FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Belmont Small Business Loans
Tell me what you think of the Belmont Small Business Loans
Belmont unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What makes this Unsecured Loan different from an traditional company loan?
The application to this Small Business Loan in under 10 minutes via the internet or over the phone, receive an immediate response, and funds may be in your account within 24 hours. Traditional company loans reference an annual rate of interest plus other fees and charges. This company loan is a pre-paid loan therefore you’ll know ahead of time the total amount due, which includes the interest, fees and charges. This is then broken down into either a daily or weekly payment amount.
What could be the Small Business Loan be used for?
It is a Small Business Loan can be used for almost every company reason, such as the management of cash flow, business remodels and marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan is not available for personal reasons.
About Larger Belmont Business Loans
What is the Larger Belmont Business Loan?
The Larger Business Loan is a larger amount of loan to help company growth opportunities. The loan ranges from $100,000 to $500,000 over a fixed term that can last up to 36 months. Repayments are either weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
The Larger Business Loan has an Origination Fee, which is determined 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 operating for at least three years, and have an annual income of at least $700K. Your business must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
What can I use the funding for?
A larger company loan can be used for almost all business need, including business improvements, purchasing inventory or new equipment for general working capital, and much more. The loan cannot be used for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary to obtain funding above $150,000. This can be done by way of charge over assets, and could include registration in the PPSR or making a caveat.
A personal or director’s ensure is a guarantee to pay back a loan that is generally in nature rather than stating security over an 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 lists security interests that are registered in respect of personal property (including goods or assets). The PPSR permits prioritisation over property that is personal to be granted according to the date a security interest has been registered.
Caveats are legal document that is filed to provide an official notice of a claim against a property.
What is a pre-approval minus Credit Check?
When you’re applying for the Larger Business Loan of $250K or more we may be able to provide an initial pre-approval that will help ease the process. We could be able to make this decision without credit checks and within 6 hours of your initial application. The pre-approval process is based on an initial assessment that includes the answer to a series of financial well-being questions. This is neither an offer nor a guarantee of financing. The approval of a conditional loan is subject to an assessment of your creditworthiness and any offer that you receive could be on different conditions.
Application process
Do I qualify for funds?
You may be eligible for an 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)
- can demonstrate at least 6 months worth of trade (for for the unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and simple. Just fill out the online application in few minutes and a dedicated business credit specialist will call you to guide you.
To apply for up $100,000, you’ll need identification details (valid Driver’s Licence) as well as a valid NZBN/IRD as well as at least six months of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Details of application, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Application details including credit consent twelve month bank accounts, the IRD statements Last 2 years’ finalised financial statements, as well as interim current financial year financials, Aged Payables and Aged Receivables Summary.
How fast will I get a decision?
For an unsecured loan ($5K and up) We can usually provide an answer within one hour – as long as you make your application during quality company time and permit us to utilise the bank verification system link to instantly verify your bank details online. If you choose to send us copies of your bank statements , we are able to offer an answer in as little as the span of one business day.
For the Larger Business Loan ($100K or more) we could be likely to offer you with pre-approval conditional to your application within about six hours. After you’ve signed your 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 agreements have been approved within just 24 hours.
The most efficient method can be ensure you apply during normal business hours. Also, let us use the advance bank verification to instantly confirm your bank details online. If you choose to upload the copies of bank statements it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K and up) we typically provide an answer within one hour, provided you apply during standard business time and allow us to utilise the advanced bank verification system to instantly verify your bank details online. If you choose to upload copies of your banking statements we can provide an answer in just the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we could be capable of offer you with a conditional pre-approval within about six hours. Once you’ve signed your pre-approval, turnaround times are approximately 2-3 days to receive final approval, however this can be faster depending upon the circumstances for each application. Some transactions have received approval in less than 24 hours.
The fastest way can be ensure you apply during normal business hours. You can also allow us to use our modern bank verification to verify your bank account information online. If you decide to upload 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 certain amount, we consider a variety of factors to determine the well-being for your company and the amount of repayments your business will be able to support. The total amount of your loan will be contingent on the particular circumstances for your business.
When you submit an application for a particular amount, we will consider a number of aspects to determine the health of your business and the extent of the repayments your company will be able to support. The amount you receive from your loan will depend on the particulars that are unique to your business.
Fees & repayments
How much should you charge for an business loan?
If you decide to apply for business loans with us business financing, we will assess the risk assessment the business and offer you with a customised offer, including loan amount, term and interest rates. It is a business loan is an upfront-priced loan therefore you will know in advance the total amount due, which includes any charges or interest.
What determines the amount I’m charged?
Business loan interest rates vary due to factors like the amount of money that is borrowed, what company assets the money will be used for, the industry the business is operating in, how long the business has been running, in the event that the company has enough cash flow to fund the loan, and overall well-being and creditworthiness of the company.
What are the costs?
There are no hidden fees for our company loans. You’ll know precisely what you’ll need to pay and when, right from the very first day. There’s not any compounding interest and no additional fees (as as you make your payments punctually).
We don’t charge an application fee. You are able to request a credit loan no cost upfront or obligation to proceed.
The Origination Fee is the cost associated with 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 repay the loan in advance?
You can repay the entire amount of your loan in full at any time.
If you are deciding to do this please call our helpful business loan experts. We will offer you with repayment details and an early payout figure. This is calculated as the total of the principal amount remaining and the accrued interest up to the time of early payout plus 1.5 percent of the principal remaining plus any outstanding fees.
How do repayments work?
To make sure you do not miss payment dates and to align 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 protected?
The security of your personal information, as well as making it clear the ways we gather the information we collect, use, share and safeguard your data, is of paramount importance and is a crucial 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 personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our commitment to security for our clients and security. We use an advanced banking verification system to instantly verify your bank account information online, allowing us to provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when an company owner borrows from an asset they own to make the funding. The asset could be an individual property, such as the family home, or it could be a business property like a truck or piece of equipment.
The vast majority of the lenders not just the major banks, prefer to make loans secured by assets. If you have trouble paying back the loan, then your assets could be transferred to the lender. In essence, it is an opportunity to secure additional financing using the worth of the asset you already own.
Do I need security for an business loan?
For loans of up to $150,000, it is not necessary to secure assets upfront to access the money but we require a personal guarantee. require a personal guarantee. As long as you follow the loan terms (as specified in your loan contract), asset security will never be required. If you take out loans in excess of $150K typically, you will need an individual ensure and security that is in the form charges on assets.