FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Berrinba Small Business Loans
Let me know what you think of the Berrinba Small Business Loans
Berrinba unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow-friendly repayments that are either per day or weekly.
How is what makes the Unsecured Loan different from the traditional company loan?
Apply to get this Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get a same day response and funds may be in your account within 24 hours. Traditional business loans reference an annual interest rate together with additional fees and charges. The business loan is a cash-based loan which means you know in advance the total amount to be paid, including the interest, fees and charges. Then, it is broken down into a daily or weekly installment amount.
What can you use the Small Business Loan be used for?
The Small Business Loan can be used for almost every business use, including cash flow management, company improvements, advertising to purchase inventory or new equipment, or as general working capital, and much more. The loan cannot be used to fund personal expenses.
Concerning Larger Berrinba Business Loans
What is the Larger Berrinba Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range between $100,000 and $500,000 over a fixed term that can last up to 36 months. Repayments are scheduled weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your company needs to have been operating for at least three years and have an annual turnover of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 and have a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of business.
How can the funding be used for?
A large business loan can be used for nearly any business purpose including business renovations, purchase of inventory or new equipment, as general working capital, and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required for accessing funds over $150,000. It is usually in the form of a charge against assets, which could also include registration on the PPSR or the registration of as a caveat.
A personal or director’s guarantee is a guarantee to repay a loan which is general in nature, rather than defining the security for a particular asset. The person who is signing the guarantee is personally liable if the company lender is not able to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including the assets or goods). The PPSR grants preference over private property assigned according to the date the registration of a security interest.
The caveat can be described as a formal form of document to offer the legal claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for a Larger Business Loan of $250,000 or more, we may offer an initial pre-approval to ease the process. We may be able to do this without a credit check and within 6 hours of your initial application. The pre-approval process is based on a preliminary assessment which includes you answering a few financial well-being checks. It’s not an offer of credit or guarantee of finance. Unconditional approval is subject to a full credit assessment and any offer you are offered could be on different conditions.
The application process
Are I eligible for funding?
You can apply for an company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand company (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 trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in few minutes and an experienced company lending specialist will be in touch to guide you through the process.
To be eligible for up to $100,000 you’ll require identification details (valid Driver’s License), a valid NZBN/IRD as well as at least six months worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K-$250K: Application details including credit consent, 6 – 12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K-$500K: Details of the application, including credit consent, 12 months of bank records, IRD statement, last 2 years finalised financial statements, and interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K to $100K) we can often offer an answer within one hour, provided you submit your request at quality company times and let us utilise the advanced bank verification system link to immediately verify your bank account information online. If you choose to upload copies of your banking statements , we are able to offer an answer within just 1 company day.
For the Larger Business Loan ($100K to $500K) we could be able to offer you with a conditional pre-approval in about 6 hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this can be quicker based on the circumstances of each application. Certain offers have been approved in 24 hours.
The fastest way is to ensure you apply during normal company hours. You can also let us use the advanced bank verification system to verify your bank account information online. If you send us documents from your account statement, it will take a little longer.
How fast will I get the cash?
For the Small Business Loan ($5K up to $100,000) we typically offer an answer within an hour, provided you make your application during standard business hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you opt to upload copies of your banking statement, we’ll offer an answer in as little as 1 business day.
For Larger Business Loans ($100K up to $500,000) we could be likely to provide you with pre-approval conditional to your application in about six 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 upon the circumstances for each application. Certain agreements have been approved within less than 24 hours.
The fastest way is to ensure you apply during normal business hours. Also, permit us to use the sophisticated bank verification to confirm your bank details online. If you decide to upload duplicates of your banking statements, it may take a bit longer.
What is the maximum amount I can borrow?
We provide the loan amount between $5,000 to $500,000. When you submit an application for a certain amount we consider a variety of aspects for determining what is the well-being for your business and the extent of repayments your business is able to afford. The amount you receive from the loan will be determined by the specific circumstances of your company.
If you apply for a set amount, we take into consideration a variety of variables to determine the well-being that is your business and the amount of payments your company can support. The amount you receive from your loan will be contingent on the specific circumstances the company.
Fees & repayments
What is the cost for a company loan?
If you decide to apply for our business loans, we’ll assess the risk profile for your business and offer you with a tailored offer that includes the loan amount, the terms and the interest rates. A company loan is an upfront cost loan and you’ll be aware of the total amount payable including any interest rates, fees or charges.
What is the basis for the rate I pay?
The interest rates on business loans rates depend on a variety of factors such as the amount that is borrowed, the business assets the money will be used for as well as the field the company operates in, how long the business is in operation, what percentage of the company has enough cash flow to pay for the loan, and overall well-being as well as creditworthiness business.
What are the charges?
There are no hidden costs for our business loans, and you’ll know exactly how much you’ll be required to pay and when, from the day you sign up. There’s no compounding interest, and no extra fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You can request a credit loan without any upfront costs or obligation to proceed.
The Origination Fee is the cost associated with setting up and managing the loan. This is only a cost if you take out the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Do I have the option of paying off the loan early?
You can choose to repay the entire amount of your loan in full at any time.
If you choose to take this route, please talk to one of our helpful business loans experts. They’ll offer you with details on repayment as well as an early payout amount. The figure will be calculated as the total of the principal remaining and any accrued interest at the time of the early payout and 1.5% of the principal remaining plus any outstanding fees.
How do you make repayments work?
To make sure you do not miss due dates and also to be in line with your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being transparent about the ways we gather the information we collect, use, share and safeguard your data, is of paramount importance and a vital 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 standards to protect your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to security for our customers and privacy. We use an advanced bank verification system link to instantly verify the bank account details online. This allows us to offer an immediate response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when a business owner uses the assets they have to secure the loan. The asset may be an asset belonging to the personal, like the family home, or it could be a company property like a truck or piece or equipment.
The vast majority of banks, not just the banks with the biggest size, prefer to guarantee loans against assets. If you have trouble paying back the loan, then the asset could be taken over by the lender. In essence it’s a way of securing new financing using the worth of the asset you already own.
Do I need security to secure an business loan?
Up to $150,000 in loans there is no requirement for asset security before you can access the money however, we require a personal guarantee. need an individual guarantee. If you adhere to your loan commitments (as specified in your loan contract) and you are able to meet your obligations, asset security is not required. For loans that exceed $150,000, generally there is personal ensure and security that is in the form charges on assets.