FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Browns Plains Small Business Loans
Tell me about the Browns Plains Small Business Loans
Browns Plains unsecured loans offers amounts of between $5,000 and $100,000 with terms between 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?
Apply for the Small Business Loan in under 10 minutes via the internet or over the phone. You’ll get an answer within the same day and the funds could be in your account within 24 hours. Traditional company loans reference an annual rate of interest plus other fees and charges. This company loan is a cash-based loan which means you know in advance the total amount payable including any fees, interest or charges. This is then broken down into weekly or daily installment amount.
What can be the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually every company need, such as the management of cash flow, business improvements, advertising to purchase inventory or new equipment, for general working capital and so much more. The loan is not available for personal use.
Concerning Larger Browns Plains Business Loans
What is the Larger Browns Plains 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 for a fixed period of with a maximum of 36 months. Repayments are either weekly or fortnightly in order to accommodate the flow of cash.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit in this amount, your company needs to have been trading for at least 3 years, and have an annual income of $700K. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able to prove at the least 12 months of operating.
How can the funding be utilised?
A larger company loan can be used for almost all business reason, such as business remodeling, buying equipment or inventory, as general working capital and much more. The loan cannot be used for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. It’s as a result of an charge over assets, which could also include registration on the PPSR or registering as a caveat.
A director’s or personal guarantee is a commitment to repay credit that is generally based rather than specifying the security of a specific asset. The person who signs the ensure is personally liable in the event that the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It lists security interests that are that are registered for personal property (including objects or assets). The PPSR allows the priority of personal property assigned according to the date a registration of a security interest.
A caveat is a legal document that is filed to provide the legal claim on a property.
What exactly is a preapproval without Credit Check?
If you’re applying for larger company loans of more than $250,000 we may be able to provide an initial pre-approval that will help make the process. It is possible to get this done without credit checks and within 6 hours of the initial application. The pre-approval process is based on an initial assessment, which involves the answer to a series of financial health checks. This is in no way an offer, nor is it a guarantee of credit. A conditional approval is subject an assessment of your creditworthiness and any offer you might receive could be subject to different conditions.
Application process
Do I qualify for funds?
You can apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application in just a few minutes, and a dedicated business loan specialist will call you to assist you.
To be eligible for up to $100,000 you’ll need proof of identity (valid Driver’s License) as well as a valid NZBN/IRD as well as at least six months worth of bank statements.
Otherwise, 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 loan above $150K).
$250K-$500K: Details of the application, including credit consent, 12 month bank accounts, the IRD statements, last 2 years finalised financial statements, and interim financials for the current financial year including Aged Payables, Aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K to $100K) we typically offer an answer within one hour, provided you submit your request within standard business times and you allow us to make use of the advanced bank verification system link to instantly verify your bank details online. If you decide to send us copies of your bank statements we can offer the decision in just an company day.
For the Larger Business Loan ($100K and up) we may be likely to provide you with conditional pre-approval within 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 circumstances of each application. Certain offers have been approved in just 24 hours.
The fastest way can be make sure you apply during normal business hours. You can also permit us to use the advance bank verification to instantly check your bank’s information online. If you decide to upload copies of your bank statement, it takes a bit longer.
What is the time frame to receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer within one hour – provided you make your application at standard business time and let us make use of the advanced bank verification system to immediately verify your bank account information online. If you want to upload copies of your banking statements, we are able to provide an answer in just one business day.
For the Larger Business Loans ($100K or more) We may be able to offer you with pre-approval conditional to your application in around 6 hours. Once you’ve signed the pre-approval, the turnaround time is around 2-3 days for final approval. However, this may be quicker depending on the particular circumstances of each application. Some agreements have been approved in 24 hours.
The fastest method is to ensure you apply during normal business hours, and allow us to use our modern bank verification to verify your bank account information online. If you send us the copies of bank statements it may take a bit longer.
What’s the minimum amount I can borrow?
We provide loan amounts between $5,000 to $500,000. When you make an application for a particular amount, we look at a variety of factors to determine what is the well-being for your company and the level of repayments your company will be able to support. The amount you receive from the loan will be determined by the particular circumstances of your company.
When you submit an application for a particular amount, we look at a range of elements to determine how much we can lend you such as health for your business and the level of payments your company will be able to support. The amount you receive from your loan will be determined by the specifics for your business.
Fees & repayments
How do you charge for a business loan?
When you apply for one of our company credit, we will assess the risk profile of your business and provide you with a customised offer that includes the loan amount, the terms and interest rates. A business loan is a loan that is priced upfront therefore you will be aware in advance of the total amount due, which includes any costs, fees, or interest rates.
What is the factor that determines the price I’m charged?
The interest rates on business loans rates differ based on various factors such as the amount that is borrowed, what business assets the funds are used to purchase, the industry the business is operating in, how long the business has been operating for, whether the company has enough cash flow to cover the loan, and general health and creditworthiness of the business.
What are the cost?
There aren’t any hidden charges for our business loans, and you’ll know exactly how much you be required to pay, and when, 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 punctually).
We don’t charge an Application Fee. You are able to apply for a loan with absolutely no upfront cost and no obligation to proceed.
The Origination Fee covers the costs associated with the setting up and management of the loan. You are only charged this fee if you choose to proceed with the loan. Our Origination Fee is 2.5 percentage of the amount of loan.
Can I pay out the loan early?
You can decide to repay the entire amount of the loan in full at any time.
If you choose to pursue this option, please speak to our friendly business loans professionals. We will offer you with details on repayment along with an early payout estimate. The figure will be calculated as the sum of the principal amount remaining and any accrued interest at the time of early payout plus 1.5 percent of the principal balance and 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 offer repayments that are either daily or weekly. They are automatically deducted from your business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being transparent about the ways we gather information, use it, and exchange it, as well as ensure the security of your information is of paramount importance and is a crucial aspect 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 sensitive, personal and financial data and our funders are ISO 27001 qualified for our commitment to security for our clients and privacy. We use an advanced bank verification system to immediately verify the bank account details online so we can offer an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
The term "asset-based" refers to borrowing where a business owner makes use of the assets they have to secure the funding. The asset could be an individual property, such as the family home, or a business asset like a truck or piece or equipment.
The vast majority of banks, not just the big banks, tend to make loans secured by an asset. If you’re struggling to pay back the loan, your assets could be sold by the lender. In essence it is an opportunity to secure new financing by using the value of what you already have.
Should I need security to secure a company loan?
For loans up to $150K no asset security is required upfront to access the money, however we require a personal guarantee. require a personal guarantee. So long as you comply with your loan obligations (as stipulated in the loan contract), asset security will never be needed. If you take out loans in excess of $150K generally there is a personal ensure and security in the form an asset charge.