FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
About The Bundamba Small Business Loans
Tell me what you think of the Bundamba Small Business Loans
Bundamba unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months, cash flow friendly repayments, which are either daily or weekly.
How is the Unsecured Loan different from an ordinary business loan?
You can apply to get the Small Business Loan in under 10 minutes over the phone, receive an instant response and the money could be in your account within 24 hours. Traditional company loans have an interest rate per annum plus other fees and charges. This company loan is a pre-paid loan so you will be aware of the amount you will have to pay, including any fees, charges or charges. This is then broken down into either a daily or weekly installment amount.
What can the Small Business Loan be used for?
The Small Business Loan can be used for almost any company reason, such as the management of cash flow, business remodels and marketing, to purchase inventory or new equipment, for general working capital and so much more. The loan is not available for personal use.
About larger Bundamba Business Loans
What is the Larger Bundamba Business Loan?
The Larger Business Loan is a larger size loan to aid in business growth opportunities. Loans range from $100,000 to $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly depending on the flow of cash.
How’s the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, which is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit that is this large the business needs to have been in operation for at least 3 years with an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old or have a New Zealand company (with a valid NZBN/IRD) and be able demonstrate at minimum 12 months of continuous trading.
How can the funding be utilised?
A Business Loan of a larger size can be used to fund almost every company need, including company remodeling, buying new equipment or inventory as well as for general working capital and so much more. The loan is not available for personal purposes.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. This is in the form of a charge against assets, and may include the registration of this on the PPSR or making a caveat.
A director’s or personal ensure is a promise to repay credit that is generally in nature rather than specifying the security for a particular asset. The person who signs the guarantee is personally accountable if the company the borrower fails to repay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register run by the New Zealand Government. It lists security interests that are that are registered for personal property (including goods or assets). The PPSR grants preference over private property assigned according to the date a registration of a security interest.
Caveats are legal document lodged to offer an official notice of a claim to a property.
What is a pre-approval that does not require Credit Check?
If you’re applying for an enterprise loan that exceeds $250,000, we may offer an initial pre-approval that will help smooth out the process. It is possible to make this decision without a credit check and within 6 hours of the initial application. The pre-approval process is based on an initial evaluation that involves answering a couple of financial well-being checks. This is in no way an offer, nor is it a guarantee of credit. Unconditional approval is subject to an assessment of your creditworthiness and any offer that you are offered could have different terms.
Application process
Can I be eligible for funding?
You are eligible to apply for a company 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)
- you must prove at least 6 months of trading (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is quick and simple. Complete the online form in few minutes and an experienced business loan specialist will be in touch to help you.
For a loan of up to $100,000 you’ll require identification details (valid Driver’s License) along with a valid NZBN/IRD and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K to $250K: Application details including credit consent, 6 – 12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Details of the application, including credit consent twelve month bank accounts, the IRD statement as well as the two most recent years’ financial statements, in addition to interim financials from the current financial year as well as Aged Payables and Receivables Summary.
How quickly will I receive a decision?
For an unsecured loan ($5K or more) we usually offer a response in one hour if you apply within quality company time and let us utilise the bank verification system link to instantly verify your bank information online. If you want to submit copies of your bank statements , we will be able to offer the decision in as little as one company day.
For the Larger Business Loan ($100K or more) we may be capable of provide you with conditional pre-approval in around six hours. Once you’ve signed the pre-approval form, it will take around 2-3 days for final approval, however this may be quicker depending on the specifics of each application. Some agreements have been approved within just 24 hours.
The quickest method is to make sure you apply during standard business hours, and permit us to use the advanced bank verification system to instantly confirm your bank details online. If you decide to upload duplicates of your banking accounts, it can take a bit longer.
How fast will I get the funds?
For the Small Business Loan ($5K to $100K) We can usually offer an answer in just one hour if you submit your request at standard business hours and you allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you decide to submit copies of your bank statements we can offer the decision in as little as the span of one business day.
For the Larger Business Loans ($100K or more) we could be in a position to provide you with pre-approval conditional to your application in about six hours. Once you have signed the pre-approval, turnaround times are between 2 and 3 days for the final approval. However, this could be shorter based on the circumstances of each application. Certain transactions have received approval within 24 hours.
The most efficient method is to ensure you apply during standard business hours. Also, allow us to use our advanced bank verification system to instantly verify your bank account information online. If you decide to upload copies of your bank statement, 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 particular amount, we look at a variety of factors to determine the well-being that is your company and the level of repayments that your company will be able to support. The amount you receive from your loan will be contingent on the specific circumstances for your company.
When you apply for a particular amount, we consider a variety of aspects to determine the well-being of the company as well as the amount of repayments your company is able to afford. The total amount of your loan will be determined by the particulars that are unique to your business.
Fees & repayments
What is the cost for a business loan?
When you apply for our company loans, we’ll assess the risk profile of your company and offer an individualised offer that includes the amount of the loan, the duration and interest rates. This company loan is an upfront-priced loan which means you know in advance the total amount payable including any charges or interest.
What determines the rate that I’m charged?
Business loan interest rates depend on several factors like the amount of money borrowed, the company assets the funds are used to purchase in addition to the industry that the business is operating in, how long the company has been running, how long the business has enough cash flow to cover the loan, as well as the overall well-being or financial standing of the company.
What are the fees?
There are no hidden costs for our company loans, and you’ll know precisely what you be required to pay, and at what time, from the very first day. There’s no compounding and no additional fees (as long as you make your payments punctually).
We don’t charge an application fee. You are able to make an application for loans with no upfront cost or commitment to apply.
The Origination Fee includes the expenses associated with the setting up and management of the loan. It is only charged for this cost if you take out the loan. The Origination Fee for us is 2.5% of the amount of the loan.
Can I pay out the loan earlier?
You can repay all of your loan in full at any time.
If you choose to pursue this option, please contact our helpful business lending specialists. They’ll offer you with details on repayment along with an early payout estimate. This will be calculated as the sum of the principal remaining plus any accrued interest as of the date of early payout plus 1.5 percent of the principal amount remaining and any outstanding fees.
What is the process for repayments?
To ensure you do not miss payment dates and to align your cash flow cycle we offer repayments either daily or weekly. These are automatically deducted from the nominated company account.
Security & privacy
Will my data be secure?
The security of your personal information, as well as being upfront about how we collect information, use it, and exchange it, as well as protect your information, is of huge importance and an integral part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive financial information and our funders are ISO 27001 qualified for our dedication to security for our clients and privacy. We make use of an advanced bank verification system link to immediately verify the bank account details online. This allows us to offer an immediate response.
About business loans
What exactly is an asset-based loan (a secured loan)?
The term "asset-based" refers to borrowing where a business owner uses assets they own to obtain the funds for a loan. The asset can be an individual asset, such as the family home or an business asset such as a vehicle or piece or equipment.
The majority of lending institutions, even the major banks, prefer to secure loans against an asset. If you are having difficulty paying back the loan then your asset may be taken over by the lender. In essence, it is a way of securing additional financing taking advantage of the value of what you already have.
What do I need security to secure a company loan?
For loans up to $150K the requirement for asset security is not required in advance to gain access to the funds but we do need a personal guarantee. As long as you follow the loan terms (as stipulated in the loan contract), asset security will never be needed. For loans that exceed $150K, generally, there is personal guarantee and security that is in the form the charge of assets.