FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Brisbane Small Business Loans
Tell me about the Brisbane Small Business Loans
Brisbane unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months, cash flow friendly repayments that are either daily or weekly.
What makes this Unsecured Loan different from a traditional business loan?
The application to get this Small Business Loan in under 10 minutes by phone. You will receive an answer within the same day and have the funds in your account in 24 hours. Traditional company loans reference an annual interest rate together with additional fees and charges. The business loan is a loan that is priced upfront which means you know ahead of time the total amount due, which includes any fees, interest or charges. Then, it is broken down into either weekly or daily installment amount.
What can be the Small Business Loan be used for?
The Small Business Loan can be used for virtually every business purpose including the management of cash flow, company renovations, marketing, to purchase inventory or new equipment, as general working capital, and much more. The loan is not available for personal reasons.
Concerning 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 range between $100,000 and $500,000 with a fixed-term for up to 36 months. Repayments are scheduled weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a loan in this amount the company needs to be trading for at least 3 years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand business (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funding be utilised?
A Business Loan of a larger size can be used for almost every company reason, such as company renovations, purchase of equipment or inventory as well as for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is necessary for funding of more than $150,000. This can be done as a result of an charge against assets, and could include registration on 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 stipulating security over a particular asset. The person who is signing the ensure is personally accountable if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It contains security interests registered in respect of personal property (including objects or assets). The PPSR allows priority over personal property to be granted depending on the date that a registration of a security interest.
The caveat can be described as a formal document that is filed to offer notice of a legal claim on a property.
What is a pre-approval minus Credit Check?
When you’re applying for the Larger Business Loan of $250,000 or more we may be able to provide a preliminary pre-approval to help smooth out the process. We might be able to apply for this without a credit check, and within six hours of your initial application. This pre-approval is made based on an initial assessment that includes answering a couple of financial health questions. It is not an offer or guarantee of financing. Acceptance without condition is subject to an extensive credit evaluation and any offer you might receive could be subject to different conditions.
Application process
Do I have the right to receive funds?
You may be eligible for a business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months of trading (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is fast and simple. Just fill out the online application within a few minutes and an experienced business credit specialist will contact you to assist you.
For a loan of up to $100,000, you’ll need the right identification documents (valid Driver’s License), a valid NZBN/IRD as well as at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K-$250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Application details including credit consent twelve month bank accounts, the IRD statements and the last two years’ finalised financial statements, as well as interim current financial year financials such as age-related payables and aged Receivables summaries.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we can often offer an answer within one hour if you apply at quality business times and you allow us to make use of the advanced bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your banking statements , we are able to offer a decision within just an business day.
If you are applying for a Larger Business Loan ($100K or more) we might be in a position to offer you with a conditional pre-approval within 6 hours. Once you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval. However, this can be quicker based on the circumstances of each application. Some transactions have received approval in less than 24 hours.
The most effective method would be to make sure you apply during normal company hours, and let us use the modern bank verification to instantly confirm your bank details online. If you decide to send us the copies of bank statements it takes a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) We can usually offer a response in one hour, provided you apply in standard business hours 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 upload copies of your banking statements we can offer the decision in as little as one business day.
For Larger Business Loans ($100K to $500K) we could be capable of provide you with a conditional pre-approval within about six hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Some deals have been approved within less than 24 hours.
The quickest method for you to apply is ensure you apply during standard business hours and permit us to use the advance bank verification to verify your bank account information online. If you decide to upload the copies of bank statement, it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a certain amount we will consider a number of aspects that determine the health of your business as well as the amount of repayments that your business is able to afford. The total amount of your loan will depend on the specific circumstances the business.
If you apply for a particular amount, we take into consideration a variety of factors to assess your health of your business and the extent of repayments that your business can afford. The total amount of your loan will depend on the particular circumstances the business.
Fees & repayments
How much do you charge for the cost of a company loan?
When you request the business loans, we’ll assess the risk profile the business and provide you with a tailored offer, including the amount of loan, the term and the interest rates. It is a business loan is an upfront-priced loan which means you know the exact amount payable including any costs, fees, or interest rates.
What determines the amount I pay?
Business loan interest rates depend on a variety of factors including the amount borrowed, the business assets the funds will be used for, the industry the business is operating in, how long the company has been operating for, how long the company has enough cash flow to fund the loan, as well as the general well-being and creditworthiness of the business.
What are the fees?
There are no hidden costs with our company loans. You’ll know precisely what it is that you be required to pay and when, starting from the day you sign up. There’s no compounding interest, and there are no additional charges (as as long as you pay your payments on time).
We don’t charge an Application Fee. You are able to make an application for loans absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the costs associated with the setting up and management of the loan. The only way to pay this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay out the loan in advance?
You can repay all of your loan at any point in time.
If you decide to do this please talk to one of our helpful company lending professionals. The professionals will provide you with details for repayment as well as an early payout amount. This is calculated as the sum of the remaining principal amount and accrued interest to the date of early payout and 1.5% of the principal balance and any fees that remain unpaid.
How do you make repayments work?
In order to help you avoid missing payments and to work with your cash flow cycle we provide payments that are either weekly or daily. They will be automatically deducted from your business account.
Security & privacy
Will my data be protected?
Protecting your information, and being transparent about the ways we gather data, process, exchange and secure your information, is vital and is a crucial aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption standards to secure your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to the security of our customers as well as their privacy. We employ an exceptionally sophisticated banking verification system to immediately verify your bank account information online. This allows us to provide rapid response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when an business owner borrows from assets they own to obtain the funding. The asset can be either an individual asset, such as the family home or a business property like a truck as well as a piece of machine.
The vast majority of lending institutions, including the banks with the biggest size, prefer to make loans secured by assets. If you are having difficulty paying back the loan, the asset could be transferred to the lender. In essence it is a way of securing new financing by using the value of what you already have.
Should I require security for an business loan?
For loans up to $150K the requirement for asset security is not required in advance to gain access to the funds but we do need an individual guarantee. As long as you follow your loan obligations (as specified in your loan contract) the security of assets is not required. For loans of over $150,000 generally there is a personal ensure and security in the form the charge of assets.