FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Blackstone Small Business Loans
Let me know about the Blackstone Small Business Loans
Blackstone unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 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 an ordinary business loan?
You can apply for the Small Business Loan in under 10 minutes by phone. You will receive a same day response and the money could be in your account in 24 hours. Traditional business loans reference an annual rate of interest as well as other fees and charges. Our company loan is a pre-paid loan and you’ll be aware of the total amount to be paid, including any fees, interest or charges. This is then divided into weekly or daily amount to be paid back.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company reason, such as cash flow management, company remodeling, marketing to purchase inventory, new equipment, for general working capital and so much more. The loan is not available for personal purposes.
Concerning Larger Blackstone Business Loans
What is the Larger Blackstone Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund company expansion opportunities. Loans range from $100,000 to $500,000 over a fixed term for up to 36 months. Repayments are weekly or fortnightly in order to accommodate your situation.
How is the Origination Fee determined?
It is crucial to note that 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, your business needs to be in operation for at least 3 years, and have an annual income of at least $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funds for?
A Larger Business Loan can be used for almost any business need, including company renovations, to purchase 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 for funding of more than $150,000. This is by taking a charge over assets, and could be registered in the PPSR or filing as a caveat.
A director’s or personal guarantee is a commitment to repay a loan which is general in nature, rather than stating security over an asset. The person who is signing the ensure is personally liable in the event that the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central registry run by the New Zealand Government. It reflects security interests registered in respect of personal property (including objects or assets). The PPSR grants priority over personal property to be assigned depending on the date that a security interest that is registered.
An affidavit is an official document lodged to offer notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re seeking an enterprise loan of $250K or more we may be able to provide an initial pre-approval in order to simplify the process. We may be able to make this decision without a credit verification and within six hours of your initial application. The pre-approval is based upon an initial assessment, which involves the answer to a series of financial health questions. It is not an offer of credit or guarantee of financing. Acceptance without condition is subject to a full credit assessment and any offer that you receive could be subject to different conditions.
Application process
Can I be eligible for funding?
You may apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand business (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months worth of trade (for a unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and easy. Just complete the online application within a few minutes and an experienced company credit specialist will contact you to help you.
For a loan of up to $100,000 you’ll require identification details (valid Driver’s Licence) along with an active NZBN/IRD, and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K-$250K: Information about the application including credit consent, 6 – 12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K – $500K: Details for application including credit consent and 12 months bank statement, an IRD statement Last 2 years’ finalised financial statements, as well as interim financial statements for the current year, Aged Payables and Aged Receivables Summary.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we usually offer an answer in just one hour if you apply at quality company timings and allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your banking statement, we’ll offer a decision within just the span of one company day.
For the Larger Business Loan ($100K or more) we may be in a position to offer you with a conditional pre-approval in about six hours. Once you’ve signed the pre-approval document, you will require to wait about 2-3 days for final approval, however this could be shorter based upon the circumstances for each application. Some deals have been approved within the space of 24 hours.
The most effective method can be make sure you apply during standard business hours, and permit us to use the modern bank verification link to verify your bank account information online. If you upload duplicates of your banking statement, it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K to $100K) We can usually provide an answer within one hour – as long as you make your application in normal business hours and allow us to use the advanced bank verification system to instantly verify your bank information online. If you want to upload copies of your bank statements, we will be able to offer the decision in as little as 1 business day.
If you are applying for Larger Business Loans ($100K to $500K) we could be likely to offer the conditional pre-approval within about 6 hours. Once you’ve signed the pre-approval, turnaround times are around 2-3 days for final approval, however it could be faster based on the specifics of each application. Some offers have been approved within just 24 hours.
The most efficient method is to ensure you apply during normal business hours. Also, allow us to use the advanced bank verification system link to check your bank’s information online. If you opt to upload the copies of bank statements it will take a little longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a certain amount we will consider a number of variables in order to assess the health of the business as well as the amount of payments your company is able to afford. The amount you receive from the loan will be determined by the particular circumstances the business.
When you apply for a set amount, we will consider a number of aspects to assess how much we can lend you such as health for your company and the amount of repayments that your business will be able to support. The amount you receive from the loan will be determined by the particular circumstances for your company.
Fees & repayments
How do you charge for the cost of a business loan?
When you make an application for our company loan, we will assess the risk profile that you have for your business and offer you with a customised offer, including the amount of the loan, the duration and the interest rates. A business loan is an upfront priced loan therefore you will know in advance the total amount due, which includes any interest rates, fees or charges.
What is the factor that determines the price I will be charged?
The interest rates on business loans rates vary due to factors including the amount that is borrowed, what company assets the funds are used to purchase and the sector the company operates in, the long the company is in operation, how long the business has enough cash flow to cover the loan, and overall health and creditworthiness of the business.
What are the charges?
There are no hidden fees with our business loans. You’ll know exactly how much you be required to pay and when, right from the first day. There’s no compounding interest, and there are no additional charges (as long as you are able to make your payments on time).
We do not charge an Application Fee. You are able to get a cash loan absolutely no upfront cost and no any obligation to sign up.
The Origination Fee includes the expenses associated with setting up and managing the loan. You are only charged this fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay out the loan in advance?
You may choose to pay back the total amount of your loan at any point in time.
If you decide to do this please talk to one of our helpful company loan specialists. They will offer you with repayment details and an early payout figure. It will be calculated using the total of the principal amount remaining and any accrued interest at the time of early payment and 1.5 percent of the remaining principal and any fees that remain unpaid.
How do you make repayments work?
In order to help you avoid missing repayments and to fit in with your cash flow general, we provide payments that are either weekly or daily. These are automatically deducted from your nominated business account.
Security & privacy
Will my information be secure?
The security of your personal information, as well as being clear about how we collect the information we collect, use, share and ensure the security of your information is of huge importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to the security of our customers as well as their security. We utilise a sophisticated bank verification system to immediately confirm your bank account information online to offer rapid response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when the company owner utilises an asset they own to secure the funding. The asset may be an individual property, such as the family home or an business asset such as a vehicle as well as a piece of machine.
The majority of banks, including the banks with the biggest size, prefer to guarantee loans against an asset. 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 new financing taking advantage of the value of what you already have.
Do I need security for an business loan?
For loans that exceed $150K, no asset security is required prior to the loan’s access however, we do need an individual guarantee. So long as you comply with your loan obligations (as stipulated in your loan contract) the security of assets is not needed. For loans of over $150,000 generally, there is a personal guarantee and security in the form charges on assets.