FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Brisbane Small Business Loans
Let me know about the Brisbane Small Business Loans
Brisbane unsecured loans offers amounts of between $5,000 and $100,000. Terms range from 3 and 24 month and cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from an ordinary company loan?
You can apply to the Small Business Loan in under 10 minutes online or over the phone, receive an immediate response, and the funds could be available in just 24 hours. Traditional company loans refer to an annual interest rate together with additional fees and charges. We offer a business loan is a pre-paid loan therefore you’ll know in advance the amount you will have to pay, including any fees, interest or charges. Then, it is divided into weekly or daily repayment figure.
What could the Small Business Loan be used for?
A Small Business Loan can be used for almost every company need, such as cash flow management, company renovations, marketing for purchasing inventory or new equipment, to fund general working capital and much more. The loan cannot be used for personal use.
About larger Brisbane Business Loans
What is the Larger Brisbane Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. Loans are between $100,000 and $500,000 with a term fixed for up to 36 months. Repayments are scheduled weekly or fortnightly depending on the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan of this size the company needs to be in operation for at least 3 years with an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can I use the funds for?
A larger business loan can be used to fund almost any business purpose including business improvements, purchasing inventory or new equipment or as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required to access funding over $150,000. This is by taking a charge over assets and can include the registration of this with the PPSR or making a caveat.
A director’s or personal ensure is a guarantee to repay credit that is general in nature rather than stipulating security over an asset. The person who signs the guarantee is personally liable if the company the borrower fails to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It lists security interests that are granted to individuals who own personal property (including items or assets). The PPSR allows the priority of personal property assigned in accordance with the date on which a security interest has been registered.
A caveat is a legal document that is filed to offer the legal claim against a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for larger business loans of more than $250K we may be able to provide an initial pre-approval to simplify the process. We might be able to get this done without credit checks and within six hours of your initial application. This pre-approval is made based on a preliminary assessment which includes you answering some financial well-being checks. It is not an offer or guarantee of finance. The approval of a conditional loan is subject to an extensive credit evaluation and any offer that you may receive may be subject to different terms.
Application process
Do I qualify for funds?
You are eligible to apply for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months of business (for you to qualify for unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Simply complete the online form in few minutes and an experienced company credit specialist will be in touch to guide you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s License) as well as a valid NZBN/IRD as well as at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K-$250K: Application requirements, including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K-$500K: Details for application including credit consent twelve months bank statement, an IRD statement as well as the two most recent years’ financial statements, as well as interim financials for the current financial year, Aged Payables and Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K or more) we can often offer an answer in just one hour if you submit your request in standard business time and you allow us to utilise the bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statement, we’ll provide an answer within just an business day.
For the Larger Business Loan ($100K to $500K) we may be likely to offer you with a conditional pre-approval in around six hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Some deals have been approved within less than 24 hours.
The quickest way to apply can be ensure you apply during normal company hours. You can also permit us to use the advance bank verification to verify your bank information online. If you decide to send us duplicates of your banking accounts, it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K up to $100,000) we can often offer a response in one hour – provided you make your application during standard business time and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you choose to send us copies of your bank statement, we’ll offer a decision within an business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be able to offer the conditional pre-approval in around six hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this could be shorter based upon the circumstances for each application. Some transactions have received approval in 24 hours.
The fastest method would be to ensure you apply during normal business hours. You can also allow us to use our modern bank verification link to instantly confirm your bank details online. If you choose to upload the copies of bank accounts, it will take a little longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. If you apply for a specific amount we take into consideration a range of variables to determine your health of your business as well as the amount of repayments your business is able to afford. The amount you receive from the loan will be determined by the specifics the business.
When you apply for a certain amount, we consider a variety of variables to determine the health of the business and the amount of payments your company is able to afford. The total amount of your loan will be determined by the specifics the company.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to request the business loan, we’ll assess the risk profile that you have for your business and offer you with a customised proposal that includes the amount of the loan, the duration and the interest rates. It is a business loan is an upfront cost loan so you will know in advance the total amount due, which includes any charges, interest rates or fees.
What is the factor that determines the price I will be charged?
Interest rates for business loans rates vary due to variables like the amount to be of money borrowed, the company assets the funds will be used for, the industry the business is operating in, how long the business has been running, what percentage of the business has enough cash flow to support the loan, and general well-being as well as creditworthiness business.
What are the costs?
There are no hidden costs with our business loans, and you’ll know precisely how much you’ll be required to pay and when, right 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 do not charge an Application Fee. You are able to apply for a loan with with no upfront cost or any obligation to sign up.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay out the loan in advance?
You may choose to pay back the total amount of your loan at any point in time.
If you choose to pursue this option, please talk to one of our helpful business lending experts. They will offer you with the details of your repayment and an early payout figure. The figure will be calculated as the total of the principal amount remaining and accrued interest to the time of the early payout plus 1.5 percent of the principal balance as well as any outstanding fees.
How do repayments work?
To ensure that you don’t miss due dates and also to be in line with your cash flow standard, we provide payments that are either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being upfront about the ways we gather, use, exchange and secure your information, is of paramount importance and a vital element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your personal, sensitive and financial data and our funders are ISO 27001 certified for our commitment to protecting the security of clients and privacy. We make use of an advanced bank verification system link to immediately confirm your bank account information online, allowing us to provide rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when a business owner utilises an asset they own to get the funding. The asset may be an asset belonging to the personal, like the family home or it could be a business asset like a truck as well as a piece of machine.
The vast majority of the lenders not just the largest banks, are inclined to secure loans against assets. If you’re struggling to pay back the loan then the asset could be transferred to the lender. In essence, it’s the process of securing new financing by taking advantage of the value of what you already own.
Should I require security to get a business loan?
Up to $150K in loans the requirement for asset security is not required upfront to access the money however, we do need an individual guarantee. So long as you comply with your loan commitments (as specified in your loan contract document), asset security will never be needed. For loans of over $150,000 generally there is the option of a personal ensure and security in the form an asset charge.