FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Brookwater Small Business Loans
Tell me how you can avail the Brookwater Small Business Loans
Brookwater unsecured loans provides the range of $5,000 to $100,000. Terms range from 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
What is this Unsecured Loan different from the traditional business loan?
You can apply to your Small Business Loan in under 10 minutes on the phone. You’ll receive a same day response and have the funds on your account within 24 hours. Traditional company loans are based on an interest rate per annum together with additional fees and charges. The company loan is an upfront priced loan so you will be aware of the total amount to be paid, including the interest, fees and charges. This is then divided into a daily or weekly amount to be paid back.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used to fulfill almost any company need, such as managing cash flows, business improvements, advertising to purchase inventory or new equipment, for general working capital and much more. The loan is not available to fund personal expenses.
About larger Brookwater Business Loans
What is the Larger Brookwater Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of for up to 36 months. Repayments are either weekly or fortnightly depending on your situation.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, which is calculated at 2.5 percent of the amount of the loan.
Can I get the Larger Business Loan?
To qualify for a loan in this amount, your business needs to be trading for at least 3 years with an annual turnover of $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 to prove at minimum 12 months of business.
How can the funds be utilised?
A larger company loan can be used for nearly all business need, including business renovations, purchase of inventory or new equipment, 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 required to obtain funding above $150,000. It’s by way of charge against assets, and could include registration in the PPSR or filing as a caveat.
A personal or director’s guarantee is a promise to pay off a credit line that is general in nature rather than stating the security of a specific asset. The person signing the guarantee is personally liable if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central registry run by the New Zealand Government. It contains security interests which are registered with respect to personal property (including the assets or goods). The PPSR permits preference over private property assigned according to the date a security interest has been registered.
Caveats are legal document filed to offer the legal claim against a property.
What is a pre-approval without Credit Check?
When you’re applying for a Larger Business Loan of more than $250,000, we may offer an initial pre-approval that will help smooth out the process. It is possible to apply for this without credit checks and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves you answering some financial health checks. It’s in no way an offer, nor is it a guarantee of credit. Acceptance without condition is subject to an assessment of your creditworthiness and any offer you may receive may be on different terms.
The application process
Are I eligible for funding?
You may be eligible for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand company (with a valid NZBN/IRD)
- must show at least six months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form in few minutes and a dedicated company loan specialist will contact you to assist you.
To be eligible for up to $100,000 you’ll need the right identification documents (valid Driver’s License) along with an NZBN/IRD that is valid and at least 6 months’ worth of bank statements.
For larger loan sizes, you’ll require:
$100K – $250K: Information about the application including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent twelve months of bank records, IRD statement Last 2 years’ finalised financial statements, plus interim current financial year financials, Aged Payables and Aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K and up) we usually offer an answer in just one hour if you make your application during quality company timings and permit us to make use of the advanced bank verification system link to instantly verify your bank information online. If you want to upload copies of your banking statements we can provide an answer within the span of one business day.
For Larger Business Loans ($100K up to $500,000) we may be likely to offer you with pre-approval conditional to your application in around 6 hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, it could be faster based on the particular circumstances of each application. Some offers have been approved in the space of 24 hours.
The quickest way to apply is to make sure you apply during normal company hours. Also, allow us to use our advanced bank verification system to check your bank’s information online. If you choose to upload duplicates of your banking statement, it will take a little longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K up to $100,000) we can often provide an answer in just one hour – as long as you submit your request within standard business hours and allow us to use the advanced bank verification system to instantly verify your bank’s information online. If you decide to send us copies of your bank statements we can provide an answer in as little as the span of one business day.
For Larger Business Loans ($100K or more) we might be capable of offer you with a conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval, the turnaround time is about 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Certain agreements have been approved in just 24 hours.
The fastest way would be to make sure you apply during normal business hours. Also, let us use the advanced bank verification system to instantly check your bank’s information online. If you choose to upload copies of your bank accounts, it will take a little longer.
What is the maximum amount I can borrow?
We offer loan amounts between $5,000 to $500,000. If you apply for a specific amount we will consider a number of elements for determining the health that is your company and the level of repayments that your business can support. The total amount of the loan will be determined by the particular circumstances of your company.
When you submit an application for a specific amount we consider a variety of aspects to assess the well-being of your company and the extent of payments your business is able to afford. The amount you receive from your loan will be contingent on the particular circumstances for your company.
Fees & repayments
What is the cost for an company loan?
If you decide to request our company loan, we will assess the risk profile of your business and offer you with a customised offer, including the loan amount, the terms and interest rates. A company loan is an upfront cost loan therefore you will be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What determines the rate that I am charged?
Interest rates for business loans rates vary due to factors including the amount borrowed, the business assets the money will be used for and the sector the business operates in, how long the company has been in operation, what percentage of the business has sufficient cash flow to support the loan, and also the overall well-being or financial standing of the business.
What are the fees?
There are no hidden costs for our business loans, and you’ll be aware of the amount you’ll need to pay, and when, starting from the first day. There’s no compounding and no extra fees (as long as you are able to make your payments punctually).
We do not charge an Application Fee. You are able to apply for a loan without any upfront costs or the obligation to take action.
The Origination Fee covers the costs associated with establishing and managing the loan. You are only charged this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Do I have the option of paying off the loan early?
You can decide to repay all of your loan at any point in time.
If you choose to take this route, please talk to one of our helpful company credit experts. We will offer you with details on repayment and an early payment figure. The figure will be calculated as the sum of the remaining principal amount and accrued interest to the time of the early payout in addition to 1.5 percent of the principal amount remaining plus any outstanding fees.
What is the process for repayments?
To help you avoid missing payment dates and to align with your cash flow cycle we provide payments that are either daily or weekly. They will be automatically deducted from your company account.
Security & privacy
Will my data be secure?
Security of your data, and being clear about how we collect data, process, exchange and secure your information, is vital and is an essential part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our commitment to protecting the security of customers and privacy. We make use of an advanced bank verification system link to immediately verify the bank account details online. This allows us to provide quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the company owner makes use of an asset that they own to make a loan. The asset may be an asset belonging to the personal, like the family home, or an business asset like a truck as well as a piece of machine.
The vast majority of banks, including the banks with the biggest size, prefer to guarantee loans against assets. If you have trouble paying back the loan, your assets could be transferred to the lender. In essence it’s the process of securing new financing by taking advantage of the value of what you already have.
Do I require security to get a business loan?
Up to $150,000 in loans it is not necessary to secure assets in advance to gain access to the funds however, we require a personal guarantee. require an individual guarantee. In the event that you fulfill your loan obligations (as stipulated in your loan contract document) Asset security will never be required. For loans that exceed $150,000, generally there is a personal ensure and security is provided in the form of charges on assets.