FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Banyo Small Business Loans
Let me know about the Banyo Small Business Loans
Banyo 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 which can be made daily or weekly.
What makes what makes the Unsecured Loan different from a traditional company loan?
Apply for your Small Business Loan in under 10 minutes over the phone. You’ll get an immediate response, and the money could be in your account in 24 hours. Traditional company loans have an annual interest rate plus other fees and charges. The business loan is an upfront priced loan which means you be aware in advance of the total amount payable including any interest, fees or charges. This is then broken down into either a daily or weekly amount to be paid back.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly any business reason, such as control of cash flow business renovations, marketing to purchase inventory, new equipment, to fund general working capital, and much more. The loan is not available for personal use.
Concerning Larger Banyo Business Loans
What is the Larger Banyo Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term up to 36 months. The repayments are made weekly or fortnightly, depending on your situation.
How’s the Origination Fee determined?
A Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your business needs to have been operating for at least three years with an annual turnover of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can the funding be used for?
A Larger Business Loan can be used for almost any company use, including company improvements, purchasing new equipment or inventory as well as for general working capital, and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. This can be done as a result of an charge against assets and can be registered through the PPSR or the registration of as a caveat.
A director’s or personal guarantee is a commitment to pay off a credit line that is general in nature rather than defining security over a particular asset. The person who signs the ensure is personally responsible if the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests that are registered for personal property (including items or assets). The PPSR permits prioritisation over property that is personal to be granted according to the date a registration of a security interest.
Caveats are legal document filed to provide notice of a legal claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for the Larger Business Loan of $250,000 or more we can offer an initial pre-approval to make the process. We may be able to do this without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves the answer to a series of financial well-being checks. It’s neither an offer nor a guarantee of credit. A conditional approval is subject a full credit assessment and any offer you receive could be subject to different conditions.
The application process
Can I be eligible for funding?
You may apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application within a few minutes and a dedicated business expert in lending will call you to assist you.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s Licence) and a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Application details including credit consent twelve months of bank records, IRD statements and the last two years’ finalised financial statements, and interim financials from the current financial year, Aged Payables and Aged Receivables summaries.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) we typically offer a response in one hour, provided you apply within standard business hours and permit us to utilise the bank verification system link to instantly verify your bank details online. If you opt to send us copies of your bank statement, we’ll offer a decision in just 1 business day.
If you are applying for a Larger Business Loan ($100K or more) we may be likely to offer you with conditional pre-approval within 6 hours. Once you have signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval, however it could be faster based on the particular circumstances of each application. Some agreements have been approved within 24 hours.
The quickest way to apply for you to apply is ensure you apply during normal company hours. Also, let us use the advanced bank verification system link to check your bank’s information online. If you choose to upload the copies of bank statements , it may take a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) We can usually provide an answer in just one hour, provided you make your application within normal business time and allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your bank statements, we are able to offer a decision within one business day.
For Larger Business Loans ($100K to $500K) we could be able to offer you with a conditional pre-approval in around six hours. After you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however it could be faster based on the circumstances of each application. Some deals have been approved within 24 hours.
The fastest method can be make sure you apply during normal business hours and permit us to use the advanced bank verification system to verify your bank account information online. If you choose to upload documents from your account accounts, it will take a little longer.
What’s the minimum amount I can 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 variables for determining how much we can lend you well-being of the business and the level of repayments your business can support. The amount you receive from the loan will be determined by the specifics of your company.
When you apply for a specific amount we look at a range of aspects to determine the well-being for your company as well as the amount of repayments your business can afford. The amount you receive from your loan will depend on the particulars the company.
Fees & repayments
What is the cost for the cost of a business loan?
If you decide to make an application for our company financing, we’ll assess the risk profile for your company and provide you with a tailored offer, including the amount of the loan, the duration and the interest rates. It is a company loan is an upfront priced loan so you will be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What is the factor that determines the price I pay?
Business loan interest rates differ based on various factors including the amount that is borrowed, what business assets the funds are used to purchase, the industry the company is operating in, how long the business has been operating for, whether the company has enough cash flow to support the loan, and also the overall health or creditworthiness of the company.
What are the costs?
There are no hidden fees for our business loans. You’ll know exactly how much you be required to pay, and when, right from day one. There’s no compounding interest and no additional fees (as as you make your payments in time).
We don’t charge an Application Fee. You are able to make an application for loans no cost upfront or obligation to proceed.
The Origination Fee is the cost associated in establishing and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Can I pay out the loan early?
You can choose to repay all of your loan early at any time.
If you are deciding to do this please contact our helpful company credit professionals. They will offer you with details on repayment along with an early payout estimate. This will be calculated as the sum of the principal amount remaining and accrued interest to the date of early payout and 1.5 percent of the principal remaining and any outstanding fees.
What is the process for repayments?
To ensure you do not miss payments and to work your cash flow schedule, we provide repayments either daily or weekly. They are automatically deducted from your company account.
Security & privacy
Will my information be secure?
Security of your data, and being clear about the ways we gather the information we collect, use, share and safeguard your data, is vital and a vital aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to customer security and privacy. We utilise a sophisticated bank verification system to immediately confirm your bank account information online, allowing us to offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
An asset-based loan is when an business owner borrows from an asset that they own to make a loan. The asset could be an individual asset, such as the family home, or it could be a business asset such as a truck or other piece of machinery.
The vast majority of banks, including the largest banks, are inclined to guarantee loans against assets. If you are having difficulty paying back the loan then the asset could be offered for sale by the lender. In essence it is means of securing new financing using the worth of the asset you already have.
Should I require security to secure a business loan?
Up to $150K in loans there is no requirement for asset security before you can access the money However, we require a personal guarantee. require an individual guarantee. As long as you follow the terms of your loan (as stipulated in your loan contract), asset security is not needed. For loans over $150K generally, there is personal ensure and security in the form the charge of assets.