FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Burbank Small Business Loans
Let me know what you think of the Burbank Small Business Loans
Burbank unsecured loans offers the range of $5,000 to $100,000. Terms range from 3 and 24 months. They also offer cash flow-friendly repayments that are either daily or weekly.
What makes this Unsecured Loan different from an traditional company loan?
You can apply to get this Small Business Loan in under 10 minutes on the internet or over the phone, receive a same day response and have the funds on your account within 24 hours. Traditional business loans are based on an interest rate per annum along with other charges and fees. Our company loan is a loan that is priced upfront which means you know ahead of time the total amount due, which includes the interest, fees and charges. This is then divided into weekly or daily amount to be paid back.
What could you use the Small Business Loan be used for?
A Small Business Loan can be used to fulfill almost every company purpose including control of cash flow business improvements, advertising to purchase inventory, new equipment, for general working capital, and much more. The loan cannot be used to fund personal expenses.
About Larger Burbank Business Loans
What is the Larger Burbank Business Loan?
The Larger Business Loan is a larger amount of loan to help company expansion opportunities. Loans range from $100,000 to $500,000 for a fixed period of that can last up to 36 months. Repayments are scheduled weekly or fortnightly to work with your cash flow.
How is the Origination Fee determined?
It is important to note that the Larger Business Loan has an Origination Fee, determined at 2.5 percentage of the loan amount.
Do I qualify for the Larger Business Loan?
In order to be eligible for a loan in this amount the business 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 or have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at least 12 months of trading.
How can the funding be used for?
A large business loan can be used for almost all company reason, such as business improvements, purchasing inventory or new equipment for general working capital and much more. The loan is not available for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is required for funding of more than $150,000. This is as a result of an charge over assets and can be registered on the PPSR or registering a caveat.
A personal or director’s ensure is a promise to pay back a loan that is generally based rather than stipulating the security for a particular asset. The person who signs the guarantee is personally accountable if the business lender is not able to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register operated by the New Zealand Government. It records security interests that have been granted to individuals who own personal property (including items or assets). The PPSR allows priority over personal property to be granted according to the date the security interest was registered.
Caveats are legal form of document to provide notice of a legal claim on a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for a Larger Business Loan of more than $250,000 we may be able to provide an initial pre-approval in order to make the process. We may be able to get this done without a credit check and within six hours of your initial application. This pre-approval is based on an initial assessment that includes answering a couple of financial well-being questions. It’s not an offer of credit or guarantee of funds. The approval of a conditional loan is subject to an exhaustive credit evaluation, and any offer that you are offered could be based on different terms.
Application process
Do I qualify for funds?
You may apply for an company loan if you:
- are a New Zealand Citizen (or Permanent Resident)
- are at least 18 years old, have a New Zealand company (with a valid NZBN/IRD)
- can demonstrate at least 6 months of trading (for for the unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The process for applying is fast and easy. Just complete the online application in just a few minutes, and a dedicated business expert in lending will contact you to guide you.
To be eligible for up to $100,000, you’ll require proof of identity (valid Driver’s Licence) along with a valid NZBN/IRD as well as at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit consent, 6-12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Application details including credit consent and 12 months of bank records, IRD statements, last 2 years finalised financial statements, in addition to interim financials for the current financial year including Aged Payables, Aged Receivables summary.
How fast will I get a decision?
For an unsecured loan ($5K to $100K) We can usually provide an answer within an hour if you apply within standard company timings and let us make use of the advanced bank verification system link to immediately verify your bank account information online. If you want to upload copies of your bank statement, we’ll provide an answer in just the span of one business day.
If you are applying for a Larger Business Loan ($100K up to $500,000) we could be capable of offer you with conditional pre-approval within about six hours. Once you’ve signed the pre-approval document, you will require to wait around 2-3 days for final approval. However, this may be quicker depending upon the circumstances for each application. Certain offers have been approved within the space of 24 hours.
