Every Business requires money to run its operations, pay employees, suppliers, rent etc.
For most of Small and Medium Enterprises (SMEs) a good portion of the funds comes as equity from the directors/shareholders and rest comes from the borrowing.
A good businessperson knows the value of liquidity and use it judiciously to expand the operations of business. Majority of Kiwi businesses have historically relied on funding from traditional sources like banking for their needs but in the past couple of years (Basel III requirements) banks have shied away from business lending.
Our motivation to enter the non-bank lending space was driven by the above factor. We realised that small businesses need money to unlock their potential. A lot of these businesses were frustrated with red tape from the traditional sources of finance.
We at Loan Square understand the needs of small businesses as our directors have run businesses in New Zealand and abroad. They fully understand the challenges of running a SME business in New Zealand.
The Business loans can be secured or unsecured and the term of loan can vary from 3 months to 5 years. A lot of businesses use secured forms of financing like Asset Financing, Inventory Financing, Loan against property etc.
This practice results in lowering their interest rates as secured financing is cheaper than unsecured financing. Some of these businesses don’t have enough collateral (or they don’t want to give a collateral on specific assets) can utilize unsecured lending where the interest rates are higher.
Key Features & Benefits
Business can decide what maturity they want to borrow. We would customise the term to match the expected cashflows of the business.
We are flexible to offer fixed or floating rate loans depending on the tenor of the loan
We customize the repayment terms to match the expected cashflows for business. The business can plan repayment around their expected cash inflows and don’t have to do hard during lean periods
We can offer both secured financing (collateralised) and non-secured financing. Normally Secured Financing is for longer terms and carries lower interest than unsecured funding
We would be happy to have a preliminary discussion to understand your needs and can design a loan solution based on your circumstances.