash we offer fixed interest rates for the entirety of your loan period. This gives you peace of mind knowing it won’t randomly change when it comes to repaying the loan. If you want to repay the loan earlier, there is no early repayment fee either. Our interest rates are set according to the Loan to Value Ratio (LVR). This means we use the amount you borrowed and the security you have made available.

What are the fees associated with small business loans?

Here are some of the common fees you will see in our loan structures.

Establishment Fee

Advance amount $200 – $500

Advance amount $501 – $50,000

 

$175

$350

Cancellation Fee $175.00
Administration Fee $5.00
Dishonoured Payment $15.00
Modification of Contract $50.00

For more information on the interest rates and fees, check out the full breakdown of fees.

Getting your small business loan through QuickCash means you’re dealing straight with the lender. Your application process is all done online and you can have cash in your account the same day. We lend small business loans throughout New Zealand. If you want to apply for a small business loan, don’t hesitate to contact us or call us on 0800 784 252. We’ll help you get sorted in no time and lift some of that financial burden off your shoulders.

If you have any questions about this article, or about personal loans in general, feel free to call us on 0800 784 252.


Disclaimer: This article is intended to provide general information only. It does not take into account your financial needs or personal circumstances. It is not intended to be viewed as investment or financial advice. Should you require financial advice you should always speak to an Authorised Financial Adviser.