The quickest way to apply is to make sure you apply during standard business hours. Also, permit us to use the modern bank verification link to confirm your bank details online. If you opt to send us documents from your account statement, 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 – provided you apply during normal business timings and you allow us to use the advanced bank verification system link to instantly verify your bank details online. If you want to submit copies of your bank statements, we’ll be able to offer an answer in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we might be likely to offer you with pre-approval conditional to your application within six hours. Once you have signed the pre-approval document, you will need to wait between 2 and 3 days for the final approval. However, this could be shorter based on the specifics of each application. Certain offers have been approved within the space of 24 hours.
The quickest method can be ensure you apply during standard business hours and allow us to use the advance bank verification to instantly verify your bank information online. If you choose to upload the copies of bank statements it takes a bit longer.
What is the maximum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. When you submit an application for a certain amount we consider a variety of variables to determine what is the well-being of your business and the extent of repayments your business is able to afford. The amount you receive from the loan will be determined by the specific circumstances for your company.
When you apply for a set amount, we consider a variety of factors to determine the well-being of the company and the amount of repayments that your company can afford. The amount you receive from your loan will be contingent on the particulars for your business.
Fees & repayments
What is the cost for a business loan?
If you decide to apply for one of our company loans, we’ll assess the risk profile of your business and offer you with a tailored proposal that includes the amount of loan, the term and interest rates. It is a company loan is an upfront priced loan which means you be aware in advance of the total amount to be paid, including any charges or interest.
What is the factor that determines the price I pay?
The interest rates on business loans rates depend on several factors including the amount of money borrowed, the business assets the money are used to purchase in addition to the industry that the business is in, how long the business is in operation, in the event that the company has enough cash flow to cover the loan, as well as the general health or creditworthiness of the business.
What are the charges?
There aren’t any hidden charges for our business loans. You’ll know precisely what it is that you be required to pay and when, from day one. There’s no compounding and the loan comes with no additional fees (as long as you are able to make your payments in time).
We don’t charge an application fee. You can make an application for loans with with no upfront cost or the obligation to take action.
The Origination Fee covers the expenses involved with setting up and managing the loan. It is only charged for this fee if you proceed with the loan. The Origination Fee for us is 2.5 percent of the amount of the loan.
Can I pay off the loan earlier?
You can decide to repay the entire amount of your advance loan at any time.
If you are deciding to pursue this option, please contact our helpful business credit professionals. They’ll provide you with details for repayment along with an early payout estimate. The figure will be calculated as the total of the remaining principal amount plus any accrued interest as of the time of early payment, plus 1.5% of the remaining principal and any outstanding fees.
How do you make repayments work?
To help you avoid missing payments and to work your cash flow cycle we offer repayments either weekly or daily. These are automatically deducted from the nominated business account.
Security & privacy
Will my data be secure?
Making sure that your information is secure, and being upfront about how we collect the information we collect, use, share and ensure the security of your information is of huge importance and an integral aspect of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption standards to secure your sensitive, personal financial information and our funders are ISO 27001 certified for our dedication to security for our customers and privacy. We employ an exceptionally sophisticated bank verification system to instantly confirm your bank account information online. This allows us to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an business owner borrows from the assets they have to secure the loan. The asset can be either an asset belonging to the personal, like the family home, or it could be a company asset like a truck or piece of equipment.
The majority of the lenders not just the largest banks, are inclined to secure loans against assets. If you have trouble paying back the loan then the asset might be taken over by the lender. In essence, it’s the process of securing new financing by using the value of what you already have.
Should I require security to secure an business loan?
For loans up to $150,000 it is not necessary to secure assets prior to the loan’s access however, we do require an individual guarantee. So long as you comply with your loan obligations (as specified in your loan contract document) Asset security is not needed. For loans that exceed $150K, generally there is the option of a personal ensure and security in the form an asset charge.