FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Brighton Small Business Loans
Tell me how you can avail the Brighton Small Business Loans
Brighton unsecured loans provides amounts between $5,000 and $100,000. Terms range from 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
How is the Unsecured Loan different from the traditional business loan?
The application for your Small Business Loan in under 10 minutes online or by phone. You will receive an instant response and the money could be available in just 24 hours. Traditional business loans refer to an annual rate of interest together with additional fees and charges. The business loan is an upfront priced loan so you will know in advance the total amount to be paid, including the interest, fees and charges. This is then broken down into either a daily or weekly repayment figure.
What could be the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business purpose including the management of cash flow, company remodeling, marketing to purchase inventory, new equipment, to fund general working capital and so much more. The loan cannot be used for personal reasons.
About the Larger Brighton Business Loans
What is the Larger Brighton Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly in order to accommodate you cashflow.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee that is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan of this size, your company needs to have been operating for at least three years and have an annual turnover of at least $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able to prove at minimum 12 months of continuous trading.
How can the funding be utilised?
A large company loan is a great option for almost every business need, including company improvements, purchasing inventory or new equipment, as general working capital and so much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is required to obtain funding above $150,000. This is by way of charge against assets, which could also include registering this with the PPSR or filing as a caveat.
A director’s or personal ensure is a promise to repay a loan which is general in nature, rather than stipulating the security for a particular asset. The person signing the ensure is personally liable if the company lender is not able to make the repayment.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It contains security interests which are registered with respect to personal property (including goods or assets). The PPSR gives prioritisation over property that is personal to be assigned according to the date the registration of a security interest.
An affidavit is an official form of document to offer an official notice of a claim to a property.
What is a pre-approval without Credit Check?
If you’re applying for an enterprise loan that is greater than $250,000, we may offer an initial pre-approval that will help ease the process. We could be able to apply for this without a credit check, and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves the answer to a series of financial well-being checks. It is neither an offer nor a guarantee of credit. Acceptance without condition is subject to an assessment of your creditworthiness and any offer that you may receive may have different terms.
Application process
Do I have the right to receive funds?
You are eligible to apply for an business 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 prove at least 6 months worth of trade (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K to $500K)
How do I apply?
The application process is quick and easy. Complete the online form within a couple minutes, and an experienced business credit specialist will contact you to guide you.
To apply for up to $100,000 you’ll need proof of identity (valid Driver’s Licence) along with an active NZBN/IRD, and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll also require:
$100K to $250K: Information about the application including credit consent, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent, 12 months of bank records, IRD statements Last 2 years’ finalised financial statements, and interim financial statements for the current year including Aged Payables, Aged Receivables summaries.
How quickly will I receive an answer?
For an unsecured loan ($5K to $100K) we can often offer a response in one hour – as long as you make your application in standard company hours and you allow us to make use of the advanced bank verification system to instantly verify your bank’s information online. If you opt to upload copies of your bank statement, we’ll provide an answer in as little as one business day.
If you are applying for a Larger Business Loan ($100K or more) we may be in a position to provide you with conditional pre-approval in around 6 hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Certain agreements have been approved in just 24 hours.
The fastest way would be to make sure you apply during standard business hours and allow us to use our advance bank verification link to instantly verify your bank account information online. If you choose to upload the copies of bank accounts, it takes a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) we usually provide a response in one hour, provided you make your application within standard business hours and permit us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you decide to upload copies of your banking statements, we are able to offer a decision within 1 business day.
If you are applying for Larger Business Loans ($100K up to $500,000) we may be in a position to offer you with conditional pre-approval within six hours. After you’ve signed the pre-approval document, you will need to wait approximately 2-3 days to receive final approval, however this could be shorter based on the specifics of each application. Some agreements have been approved in just 24 hours.
The quickest method would be to make sure you apply during normal business hours, and allow us to use the advance bank verification to instantly confirm your bank details online. If you opt to send us copies of your bank accounts, it may take a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a particular amount, we look at a variety of elements for determining how much we can lend you well-being of your company and the extent of the repayments your business can afford. The amount you receive from the loan will be determined by the particular circumstances for your company.
If you apply for a certain amount, we look at a range of factors to determine the health that is your company as well as the amount of repayments that your company can afford. The amount you receive from the loan will be determined by the specifics for your company.
Fees & repayments
How much do you charge for a business loan?
When you make an application for the business financing, we will assess the risk profile that you have for your company and provide you with a customised proposal that includes the loan amount, the terms and the interest rates. The business loan is an upfront cost loan and you’ll know in advance the total amount due, which includes any interest rates, fees or charges.
What is the factor that determines the price I pay?
Interest rates for business loans rates depend on a variety of factors like the amount of money borrowed, what business assets the money are used to purchase and the sector the company operates in, the long the business has been operating as well as whether the company has enough cash flow to pay for the loan, and the general health as well as creditworthiness business.
What are the costs?
There aren’t any hidden costs for our business loans, and you’ll be aware of the amount it is that you need to pay, and when, starting from the very first day. There’s no compounding interest, and the loan comes with no additional fees (as long as you make your payments in time).
We do not charge an application fee. You can apply for a loan with no upfront cost or the obligation to take action.
The Origination Fee is the cost associated with the setting up and management of the loan. This is only a fee if you proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I repay the loan in advance?
You can choose to repay the entire amount of the loan early at any time.
If you choose to pursue this option, please contact our helpful business credit professionals. We will offer you with the details of your repayment and an early payout figure. This will be calculated as the total of the principal amount remaining and the accrued interest up to the time of the early payout plus 1.5 percent of the principal balance as well as any outstanding fees.
What are the repayment methods?
To make sure you do not miss payment dates and to align your cash flow cycle we provide payments that are either weekly or daily. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my information be secure?
Security of your data, and making it clear how we collect information, use it, and exchange it, as well as protect your information, is of huge importance and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption protocols to safeguard your sensitive, personal financial and other data. Our funders are ISO 27001 certified for our commitment to security for our clients and security. We utilise a sophisticated banking verification system to instantly verify your bank account details online so we can provide an immediate response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the business owner uses assets they own to get the loan. The asset can be an asset belonging to the personal, like the family home, or a business property like a truck or other piece of machinery.
The majority of the lenders including the big banks, tend to make loans secured by an asset. If you’re struggling to pay back the loan, the asset might be sold by the lender. In essence it is an opportunity to secure additional financing making use of the value of what you already own.
Do I require security to secure an company loan?
For loans that exceed $150K, the requirement for asset security is not required upfront to access the money but we do require a personal guarantee. In the event that you fulfill the terms of your loan (as stipulated in your loan contract document) and you are able to meet your obligations, asset security will never be required. If you take out loans in excess of $150,000 generally, there is a personal guarantee and security that is in the form a charge over assets.