FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Buccan Small Business Loans
Tell me how you can avail the Buccan Small Business Loans
Buccan unsecured loans offers the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
How is how is the Unsecured Loan different from a traditional business loan?
It is possible to apply for the Small Business Loan in under 10 minutes on the internet or over the phone, receive an instant response and the money could be available in just 24 hours. Traditional business loans have an annual rate of interest as well as other fees and charges. The business loan is a cash-based loan so you will know ahead of time the total amount payable including any fees, charges or charges. Then, it is divided into a daily or weekly amount to be paid back.
What could the Small Business Loan be used for?
It is a Small Business Loan can be used for almost any business need, such as the management of cash flow, company remodels and marketing, to purchase inventory or new equipment, for general working capital and much more. The loan cannot be used for personal purposes.
About Larger Buccan Business Loans
What is the Larger Buccan 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 with a fixed-term 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 calculated at 2.5 percent of the loan amount.
Can I get the Larger Business Loan?
To qualify for a loan in this amount the company needs to have been operating for a minimum of 3 years, and have an annual income of $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 business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of business.
How can the funds be utilised?
A Business Loan of a larger size is a great option for almost every business purpose including company renovations, to purchase new equipment or inventory for general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. It is usually as a result of an charge on assets, and could include the registration of this with the PPSR or the registration of a caveat.
A personal or director’s ensure is a commitment to repay credit that is generally based rather than stating the security of a specific asset. The person who signs the guarantee is personally accountable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It reflects security interests which are registered with respect to personal property (including objects or assets). The PPSR permits preference over private property assigned depending on the date that a registration of a security interest.
A caveat is a legal document that is filed to provide notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for the Larger Business Loan that is greater than $250K it is possible to offer an initial pre-approval to smooth out the process. It is possible to do this without a credit verification and within six hours of your initial application. This pre-approval is based on an initial evaluation that involves answering a couple of financial health checks. This is in no way an offer, nor is it a guarantee of financing. Unconditional approval is subject to an assessment of your creditworthiness and any offer you may receive may be based on different terms.
The 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 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of trading (for the unsecured loan $5K – $100K) or three 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 in few minutes and a dedicated business loan specialist will be in touch to help you.
To apply for up to $100,000 you’ll require ID details (valid Driver’s License) along with an active NZBN/IRD, and at least 6 months’ worth of bank statements.
If you’re looking for loans with larger sizes, you’ll need:
$100K – $250K: Details of application, including credit consent, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details for application including credit consent and 12 months of bank statements, IRD statements Last 2 years’ finalised financial statements, plus interim financials from the current financial year as well as Aged Payables and Receivables summary.
How soon will I hear a decision?
For an unsecured loan ($5K up to $100,000) We can usually provide a response in one hour – as long as you apply at quality company time and you allow us to utilise the bank verification system to instantly verify your bank information online. If you decide to upload copies of your banking statements , we will be able to offer a decision within the span of one company day.
For the Larger Business Loan ($100K or more) we may be likely to provide you with a conditional pre-approval in about 6 hours. After you’ve signed the pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this could be shorter based on the particular circumstances of each application. Certain offers have been approved in 24 hours.
The fastest way can be ensure you apply during normal company hours and allow us to use our modern bank verification to verify your bank information online. If you choose to upload copies of your bank statement, it can take a bit longer.
How soon will I receive the cash?
For the Small Business Loan ($5K up to $100,000) we typically provide an answer within one hour – provided you submit your request within standard business hours and you allow us to use the bank verification system link to immediately verify your bank account information online. If you opt to upload copies of your bank statements we can provide the decision in just 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 pre-approval conditional to your application within 6 hours. Once you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval, however it could be faster based on the specifics of each application. Some deals have been approved within the space of 24 hours.
The fastest way can be make sure you apply during normal business hours and allow us to use the advanced bank verification system to verify your bank account information online. If you choose to send us the copies of bank statement, it can take a bit longer.
What’s the minimum amount I can borrow?
We provide loans ranging from $5,000 to $500,000. When you submit an application for a certain amount, we will consider a number of factors that determine how much we can lend you well-being for your business and the extent of payments your company is able to afford. The total amount of the loan will be determined by the specifics of your business.
When you submit an application for a specific amount we look at a range of aspects to assess the well-being that is your company and the level of repayments your business is able to afford. The total amount of your loan will depend on the particular circumstances the company.
Fees & repayments
How do you charge for an business loan?
If you decide to apply for the business credit, we’ll assess the risk assessment the company and provide you with a customised proposal that includes the amount of the loan, the duration and the interest rates. It is a company loan is a loan that is priced upfront which means you know in advance the total amount payable including any charges or interest.
What determines the rate that I pay?
Interest rates for business loans rates depend on a variety of factors like the amount of money borrowed, what company assets the funds will be used for as well as the field the company is in, how long the company is in operation for, whether the business has sufficient cash flow to cover the loan, and general well-being or financial standing of the company.
What are the cost?
There aren’t any hidden costs for our company loans, and you’ll know precisely what you need to pay, and when, starting from day one. There’s no compounding interest 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 request a credit loan with without any upfront costs or obligation to proceed.
The Origination Fee covers the expenses involved with setting up and managing the loan. You are only charged this cost if you take out the loan. The Origination Fee for us is 2.5 percentage of the amount of the loan.
Can I pay off the loan in advance?
You may choose to pay back the entire amount of your loan early at any time.
If you decide to take this route, please contact our helpful business credit specialists. We will provide you with details for repayment along with an early payout estimate. It will be calculated using the sum of the principal remaining and any accrued interest at the time of the early payout, plus 1.5% of the principal balance plus any outstanding fees.
How do you make repayments work?
To ensure you do not miss payment dates and to align with your cash flow cycle we provide payments that are either weekly or daily. They are automatically deducted from your business account.
Security & privacy
Will my information be secure?
Making sure that your information is secure, and making it clear the ways we gather, use, exchange and secure your information, is crucial and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption techniques to protect your personal, sensitive financial and other data. Our funders are ISO 27001 qualified for our dedication to security for our customers and security. We utilise a sophisticated banking verification system to instantly confirm your bank account information online to provide rapid response.
About business loans
How do you define asset-based lending (a secured loan)?
An asset-based loan is when the company owner utilises assets they own to get a loan. The asset could be a personal asset like the family home, or an company asset like a truck as well as a piece of machine.
The vast majority of banks, even the banks with the biggest size, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, then the asset might be taken over by the lender. In essence, it is a way of securing new financing using the worth of the asset you already own.
Are I need security for an company loan?
For loans of up to $150K, the requirement for asset security is not required in advance to gain access to the funds but we require a personal guarantee. require the personal guarantee. So long as you comply with your loan commitments (as stated in the loan contract) and you are able to meet your obligations, asset security will never be required. For loans of over $150K generally there is an individual guarantee and security is provided in the form of a charge over assets.