FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Bahrs Scrub Small Business Loans
Tell me what you think of the Bahrs Scrub Small Business Loans
Bahrs Scrub unsecured loans provides amounts of between $5,000 and $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
How is the Unsecured Loan different from an ordinary business loan?
It is possible to apply to get your Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive an immediate response, and have the funds available in just 24 hours. Traditional company loans are based on an annual interest rate together with additional fees and charges. We offer a business loan is an upfront priced loan which means you be aware in advance of the total amount due, which includes any fees, interest or charges. This is then broken down into either weekly or daily amount to be paid back.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any company use, including the management of cash flow, company renovations, marketing to purchase inventory, new equipment, for general working capital, and much more. The loan is not available for personal use.
About the Larger Bahrs Scrub Business Loans
What is the Larger Bahrs Scrub Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range between $100,000 and $500,000 over a fixed term for up to 36 months. Repayments are scheduled weekly or fortnightly depending on you cashflow.
How’s the Origination Fee determined?
The Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large, your company needs to have been operating for at least three years, and have an annual income of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
How can the funding be used for?
A larger company loan can be used for almost every business purpose including company renovations, to purchase equipment or inventory, as general working capital and so much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. It’s by way of charge on assets, and could include the registration of this through the PPSR or making a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is generally in nature rather than defining security over an asset. The person who signs the ensure is personally responsible if the company creditor is unable to repay 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 granted to individuals who own personal property (including the assets or goods). The PPSR grants prioritisation over property that is personal to be granted in accordance with the date on which a security interest was registered.
An affidavit is an official form of document to offer the legal claim against a property.
What exactly is a preapproval without Credit Check?
When you’re applying for an enterprise loan of $250,000 or more, we may offer an initial pre-approval in order to smooth out the process. We might be able to apply for this without a credit check and within 6 hours of the initial application. The pre-approval is based upon an initial assessment, which involves you answering a few financial well-being checks. It’s not an offer of credit or guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer you receive could be based on different terms.
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 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Complete the online form in just a few minutes, and a dedicated company lending specialist will contact you to guide you.
To apply for up $100,000, you’ll require proof of identity (valid Driver’s License) as well as a valid NZBN/IRD and at least six months worth of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K to $500K: Application details including credit consent and 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, in addition to interim financials from the current financial year, Aged Payables and Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K up to $100,000) we typically offer a response in one hour if you submit your request during quality company time and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statements , we will be able to provide the decision in as little as the span of one company day.
For the Larger Business Loan ($100K up to $500,000) we may be in a position to provide the conditional pre-approval within about six hours. After you’ve signed your pre-approval form, it will take around 2-3 days for final approval, however this can be quicker based upon the circumstances for each application. Certain offers have been approved in less than 24 hours.
The fastest way can be make sure you apply during normal company hours, and allow us to use the modern bank verification to instantly verify your bank account information online. If you decide to upload the copies of bank statements it can take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) we usually provide a response in one hour – provided you submit your request in normal business time and let us use the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your banking statement, we’ll provide an answer in as little as an business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be able to provide you with conditional pre-approval within about six hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this may be quicker depending on the specifics of each application. Some transactions have received approval within 24 hours.
The fastest way is to ensure you apply during normal business hours. Also, permit us to use the modern bank verification link to instantly confirm your bank details online. If you opt to send us duplicates of your banking statements it takes a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. When you make an application for a specific amount we look at a variety of elements that determine how much we can lend you health of the company and the level of payments your business is able to afford. The amount you receive from your loan will be contingent on the particular circumstances for your company.
When you make an application for a particular amount, we will consider a number of factors to determine your health for your company and the amount of repayments your business can afford. The total amount of the loan will be determined by the particulars the business.
Fees & repayments
How much do you charge for an company loan?
If you decide to apply for business loans with us business loans, we’ll assess the risk assessment that you have for your business and provide an individualised offer including the loan amount, the terms and the interest rates. This company loan is an upfront-priced loan so you will be aware of the total amount payable including any charges, interest rates or fees.
What determines the amount I’m charged?
The interest rates on company loans rates differ based on various factors such as the amount that is that is borrowed, what business assets the funds will be used for in addition to the industry that the business operates in, how long the business has been operating for, in the event that the company has enough cash flow to cover the loan, as well as the general health and creditworthiness of the company.
What are the cost?
There are no hidden fees with our company loans, and you’ll know exactly how much you need to pay, and when, starting from day one. There’s not any compounding interest and no additional fees (as as you make your payments on time).
We don’t charge an application fee. You can make an application for loans with without any upfront costs or any obligation to sign up.
The Origination Fee includes the expenses associated with establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Do I have the option of paying off the loan in advance?
You may choose to pay back all of your loan at any point in time.
If you are deciding to pursue this option, please call our helpful business lending professionals. They’ll offer you with details for repayment and an early payment figure. This will be calculated as the sum of the principal amount remaining plus any accrued interest as of the time of the early payout, plus 1.5% of the principal balance as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing payments and to work with your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from your business account.
Security & privacy
Will my data be secure?
Protecting your information, and being clear about how we collect data, process, exchange and ensure the security of your information is of paramount importance and a vital part 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 security for our customers and security. We employ a highly sophisticated banking verification system to immediately confirm your bank account information online to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a company owner utilises the assets they have to make the funding. The asset may be an individual property, such as the family home or it could be a company asset like a truck or piece or equipment.
The majority of lenders, even the big banks, tend to make loans secured by an asset. If you’re struggling to pay back the loan, then the asset could be taken over by the lender. In essence it’s means of securing new financing by using the value of what you already own.
What do I need security to get an company loan?
Up to $150K in loans it is not necessary to secure assets in advance to gain access to the funds but we require a personal guarantee. require a personal guarantee. In the event that you fulfill the loan terms (as stipulated in your loan contract document) Asset security will never be required. For loans that exceed $150,000, generally, you are able to get personal ensure and security in the form of an asset charge.