When you’re running a business, cash flow can be a problem for many reasons. Whether you need new equipment, more staff or help from a third party supplier, you need cash to support this growth and increase turnover. So where does the cash come from? A fixed-term business loan could be just what you need…
What is a fixed-term business loan?
Fixed-term business loans are loans where you enter an agreement with your lender to make repayments over a fixed period of time. The length of time varies. The maximum term for a Spotcap loan is 36 months and the average loan duration is nine months.
Once your application for a fixed-term loan is approved, your lender provides you with the loan amount and you agree to repay the amount over the agreed fixed-term.
How much can I borrow with a fixed-term loan?
Different lenders have different lending criteria. Spotcap lends up to $500,000 and the amount loaned will be based on an assessment of your business operating profile, credit history and the purpose of the loan. Our clever digital algorithm evaluates applications and final decisions are made by our credit specialists. You’ll be offered loan terms based on what you can afford to repay.
What’s the difference between secured and unsecured loans?
If you’re applying for a secured fixed-term loan, you will need to declare your assets of value as collateral. In the event that you can’t make repayments, the lender will be able to sell some or all of your assets to cover what you owe.
An unsecured loan, on the other hand, doesn’t require collateral as decisions are based on an assessment of the financial condition of your business. Spotcap loans are unsecured. Our proprietary credit assessment algorithm helps us to evaluate your business data and lets us make decisions quickly…
How long does the application process take?
With Spotcap, you can complete your loan application in about five minutes. Your data will then be processed by our clever digital algorithm and you’ll have an answer within 24 hours; if approved, the money can be in your account the same day.
Who is eligible for this loan type?
We assess applications within 24 hours of being received. The minimum criteria for a Spotcap loan is:
- Your business is registered in New Zealand
- Your business has turned over at least $200k in the last 36 months
- You’ve been trading for at least 18 months
- You have a New Zealand online bank account
When you apply for a fixed-term business loan with Spotcap, you’ll enter into an agreement with us on the fixed period to repay the loan. The great thing about financing through Spotcap is, you don’t have to pay a cent until you drawn down on the loan.
So what are you waiting for? Don’t let cash flow hold your business back. Begin the process now.
Originally published February 7 2017 , updated February 7 2017