FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Brisbane Small Business Loans
Tell me how you are able to avail the Brisbane Small Business Loans
Brisbane unsecured loans offers amounts between $5,000 and $100,000, with terms ranging from 3 and 24 month and cash flow-friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from an traditional business loan?
You can apply to the Small Business Loan in under 10 minutes on the internet or by phone. You will receive an immediate response, and have the funds in your account in 24 hours. Traditional business loans are based on an annual interest rate as well as other fees and charges. We offer a business loan is a cash-based loan which means you know ahead of time the total amount due, which includes any fees, interest or charges. This is then divided into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business purpose including managing cash flows, business remodeling, marketing, to purchase inventory or new equipment, or as general working capital and much more. The loan cannot be used for personal reasons.
About larger Brisbane Business Loans
What is the Larger Brisbane Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans are between $100,000 and $500,000 with a fixed-term up to 36 months. Repayments are scheduled weekly or fortnightly, depending on your situation.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your business needs to have been operating for a minimum of 3 years and generate an annual revenue of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
What can I use the funding for?
A Larger Business Loan can be used for almost every company need, including business improvements, purchasing new equipment or inventory as well as for general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. It is usually by way of charge on assets, and could include registration with the PPSR or the registration of as a caveat.
A personal or director’s ensure is a promise to repay a loan which is generally in nature rather than specifying the security for a particular asset. The person signing the guarantee is personally responsible if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It reflects security interests that are registered for personal property (including goods or assets). The PPSR gives priority over personal property to be assigned according to the date a security interest that is registered.
Caveats are legal document filed to provide the legal claim against a property.
What exactly is a preapproval without Credit Check?
If you’re requesting a Larger Business Loan that is greater than $250K it’s possible to offer an initial pre-approval to smooth out the process. We may be able to apply for this without credit checks and within 6 hours of the initial application. This pre-approval is based on an initial assessment, which involves you answering a few financial well-being checks. It’s in no way an offer, nor is it a guarantee of finance. Unconditional approval is subject to an exhaustive credit evaluation, and any offer that you receive could have different conditions.
The application process
Do I have the right to receive funds?
You may apply for an company 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 trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application in few minutes and an experienced company lending specialist will be in touch to assist you.
To apply for up $100,000 you’ll need identification details (valid Driver’s License) along with an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$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 to $500K: Application details including credit consent and 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, as well as interim financials for the current financial year including Aged Payables, Aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) we typically offer an answer within one hour if you submit your request at standard company hours and allow us to utilise the bank verification system to instantly verify your bank information online. If you opt to upload copies of your bank statements , we will be able to provide a decision in as little as one business day.
For the Larger Business Loan ($100K up to $500,000) we may be likely to offer the conditional pre-approval in around 6 hours. After you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval, however this can be quicker based upon the circumstances for each application. Some transactions have received approval within 24 hours.
The most effective method for you to apply is make sure you apply during standard company hours and let us use the modern bank verification to confirm your bank details online. If you choose to upload documents from your account accounts, it takes a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K or more) we usually offer an answer within one hour – as long as you make your application at standard business hours and you allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your bank statements we can provide an answer within 1 business day.
For Larger Business Loans ($100K to $500K) we may be capable of provide you with pre-approval conditional to your application within about 6 hours. Once you have signed the pre-approval, the turnaround time is around 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Certain offers have been approved in 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours. Also, let us use the advance bank verification link to verify your bank information online. If you send us the copies of bank statement, it may take a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you make an application for a particular amount, we consider a variety of factors in order to assess the well-being of the company as well as the amount of repayments your business can support. The total amount of your loan will depend on the specifics that are unique to your business.
When you submit an application for a particular amount, we look at a range of elements to assess your well-being of the company and the amount of the repayments your company can afford. The amount you receive from your loan will be contingent on the particulars of your company.
Fees & repayments
How much should you charge for the cost of a company loan?
When you make an application for business loans with us business loans, we will assess the risk profile the business and provide you with a customised offer that includes loan amount, term and interest rates. A company loan is an upfront cost loan therefore you will be aware of the total amount you will have to pay, including interest rates, fees or charges.
What is the factor that determines the price I pay?
Interest rates for business loans rates differ based on various variables like the amount to be borrowed, the business assets the money will be used for as well as the field the company operates in, how long the business has been in operation as well as what percentage of the business has sufficient cash flow to pay for the loan, and overall well-being as well as creditworthiness company.
What are the cost?
There are no hidden fees for our company loans. You’ll know precisely what you’ll be required to pay, and when, from day one. There’s no compounding interest and no additional fees (as as long as you pay your payments punctually).
We do not charge an Application Fee. You can get a cash loan without any upfront costs or obligation to proceed.
The Origination Fee includes the expenses associated with setting up and managing the loan. It is only charged for this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Do I have the option of paying off the loan earlier?
You can decide to repay the entire amount of your advance loan at any time.
If you choose to do this please talk to one of our helpful business credit specialists. They will offer you with details for repayment as well as an early payout amount. This will be calculated as the sum of the principal balance and accrued interest to the time of early payout, plus 1.5% of the remaining principal as well as any outstanding fees.
How do repayments work?
In order to help you avoid missing payment dates and to align your cash flow schedule, we offer repayments that are either daily or weekly. These are automatically deducted from your business account.
Security & privacy
Will my information be protected?
The security of your personal information, as well as being upfront about the ways we gather information, use it, and exchange it, as well as safeguard your data, is of huge importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our commitment to the security of our customers as well as their privacy. We utilise a sophisticated bank verification system that allows you to instantly verify your bank account information online. This allows us to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where a company owner borrows from an asset they own to make the loan. The asset could be an individual property, such as the family home or a company asset such as a vehicle or other piece of machinery.
The vast majority of the lenders including the banks with the biggest size, prefer to make loans secured by an asset. If you are having difficulty paying back the loan then your asset may be sold by the lender. In essence, it’s the process of securing additional financing using the worth of the asset you already have.
Should I need security to secure a business loan?
For loans that exceed $150K, it is not necessary to secure assets prior to the loan’s access However, we do need the personal guarantee. So long as you comply with your loan commitments (as stated in the loan contract), asset security will never be needed. For loans that exceed $150K, generally, there is a personal guarantee and security is provided in the form of charges on assets.
