FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Bowen Hills Small Business Loans
Tell me about the Bowen Hills Small Business Loans
Bowen Hills unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments, which are either daily or weekly.
What makes how is the Unsecured Loan different from the traditional company loan?
You can apply for this Small Business Loan in under 10 minutes on the internet or by phone. You will receive an answer within the same day and have the funds available in just 24 hours. Traditional company loans refer to an interest rate per annum as well as other fees and charges. The company loan is a pre-paid loan and you’ll be aware in advance of the total amount to be paid, including any fees, interest or charges. Then, it is broken down into either weekly or daily payment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost every company use, including the management of cash flow, business remodeling, marketing for purchasing inventory or new equipment, for general working capital and much more. The loan cannot be used to fund personal expenses.
Concerning Larger Bowen Hills Business Loans
What is the Larger Bowen Hills 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 that can last up to 36 months. Repayments are weekly or fortnightly depending on you cashflow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee that is determined at 2.5% of the loan amount.
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 a minimum of 3 years and generate an annual revenue of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at the least 12 months of operating.
How can the funding be utilised?
A large business loan can be used for nearly all company use, including company remodeling, buying inventory or new equipment, as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan a secured loan?
Asset security is required for funding of more than $150,000. It’s as a result of an charge over assets, and may be registered on the PPSR or making as a caveat.
A personal or director’s ensure is a promise to repay credit that is general in nature, rather than defining the security for a particular asset. The person who signs the ensure is personally accountable if the business the borrower fails to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online registry run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including the assets or goods). The PPSR allows preference over private property assigned depending on the date that a registration of a security interest.
A caveat is a legal document lodged to offer the legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re seeking larger company loans of $250,000 or more we may be able to provide an initial pre-approval to make the process. We could be able to make this decision without credit checks and within 6 hours of the initial application. This pre-approval is made based on an initial evaluation that involves answering a couple of financial health checks. It’s not an offer or guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer you might receive could be subject to different terms.
Application process
Are I eligible for funding?
You are eligible to apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (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 application process is fast and simple. Complete the online form in just a few minutes, and an experienced company credit specialist will be in touch to help you.
To be eligible for up to $100,000, you’ll need the right identification documents (valid Driver’s License) and a valid NZBN/IRD and at least 6 months’ worth of bank statements.
In addition, for larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details for application including credit consent and 12 months of bank records, IRD statement and the last two years’ finalised financial statements, and interim financials for the current financial year, Aged Payables and Aged Receivables Summary.
What speed will I be able to get a decision?
For an unsecured loan ($5K up to $100,000) We can usually offer an answer within an hour if you apply in standard company times and allow us to utilise the advanced bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statements we can offer the decision in just 1 business day.
For the Larger Business Loan ($100K to $500K) we could be likely to provide you with conditional pre-approval within about 6 hours. After you’ve signed your pre-approval document, you will require to wait around 2-3 days for final approval, however this can be quicker based on the circumstances of each application. Certain offers have been approved in less than 24 hours.
The quickest method would be to make sure you apply during normal company hours. You can also let us use the advanced bank verification system link to instantly verify your bank information online. If you opt to send us the copies of bank statements it will take a little longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K to $100K) We can usually offer an answer in just one hour – provided you submit your request within normal business time and permit us to use the advanced bank verification system to immediately verify your bank account information online. If you decide to send us copies of your bank statements we can provide a decision in as little as one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be able to provide the conditional pre-approval in around six hours. Once you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, this could be shorter based upon the circumstances for each application. Certain agreements have been approved within just 24 hours.
The most efficient method would be to ensure you apply during standard business hours. You can also let us use the advance bank verification link to instantly verify your bank account information online. If you opt to upload documents from your account statements it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 and $500,000. When you make an application for a specific amount we look at a variety of variables in order to assess how much we can lend you well-being that is your company and the amount of repayments your business will be able to support. The total amount of the loan will be determined by the specific circumstances of your company.
When you submit an application for a particular amount, we look at a range of factors to assess the well-being of the company and the level of repayments that your business is able to afford. The amount you receive from your loan will depend on the specific circumstances for your business.
Fees & repayments
How much do you charge for the cost of a business loan?
When you make an application for business loans with us company loans, we will assess the risk assessment of your company and provide you with a customised offer, including loan amount, term and the interest rates. This business loan is an upfront cost loan which means you know the exact amount payable including any charges or interest.
What is the factor that determines the price I pay?
Interest rates for company loans rates differ based on various factors like the amount of money that is borrowed, what business assets the money are used to purchase and the sector the business operates in, how long the business has been running as well as in the event that the business has sufficient cash flow to fund the loan, and also the general health or financial standing of the company.
What are the fees?
There aren’t any hidden costs with our business loans. You’ll know precisely what you need to pay, and when, starting from the first day. There’s no compounding interest, and there are no additional charges (as as long as you pay your payments in time).
We don’t charge an Application Fee. You are able to apply for a loan without any upfront costs or commitment to apply.
The Origination Fee covers the expenses involved with establishing and managing the loan. The only way to pay this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay out the loan earlier?
You may choose to pay back all of your advance loan at any time.
If you choose to pursue this option, please contact our helpful business loans professionals. The experts will offer you with details on repayment and an early payment figure. This will be calculated as the total of the principal remaining and any accrued interest at the time of early payout, plus 1.5% of the principal balance as well as any outstanding fees.
How do repayments work?
To help you avoid missing payments and to work your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from your nominated company account.
Security & privacy
Will my data be secure?
Security of your data, and knowing how we collect the information we collect, use, share and safeguard your data, 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 employ industry-recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 qualified for our dedication to protecting the security of customers and security. We make use of an advanced bank verification system that allows you to immediately verify your bank account details online, allowing us to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
An asset-based loan is when a business owner uses the assets they have to secure the funds for a loan. The asset can be either an asset belonging to the personal, like the family home, or a company asset such as a vehicle as well as a piece of machine.
The majority of banks, even the banks with the biggest size, prefer to secure loans against an asset. If you’re having trouble paying back the loan, then your asset may be sold by the lender. In essence it is the process of securing additional financing taking advantage of the value of what you already own.
Are I require security to get an business loan?
For loans that exceed $150K, the requirement for asset security is not required in advance to gain access to the funds However, we require a personal guarantee. require the personal guarantee. In the event that you fulfill your loan commitments (as stipulated in your loan contract document) and you are able to meet your obligations, asset security will never be required. For loans that exceed $150,000, generally, you are able to get a personal guarantee and security in the form of charges on assets.