FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Bannockburn Small Business Loans
Tell me how you are able to avail the Bannockburn Small Business Loans
Bannockburn unsecured loans offers the range of $5,000 to $100,000, with terms ranging from 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from an ordinary company loan?
It is imaginable to apply for your Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an immediate response, and have the funds in your account within 24 hours. Traditional company loans reference an annual interest rate as well as other fees and charges. The company loan is an upfront priced loan so you will know ahead of time the total amount payable including any fees, interest or charges. This is then divided into a daily or weekly amount to be paid back.
What can the Small Business Loan be used for?
The Small Business Loan can be used for nearly any company use, including cash flow management, business remodels and marketing for purchasing inventory or new equipment, as general working capital and so much more. The loan is not available to fund personal expenses.
About larger Bannockburn Business Loans
What is the Larger Bannockburn Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans are between $100,000 and $500,000 with a term fixed with a maximum of 36 months. Repayments are either weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the amount of the loan.
Do I qualify for the Larger Business Loan?
To qualify for a loan that is this large the business needs to be 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) over 18 years and have a New Zealand business (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can the funding be used for?
A Business Loan of a larger size can be used to fund almost every company use, including business remodeling, buying new equipment or inventory or as general working capital and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed to access funding over $150,000. This is by way of charge over assets, and could be registered through the PPSR or filing a caveat.
A personal or director’s ensure is a guarantee to repay a loan which is generally in nature rather than stating security over a particular asset. The person signing the guarantee is personally liable in the event that the company creditor is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests registered in respect of personal property (including goods or assets). The PPSR permits priority over personal property to be assigned depending on the date that a security interest was registered.
The caveat can be described as a formal form of document to offer notice of a legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re applying for an enterprise loan of more than $250,000 it’s possible to offer an initial pre-approval to smooth out the process. We could be able to get this done without a credit check, and within 6 hours of your initial application. The pre-approval process is based on an initial evaluation that involves you answering some financial health questions. This is not an offer of credit or guarantee of finance. A conditional approval is subject an exhaustive credit evaluation, and any offer that you are offered could be based on different conditions.
The application process
Do I qualify for funds?
You may apply for an business 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 prove at least 6 months worth of trade (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 fast and simple. Simply complete the online form in just a few minutes, and an experienced business loan specialist will call you to assist you.
To apply for up to $100,000 you’ll require proof of identity (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll also require:
$100K to $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Application details including credit consent and 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, in addition to interim current financial year financials as well as Aged Payables and Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within one hour if you make your application during quality company times and allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you choose to submit copies of your bank statements , we are able to offer an answer in just 1 business day.
For the Larger Business Loan ($100K and up) we could be in a position to provide you with pre-approval conditional to your application within about 6 hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval. However, this could be shorter based upon the circumstances for each application. Some transactions have received approval within 24 hours.
The fastest way is to make sure you apply during standard business hours and let us use the modern bank verification link to check your bank’s information online. If you decide to upload the copies of bank statements it may take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) we can often offer a response in one hour – as long as you submit your request in standard business times and allow us to utilise the advanced bank verification system link to instantly verify your bank’s information online. If you decide to submit copies of your bank statements, we are able to offer a decision in just 1 business day.
If you are applying for Larger Business Loans ($100K or more) We may be able to provide the conditional pre-approval in around six hours. After you’ve signed the pre-approval document, you will need to wait about 2-3 days for final approval, however this could be shorter based on the particular circumstances of each application. Certain transactions have received approval within the space of 24 hours.
The quickest method would be to ensure you apply during standard business hours. Also, permit us to use the advanced bank verification system link to verify your bank account information online. If you choose to upload documents from your account accounts, it takes a bit longer.
What is the maximum amount I can borrow?
We provide loans that range from $5,000 to $500,000. When you submit an application for a specific amount we will consider a number of variables to determine your well-being of the company and the extent of payments your company will be able to support. The amount you receive from your loan will be contingent on the particular circumstances for your company.
When you apply for a specific amount we will consider a number of aspects to assess your health that is your business and the amount of payments your business can support. The amount you receive from your loan will be contingent on the specifics of your company.
Fees & repayments
How much should you charge for the cost of a company loan?
When you request one of our company loans, we will assess the risk profile of your company and provide you with a tailored offer including loan amount, term and interest rates. It is a company loan is an upfront cost loan therefore you will be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What determines the rate that I am charged?
Interest rates for business loans rates differ based on various factors such as the amount that is of money borrowed, the company assets the money will be used for in addition to the industry that the business is operating in, how long the company has been in operation as well as what percentage of the business has enough cash flow to cover the loan, as well as the general well-being and creditworthiness of the business.
What are the costs?
There aren’t any hidden charges with our business loans, and you’ll know precisely what it is that you need to pay and when, from the first day. There’s no compounding interest, and no extra fees (as long as you make your payments on time).
We don’t charge an Application Fee. You are able to apply for a loan with no upfront cost or the obligation to take action.
The Origination Fee is the cost associated in establishing and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I pay off the loan early?
You can decide to repay the entire amount of your loan early at any time.
If you do decide to do this please call our helpful business loan professionals. They’ll offer you with details for repayment as well as an early payout amount. This will be calculated as the total of the remaining principal amount and accrued interest to the time of early payment in addition to 1.5% of the remaining principal plus any outstanding fees.
What is the process for repayments?
To make sure that you don’t miss payments and to work your cash flow cycle we provide payments that are either daily or weekly. These are automatically deducted from the nominated company account.
Security & privacy
Will my information be protected?
Protecting your information, and being upfront about the ways we gather, use, exchange and safeguard your data, is of huge importance and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We use an advanced bank verification system that allows you to immediately verify your bank account details online so we can offer rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing is when an company owner uses assets they own to secure the loan. The asset can be either an individual property, such as the family home, or an business asset such as a vehicle or piece of equipment.
The majority of banks, not just the banks with the biggest size, prefer to make loans secured by assets. If you are having difficulty paying back the loan then the asset might be offered for sale by the lender. In essence, it is means of securing new financing making use of the value of what you already have.
Are I require security to secure an business loan?
For loans up to $150,000 there is no requirement for asset security before you can access the money but we do require the personal guarantee. So long as you comply with your loan obligations (as detailed in your loan contract) and you are able to meet your obligations, asset security will never be needed. If you take out loans in excess of $150,000 generally, there is a personal ensure and security that is in the form an asset charge.