FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Brookfield Small Business Loans
Let me know about the Brookfield Small Business Loans
Brookfield unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
How is what makes the Unsecured Loan different from an traditional company loan?
Apply to get this Small Business Loan in under 10 minutes on the internet or by phone. You will receive an instant response and the money could be in your account within 24 hours. Traditional business loans have an interest rate per annum together with additional fees and charges. We offer a company loan is an upfront priced loan so you will know ahead of time the total amount due, which includes any fees, charges or charges. Then, it is broken down into either weekly or daily payment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost any business need, such as control of cash flow business remodeling, marketing for purchasing inventory or new equipment, as general working capital and much more. The loan is not available to fund personal expenses.
About larger Brookfield Business Loans
What is the Larger Brookfield Business Loan?
The Larger Business Loan is a larger loan size to support company expansion opportunities. The loan ranges from $100,000 to $500,000 over a fixed term with a maximum of 36 months. Repayments are scheduled weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
The Larger Business Loan has an Origination Fee that is determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount, your business needs to have been trading for at least 3 years and generate an annual revenue of $700K. The applicant must also be a New Zealand Citizen (or Permanent Resident) at least 18 years old, own a New Zealand business (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funds be used for?
A Business Loan of a larger size can be used for almost every company need, including company remodeling, buying equipment or inventory, as general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that requires security?
Asset security is necessary for funding of more than $150,000. This can be done in the form of a charge over assets, and may be registered on the PPSR or making a caveat.
A director’s or personal ensure is a commitment to pay back a loan that is general in nature rather than specifying security over an asset. The person who signs the guarantee is personally responsible if the company the borrower fails to pay back the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests granted to individuals who own personal property (including goods or assets). The PPSR allows the priority of personal property granted depending on the date that a security interest was registered.
An affidavit is an official form of document to offer the public notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re seeking an enterprise loan of more than $250K we may be able to provide an initial pre-approval that will help simplify the process. We could be able to apply for this without a credit check, and within 6 hours of the initial application. The pre-approval is based upon an initial assessment that includes the answer to a series of financial health questions. This is not an offer of credit or guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer you are offered could be subject to different conditions.
Application process
Are I eligible for funding?
You may apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, 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 trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is simple and easy. Complete the online form within a couple minutes, and a dedicated company expert in lending will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll need proof of identity (valid Driver’s License) along with an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K-$250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K to $500K: Details for application including credit consent and 12 months bank statement, an IRD statements and the last two years’ finalised financial statements, plus interim financials from the current financial year such as age-related payables and aged Receivables reports.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) We can usually offer an answer within an hour if you apply within quality company hours and let us use the advanced bank verification system link to immediately verify your bank account information online. If you want to send us copies of your bank statements we can offer the decision in just the span of one company day.
For the Larger Business Loan ($100K to $500K) we may be able to offer you with conditional pre-approval within 6 hours. Once you have signed the pre-approval document, you will require to wait between 2 and 3 days for the final approval. However, it could be faster based on the circumstances of each application. Some offers have been approved within just 24 hours.
The fastest way for you to apply is ensure you apply during standard company hours, and let us use the advanced bank verification system link to verify your bank information online. If you opt to send us duplicates of your banking accounts, it may take a bit longer.
What is the time frame to receive the money?
For the Small Business Loan ($5K or more) we can often provide an answer in just one hour – provided you make your application in standard business time and you allow us to use the bank verification system link to instantly verify your bank’s information online. If you opt to upload copies of your banking statements, we’ll be able to offer the decision within one business day.
If you are applying for Larger Business Loans ($100K and up) we might be able to provide you with conditional pre-approval within six hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this can be faster depending on the particular circumstances of each application. Some offers have been approved within the space of 24 hours.
The quickest method can be make sure you apply during normal business hours, and allow us to use the advanced bank verification system to verify your bank information online. If you opt to send us copies of your bank statement, it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. When you submit an application for a certain amount we consider a variety of factors in order to assess your health of your business and the level of the repayments your business is able to afford. The amount you receive from your loan will depend on the specifics for your business.
When you apply for a set amount, we look at a range of variables to determine how much we can lend you such as health of the business and the amount of repayments that your business can support. The amount you receive from your loan will be determined by the particular circumstances the business.
Fees & repayments
How much do you charge for an business loan?
When you request our business credit, we will assess the risk profile the company and provide you with a customised offer that includes the amount of loan, the term and interest rates. The business loan is an upfront-priced loan so you will know in advance the total amount payable including any interest rates, fees or charges.
What determines the amount I will be charged?
The interest rates on company loans rates differ based on various variables like the amount to be that is borrowed, what company assets the funds are used to purchase as well as the field the company operates in, the long the company is in operation, what percentage of the company has enough cash flow to pay for the loan, and the general well-being or creditworthiness of the business.
What are the fees?
There aren’t any hidden charges with our business loans. You’ll be aware of the amount it is that you be required to pay and when, starting from day one. There’s no compounding interest, and the loan comes with no additional fees (as as you make your payments punctually).
We don’t charge an Application Fee. You can get a cash loan absolutely no upfront cost and no the obligation to take action.
The Origination Fee covers the costs associated in 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% of the amount of the loan.
Can I repay the loan early?
You can decide to repay the entire amount of your loan at any point in time.
If you choose to do this please talk to one of our helpful company lending professionals. We will provide you with details for repayment as well as an early payout amount. It will be calculated using the sum of the principal balance plus any accrued interest as of the time of the early payout in addition to 1.5% of the remaining principal and any outstanding fees.
How do you make repayments work?
To make sure that you don’t miss payment dates and to align with your cash flow standard, we provide repayments either weekly or daily. These are automatically withdrawn from your business account.
Security & privacy
Will my data be secure?
Security of your data, and knowing the ways we gather data, process, exchange and secure your information, is crucial and a vital part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our dedication to customer security and privacy. We employ an exceptionally sophisticated bank verification system to immediately verify your bank account details online to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
The term "asset-based" refers to borrowing where a business owner uses the assets they have to secure the loan. The asset can be an individual property, such as the family home or an business property like a truck as well as a piece of machine.
The majority of lending institutions, even the big banks, tend to make loans secured by an asset. If you’re struggling to pay back the loan, then your assets could be transferred to the lender. In essence it is means of securing new financing by using the value of what you already own.
Should I need security for an business loan?
Up to $150,000 in loans there is no requirement for asset security in advance to gain access to the funds but we do need the personal guarantee. If you adhere to your loan commitments (as specified in your loan contract document) Asset security is not needed. If you take out loans in excess of $150K generally there is personal guarantee and security in the form charges on assets.