FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Bunya Small Business Loans
Tell me how you can avail the Bunya Small Business Loans
Bunya unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 month and cash flow friendly repayments which can be made daily or weekly.
How is the Unsecured Loan different from a traditional business loan?
The application for your Small Business Loan in under 10 minutes on the internet or on the phone. You’ll receive a same day response and funds may be in your account within 24 hours. Traditional business loans refer to an annual rate of interest together with additional fees and charges. This company loan is a pre-paid loan and you’ll know in advance the total amount to be paid, including any fees, charges or charges. This is then broken down into a daily or weekly payment amount.
What can be the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business purpose including managing cash flows, company remodeling, marketing to purchase inventory or new equipment, as general working capital and so much more. The loan is not available for personal use.
About larger Bunya Business Loans
What is the Larger Bunya Business Loan?
The Larger Business Loan is a larger size loan to aid in company growth opportunities. Loans range from $100,000 to $500,000 with a fixed-term that can last up to 36 months. Repayments are either weekly or fortnightly to work with your cash flow.
How’s the Origination Fee calculated?
The Larger Business Loan has an Origination Fee which is calculated at 2.5 percent of the loan amount.
Do I qualify for the Larger Business Loan?
To qualify for a loan in this amount the company needs to be in operation for at least 3 years and have an annual turnover of $700,000. Your company must belong to a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able of proving at minimum 12 months of business.
How can the funding be utilised?
A Business Loan of a larger size is a great option for almost any business need, including company renovations, purchase of new equipment or inventory for general working capital, and much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed to obtain funding above $150,000. It’s in the form of a charge against assets and can include registering this with the PPSR or registering as a caveat.
A personal or director’s ensure is a guarantee to pay off a credit line that is general in nature rather than stipulating the security for a particular asset. The person signing the guarantee is personally liable in the event that the business creditor is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register that is operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including objects or assets). The PPSR allows the priority of personal property granted depending on the date that a security interest has been registered.
An affidavit is an official document that is filed to offer an official notice of a claim on a property.
What is a pre-approval without Credit Check?
If you’re applying for the Larger Business Loan of more than $250,000, we may offer a preliminary pre-approval to help simplify the process. We may be able to apply for this without credit checks and within six hours of your initial application. This pre-approval is made based on an initial evaluation that involves you answering some financial health checks. This is in no way an offer, nor is it a guarantee of funds. Unconditional approval is subject to an extensive credit evaluation and any offer that you may receive may be subject to different terms.
The application process
Are I eligible for funding?
You are eligible to apply for an company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for a unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Complete the online form within a few minutes and an experienced business expert in lending will call you to guide you through the process.
To be eligible for up to $100,000, you’ll need identification details (valid Driver’s Licence) as well as an NZBN/IRD that is valid and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll require:
$100K to $250K: Application requirements, including credit approval, 6-12 months of IRD statements, bank statements (if you have a loan of more than $150K).
$250K – $500K: Details of the application, including credit consent and 12 months of bank records, IRD statement as well as the two most recent years’ financial statements, plus interim financial statements for the current year such as age-related payables and aged Receivables reports.
How fast will I get an answer?
For an unsecured loan ($5K or more) We can usually offer an answer in just one hour, provided you apply in standard business time and you allow us to make use of the advanced bank verification system link to instantly verify your bank information online. If you decide to send us copies of your bank statement, we’ll offer a decision in as little as an company day.
For the Larger Business Loan ($100K up to $500,000) we could be in a position to offer you with conditional pre-approval within about six hours. Once you’ve signed the pre-approval form, it will take about 2-3 days for final approval. However, this can be quicker based on the circumstances of each application. Certain agreements have been approved within the space of 24 hours.
The fastest way would be to make sure you apply during normal business hours. Also, let us use the advance bank verification link to check your bank’s information online. If you opt to upload the copies of bank statement, it takes a bit longer.
How quickly will I receive the funds?
For the Small Business Loan ($5K up to $100,000) we can often offer an answer in just one hour if you apply in standard business time and allow us to make use of the advanced bank verification system to instantly verify your bank information online. If you decide to submit copies of your bank statements, we will be able to offer the decision in as little as an business day.
For the Larger Business Loans ($100K and up) we might be capable of offer you with conditional pre-approval within six hours. After you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this may be quicker depending on the specifics of each application. Certain transactions have received approval in the space of 24 hours.
The fastest way is to make sure you apply during normal business hours and permit us to use the advanced bank verification system to instantly check your bank’s information online. If you opt to upload the copies of bank statements, it can take a bit longer.
How much can I borrow?
We provide loans ranging from $5,000 to $500,000. When you submit an application for a specific amount we look at a variety of factors for determining the well-being of the business and the level of the repayments your company can support. The total amount of your loan will be contingent on the specifics of your company.
When you submit an application for a set amount, we consider a variety of aspects to assess how much we can lend you such as health of the company and the amount of repayments that your company will be able to support. The amount you receive from your loan will depend on the particulars for your business.
Fees & repayments
How much do you charge for a company loan?
When you apply for the company loan, we’ll assess the risk assessment that you have for your company and offer you with a customised offer including the amount of loan, the term and the interest rates. A business loan is an upfront-priced loan which means you know in advance the total amount to be paid, including any charges or interest.
What is the basis for the rate I pay?
Interest rates for business loans rates depend on a variety of variables like the amount to be that is borrowed, what company assets the funds will be used for and the sector the business operates in, the long the company has been in operation for, how long the business has sufficient cash flow to cover the loan, and the general health or financial standing of the company.
What are the charges?
There aren’t any hidden costs for our company loans, and you’ll know precisely what you need to pay, and when, from the first day. There’s no compounding interest and the loan comes with no additional fees (as long as you make your payments on time).
We do not charge an application fee. You are able to make an application for loans with absolutely no upfront cost and no obligation to proceed.
The Origination Fee includes the expenses associated with the setting up and management of the loan. You are only charged this fee if you choose to proceed with the loan. The Origination Fee for us is 2.5 percent of the loan amount.
Can I pay out the loan in advance?
You can choose to repay the entire amount of your loan at any point in time.
If you are deciding to pursue this option, please call our helpful business loan professionals. We will offer you with the details of your repayment and an early payout figure. The figure will be calculated as the sum of the principal balance and the accrued interest up to the time of early payment plus 1.5 percent of the remaining principal and any outstanding fees.
What are the repayment methods?
To make sure that you don’t miss payments and to work your cash flow cycle we provide repayments either weekly or daily. These are automatically withdrawn from the nominated company account.
Security & privacy
Will my information be secure?
Protecting your information, and being clear about how we collect information, use it, and exchange it, as well as safeguard your data, is crucial and a vital part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your sensitive, personal and financial data and our funders are ISO 27001 qualified for our dedication to customer security and security. We employ a highly sophisticated bank verification system link to immediately confirm your bank account information online so we can provide rapid response.
About business loans
What is asset-based borrowing (a secured loan)?
Asset-based borrowing occurs when the company owner borrows from an asset that they own to obtain the funding. The asset could be an individual asset, such as the family home, or it could be a company asset such as a truck or piece of equipment.
The vast majority of lenders, including the big banks, tend to make loans secured by an asset. If you’re struggling to pay back the loan, then the asset could be transferred to the lender. In essence it’s means of securing new financing making use of the value of what you already have.
Should I require security for an business loan?
For loans up to $150K it is not necessary to secure assets before you are able to access the money However, we do need an individual guarantee. In the event that you fulfill the terms of your loan (as specified in the loan contract) the security of assets will never be required. For loans that exceed $150,000, generally, there is personal ensure and security in the form a charge over assets.