FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Brassall Small Business Loans
Let me know about the Brassall Small Business Loans
Brassall unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 month and cash flow-friendly repayments which can be made daily or weekly.
How is what makes the Unsecured Loan different from an traditional business loan?
The application for this Small Business Loan in under 10 minutes online or over the phone, receive an answer within the same day and the funds could be on your account within 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. The company loan is a loan that is priced upfront therefore you’ll know ahead of time the total amount due, which includes the interest, fees and charges. Then, it is broken down into a daily or weekly payment amount.
What could the Small Business Loan be used for?
A Small Business Loan can be used for virtually any company need, such as cash flow management, company renovations, marketing to purchase inventory or new equipment, for general working capital, and much more. The loan cannot be used for personal reasons.
About the Larger Brassall Business Loans
What is the Larger Brassall Business Loan?
The Larger Business Loan is a larger size of loan that can be used to fund business growth opportunities. Loans range between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are weekly or fortnightly depending on you cashflow.
How’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large the business needs to have been operating for a minimum of 3 years and have an annual turnover of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) who is over the age of 18, own a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can the funding be used for?
A larger business loan is a great option for almost every company purpose including business remodeling, buying inventory or new equipment or as general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan a secured loan?
Asset security is required to obtain funding above $150,000. This is in the form of a charge against assets, which could also include registering this with the PPSR or filing a caveat.
A personal or director’s ensure is a guarantee to repay credit that is generally in nature rather than stating security over an asset. The person who is signing the ensure is personally liable in the event that the company borrower is unable to make the repayment.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests granted to individuals who own personal property (including items or assets). The PPSR permits the priority of personal property granted according to the date a security interest was registered.
Caveats are legal form of document to provide the public notice of a legal claim to property.
What is a pre-approval without Credit Check?
When you’re applying for a Larger Business Loan that exceeds $250K we may be able to provide an initial pre-approval to simplify the process. We may be able to get this done without credit checks and within 6 hours of the initial application. This pre-approval is made based on an initial evaluation that involves the answer to a series of financial well-being checks. This is in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to an extensive credit evaluation and any offer you might receive could have different terms.
Application process
Do I have the right to receive funds?
You are eligible to apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- must show at least six months worth of trade (for for the unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is simple and easy. Simply complete the online form within a few minutes and a dedicated company lending specialist will contact you to guide you.
To apply for up $100,000 you’ll require identification details (valid Driver’s License) and an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll also need:
$100K – $250K: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K – $500K: Information on the application including credit consent twelve months bank statement, an IRD statements Last 2 years’ finalised financial statements, plus interim financials from the current financial year, Aged Payables and Aged Receivables reports.
How soon will I hear an answer?
For an unsecured loan ($5K or more) We can usually offer an answer within an hour if you submit your request at standard company timings and you allow us to utilise the advanced bank verification system to instantly verify your bank’s information online. If you opt to submit copies of your bank statement, we’ll provide the decision within an business day.
For Larger Business Loans ($100K to $500K) we might be in a position to provide the conditional pre-approval in around six hours. Once you’ve signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this can be quicker based on the specifics of each application. Certain offers have been approved in less than 24 hours.
The fastest way can be make sure you apply during normal business hours. Also, allow us to use the modern bank verification link to verify your bank information online. If you choose to send us documents from your account statements it takes a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K or more) we can often offer an answer in just one hour, provided you apply within normal business timings and let us use the bank verification system link to instantly verify your bank information online. If you decide to upload copies of your banking statements, we will be able to provide the decision in just one business day.
If you are applying for Larger Business Loans ($100K to $500K) we might be able to offer you with a conditional pre-approval within 6 hours. After you’ve signed the pre-approval document, you will require to wait approximately 2-3 days to receive final approval. However, it could be faster based on the specifics of each application. Some transactions have received approval in the space of 24 hours.
The fastest way is to make sure you apply during standard business hours. You can also let us use the sophisticated bank verification to check your bank’s information online. If you send us copies of your bank accounts, it will take a little longer.
How much can I borrow?
We offer the loan amount between $5,000 to $500,000. When you submit an application for a specific amount we will consider a number of factors in order to assess what is the well-being for your business as well as the amount of payments your company is able to afford. The amount you receive from your loan will depend on the specifics that are unique to your business.
If you apply for a certain amount, we take into consideration a variety of elements to determine your well-being for your company and the extent of repayments your company can support. The amount you receive from the loan will be determined by the specific circumstances the business.
Fees & repayments
How much do you charge for a business loan?
If you decide to make an application for the company loans, we’ll assess the risk assessment of your company and provide an individualised offer, including the amount of loan, the term and the interest rates. This business loan is an upfront-priced loan and you’ll be aware of the total amount payable including any charges or interest.
What is the basis for the rate I am charged?
Business loan interest rates depend on several factors including the amount that is borrowed, what company assets the funds are used to purchase as well as the field the company is operating in, how long the business has been operating, how long the business has enough cash flow to pay for the loan, and also the general well-being or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges for our business loans, and you’ll know exactly how much it is that you need to pay and when, starting from the very first day. There’s no compounding and no additional fees (as as long as you pay your payments punctually).
We do not charge an Application Fee. You can get a cash loan with with no upfront cost or commitment to apply.
The Origination Fee is the cost associated with establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay out the loan early?
You can choose to repay the entire amount of your loan in full at any time.
If you do decide to take this route, please call our helpful business loan specialists. They’ll provide you with details on repayment and an early payout figure. This is calculated as the total of the principal balance plus any accrued interest as of the time of the early payout plus 1.5 percent of the principal amount remaining and any fees that remain unpaid.
What are the repayment methods?
In order to help you avoid missing payment dates and to align with your cash flow general, we provide repayments either weekly or daily. These are automatically withdrawn from your nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being transparent about how we collect data, process, exchange and safeguard your data, is of paramount importance and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your personal, sensitive as well as financial data. Our funders are ISO 27001 qualified for our dedication to customer security and security. We use an advanced bank verification system to immediately confirm your bank account information online to offer a fast response.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing occurs when the business owner makes use of the assets they have to obtain a loan. The asset can be an individual asset, such as the family home, or a company asset like a truck or piece or equipment.
The majority of the lenders including the largest banks, are inclined to secure loans against an asset. If you have trouble paying back the loan then your asset may be sold by the lender. In essence it is means of securing additional financing making use of the value of what you already have.
Should I require security for an business loan?
For loans of up to $150K, there is no requirement for asset security prior to the loan’s access However, we do need an individual guarantee. As long as you follow your loan obligations (as stipulated in your loan contract document) the security of assets is not required. For loans that exceed $150K, generally there is personal ensure and security in the form the charge of assets.