FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Bracken Ridge Small Business Loans
Tell me what you think of the Bracken Ridge Small Business Loans
Bracken Ridge unsecured loans provides amounts between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from the traditional company loan?
You can apply for the Small Business Loan in under 10 minutes on the phone. You’ll receive an immediate response, and the money could be available in just 24 hours. Traditional company loans reference an annual interest rate plus other fees and charges. This business loan is an upfront priced loan therefore you’ll know ahead of time the total amount due, which includes any fees, interest or charges. Then, it is broken down into either weekly or daily repayment figure.
What can the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any company need, such as the management of cash flow, company improvements, advertising for purchasing inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal reasons.
About Larger Bracken Ridge Business Loans
What is the Larger Bracken Ridge Business Loan?
The Larger Business Loan is a larger loan size to support business growth opportunities. Loans range between $100,000 and $500,000 with a fixed-term for up to 36 months. The repayments are made weekly or fortnightly to work with you cashflow.
How’s the Origination Fee determined?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percent of the amount of the loan.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan that is this large the business needs to be in operation for at least 3 years and generate an annual revenue of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
What can the funds be used for?
A Larger Business Loan is a great option for almost all business reason, such as company remodeling, buying new equipment or inventory as well as for general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is necessary for accessing funds over $150,000. It’s in the form of a charge over assets, and could be registered through the PPSR or the registration of a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is general in nature, rather than stating the security for a particular asset. The person who is signing the guarantee is personally accountable if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register that is operated by the New Zealand Government. It records security interests that have been registered in respect of personal property (including objects or assets). The PPSR gives the priority of personal property assigned in accordance with the date on which a security interest was registered.
A caveat is a legal document filed to offer the public notice of a legal claim against a property.
What is a pre-approval minus Credit Check?
If you’re applying for the Larger Business Loan of more than $250,000, we may offer an initial pre-approval in order to make the process. We may be able to apply for this without a credit check, and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves you answering a few financial well-being questions. It’s not an offer of credit or guarantee of credit. Unconditional approval is subject to an assessment of your creditworthiness and any offer you receive could be subject to different conditions.
The application process
Are I eligible for funding?
You may be eligible for a business loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (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 quick and easy. Just fill out the online application within a couple minutes, and a dedicated business lending specialist will contact you to help you.
To be eligible for up to $100,000 you’ll need ID details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least six months worth of bank statements.
For larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if you have a loan of more than $150K).
$250K to $500K: Application details including credit consent as well as 12 months of bank records, IRD statements, last 2 years finalised financial statements, and interim financials from the current financial year such as age-related payables and aged Receivables summary.
How quickly will I receive a decision?
For an unsecured loan ($5K up to $100,000) we can often offer a response in one hour, provided you submit your request at standard company timings and let us utilise the bank verification system to instantly verify your bank details online. If you want to submit copies of your bank statement, we’ll offer an answer within just an business day.
For the Larger Business Loan ($100K up to $500,000) we may be likely to provide you with conditional pre-approval in about six hours. After you’ve signed the pre-approval form, it will take approximately 2-3 days to receive final approval, however this can be quicker based on the particular circumstances of each application. Some deals have been approved within less than 24 hours.
The most effective method would be to ensure you apply during normal business hours, and let us use the advance bank verification link to instantly confirm your bank details online. If you send us documents from your account statements it will take a little longer.
How quickly will I receive the cash?
For the Small Business Loan ($5K up to $100,000) We can usually provide a response in one hour if you make your application in normal business hours and permit us to utilise the advanced bank verification system link to instantly verify your bank details online. If you decide to submit copies of your bank statements, we are able to offer a decision in just an business day.
If you are applying for Larger Business Loans ($100K and up) we may be capable of offer you with pre-approval conditional to your application in around six hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however it could be faster based on the particular circumstances of each application. Certain deals have been approved in just 24 hours.
The most effective method can be make sure you apply during normal business hours, and allow us to use the sophisticated bank verification link to check your bank’s information online. If you choose to send us documents from your account statement, it will take a little longer.
What’s the minimum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. When you submit an application for a certain amount, we will consider a number of factors to determine your well-being of the business and the extent of repayments your business will be able to support. The total amount of your loan will be contingent on the specific circumstances of your company.
When you make an application for a particular amount, we will consider a number of variables to assess your health of the business and the level of repayments that your business can support. The amount you receive from your loan will be contingent on the particulars that are unique to your company.
Fees & repayments
How much should you charge for the cost of a company loan?
When you make an application for the company loans, we’ll assess the risk profile of your company and provide you with a tailored offer that includes the amount of loan, the term and the interest rates. The business loan is an upfront priced loan and you’ll know in advance the total amount due, which includes any costs, fees, or interest rates.
What determines the rate that I pay?
The interest rates on company loans rates depend on a variety of factors including the amount borrowed, what business assets the funds are used to purchase and the sector the business is operating in, how long the business is in operation and whether the business has sufficient cash flow to pay for the loan, and the general health as well as creditworthiness company.
What are the fees?
There aren’t any hidden charges with our business loans, and you’ll be aware of the amount it is that you be required to pay, and when, starting from the first day. There’s no compounding interest and no additional fees (as as long as you pay your payments on time).
We do not charge an application fee. You are able to request a credit loan no cost upfront or any obligation to sign up.
The Origination Fee covers the expenses involved with setting up and managing the loan. It is only charged for this cost if you take out the loan. Our Origination Fee is 2.5 percentage of the loan amount.
Do I have the option of paying off the loan early?
You can repay the total amount of your advance loan at any time.
If you decide to do this please talk to one of our helpful company lending professionals. They will offer you with the details of your repayment and an early payment figure. It will be calculated using the sum of the principal balance and the accrued interest up to the time of the early payout, plus 1.5% of the principal amount remaining as well as any outstanding fees.
What are the repayment methods?
To help you avoid missing payments and to work with your cash flow standard, we offer repayments either daily or weekly. They will be automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Protecting your information, and being upfront about the ways we gather data, process, exchange and safeguard your data, is of huge importance and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to protect your personal, sensitive financial information and our funders are ISO 27001 certified for our dedication to the security of our customers as well as their security. We employ a highly sophisticated bank verification system link to immediately verify your bank account information online, allowing us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where an company owner utilises assets they own to secure the funding. The asset can be an individual asset, such as the family home or it could be a business asset such as a truck or piece of equipment.
The vast majority of lending institutions, even the big banks, tend to guarantee loans against assets. If you’re struggling to pay back the loan, your assets could be taken over by the lender. In essence it is an opportunity to secure additional financing using the value of what you already have.
Should I need security to secure a company loan?
For loans that exceed $150,000, the requirement for asset security is not required in advance to gain access to the funds but we do need a personal guarantee. In the event that you fulfill your loan obligations (as detailed in your loan contract document) Asset security will never be required. For loans of over $150K typically, you will need personal guarantee and security is provided in the form of an asset charge.