FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Bulimba Small Business Loans
Let me know about the Bulimba Small Business Loans
Bulimba unsecured loans provides amounts of between $5,000 and $100,000 with terms between 3 and 24 months and cash flow-friendly repayments that are either per day or weekly.
How is this Unsecured Loan different from an traditional business loan?
You can apply to your Small Business Loan in under 10 minutes over the phone. You’ll get an instant response and the funds could be on your account within 24 hours. Traditional business loans are based on an interest rate per annum plus other fees and charges. The business loan is a cash-based loan therefore you’ll be aware in advance of the total amount due, which includes the interest, fees and charges. This is then divided into a daily or weekly repayment figure.
What could you use the Small Business Loan be used for?
The Small Business Loan can be used for nearly any business need, such as control of cash flow business remodeling, marketing, to purchase inventory or new equipment, or as general working capital and so much more. The loan cannot be used for personal purposes.
About the Larger Bulimba Business Loans
What is the Larger Bulimba Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range from $100,000 to $500,000 with a fixed-term for up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the amount of the loan.
Do I qualify 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 with an annual turnover of $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) at least 18 years old or have a New Zealand business (with a valid NZBN/IRD) and be able of proving at the least 12 months of operating.
What can I use the funds for?
A Larger Business Loan can be used for nearly any business reason, such as company remodeling, buying inventory or new equipment as well as for general working capital and much more. The loan is not available for personal use.
Is the Larger Business Loan one that is secured?
Asset security is necessary to access funding over $150,000. It’s in the form of a charge on assets and can be registered with the PPSR or making as a caveat.
A director’s or personal guarantee is a promise to repay credit that is generally based rather than defining the security for a particular asset. The person signing the guarantee is personally liable if the company borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is an online central register operated by the New Zealand Government. It reflects security interests that are registered for personal property (including goods or assets). The PPSR permits priority over personal property to be granted according to the date the security interest was registered.
Caveats are legal document filed to provide the public notice of a legal claim against a property.
What is a pre-approval without Credit Check?
If you’re seeking larger company loans of more than $250K, we may offer a preliminary pre-approval to help make the process. We may be able to make this decision without a credit check, and within 6 hours of your initial application. The pre-approval is based upon an initial assessment that includes answering a couple of financial health checks. This is not an offer or guarantee of funds. Unconditional approval is subject to an assessment of your creditworthiness and any offer you are offered could be on different terms.
Application process
Are I eligible for funding?
You may apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand company (with a valid NZBN/IRD)
- you must demonstrate at minimum 6 months’ worth of transactions (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 application process is quick and simple. Complete the online form within a couple minutes, and an experienced company expert in lending will contact you to assist you.
To apply for up to $100,000 you’ll require identification details (valid Driver’s Licence) as well as an active NZBN/IRD, and at least six months worth of bank statements.
For larger loan sizes, you’ll require:
$100K-$250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K to $500K: Details of the application, including credit consent, 12 months bank statement, an IRD statement, last 2 years finalised financial statements, in addition to interim financials from the current financial year such as age-related payables and aged Receivables summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we typically provide an answer within one hour – as long as you submit your request in quality business timings and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you choose to send us copies of your bank statements , we will be able to provide an answer within 1 company day.
For Larger Business Loans ($100K and up) we might be in a position to provide the conditional pre-approval within 6 hours. Once you’ve signed the pre-approval form, it will take between 2 and 3 days for the final approval, however this can be quicker based on the specifics of each application. Certain deals have been approved within just 24 hours.
The quickest way to apply can be make sure you apply during standard company hours and allow us to use our advance bank verification to instantly verify your bank information online. If you send us documents from your account statements it takes a bit longer.
What is the time frame to receive the cash?
For the Small Business Loan ($5K to $100K) We can usually provide an answer in just one hour – provided you apply at normal business timings and permit us to make use of the advanced bank verification system to instantly verify your bank details online. If you decide to submit copies of your bank statements, we are able to provide a decision within one business day.
If you are applying for Larger Business Loans ($100K to $500K) We may be likely to provide you with a conditional pre-approval within about 6 hours. Once you’ve signed your pre-approval document, you will need to wait around 2-3 days for final approval. However, this can be faster depending upon the circumstances for each application. Some agreements have been approved in less than 24 hours.
The most effective method is to make sure you apply during normal business hours and permit us to use the modern bank verification link to check your bank’s information online. If you choose to send us duplicates of your banking statements, it may take a bit longer.
What is the maximum amount I can borrow?
We offer loans that range from $5,000 to $500,000. When you make an application for a certain amount, we consider a variety of aspects that determine the well-being that is your business and the extent of repayments that your business can support. The total amount of your loan will depend on the particular circumstances for your company.
When you make an application for a certain amount, we will consider a number of aspects to determine the health that is your business and the extent of repayments your company is able to afford. The total amount of the loan will be determined by the particular circumstances of your company.
Fees & repayments
How do you charge for a company loan?
When you request one of our company credit, we’ll assess the risk profile that you have for your business and provide you with a customised proposal that includes the amount of the loan, the duration and the interest rates. A business loan is an upfront cost loan and you’ll know the exact amount you will have to pay, including charges, interest rates or fees.
What is the factor that determines the price I’m charged?
Business loan interest rates depend on several factors like the amount of money borrowed, what company assets the money are used to purchase in addition to the industry that the company operates in, the long the business has been running, how long the business has enough cash flow to pay for the loan, and also the general health as well as creditworthiness business.
What are the fees?
There aren’t any hidden costs for our company loans, and you’ll know precisely how much you’ll be required to pay and when, from the first day. There’s no compounding interest, and no additional fees (as as long as you pay your payments on time).
We do not charge an Application Fee. You are able to make an application for loans no cost upfront or obligation to proceed.
The Origination Fee covers the costs associated with the setting up and management of the loan. You are only charged this cost if you take out the loan. Our Origination Fee is 2.5 percent of the amount of loan.
Can I pay out the loan early?
You may choose to pay back the entire amount of the loan in full at any time.
If you choose to do this please speak to our friendly business lending experts. The experts will offer you with the details of your repayment as well as an early payout amount. The figure will be calculated as the total of the principal amount remaining and the accrued interest up to the time of early payment in addition to 1.5% of the principal amount remaining and any outstanding fees.
How do you make repayments work?
To help you avoid missing repayments and to fit in with your cash flow cycle we provide payments that are either weekly or daily. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Protecting your information, and knowing the ways we gather, use, exchange and secure your information, is vital and an integral element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We use industry recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our dedication to customer security and security. We employ an exceptionally sophisticated banking verification system to instantly verify your bank account information online so we can offer quick responses.
About business loans
How do you define asset-based lending (a secured loan)?
Asset-based borrowing is when the company owner utilises assets they own to make the funds for a loan. The asset may be an individual property, such as the family home, or an company property like a truck or piece or equipment.
The majority of lending institutions, including the banks with the biggest size, prefer to make loans secured by an asset. If you are having difficulty paying back the loan, then your assets could be offered for sale by the lender. In essence it’s an opportunity to secure new funding making use of the value of what you already have.
Do I require security for an company loan?
For loans up to $150K it is not necessary to secure assets before you can access the money However, we do require a personal guarantee. So long as you comply with your loan obligations (as specified in the loan contract), asset security will never be needed. If you take out loans in excess of $150K generally, there is personal guarantee and security that is in the form the charge of assets.