FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Brisbane Small Business Loans
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Brisbane unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What makes this Unsecured Loan different from an traditional business loan?
The application to get this Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive a same day response and have the funds in your account in 24 hours. Traditional company loans refer to an interest rate per annum as well as other fees and charges. The business loan is a pre-paid loan and you’ll be aware in advance of the total amount due, which includes any fees, interest or charges. This is then divided into a daily or weekly installment amount.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for almost any business purpose including managing cash flows, company renovations, marketing for purchasing inventory or new equipment, as general working capital and so much more. The loan is not available 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 expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are scheduled weekly or fortnightly to work with the flow of cash.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan in this amount, your business needs to be in operation for at least 3 years and generate an annual revenue of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funding be utilised?
A Business Loan of a larger size can be used to fund almost any company reason, such as business renovations, purchase of inventory or new equipment for general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. This can be done in the form of a charge on assets and can include registering this with the PPSR or filing a caveat.
A director’s or personal guarantee is a commitment to pay back a loan that is general in nature, rather than specifying security over an asset. The person signing the guarantee is personally liable if the company creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It lists security interests that are which are registered with respect to personal property (including goods or assets). The PPSR permits preference over private property granted according to the date a security interest that is registered.
A caveat is a legal document that is filed to provide the legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re applying for larger company loans of $250,000 or more it’s possible to offer an initial pre-approval to simplify the process. It is possible to apply for this without a credit verification and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial well-being questions. This is neither an offer nor a guarantee of funds. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you may receive may be subject to different conditions.
The application process
Do I qualify for funds?
You may apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and easy. Just complete the online application in few minutes and a dedicated company lending specialist will call you to guide you.
For a loan of up to $100,000, you’ll require the right identification documents (valid Driver’s Licence), an active NZBN/IRD, and at least six months of bank statements.
For larger loan sizes, you’ll need:
$100K – $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent, 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, and interim financials from the current financial year including Aged Payables, Aged Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K and up) we can often offer an answer in just one hour – as long as you submit your request in standard business times and let us use the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your banking statement, we’ll provide an answer within an business day.
For the Larger Business Loan ($100K to $500K) we might be likely to provide you with pre-approval conditional to your application within six hours. After you’ve signed your pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be quicker based on the particular circumstances of each application. Certain transactions have received approval within less than 24 hours.
The fastest way is to ensure you apply during standard company hours, and let us use the advanced bank verification system link to confirm your bank details online. If you choose to send us copies of your bank accounts, it will take a little longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) We can usually offer an answer within one hour – as long as you apply at normal business hours and permit us to use the advanced bank verification system link to instantly verify your bank details online. If you opt to submit copies of your bank statements, we are able to provide the decision in just one business day.
If you are applying for Larger Business Loans ($100K or more) we may be in a position to offer the conditional pre-approval within about six hours. Once you’ve signed your pre-approval form, it will take between 2 and 3 days for the final approval, however this can be faster depending on the particular circumstances of each application. Some agreements have been approved within 24 hours.
The quickest method can be ensure you apply during standard business hours, and allow us to use our advance bank verification to instantly confirm your bank details online. If you upload copies of your bank statements it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. If you apply for a certain amount, we look at a variety of elements for determining how much we can lend you health for your business as well as the amount of repayments that your company is able to afford. The total amount of the loan will be determined by the particular circumstances for your company.
When you submit an application for a particular amount, we take into consideration a variety of variables to assess how much we can lend you such as health that is your business and the level of payments your business can afford. The total amount of your loan will be determined by the specifics of your company.
Fees & repayments
What is the cost for an company loan?
If you decide to make an application for business loans with us company loans, we will assess the risk assessment for your business and offer an individualised offer, including the amount of loan, the term and interest rates. A business loan is a loan that is priced upfront which means you know the exact amount payable including any charges, interest rates or fees.
What is the basis for the rate I am charged?
Business loan interest rates vary due to factors such as the amount that is borrowed, the company assets the funds are used to purchase, the industry the business is operating in, how long the company has been in operation as well as in the event that the company has sufficient cash flow to support the loan, and also the general health or creditworthiness of the company.
What are the charges?
There aren’t any hidden charges for our business loans, and you’ll know precisely what 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 long as you make your payments in time).
We don’t charge an Application Fee. You can apply for a loan with with no upfront cost or any obligation to sign up.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the amount of loan.
Can I pay out the loan in advance?
You can repay the entire amount of the loan at any point in time.
If you are deciding to take this route, please speak to our friendly business credit specialists. We will provide you with the details of your repayment and an early payout figure. It will be calculated using the sum of the remaining principal amount and any accrued interest at the time of early payment in addition to 1.5% of the principal remaining and any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss repayments and to fit in your cash flow schedule, we offer repayments that are either daily or weekly. They are automatically deducted from your designated business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear how we collect data, process, exchange and safeguard your data, is vital and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to protect your sensitive, personal financial information and our funders are ISO 27001 qualified for our commitment to customer security and security. We use an advanced bank verification system that allows you to immediately verify your bank account information online to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an company owner utilises assets they own to secure the funds for a loan. The asset can be an individual property, such as the family home or an company property like a truck or piece or equipment.
The vast majority of lenders, not just the banks with the biggest size, prefer to make loans secured by assets. If you have trouble paying back the loan, then your asset may be sold by the lender. In essence it’s means of securing new financing by making use of the value of what you already own.
Do I need security to get a business loan?
For loans of up to $150K, the requirement for asset security is not required before you are able to access the money, however we require a personal guarantee. require an individual guarantee. As long as you follow your loan commitments (as stipulated in the loan contract) Asset security will never be required. For loans over $150,000 generally, there is a personal guarantee and security in the form of a charge over assets.