FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Bridgeman Downs Small Business Loans
Tell me what you think of the Bridgeman Downs Small Business Loans
Bridgeman Downs unsecured loans offers amounts of between $5,000 and $100,000 with terms between 3 and 24 months, cash flow friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from an traditional business loan?
It is possible to apply to get the Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and the funds could be in your account within 24 hours. Traditional company loans reference an annual rate of interest as well as other fees and charges. This company loan is a pre-paid 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 either a daily or weekly installment amount.
What could be the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any business need, such as managing cash flows, company remodeling, marketing to purchase inventory or new equipment, or as general working capital and so much more. The loan is not available to fund personal expenses.
Concerning Larger Bridgeman Downs Business Loans
What is the Larger Bridgeman Downs Business Loan?
The Larger Business Loan is a larger loan size to support company growth opportunities. The loan ranges 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’s the Origination Fee calculated?
A Larger Business Loan has an Origination Fee, which is determined 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, your business needs to be in operation for at least 3 years and generate an annual revenue of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) over 18 years or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of business.
What can I use the funding for?
A Larger Business Loan can be used to fund almost all company need, including business renovations, to purchase new equipment or inventory for general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is necessary for funding of more than $150,000. This is by taking a charge against assets and can be registered on the PPSR or registering as a caveat.
A director’s or personal guarantee is a guarantee to repay a loan which is general in nature, rather than specifying the security of a specific asset. The person 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 register run by the New Zealand Government. It contains security interests registered in respect of personal property (including the assets or goods). The PPSR allows the priority of personal property granted in accordance with the date on which a registration of a security interest.
The caveat can be described as a formal form of document to offer notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re requesting the Larger Business Loan that exceeds $250K we may be able to provide an initial pre-approval that will help simplify the process. It is possible to get this done without a credit check, and within 6 hours of your initial application. The pre-approval is based upon an initial assessment that includes you answering some financial health questions. This is in no way an offer, nor is it a guarantee of financing. A conditional approval is subject an assessment of your creditworthiness and any offer that you might receive could be based on different conditions.
Application process
Do I have the right to receive funds?
You may be eligible 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)
- can demonstrate at least 6 months worth of trade (for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The application process is fast and easy. Simply complete the online form in just a few minutes, and an experienced company expert in lending will contact you to assist you.
For a loan of up to $100,000 you’ll need identification details (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
If you’re looking for loans with larger 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: Application details including credit consent twelve months of bank records, IRD statements Last 2 years’ finalised financial statements, in addition to interim current financial year financials, Aged Payables and Aged Receivables reports.
How soon will I hear a decision?
For an unsecured loan ($5K to $100K) we typically provide an answer within one hour – as long as you submit your request at standard company hours and allow us to utilise the advanced bank verification system link to instantly verify your bank details online. If you opt to send us copies of your bank statement, we’ll offer the decision within 1 company day.
For the Larger Business Loan ($100K and up) we may be capable of provide you with pre-approval conditional to your application in about 6 hours. After you’ve signed your pre-approval form, it will take approximately 2-3 days to receive final approval. However, it could be faster based on the circumstances of each application. Some agreements have been approved in the space of 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours. Also, allow us to use our advance bank verification link to verify your bank account information online. If you choose to upload copies of your bank statements , it takes a bit longer.
How quickly will I receive the money?
For the Small Business Loan ($5K and up) we can often provide an answer in just one hour if you apply at normal business hours and allow us to use the bank verification system to instantly verify your bank details online. If you want to send us copies of your bank statements we can offer the decision in just 1 business day.
For Larger Business Loans ($100K up to $500,000) we may be able to provide you with conditional pre-approval in about six hours. Once you have signed the pre-approval, the turnaround time is approximately 2-3 days to receive final approval. However, this could be shorter based on the circumstances of each application. Certain offers have been approved within 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours and allow us to use the advanced bank verification system to confirm your bank details online. If you choose to upload the copies of bank statements it can take a bit longer.
What’s the minimum amount I can borrow?
We offer loans ranging from $5,000 and $500,000. When you submit an application for a certain amount we will consider a number of aspects in order to assess the health of the business and the level of repayments that your business can afford. The amount you receive from your loan will depend on the particular circumstances of your business.
If you apply for a set amount, we consider a variety of variables to assess how much we can lend you such as well-being that is your business as well as the amount of repayments your business can support. The amount you receive from your loan will be determined by the particulars the business.
Fees & repayments
How much should you charge for an company loan?
When you apply for business loans with us company loans, we’ll assess the risk assessment of your business and provide you with a customised proposal that includes the amount of loan, the term and the interest rates. The business loan is an upfront cost loan so you will know in advance the total amount you will have to pay, including charges, interest rates or fees.
What is the basis for the rate I will be charged?
Business loan interest rates vary due to factors like the amount of money of money borrowed, the business assets the money are used to purchase in addition to the industry that the business operates in, how long the company has been operating and what percentage of the company has enough cash flow to pay for the loan, and also the overall health as well as creditworthiness business.
What are the charges?
There aren’t any hidden costs for our company loans. You’ll know exactly how much it is that you be required to pay, and when, from day one. There’s not any compounding interest and no extra fees (as as long as you pay your payments punctually).
We do not charge an Application Fee. You are able to make an application for loans with with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated with setting up and managing the loan. This is only a fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay out the loan in advance?
You can choose to repay the entire amount of the loan at any point in time.
If you are deciding to take this route, please speak to our friendly business loan specialists. The professionals will offer you with details for repayment and an early payout figure. This is calculated as the total of the principal balance and accrued interest to the time of early payout and 1.5 percent of the principal balance and any outstanding fees.
How do you make repayments work?
To ensure that you don’t miss payments and to work with your cash flow cycle we provide repayments either daily or weekly. These are automatically withdrawn from the nominated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and being clear about how we collect data, process, exchange and ensure the security of your information is vital and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption standards to secure your personal, sensitive as well as financial data. Our funders are ISO 27001 certified for our dedication to the security of our clients as well as their security. We make use of an advanced banking verification system to immediately confirm your bank account information online so we can offer rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the business owner utilises an asset they own to secure the funds for a loan. The asset could be an individual property, such as the family home, or it could be a company property like a truck or piece of equipment.
The vast majority of lending institutions, even the banks with the biggest size, prefer to make loans secured by assets. If you’re having trouble paying back the loan then the asset could be offered for sale by the lender. In essence, it is means of securing new financing by using the worth of the asset you already own.
What do I need security to get a company loan?
For loans of up to $150,000, the requirement for asset security is not required prior to the loan’s access, however we do require a personal guarantee. So long as you comply with your loan obligations (as specified in your loan contract) Asset security is not needed. If you take out loans in excess of $150K generally, you are able to get personal ensure and security in the form a charge over assets.