FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Bardon Small Business Loans
Tell me more about Bardon Small Business Loans
Bardon unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
What makes what makes the Unsecured Loan different from a traditional company loan?
Apply to this Small Business Loan in under 10 minutes online or on the phone. You’ll receive an immediate response, and the funds could be in your account within 24 hours. Traditional company loans reference an annual rate of interest as well as other fees and charges. Our business loan is a pre-paid loan so you will be aware of the total amount due, which includes any fees, interest or charges. Then, it is broken down into either a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
A Small Business Loan can be used for almost every business reason, such as the management of cash flow, business renovations, marketing to purchase inventory or new equipment, for general working capital, and much more. The loan cannot be used for personal use.
About the Larger Bardon Business Loans
What is the Larger Bardon Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term up to 36 months. Repayments are weekly or fortnightly to work with the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee which is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the business needs to have been operating for at least three years and generate an annual revenue of at least $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can the funds be used for?
A large business loan can be used to fund almost any business use, including business remodeling, buying new equipment or inventory, as general working capital and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. This is as a result of an charge against assets, and may include the registration of this on the PPSR or making as a caveat.
A director’s or personal guarantee is a guarantee to repay credit that is generally in nature rather than stating the security for a particular asset. The person who signs the guarantee is personally accountable if the company borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including objects or assets). The PPSR permits preference over private property assigned depending on the date that a security interest was registered.
A caveat is a legal document that is filed to provide an official notice of a claim on a property.
What exactly is a preapproval without Credit Check?
If you’re seeking an enterprise loan of more than $250,000 we may be able to provide an initial pre-approval that will help simplify the process. We could be able to do this without a credit check, and within six hours of your initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial well-being checks. It’s neither an offer nor a guarantee of credit. Acceptance without condition is subject to an exhaustive credit evaluation, and any offer that you are offered could be on different conditions.
Application process
Do I have the right to receive funds?
You can apply for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, own a New Zealand company (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Just complete the online application in few minutes and a dedicated company expert in lending will be in touch to assist you.
To apply for up to $100,000 you’ll require ID details (valid Driver’s Licence), an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K-$250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if loan above $150K).
$250K – $500K: Details for application including credit consent, 12 months of bank records, IRD statements and the last two years’ finalised financial statements, as well as interim financials for the current financial year including Aged Payables, Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K to $100K) we can often offer an answer in just one hour if you make your application in standard company timings and you allow us to utilise the 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 provide a decision in as little as 1 business day.
For the Larger Business Loan ($100K to $500K) we may be capable of provide you with pre-approval conditional to your application within about six hours. Once you’ve signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this can be quicker based on the specifics of each application. Some offers have been approved within the space of 24 hours.
The quickest way to apply would be to ensure you apply during standard company hours, and allow us to use our advanced bank verification system link to check your bank’s information online. If you opt to send us copies of your bank statements , it can take a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K or more) we typically offer an answer within an hour – as long as you apply at normal business timings and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you decide to upload copies of your bank statement, we’ll provide the decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K or more) we could be in a position to offer you with conditional pre-approval in around 6 hours. Once you have signed the pre-approval form, it will take about 2-3 days for final approval, however this can be faster depending on the particular circumstances of each application. Some transactions have received approval in just 24 hours.
The most efficient method is to make sure you apply during standard business hours. Also, allow us to use our modern bank verification to check your bank’s information online. If you choose to send us the copies of bank accounts, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you submit an application for a specific amount we look at a variety of variables to determine the health that is your business and the level of payments your business can support. The total amount of the loan will be determined by the specifics for your company.
When you apply for a particular amount, we consider a variety of aspects to determine how much we can lend you such as health of the company and the amount of payments your business will be able to support. The amount you receive from your loan will be contingent on the particulars the company.
Fees & repayments
How much should you charge for an company loan?
When you request the business financing, we’ll assess the risk profile that you have for your company and provide an individualised proposal that includes loan amount, term and interest rates. The company loan is a loan that is priced upfront and you’ll know in advance the total amount you will have to pay, including costs, fees, or interest rates.
What determines the rate that I’m charged?
The interest rates on company loans rates depend on a variety of variables like the amount to be borrowed, what company assets the funds will be used for, the industry the business is in, how long the company has been operating for, whether the company has enough cash flow to pay for the loan, and the overall well-being as well as creditworthiness business.
What are the fees?
There aren’t any hidden charges for our business loans. You’ll know precisely what it is that you be required to pay and at what time, from the very first day. There’s no compounding interest, and no extra fees (as long as you are able to make your payments punctually).
We don’t charge an application fee. You can apply for a loan with with no upfront cost or commitment to apply.
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 percent of the loan amount.
Can I pay off the loan earlier?
You may choose to pay back all of your loan early at any time.
If you do decide to do this please call our helpful business credit specialists. They will offer you with the details of your repayment and an early payout figure. This is calculated as the sum of the principal remaining and the accrued interest up to the date of early payout plus 1.5% of the principal remaining as well as any outstanding fees.
What is the process for repayments?
To help you avoid missing payment dates and to align your cash flow cycle we offer repayments either daily or weekly. They will be automatically deducted from your nominated business account.
Security & privacy
Will my information be secure?
Protecting your information, and being clear about how we collect information, use it, and exchange it, as well as protect your information, is crucial and is an essential element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We employ an exceptionally sophisticated bank verification system link to instantly verify your bank account details online to offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the company owner borrows from the assets they have to make a loan. The asset can be either a personal asset like the family home or a business asset like a truck as well as a piece of machine.
The majority of banks, even the big banks, tend to secure loans against assets. If you are having difficulty paying back the loan, then the asset might be sold by the lender. In essence, it’s the process of securing new financing by using the value of what you already have.
What do I require security to get a company loan?
For loans up to $150K there is no requirement for asset security prior to the loan’s access but we require a personal guarantee. need the personal guarantee. If you adhere to the loan terms (as stated in your loan contract document), asset security is not needed. For loans that exceed $150K, generally, you can get an individual ensure and security in the form a charge over assets.