FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The New Beith Small Business Loans
Tell me about the New Beith Small Business Loans
New Beith unsecured loans provides amounts of between $5,000 and $100,000. Terms range from 3 and 24 months, cash flow-friendly repayments, which are either daily or weekly.
What makes this Unsecured Loan different from a traditional company loan?
It is imaginable to apply to your Small Business Loan in under 10 minutes over the phone. You’ll get an instant response and the funds could be in your account within 24 hours. Traditional company loans refer to an interest rate per annum along with other charges and fees. The company loan is a cash-based loan so you will be aware of the total amount due, which includes any interest, fees or charges. This is then broken down into either weekly or daily payment amount.
What could you use the Small Business Loan be used for?
It is a Small Business Loan can be used for virtually any business need, such as the management of cash flow, business renovations, marketing to purchase inventory, new equipment, to fund general working capital, and much more. The loan cannot be used for personal use.
Concerning Larger New Beith Business Loans
What is the Larger New Beith Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans range between $100,000 and $500,000 with a term fixed that can last up to 36 months. Repayments are scheduled weekly or fortnightly, depending on the flow of cash.
How is the Origination Fee determined?
A Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To be eligible for a loan that is this large, your company needs to be operating for at least three years with an annual turnover of at least $700,000. It is necessary to be a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old as well as own a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can I use the funds for?
A Business Loan of a larger size is a great option for almost any business use, including business renovations, to purchase inventory or new equipment as well as for general working capital, and much more. The loan is not available for personal purposes.
Is the Larger Business Loan one that is secured?
Asset security is needed for funding of more than $150,000. This is in the form of a charge against assets, and could be registered in the PPSR or filing a caveat.
A director’s or personal guarantee is a guarantee to pay back a loan that is generally in nature rather than stipulating the security of a specific asset. The person who signs the guarantee is personally accountable if the business borrower is unable to repay the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It contains security interests that are registered for personal property (including objects or assets). The PPSR grants the priority of personal property granted according to the date the registration of a security interest.
An affidavit is an official form of document to provide an official notice of a claim to property.
What is a pre-approval without Credit Check?
When you’re applying for a Larger Business Loan that exceeds $250,000, we may offer an initial pre-approval to ease the process. We might be able to apply for this without a credit check and within 6 hours of the initial application. The pre-approval is based upon an initial assessment that includes the answer to a series of financial health questions. It’s neither an offer nor a guarantee of credit. Acceptance without condition is subject to an extensive credit evaluation and any offer that you receive could be based on different terms.
The application process
Do I have the right to receive funds?
You may apply for an business loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over 18 years, have a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months of business (for for the unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and simple. Just complete the online application within a couple minutes, and a dedicated company credit specialist will contact you to assist you.
To apply for up to $100,000, you’ll need ID details (valid Driver’s Licence) along with 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: Details of application, including credit consent, 6 – 12 months of IRD statements, bank statements (if credit is over $150K).
$250K-$500K: Details of the application, including credit consent as well as 12 months bank statement, an IRD statement and the last two years’ finalised financial statements, as well as interim financials for the current financial year such as age-related payables and aged Receivables summaries.
How fast will I get an answer?
For an unsecured loan ($5K and up) We can usually offer an answer within an hour – as long as you apply in standard company hours and allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you want to submit copies of your bank statements we can provide an answer in just 1 company day.
For the Larger Business Loan ($100K up to $500,000) we could be able to offer you with conditional pre-approval in 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 can be quicker based on the specifics of each application. Certain transactions have received approval within just 24 hours.
The quickest way to apply can be make sure you apply during standard company hours. Also, let us use the advance bank verification to confirm your bank details online. If you decide to upload the copies of bank statement, it may take a bit longer.
What is the time frame to 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 make your application within standard business timings and let us use the advanced bank verification system link to instantly verify your bank details online. If you choose to upload copies of your banking statements, we are able to provide the decision within the span of one business day.
For the Larger Business Loans ($100K to $500K) we could be capable of offer you with a conditional pre-approval within 6 hours. Once you have signed the pre-approval, turnaround times are around 2-3 days for final approval, however this may be quicker depending upon the circumstances for each application. Some agreements have been approved in just 24 hours.
The most efficient method for you to apply is ensure you apply during standard business hours. Also, let us use the sophisticated bank verification to instantly confirm your bank details online. If you choose to upload copies of your bank statements it may take a bit longer.
How much can I borrow?
We provide the loan amount between $5,000 and $500,000. If you apply for a specific amount we will consider a number of elements for determining your well-being for your business and the extent of repayments that your business will be able to support. The amount you receive from the loan will be determined by the specifics the company.
When you apply for a set amount, we will consider a number of variables to assess how much we can lend you such as health that is your company and the level of payments your company can support. The amount you receive from your loan will depend on the specifics of your business.
Fees & repayments
How much do you charge for an business loan?
When you request our company loan, we will assess the risk profile that you have for your business and offer you with a customised proposal that includes loan amount, term 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 due, which includes any charges, interest rates or fees.
What is the basis for the rate I am charged?
Business loan interest rates depend on several factors such as the amount that is that is borrowed, what company assets the funds are used to purchase and the sector the company is in, how long the business has been operating, how long the company has sufficient cash flow to fund the loan, and general health as well as creditworthiness company.
What are the charges?
There aren’t any hidden costs for our business loans. You’ll know precisely how much you need to pay and when, from the day you sign up. There’s no compounding and no extra fees (as as long as you pay your payments in time).
We don’t charge an Application Fee. You are able to make an application for loans without any upfront costs or commitment to apply.
The Origination Fee covers the expenses involved in establishing and managing the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay out the loan early?
You can decide to repay all of your loan in full at any time.
If you decide to pursue this option, please contact our helpful company loan experts. We will provide you with repayment details and an early payout figure. This is calculated as the total of the principal amount remaining and the accrued interest up to the time of early payout, plus 1.5% of the principal amount remaining and any fees that remain unpaid.
What is the process for repayments?
To help you avoid missing payment dates and to align your cash flow schedule, we provide payments that are either daily or weekly. These are automatically withdrawn from your designated company account.
Security & privacy
Will my information be protected?
Making sure that your information is secure, and being clear about the ways we gather data, process, exchange and ensure the security of 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 employ industry-recognised encryption protocols to safeguard your sensitive, personal as well as financial data. Our funders are ISO 27001 qualified for our commitment to customer security and privacy. We employ an exceptionally sophisticated bank verification system to immediately confirm your bank account information online so we can provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when a business owner utilises an asset that they own to obtain the funding. The asset may be an individual asset, such as the family home or an company property like a truck or piece of equipment.
The majority of banks, not just the largest banks, are inclined to guarantee loans against assets. If you’re having trouble paying back the loan, the asset might be transferred to the lender. In essence it’s means of securing new funding using the value of what you already own.
What do I require security for a company loan?
For loans up to $150,000 no asset security is required prior to the loan’s access, however we require a personal guarantee. require an individual guarantee. If you adhere to the loan terms (as stipulated in the loan contract) Asset security will never be required. For loans that exceed $150K, generally, you can get a personal ensure and security that is in the form the charge of assets.